[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4172 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 4172

 To amend the Internal Revenue Code of 1986 to provide tax relief for 
major disasters declared in any of calendar years 2012 through 2015, to 
 make certain tax relief provisions permanent, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 31, 2017

 Mr. Neal (for himself, Mr. Thompson of California, Mr. Pascrell, Mr. 
Levin, Mr. Lewis of Georgia, Mr. Larson of Connecticut, Mr. Blumenauer, 
 Mr. Crowley, Mr. Danny K. Davis of Illinois, Ms. Sanchez, Mr. Higgins 
   of New York, Ms. Sewell of Alabama, Ms. DelBene, Ms. Judy Chu of 
California, Ms. Norton, Mr. Evans, Ms. Wilson of Florida, Ms. Wasserman 
   Schultz, Mr. Huffman, Mr. Gene Green of Texas, and Ms. Plaskett) 
 introduced the following bill; which was referred to the Committee on 
    Ways and Means, and in addition to the Committee on Energy and 
Commerce, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide tax relief for 
major disasters declared in any of calendar years 2012 through 2015, to 
 make certain tax relief provisions permanent, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Give Assistance 
and Help to Americans impacted by Natural Disasters Act'' or the ``Give 
A HAND Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
TITLE I--TAX RELIEF RELATING TO DISASTERS IN 2012, 2013, 2014, AND 2015

Sec. 101. Expensing of qualified disaster expenses.
Sec. 102. Increased limitation on charitable contributions for disaster 
                            relief.
Sec. 103. Losses attributable to disasters in 2012, 2013, 2014, and 
                            2015.
Sec. 104. Net operating losses attributable to disasters in 2012, 2013, 
                            2014, and 2015.
Sec. 105. Waiver of certain mortgage revenue bond requirements 
                            following 2012, 2013, 2014, and 2015 
                            disasters.
Sec. 106. Increased expensing and bonus depreciation for qualified 
                            disaster assistance property following 
                            2012, 2013, 2014, and 2015 disasters.
Sec. 107. Increase in new markets tax credit for investments in 
                            community development entities serving 
                            2012, 2013, 2014, and 2015 disaster areas.
Sec. 108. Special rules for use of retirement funds in connection with 
                            federally declared disasters in 2012, 2013, 
                            2014, and 2015.
Sec. 109. Additional exemption for housing qualified disaster displaced 
                            individuals.
Sec. 110. Exclusions of certain cancellations of indebtedness by reason 
                            of 2012, 2013, 2014, and 2015 disasters.
Sec. 111. Special rule for determining earned income of individuals 
                            affected by federally declared disasters.
Sec. 112. Increase in rehabilitation credit for buildings in 2012, 
                            2013, 2014, and 2015 disaster areas.
Sec. 113. Advanced refundings of certain tax-exempt bonds.
Sec. 114. Qualified disaster area recovery bonds.
Sec. 115. Additional low-income housing credit allocations.
Sec. 116. Facilitation of transfer of water leasing and water by mutual 
                            ditch or irrigation companies in disaster 
                            areas.
             TITLE II--OTHER DISASTER TAX RELIEF PROVISIONS

Sec. 201. Exclusion for disaster mitigation payments received from 
                            State and local governments.
Sec. 202. Natural disaster funds.
          TITLE III--PERMANENT TAX DISASTER RELIEF PROVISIONS

