[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1205 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1205

To provide temporary tax relief for areas damaged by 2011 Southeastern 
     severe storms, tornados, and flooding, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 15, 2011

 Mr. Shelby (for himself, Mr. Blunt, Mr. Boozman, Mr. Chambliss, Mrs. 
  Hagan, Mr. Inhofe, Mr. Isakson, Mrs. McCaskill, Mr. Pryor, and Mr. 
   Sessions) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide temporary tax relief for areas damaged by 2011 Southeastern 
     severe storms, tornados, and flooding, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Southeastern Disaster Tax Relief Act 
of 2011''.

SEC. 2. TEMPORARY TAX RELIEF FOR AREAS DAMAGED BY 2011 SOUTHEASTERN 
              SEVERE STORMS, TORNADOS, AND FLOODING.

    (a) In General.--Subject to the modifications described in this 
section, the following provisions of or relating to the Internal 
Revenue Code of 1986 shall apply to any Southeastern disaster area in 
addition to the areas to which such provisions otherwise apply:
            (1) Go zone benefits.--
                    (A) Section 1400N (relating to tax benefits) other 
                than subsections (d), (e), (g), (h), and (m) thereof.
                    (B) Section 1400O (relating to education tax 
                benefits).
                    (C) Section 1400Q (relating to special rules for 
                use of retirement funds).
                    (D) Section 1400R(a) (relating to employee 
                retention credit for employers).
                    (E) Section 1400S (relating to additional tax 
                relief).
                    (F) Section 1400T (relating to special rules for 
                mortgage revenue bonds).
            (2) Other benefits included in katrina emergency tax relief 
        act of 2005.--Sections 302, 401, and 405 of the Katrina 
        Emergency Tax Relief Act of 2005.
    (b) Southeastern Disaster Area.--
            (1) In general.--For purposes of this section and for 
        applying the substitutions described in subsections (d) and 
        (e), the term ``Southeastern disaster area'' means an area--
                    (A) with respect to which a major disaster has been 
                declared by the President under section 401 of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act by reason of severe storms, tornados, or 
                flooding occurring after April 13, 2011, and before 
                June 7, 2011, in any of the States of Alabama, 
                Arkansas, Georgia, Kentucky, Mississippi, Missouri, 
                North Carolina, Oklahoma, and Tennessee, and
                    (B) determined by the President to warrant 
                individual or individual and public assistance from the 
                Federal Government under such Act with respect to 
                damages attributable to such severe storms, tornados, 
                or flooding.
            (2) Certain benefits available to areas eligible only for 
        public assistance.--For purposes of applying this section to 
        benefits under the following provisions, paragraph (1) shall be 
        applied without regard to subparagraph (B):
                    (A) Sections 1400N(f), 1400O, 1400Q, 1400S(a), 
                1400S(b), and 1400S(d) of the Internal Revenue Code of 
                1986.
                    (B) Sections 302, 401, and 405 of the Katrina 
                Emergency Tax Relief Act of 2005.
    (c) References.--
            (1) Area.--Any reference in such provisions to the 
        Hurricane Katrina disaster area or the Gulf Opportunity Zone 
        shall be treated as a reference to any Southeastern disaster 
        area and any reference to the Hurricane Katrina disaster area 
        or the Gulf Opportunity Zone within a State shall be treated as 
        a reference to all Southeastern disaster areas within the 
        State.
            (2) Items attributable to disaster.--Any reference in such 
        provisions to any loss, damage, or other item attributable to 
        Hurricane Katrina shall be treated as a reference to any loss, 
        damage, or other item attributable to the severe storms, 
        tornados, or flooding giving rise to any Presidential 
        declaration described in subsection (b)(1)(A).
            (3) Applicable disaster date.--For purposes of applying the 
        substitutions described in subsections (d) and (e), the term 
        ``applicable disaster date'' means, with respect to any 
        Southeastern disaster area, the date on which the severe 
        storms, tornados, or flooding giving rise to the Presidential 
        declaration described in subsection (b)(1)(A) occurred.
