[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1632 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1632

To amend the Internal Revenue Code of 1986 to provide a look back rule 
  in the case of federally declared disasters for determining earned 
   income for purposes of the child tax credit and the earned income 
                    credit, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 23, 2011

  Mr. Menendez (for himself, Mr. Schumer, Mr. Leahy, and Mr. Cardin) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a look back rule 
  in the case of federally declared disasters for determining earned 
   income for purposes of the child tax credit and the earned income 
                    credit, 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 ``Tax Relief for Victims of Disasters 
Act of 2011''.

SEC. 2. SPECIAL RULE FOR DETERMINING EARNED INCOME MADE APPLICABLE 
              GENERALLY TO FEDERALLY DECLARED DISASTERS.

    (a) In General.--Section 1400S(d)(2)(A) of the Internal Revenue 
Code of 1986 is amended--
            (1) by striking ``and any'' and inserting ``any'', and
            (2) by inserting before the period at the end ``, and any 
        qualified federally declared disaster individual''.
    (b) Qualified Federally Declared Disaster Individual.--Section 
1400S(d)(2) of the Internal Revenue Code of 1986 is amended by adding 
at the end the following:
                    ``(E) Qualified federally declared disaster 
                individual.--The term `qualified federally declared 
                disaster individual' means with respect to a federally 
                declared disaster occurring after December 31, 2010, 
                and before January 1, 2013, any individual--
                            ``(i) whose principal place of abode on the 
                        applicable date was located in the disaster 
                        area and such individual was displaced from 
                        such principal place of abode by reason of the 
                        federally declared disaster, or
                            ``(ii) who performed substantially all 
                        employment services in the disaster area and 
                        was so employed on the applicable date.
                For purposes of the preceding sentence and paragraph 
                (3)(D), the terms `federally declared disaster' and 
                `disaster area' have the meanings given such terms in 
                section 165(h)(3).''.
    (c) Applicable Date.--Section 1400S(d)(3) of the Internal Revenue 
Code of 1986 is amended by striking ``and'' at the end of subparagraph 
(B), by striking the period at the end of subparagraph (C) and 
inserting ``, and'', and by inserting after subparagraph (C) the 
following:
                    ``(D) in the case of a qualified federally declared 
                disaster individual, the date of the federally declared 
                disaster.''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to federally declared disasters occurring after 
December 31, 2010.

SEC. 3. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED DISASTERS.

    (a) In General.--Section 1400S(b) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``and (2)(A)'' in the matter preceding 
        paragraph (1) and inserting ``, (2)(A), and (3)'',
            (2) by striking ``or'' at the end of paragraph (2),
            (3) by striking the period at the end of paragraph (3) and 
        inserting ``, or'', and
            (4) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) which arise in the disaster area (as defined in 
        section 165(h)(3)(C)(ii)) and which are attributable to a 
        federally declared disaster (as defined in section 
        165(h)(3)((C)(i)) occurring after December 31, 2010, and before 
        January 1, 2013.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to federally declared disasters occurring after 
December 31, 2010.

SEC. 4. ADDITIONAL EXEMPTION FOR HOUSING QUALIFIED FEDERALLY DECLARED 
              DISASTER DISPLACED INDIVIDUALS.

    (a) In General.--In the case of taxable years of a natural person 
beginning in 2011 or 2012, for purposes of the Internal Revenue Code of 
1986, taxable income shall be reduced by $500 for each qualified 
federally declared disaster displaced individual of the taxpayer for 
the taxable year.
    (b) Limitations.--
            (1) Dollar limitation.--The reduction under subsection (a) 
        shall not exceed $2,000, reduced by the amount of the reduction 
        under this section for all prior taxable years.
            (2) Individuals taken into account only once.--An 
        individual shall not be taken into account under subsection (a) 
        if such individual was taken into account under such subsection 
        by the taxpayer for any prior taxable year.
            (3) Identifying information required.--An individual shall 
        not be taken into account under subsection (a) for a taxable 
        year unless the taxpayer identification number of such 
        individual is included on the return of the taxpayer for such 
        taxable year.
    (c) Qualified Federally Declared Disaster Displaced Individual.--
For purposes of this section, the term ``qualified federally declared 
disaster displaced individual'' means, with respect to any taxpayer for 
any taxable year, any qualified federally declared disaster individual 
(as defined in section 1400S(d)(2)(E)(i)) if such individual is 
provided housing free of charge by the taxpayer in the principal 
residence of the taxpayer for a period of 60 consecutive days which 
ends in such taxable year. Such term shall not include the spouse or 
any dependent of the taxpayer.
    (d) Compensation for Housing.--No deduction shall be allowed under 
this section if the taxpayer receives any rent or other amount (from 
any source) in connection with the providing of such housing.
                                 <all>