Sec. 301. Increase property replacement period to 5 years.
Sec. 302. Wage credit for specified disaster-damaged businesses.
Sec. 303. Disaster-related medical expenses.
Sec. 304. Expensing of qualified disaster expenses.
Sec. 305. Losses attributable to disasters.
Sec. 306. Net operating losses attributable to disasters.
Sec. 307. Special rules for use of retirement funds in connection with 
                            federally declared disasters.
Sec. 308. Additional exemption for housing qualified disaster displaced 
                            individuals.
Sec. 309. Exclusions of certain cancellations of indebtedness by reason 
                            of disasters.
Sec. 310. Special rule for determining earned income of individuals 
                            affected by federally declared disasters.
Sec. 311. Qualified disaster area recovery bonds.
Sec. 312. Additional low-income housing credit allocations.
Sec. 313. Suspension of limitation on charitable contributions for 
                            disaster relief efforts.
Sec. 314. Increase in New Markets Tax Credit allocations.
Sec. 315. Increase in rehabilitation credit for buildings in disaster 
                            areas.
Sec. 316. Waiver of certain mortgage revenue bond requirements 
                            following disasters.
Sec. 317. Advanced refundings of certain tax-exempt bonds.
Sec. 318. Facilitation of transfer of water leasing and water by mutual 
                            ditch or irrigation companies in disaster 
                            areas.
Sec. 319. Exclusion of employer provided housing for individual 
                            affected by disaster.
Sec. 320. Increased expensing and bonus depreciation for qualified 
                            disaster assistance property.
Sec. 321. Increase in standard mileage rate for charitable use of 
                            vehicle.
Sec. 322. Work opportunity tax credit for employees in disaster area.
Sec. 323. Expensing for environmental remediation costs in disaster 
                            areas.
Sec. 324. Taxpayer filing assistance.
   TITLE IV--RELIEF RELATING TO PUERTO RICO AND UNITED STATES VIRGIN 
                                ISLANDS

Sec. 401. Application of disaster-related tax relief to possessions of 
                            United States.
Sec. 402. Application to Puerto Rico and Virgin Islands of deduction 
                            for income attributable to domestic 
                            production activities.
Sec. 403. Full rum cover over.
Sec. 404. Puerto Rico residents eligible for earned income tax credit.
Sec. 405. Equitable treatment for residents of Puerto Rico with respect 
                            to the refundable portion of the child tax 
                            credit.
Sec. 406. Technical assistance and administrative relief.
                        TITLE V--MEDICARE RELIEF

Sec. 501. Medicare enrollment filing deadline relief.

TITLE I--TAX RELIEF RELATING TO DISASTERS IN 2012, 2013, 2014, AND 2015

SEC. 101. EXPENSING OF QUALIFIED DISASTER EXPENSES.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 198 
the following:

``SEC. 198A. EXPENSING OF QUALIFIED DISASTER EXPENSES.

    ``(a) In General.--A taxpayer may elect to treat any qualified 
disaster expenses which are paid or incurred by the taxpayer as an 
expense which is not chargeable to capital account. Any expense which 
is so treated shall be allowed as a deduction for the taxable year in 
which it is paid or incurred.
    ``(b) Qualified Disaster Expense.--For purposes of this section, 
the term `qualified disaster expense' means any expenditure--
            ``(1) which is paid or incurred in connection with a trade 
        or business or with business-related property,
            ``(2) which is--
                    ``(A) for the abatement or control of hazardous 
                substances that were released on account of a federally 
                declared disaster occurring during the period 
                beginning--
                            ``(i) after December 31, 2007, and before 
                        January 1, 2010, or
                            ``(ii) after December 31, 2011, and before 
                        January 1, 2016,
                    ``(B) for the removal of debris from, or the 
                demolition of structures on, real property which is 
                business-related property damaged or destroyed as a 
                result of a federally declared disaster occurring 
                during any such period, or
                    ``(C) for the repair of business-related property 
                damaged as a result of a federally declared disaster 
                occurring during any such period, and
            ``(3) which is otherwise chargeable to capital account.
    ``(c) Other Definitions.--For purposes of this section--
            ``(1) Business-related property.--The term `business-
        related property' means property--
                    ``(A) held by the taxpayer for use in a trade or 
                business or for the production of income, or
                    ``(B) described in section 1221(a)(1) in the hands 
                of the taxpayer.
            ``(2) Federally declared disaster.--The term `federally 
        declared disaster' has the meaning given such term by section 
        165(i)(5)(A).
    ``(d) Deduction Recaptured as Ordinary Income on Sale, etc.--Solely 
for purposes of section 1245, in the case of property to which a 
qualified disaster expense would have been capitalized but for this 
section--
            ``(1) the deduction allowed by this section for such 
        expense shall be treated as a deduction for depreciation, and
            ``(2) such property (if not otherwise section 1245 
        property) shall be treated as section 1245 property solely for 
        purposes of applying section 1245 to such deduction.
    ``(e) Coordination With Other Provisions.--Sections 198, 280B, and 
468 shall not apply to amounts which are treated as expenses under this 
section.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section.''.
    (b) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after the item relating to section 198 the 
following item:

``Sec. 198A. Expensing of qualified disaster expenses.''.
    (c) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after December 31, 2011, in connection with 
disasters declared after such date.

SEC. 102. INCREASED LIMITATION ON CHARITABLE CONTRIBUTIONS FOR DISASTER 
              RELIEF.

    (a) Individuals.--Paragraph (1) of section 170(b) of the Internal 
Revenue Code of 1986 is amended by redesignating subparagraphs (F) and 
(G) as subparagraphs (G) and (H), respectively, and by inserting after 
subparagraph (E) the following new subparagraph:
                    ``(F) Qualified disaster contributions.--
                            ``(i) In general.--Any qualified disaster 
                        contribution shall be allowed to the extent 
                        that the aggregate of such contributions does 
                        not exceed the excess of 80 percent of the 
                        taxpayer's contribution base over the amount of 
                        all other charitable contributions allowable 
                        under this paragraph.
                            ``(ii) Carryover.--If the aggregate amount 
                        of contributions described in clause (i) 
                        exceeds the limitation under clause (i), such 
                        excess shall be treated (in a manner consistent 
                        with the rules of subsection (d)(1)) as a 
                        charitable contribution to which clause (i) 
                        applies in each of the 5 succeeding years in 
                        order of time.
                            ``(iii) Coordination with other 
                        subparagraphs.--For purposes of applying this 
                        subsection and subsection (d)(1), contributions 
                        described in clause (i) shall not be treated as 
                        described in subparagraph (A) and such 
                        subparagraph shall be applied without regard to 
                        such contributions.
                            ``(iv) Qualified disaster contributions.--
                        For purposes of this subparagraph, the term 
                        `qualified disaster contribution' means any 
                        charitable contribution if--
                                    ``(I) such contribution is for 
                                relief efforts related to a federally 
                                declared disaster (as defined in 
                                section 165(h)(3)(C)(i)),
                                    ``(II) such contribution is made 
                                during the period beginning on the 
                                applicable disaster date with respect 
                                to the disaster described in subclause 
                                (I) and ending on December 31, 2015, 
                                and
                                    ``(III) such contribution is made 
                                in cash to an organization described in 
                                subparagraph (A) (other than an 
                                organization described in section 
                                509(a)(3)).
                        Such term shall not include a contribution if 
                        the contribution is for establishment of a new, 
                        or maintenance in an existing, donor advised 
                        fund (as defined in section 4966(d)(2)).
                            ``(v) Applicable disaster date.--For 
                        purposes of clause (iv)(II), the term 
                        `applicable disaster date' means, with respect 
                        to any federally declared disaster described in 
                        clause (iv)(I), the date on which the disaster 
                        giving rise to the Presidential declaration 
                        described in section 165(i)(5)(A) occurred.
                            ``(vi) Substantiation requirement.--This 
                        paragraph shall not apply to any qualified 
                        disaster contribution unless the taxpayer 
                        obtains from such organization to which the 
                        contribution was made a contemporaneous written 
                        acknowledgment (within the meaning of 
                        subsection (f)(8)) that such contribution was 
                        used (or is to be used) for a purpose described 
                        in clause (iv)(III).''.
    (b) Corporations.--
            (1) In general.--Paragraph (2) of section 170(b) of the 
        Internal Revenue Code of 1986 is amended by redesignating 
        subparagraph (D) as subparagraph (E) and by inserting after 
        subparagraph (C) the following new subparagraph:
                    ``(D) Qualified disaster contributions.--
                            ``(i) In general.--Any qualified disaster 
                        contribution shall be allowed to the extent 
                        that the aggregate of such contributions does 
                        not exceed the excess of 20 percent of the 
                        taxpayer's taxable income over the amount of 
                        charitable contributions allowed under 
                        subparagraph (A).
                            ``(ii) Carryover.--If the aggregate amount 
                        of contributions described in clause (i) 
                        exceeds the limitation under clause (i), such 
                        excess shall be treated (in a manner consistent 
                        with the rules of subsection (d)(1)) as a 
                        charitable contribution to which clause (i) 
                        applies in each of the 5 succeeding years in 
                        order of time.
                            ``(iii) Qualified disaster contribution.--
                        The term `qualified disaster contribution' has 
                        the meaning given such term under paragraph 
                        (2)(F)(iv).
                            ``(iv) Substantiation requirement.--This 
                        paragraph shall not apply to any qualified 
                        disaster contribution unless the taxpayer 
                        obtains from such organization to which the 
                        contribution was made a contemporaneous written 
                        acknowledgment (within the meaning of 
                        subsection (f)(8)) that such contribution was 
                        used (or is to be used) for a purpose described 
                        in paragraph (1)(F)(iv)(III).''.
            (2) Conforming amendment.--Subparagraph (A) of section 
        170(b)(2) of such Code is amended by striking ``subparagraph 
        (B) and (C) apply'' and inserting ``subparagraphs (B), (C) and 
        (D) apply''.
    (c) Effective Date.--The amendments made by this section shall 
apply to disasters arising in taxable years ending after December 31, 
2011.