    (d) Modifications to 1986 Code.--The following provisions of the 
Internal Revenue Code of 1986 shall be applied with the following 
modifications:
            (1) Tax-exempt bond financing.--Section 1400N(a)--
                    (A) by substituting ``qualified Southeastern 
                disaster area bond'' for ``qualified Gulf Opportunity 
                Zone Bond'' each place it appears, except that in 
                determining whether a bond is a qualified Southeastern 
                disaster area bond, paragraph (2)(A)(i) shall be 
                applied by only treating costs as qualified project 
                costs if--
                            (i) in the case of a project involving a 
                        private business use (as defined in section 
                        141(b)(6)), either the person using the 
                        property suffered a loss in a trade or business 
                        attributable to the severe storms, tornados, or 
                        flooding giving rise to any Presidential 
                        declaration described in subsection (b)(1)(A) 
                        or is a person designated for purposes of this 
                        section by the Governor of the State in which 
                        the project is located as a person carrying on 
                        a trade or business replacing a trade or 
                        business with respect to which another person 
                        suffered such a loss, and
                            (ii) in the case of a project relating to 
                        public utility property, the project involves 
                        repair or reconstruction of public utility 
                        property damaged by such severe storms, 
                        tornados, or flooding, and
                    (B) by substituting ``any State in which a 
                Southeastern disaster area is located'' for ``the State 
                of Alabama, Louisiana, or Mississippi'' in paragraph 
                (2)(B),
                    (C) by substituting ``designated for purposes of 
                this section (on the basis of providing assistance to 
                areas in the order in which such assistance is most 
                needed)'' for ``designated for purposes of this 
                section'' in paragraph (2)(C),
                    (D) by substituting ``January 1, 2018'' for 
                ``January 1, 2012'' in paragraph (2)(D),
                    (E) in paragraph (3)(A)--
                            (i) by substituting ``$1,000'' for 
                        ``$2,500'', and
                            (ii) by substituting ``before the earliest 
                        applicable disaster date for Southeastern 
                        disaster areas within the State'' for ``before 
                        August 28, 2005'',
                    (F) by substituting ``qualified Southeastern 
                disaster area repair or construction'' for ``qualified 
                GO Zone repair or construction'' each place it appears,
                    (G) by substituting ``after the date of the 
                enactment of the Southeastern Disaster Tax Relief Act 
                of 2011 and before January 1, 2018'' for ``after the 
                date of the enactment of this paragraph and before 
                January 1, 2012'' in paragraph (7)(C), and
                    (H) by disregarding paragraph (8) thereof.
            (2) Advance refundings of certain tax-exempt bonds.--
        Section 1400N(b)--
                    (A) by substituting ``after the date of the 
                enactment of the Southeastern Disaster Tax Relief Act 
                of 2011 and before January 1, 2017'' for ``after the 
                date of the enactment of this section and before 
                January 1, 2011'' in paragraphs (1) and (2),
                    (B) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'' in paragraphs (3) and 
                (5)(A),
                    (C) by substituting ``any State in which a 
                Southeastern disaster area is located,'' for ``State of 
                Alabama, Louisiana, or Mississippi,'', and
                    (D) by substituting the following paragraph for 
                paragraph (4) thereof:
            ``(4) Aggregate limit.--The maximum aggregate face amount 
        of bonds which may be designated under this subsection by the 
        Governor of a State shall not exceed 50 percent of the 
        aggregate face amount of bonds which could otherwise be so 
        designated.''.
            (3) Low-income housing credit.--Section 1400N(c)--
                    (A) only with respect to calendar years 2011, 2012, 
                and 2013,
                    (B) by substituting ``Disaster Recovery Assistance 
                housing amount'' for ``Gulf Opportunity housing 
                amount'' each place it appears,
                    (C) in paragraph (1)(B)--
                            (i) by substituting ``$8.00'' for 
                        ``$18.00'', and
                            (ii) by substituting ``before the earliest 
                        applicable disaster date for Southeastern 
                        disaster areas within the State'' for ``before 
                        August 28, 2005'', and
                    (D) determined without regard to paragraphs (2), 
                (3), (4), (5), and (6) thereof.