SEC. 103. LOSSES ATTRIBUTABLE TO DISASTERS IN 2012, 2013, 2014, AND 
              2015.

    (a) In General.--Section 165(h) of the Internal Revenue Code of 
1986 is amended by redesignating paragraphs (3) and (4) as paragraphs 
(4) and (5), respectively, and by inserting after paragraph (2) the 
following:
            ``(3) Special rule for losses in federally declared 
        disasters.--
                    ``(A) In general.--If an individual has a net 
                disaster loss for any taxable year, the amount 
                determined under paragraph (2)(A)(ii) shall be the sum 
                of--
                            ``(i) such net disaster loss, and
                            ``(ii) so much of the excess referred to in 
                        the matter preceding clause (i) of paragraph 
                        (2)(A) (reduced by the amount in clause (i) of 
                        this subparagraph) as exceeds 10 percent of the 
                        adjusted gross income of the individual.
                    ``(B) Net disaster loss.--For purposes of 
                subparagraph (A), the term `net disaster loss' means 
                the excess of--
                            ``(i) the personal casualty losses--
                                    ``(I) attributable to a federally 
                                declared disaster occurring during the 
                                period beginning after December 31, 
                                2007, and before January 1, 2010, or 
                                during the period beginning after 
                                December 31, 2011, and before January 
                                1, 2016, and
                                    ``(II) occurring in a disaster 
                                area, over
                            ``(ii) personal casualty gains.
                    ``(C) Federally declared disaster.--For purposes of 
                this paragraph--
                            ``(i) Federally declared disaster.--The 
                        term `federally declared disaster' has the 
                        meaning given such term by subsection 
                        (i)(5)(A).
                            ``(ii) Disaster area.--The term `disaster 
                        area' has the meaning given such term by 
                        subsection (i)(5)(B).''.
    (b) Conforming Amendment.--Paragraph (4) of section 165(h) of such 
Code, as so redesignated, is amended by striking ``paragraph (2)'' and 
inserting ``paragraphs (2) and (3)''.
    (c) Loss Allowed Whether or Not Individual Itemized Deductions.--
Section 62(a) of the Internal Revenue Code of 1986 is amended by 
inserting after paragraph (21) the following new paragraph:
            ``(22) Disaster casualty losses.--Any net disaster loss (as 
        defined in section 165(h)(3)(B)).''.
    (d) Technical Amendment.--Subparagraph (A) of section 165(i)(5) of 
the Internal Revenue Code of 1986 is amended by inserting ``major'' 
after ``means any''.
    (e) Effective Date.--The amendments made by this section shall 
apply to disasters declared in taxable years beginning after December 
31, 2011.
    (f) Use of Amended Income Tax Returns To Take Into Account Receipt 
of Certain Casualty Loss Grants by Disallowing Previously Taken 
Casualty Loss Deductions.--
            (1) In general.--Notwithstanding any other provision of the 
        Internal Revenue Code of 1986, if a taxpayer--
                    (A) claims a deduction for any taxable year with 
                respect to a casualty loss to a principal residence 
                (within the meaning of section 121 of such Code) 
                resulting from any federally declared disaster (as 
                defined in section 165(h)(3)(C) of such Code) occurring 
                during the period beginning after December 31, 2011, 
                and before January 1, 2016, and
                    (B) in a subsequent taxable year receives a grant 
                under any Federal or State program as reimbursement for 
                such loss,
        such taxpayer may elect to file an amended income tax return 
        for the taxable year in which such deduction was allowed (and 
        for any taxable year to which such deduction is carried) and 
        reduce (but not below zero) the amount of such deduction by the 
        amount of such reimbursement.
            (2) Time of filing amended return.--Paragraph (1) shall 
        apply with respect to any grant only if any amended income tax 
        returns with respect to such grant are filed not later than the 
        later of--
                    (A) the due date for filing the tax return for the 
                taxable year in which the taxpayer receives such grant, 
                or
                    (B) the date which is 1 year after the date of the 
                enactment of this Act.
            (3) Waiver of penalties and interest.--Any underpayment of 
        tax resulting from the reduction under paragraph (1) of the 
        amount otherwise allowable as a deduction shall not be subject 
        to any penalty or interest under such Code if such tax is paid 
        not later than 1 year after the filing of the amended return to 
        which such reduction relates.

SEC. 104. NET OPERATING LOSSES ATTRIBUTABLE TO DISASTERS IN 2012, 2013, 
              2014, AND 2015.

    (a) In General.--Section 172(b)(1) of the Internal Revenue Code of 
1986 is amended by adding at the end the following:
                    ``(G) Certain losses attributable federally 
                declared disasters.--In the case of a taxpayer who has 
                a qualified disaster loss (as defined in subsection 
                (i)), such loss shall be a net operating loss carryback 
                to each of the 5 taxable years preceding the taxable 
                year of such loss.''.
    (b) Rules Relating to Qualified Disaster Losses.--Section 172 of 
the Internal Revenue Code of 1986 is amended by redesignating 
subsection (i) as subsection (j) and by inserting after subsection (h) 
the following:
    ``(i) Rules Relating to Qualified Disaster Losses.--For purposes of 
this section--
            ``(1) In general.--The term `qualified disaster loss' means 
        the lesser of--
                    ``(A) the sum of--
                            ``(i) the losses allowable under section 
                        165 for the taxable year--
                                    ``(I) attributable to a federally 
                                declared disaster (as defined in 
                                section 165(i)(5)(A)) occurring during 
                                the period beginning after December 31, 
                                2007, and before January 1, 2010, or 
                                during the period beginning after 
                                December 31, 2011, and before January 
                                1, 2016, and
                                    ``(II) occurring in a disaster area 
                                (as defined in section 165(i)(5)(B)), 
                                and
                            ``(ii) the deduction for the taxable year 
                        for qualified disaster expenses which is 
                        allowable under section 198A(a) or which would 
                        be so allowable if not otherwise treated as an 
                        expense, or
                    ``(B) the net operating loss for such taxable year.
            ``(2) Coordination with subsection (b)(2).--For purposes of 
        applying subsection (b)(2), a qualified disaster loss for any 
        taxable year shall be treated in a manner similar to the manner 
        in which a specified liability loss is treated.
            ``(3) Election.--Any taxpayer entitled to a 5-year 
        carryback under subsection (b)(1)(G) from any loss year may 
        elect to have the carryback period with respect to such loss 
        year determined without regard to subsection (b)(1)(G). Such 
        election shall be made in such manner as may be prescribed by 
        the Secretary and shall be made by the due date (including 
        extensions of time) for filing the taxpayer's return for the 
        taxable year of the net operating loss. Such election, once 
        made for any taxable year, shall be irrevocable for such 
        taxable year.
            ``(4) Exclusion.--The term `qualified disaster loss' shall 
        not include any loss with respect to any property described in 
        section 1400N(p)(3).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to losses arising in taxable years beginning after December 31, 
2011, in connection with disasters declared after such date.