            (4) Expensing for certain demolition and clean-up costs.--
        Section 1400N(f)--
                    (A) by substituting ``qualified Disaster Recovery 
                Assistance clean-up cost'' for ``qualified Gulf 
                Opportunity Zone clean-up cost'' each place it appears,
                    (B) by substituting ``beginning on the applicable 
                disaster date and ending on December 31, 2013'' for 
                ``beginning on August 28, 2005, and ending on December 
                31, 2007'' in paragraph (2), and
                    (C) by treating costs as qualified Disaster 
                Recovery Assistance clean-up costs only if the removal 
                of debris or demolition of any structure was necessary 
                due to damage attributable to the severe storms, 
                tornados, or flooding giving rise to any Presidential 
                declaration described in subsection (b)(1)(A).
            (5) Special rules for small timber producers.--Section 
        1400N(i)--
                    (A) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'' in paragraphs 
                (4)(B)(i)(I) and (5)(A)(i)(I),
                    (B) by disregarding subclauses (II) and (III) of 
                paragraphs (4)(B)(i) and (5)(A)(i),
                    (C) by substituting ``January 1, 2014'' for 
                ``January 1, 2008'' in paragraph (5)(A)(ii)(I), and
                    (D) by substituting ``January 1, 2014'' for 
                ``January 1, 2007'' in paragraph (5)(A)(ii)(I).
            (6) Special rule for public utility casualty losses.--
        Section 1400N(j), by substituting ``Southeastern disaster 
        area'' for ``Gulf Opportunity Zone'' each place it appears.
            (7) Treatment of net operating losses attributable to 
        disaster losses.--Section 1400N(k)--
                    (A) by substituting ``qualified Disaster Recovery 
                Assistance loss'' for ``qualified Gulf Opportunity Zone 
                loss'' each place it appears,
                    (B) by substituting ``after the day before the 
                applicable disaster date, and before January 1, 2014'' 
                for ``after August 27, 2005, and before January 1, 
                2008'' each place it appears,
                    (C) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'' in paragraph 
                (2)(B)(ii)(I),
                    (D) by substituting ``qualified Disaster Recovery 
                Assistance property'' for ``qualified Gulf Opportunity 
                Zone property'' in paragraph (2)(B)(iv), and
                    (E) by substituting ``qualified Disaster Recovery 
                Assistance casualty loss'' for ``qualified Gulf 
                Opportunity Zone casualty loss'' each place it appears.
            (8) Credit to holders of tax credit bonds.--Section 
        1400N(l)--
                    (A) by substituting ``Southeastern tax credit 
                bond'' for ``Gulf tax credit bond'' each place it 
                appears,
                    (B) by substituting ``any State in which a 
                Southeastern disaster area is located or any 
                instrumentality of the State'' for ``the State of 
                Alabama, Louisiana, or Mississippi'' in paragraph 
                (4)(A)(i),
                    (C) by substituting ``after December 31, 2011 and 
                before January 1, 2013'' for ``after December 31, 2005, 
                and before January 1, 2007'',
                    (D) by substituting ``shall not exceed $100,000,000 
                for any State with an aggregate population located in 
                all Southeastern disaster areas within the State of at 
                least 2,000,000, $50,000,000 for any State with an 
                aggregate population located in all Southeastern 
                disaster areas within the State of at least 1,000,000 
                but less than 2,000,000, and zero for any other State. 
                The population of a State within any area shall be 
                determined on the basis of the most recent census 
                estimate of resident population released by the Bureau 
                of Census before the earliest applicable disaster date 
                for Southeastern disaster areas within the State.'' for 
                ``shall not exceed'' and all that follows in paragraph 
                (4)(C), and
                    (E) by substituting ``the earliest applicable 
                disaster date for Southeastern disaster areas within 
                the State'' for ``August 28, 2005'' in paragraph 
                (5)(A).
            (9) Treatment of public utility property disaster losses.--
        Section 1400N(o), by substituting ``Southeastern disaster 
        area'' for ``Gulf Opportunity Zone'' in paragraph (2)(A).