SEC. 105. WAIVER OF CERTAIN MORTGAGE REVENUE BOND REQUIREMENTS 
              FOLLOWING 2012, 2013, 2014, AND 2015 DISASTERS.

    (a) In General.--Paragraph (13) of section 143(k) of the Internal 
Revenue Code of 1986 is amended--
            (1) in clause (i), by striking ``before January 1, 2010'' 
        and inserting ``during the period beginning after December 31, 
        2007, and before January 1, 2010, or during the period 
        beginning after December 31, 2011, and before January 1, 
        2016'', and
            (2) in clause (ii), by striking ``before such date'' and 
        inserting ``during either such period''.
    (b) Effective Date.--The amendments made by this section shall 
apply to disasters occurring after December 31, 2011.

SEC. 106. INCREASED EXPENSING AND BONUS DEPRECIATION FOR QUALIFIED 
              DISASTER ASSISTANCE PROPERTY FOLLOWING 2012, 2013, 2014, 
              AND 2015 DISASTERS.

    (a) In General.--Subclause (I) of section 168(n)(2)(A)(ii) of the 
Internal Revenue Code of 1986 is amended by striking ``before January 
1, 2010'' and inserting ``during the period beginning after December 
31, 2007, and before January 1, 2010, or during the period beginning 
after December 31, 2011, and before January 1, 2016''.
    (b) Removal of Exclusion.--Section 168(n)(2)(B)(i) of such Code is 
amended by inserting ``and'' at the end of subclause (I), by striking 
``, and'' at the end of subclause (II) and inserting a period, and by 
striking subclause (III).
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2011, with 
respect to disasters declared after such date.

SEC. 107. INCREASE IN NEW MARKETS TAX CREDIT FOR INVESTMENTS IN 
              COMMUNITY DEVELOPMENT ENTITIES SERVING 2012, 2013, 2014, 
              AND 2015 DISASTER AREAS.

    (a) In General.--Subsection (f) of section 45D of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(4) Increased special allocation for community 
        development entities serving disaster areas with respect to 
        disasters occurring in any of calendar years 2012 through 
        2015.--
                    ``(A) In general.--In the case of each calendar 
                year which begins after 2012 and before 2017, the new 
                markets tax credit limitation shall be increased by an 
                amount equal to $500,000,000, to be allocated among 
                qualified community development entities to make 
                qualified low-income community investments within any 
                covered federally declared disaster area.
                    ``(B) Allocation of increase.--The amount of the 
                increase in limitation under subparagraph (A) shall be 
                allocated by the Secretary under paragraph (2) to 
                qualified community development entities and shall give 
                priority to such entities with a record of having 
                successfully provided capital or technical assistance 
                to businesses or communities within any covered 
                federally declared disaster area or areas for which the 
                allocation is requested.
                    ``(C) Application of carryforward.--Paragraph (3) 
                shall be applied separately with respect to the amount 
                of any increase under subparagraph (A).
                    ``(D) Covered federally declared disaster area.--
                For purposes of this paragraph, the term `covered 
                federally declared disaster area' means any disaster 
                area resulting from any federally declared disaster 
                occurring after December 31, 2011, and before January 
                1, 2016. For purposes of the preceding sentence, the 
                terms `federally declared disaster' and `disaster area' 
                have the meanings given such terms in section 
                165(i)(5).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after 2012.

SEC. 108. SPECIAL RULES FOR USE OF RETIREMENT FUNDS IN CONNECTION WITH 
              FEDERALLY DECLARED DISASTERS IN 2012, 2013, 2014, AND 
              2015.

    (a) Tax-Favored Withdrawals From Retirement Plans.--
            (1) In general.--Paragraph (2) of section 72(t) of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new subparagraph:
                    ``(H) Distributions from retirement plans in 
                connection with federally declared disasters occurring 
                in any calendar year after 2011.--Any qualified 
                disaster recovery distribution.''.
            (2) Qualified disaster recovery distribution.--Section 
        72(t) of such Code is amended by adding at the end the 
        following new paragraph:
            ``(11) Qualified disaster recovery distribution.--For 
        purposes of paragraph (2)(H)--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `qualified disaster recovery 
                distribution' means, with respect to any federally 
                declared disaster occurring in any calendar year 
                beginning after 2011 and before January 1, 2016, any 
                distribution from an eligible retirement plan made on 
                or after the applicable disaster date and before the 
                date that is 1 year after the applicable disaster date, 
                to an individual whose principal place of abode on the 
                applicable disaster date, is located in the disaster 
                area and who has sustained an economic loss by reason 
                of such federally declared disaster.
                    ``(B) Dollar limitation.--
                            ``(i) In general.--For purposes of this 
                        subsection, the aggregate amount of 
                        distributions received by an individual with 
                        respect to any federally declared disaster 
                        occurring in any calendar year beginning after 
                        2011 shall not exceed $100,000.
                            ``(ii) Treatment of plan distributions.--If 
                        a distribution to an individual would (without 
                        regard to clause (i)) be a qualified disaster 
                        recovery distribution, a plan shall not be 
                        treated as violating any requirement of this 
                        title merely because the plan treats such 
                        distribution as a qualified disaster recovery 
                        distribution, unless the aggregate amount of 
                        such distributions from all plans maintained by 
                        the employer (and any member of any controlled 
                        group which includes the employer) to such 
                        individual with respect to any federally 
                        declared disaster occurring in any calendar 
                        year beginning after 2011 exceeds $100,000.
                            ``(iii) Controlled group.--For purposes of 
                        clause (ii), the term `controlled group' means 
                        any group treated as a single employer under 
                        subsection (b), (c), (m), or (o) of section 
                        414.
                    ``(C) Amount distributed may be repaid.--
                            ``(i) In general.--Any individual who 
                        receives a qualified disaster recovery 
                        distribution may, at any time during the 3-year 
                        period beginning on the day after the date on 
                        which such distribution was received, make one 
                        or more contributions in an aggregate amount 
                        not to exceed the amount of such distribution 
                        to an eligible retirement plan of which such 
                        individual is a beneficiary and to which a 
                        rollover contribution of such distribution 
                        could be made under section 402(c), 403(a)(4), 
                        403(b)(8), 408(d)(3), or 457(e)(16), as the 
                        case may be.
                            ``(ii) Treatment of repayments of 
                        distributions from eligible retirement plans 
                        other than iras.--For purposes of this title, 
                        if a contribution is made pursuant to clause 
                        (i) with respect to a qualified disaster 
                        recovery distribution from an eligible 
                        retirement plan other than an individual 
                        retirement plan, then the taxpayer shall, to 
                        the extent of the amount of the contribution, 
                        be treated as having received the qualified 
                        disaster recovery distribution in an eligible 
                        rollover distribution (as defined in section 
                        402(c)(4)) and as having transferred the amount 
                        to the eligible retirement plan in a direct 
                        trustee to trustee transfer within 60 days of 
                        the distribution.
                            ``(iii) Treatment of repayments for 
                        distributions from iras.--For purposes of this 
                        title, if a contribution is made pursuant to 