            (10) Education tax benefits.--Section 1400O, by 
        substituting ``2011 or 2012'' for ``2005 or 2006''.
            (11) Special rules for use of retirement funds.--Section 
        1400Q--
                    (A) by substituting ``qualified Disaster Recovery 
                Assistance distribution'' for ``qualified hurricane 
                distribution'' each place it appears,
                    (B) by substituting ``on or after the applicable 
                disaster date and before January 1, 2013'' for ``on or 
                after August 25, 2005, and before January 1, 2007'' in 
                subsection (a)(4)(A)(i),
                    (C) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'' in subsections 
                (a)(4)(A)(i) and (c)(3)(B),
                    (D) by disregarding clauses (ii) and (iii) of 
                subsection (a)(4)(A) thereof,
                    (E) by substituting ``qualified storm damage 
                distribution'' for ``qualified Katrina distribution'' 
                each place it appears,
                    (F) by substituting ``after the date which is 6 
                months before the applicable disaster date and before 
                the date which is the day after the applicable disaster 
                date'' for ``after February 28, 2005, and before August 
                29, 2005'' in subsection (b)(2)(B)(ii),
                    (G) by substituting ``the Southeastern disaster 
                area, but not so purchased or constructed on account of 
                severe storms, tornados, or flooding giving rise to the 
                designation of the area as a disaster area'' for ``the 
                Hurricane Katrina disaster area, but not so purchased 
                or constructed on account of Hurricane Katrina'' in 
                subsection (b)(2)(B)(iii),
                    (H) by substituting ``beginning on the applicable 
                disaster date and ending on the date which is 5 months 
                after the date of the enactment of the Southeastern 
                Disaster Tax Relief Act of 2011'' for ``beginning on 
                August 25, 2005, and ending on February 28, 2006'' in 
                subsection (b)(3)(A),
                    (I) by substituting ``qualified storm damage 
                individual'' for ``qualified Hurricane Katrina 
                individual'' each place it appears,
                    (J) by substituting ``December 31, 2012'' for 
                ``December 31, 2006'' in subsection (c)(2)(A),
                    (K) by disregarding subparagraphs (C) and (D) of 
                subsection (c)(3) thereof,
                    (L) by substituting ``beginning on the date of the 
                enactment of the Southeastern Disaster Tax Relief Act 
                of 2011 and ending on December 31, 2012'' for 
                ``beginning on September 24, 2005, and ending on 
                December 31, 2006'' in subsection (c)(4)(A)(i),
                    (M) by substituting ``the applicable disaster 
                date'' for ``August 25, 2005'' in subsection 
                (c)(4)(A)(ii), and
                    (N) by substituting ``January 1, 2013'' for 
                ``January 1, 2007'' in subsection (d)(2)(A)(ii).
            (12) Employee retention credit for employers affected by 
        severe storms, tornados, and flooding.--Section 1400R(a)--
                    (A) by substituting ``$23,400'' for ``$6,000'' in 
                paragraph (1),
                    (B) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'' each place it appears,
                    (C) by substituting ``January 1, 2012'' for 
                ``January 1, 2006'' both places it appears, and
                    (D) only with respect to eligible employers who 
                employed an average of not more than 200 employees on 
                business days during the taxable year before the 
                applicable disaster date.
            (13) Temporary suspension of limitations on charitable 
        contributions.--Section 1400S(a), by substituting the following 
        paragraph for paragraph (4) thereof:
            ``(4) Qualified contributions.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified contribution' means any charitable 
                contribution (as defined in section 170(c)) if--
                            ``(i) such contribution--
                                    ``(I) is paid during the period 
                                beginning on the earliest applicable 
                                disaster date for all States and ending 
                                on December 31, 2011, in cash to an 
                                organization described in section 
                                170(b)(1)(A), and
                                    ``(II) is made for relief efforts 
                                in 1 or more Southeastern disaster 
                                areas,
                            ``(ii) the taxpayer obtains from such 
                        organization contemporaneous written 
                        acknowledgment (within the meaning of section 
                        170(f)(8)) that such contribution was used (or 
                        is to be used) for relief efforts in 1 or more 
                        Southeastern disaster areas, and
                            ``(iii) the taxpayer has elected the 
                        application of this subsection with respect to 
                        such contribution.
                    ``(B) Exception.--Such term shall not include a 
                contribution by a donor if the contribution is--
                            ``(i) to an organization described in 
                        section 509(a)(3), or
                            ``(ii) for establishment of a new, or 
                        maintenance of an existing, donor advised fund 
                        (as defined in section 4966(d)(2)).
                    ``(C) Application of election to partnerships and s 
                corporations.--In the case of a partnership or S 
                corporation, the election under subparagraph (A)(iii) 
                shall be made separately by each partner or 
                shareholder.''.
            (14) Suspension of certain limitations on personal casualty 
        losses.--Section 1400S(b)(1), by substituting ``the applicable 
        disaster date'' for ``August 25, 2005''.
            (15) Special rule for determining earned income.--Section 
        1400S(d)--
                    (A) by treating an individual as a qualified 
                individual if such individual's principal place of 
                abode on the applicable disaster date was located in a 
                Southeastern disaster area,
                    (B) by treating the applicable disaster date with 
                respect to any such individual as the applicable date 
                for purposes of such subsection, and
                    (C) by treating an area as described in paragraph 
                (2)(B)(ii) thereof if the area is a Southeastern 
                disaster area only by reason of subsection (b)(2) of 
                this section (relating to areas eligible only for 
                public assistance).
            (16) Adjustments regarding taxpayer and dependency 
        status.--Section 1400S(e), by substituting ``2011 or 2012'' for 
        ``2005 or 2006''.
            (17) Special rules for mortgage revenue bonds.--Section 
        1400T, by substituting ``2016'' for ``2010''.
    (e) Modifications to Katrina Emergency Tax Relief Act of 2005.--The 
following provisions of the Katrina Emergency Tax Relief Act of 2005 
shall be applied with the following modifications:
            (1) Additional exemption for housing displaced 
        individual.--Section 302--
                    (A) by substituting ``2011 or 2012'' for ``2005 or 
                2006'' in subsection (a) thereof,
                    (B) by substituting ``Southeastern displaced 
                individual'' for ``Hurricane Katrina displaced 
                individual'' each place it appears, and
                    (C) by treating an area as a core disaster area for 
                purposes of applying subsection (c) thereof if the area 
                is a Southeastern disaster area without regard to 
                subsection (b)(2) of this section (relating to areas 
                eligible only for public assistance).
            (2) Exclusion of certain cancellation of indebtedness 
        income.--Section 401--
                    (A) by treating an individual whose principal place 
                of abode on the applicable disaster date was in a 
                Southeastern disaster area (determined without regard 
                to subsection (b)(2) of this section) as an individual 
                described in subsection (b)(1) thereof, and by treating 
                an individual whose principal place of abode on the 
                applicable disaster date was in a Southeastern disaster 
                area solely by reason of subsection (b)(2) of this 
                section as an individual described in subsection (b)(2) 
                thereof,
                    (B) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'' both places it appears, 
                and
                    (C) by substituting ``January 1, 2013'' for 
                ``January 1, 2007'' in subsection (e).
            (3) Extension of replacement period for nonrecognition of 
        gain.--Section 405, by substituting ``on or after the 
        applicable disaster date'' for ``on or after August 25, 2005''.

SEC. 3. RESCISSION OF UNSPENT AND UNCOMMITTED FEDERAL FUNDS.

    (a) In General.--Notwithstanding any other provision of law, of all 
available unobligated Federal funds, $12,000,000,000 in appropriated 
discretionary unexpired funds are rescinded.
    (b) Implementation.--Not later than 60 days after the date of 
enactment of this Act, the Director of the Office of Management and 
Budget shall--
            (1) identify the accounts and amounts rescinded to 
        implement subsection (a); and
            (2) submit a report to the Secretary of the Treasury and 
        Congress of the accounts and amounts identified under paragraph 
        (1) for rescission.
    (c) Exception.--This section shall not apply to the unobligated 
Federal funds of the Department of Defense or the Department of 
Veterans Affairs.
                                 <all>