                        clause (i) with respect to a qualified disaster 
                        recovery distribution from an individual 
                        retirement plan (as defined by section 
                        7701(a)(37)), then, to the extent of the amount 
                        of the contribution, the qualified disaster 
                        recovery distribution shall be treated as a 
                        distribution described in section 408(d)(3) and 
                        as having been transferred to the eligible 
                        retirement plan in a direct trustee to trustee 
                        transfer within 60 days of the distribution.
                    ``(D) Income inclusion spread over 3-year period.--
                            ``(i) In general.--In the case of any 
                        qualified disaster recovery distribution, 
                        unless the taxpayer elects not to have this 
                        paragraph apply for any taxable year, any 
                        amount required to be included in gross income 
                        for such taxable year shall be so included 
                        ratably over the 3-taxable-year period 
                        beginning with such taxable year.
                            ``(ii) Special rule.--For purposes of 
                        clause (i), rules similar to the rules of 
                        subparagraph (E) of section 408A(d)(3) shall 
                        apply.
                    ``(E) Other definitions.--
                            ``(i) Federally declared disaster; disaster 
                        area.--The terms `federally declared disaster' 
                        and `disaster area' have the meanings given 
                        such terms under section 165(i)(5).
                            ``(ii) Applicable disaster date.--The term 
                        `applicable disaster date' means, with respect 
                        to any federally declared disaster, the date on 
                        which such federally declared disaster occurs.
                            ``(iii) Eligible retirement plan.--The term 
                        `eligible retirement plan' shall have the 
                        meaning given such term by section 
                        402(c)(8)(B).
                    ``(F) Special rules.--
                            ``(i) Exemption of distributions from 
                        trustee to trustee transfer and withholding 
                        rules.--For purposes of sections 401(a)(31), 
                        402(f), and 3405, qualified disaster recovery 
                        distributions shall not be treated as eligible 
                        rollover distributions.
                            ``(ii) Qualified disaster recovery 
                        distributions treated as meeting plan 
                        distribution requirements.--For purposes of 
                        this title, a qualified disaster recovery 
                        distribution shall be treated as meeting the 
                        requirements of sections 401(k)(2)(B)(i), 
                        403(b)(7)(A)(ii), 403(b)(11), and 
                        457(d)(1)(A).''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to distributions with respect to disasters declared 
        after December 31, 2011.
    (b) Loans From Qualified Plans.--
            (1) In general.--Subsection (p) of section 72 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new paragraph:
            ``(6) Increase in limit on loans not treated as 
        distributions with respect to disasters in any calendar year 
        after 2011.--
                    ``(A) In general.--In the case of any loan from a 
                qualified employer plan to a qualified individual made 
                during the applicable period--
                            ``(i) clause (i) of paragraph (2)(A) shall 
                        be applied by substituting `$100,000' for 
                        `$50,000', and
                            ``(ii) clause (ii) of such paragraph shall 
                        be applied by substituting `the present value 
                        of the nonforfeitable accrued benefit of the 
                        employee under the plan' for `one-half of the 
                        present value of the nonforfeitable accrued 
                        benefit of the employee under the plan'.
                    ``(B) Delay of repayment.--In the case of a 
                qualified individual with an outstanding loan on or 
                after the applicable disaster date from a qualified 
                employer plan--
                            ``(i) if the due date pursuant to 
                        subparagraph (B) or (C) of paragraph (2) for 
                        any repayment with respect to such loan occurs 
                        during the 1-year period beginning on the 
                        applicable disaster date, such due date shall 
                        be delayed for 1 year,
                            ``(ii) any subsequent repayments with 
                        respect to any such loan shall be appropriately 
                        adjusted to reflect the delay in the due date 
                        under clause (i) and any interest accruing 
                        during such delay, and
                            ``(iii) in determining the 5-year period 
                        and the term of a loan under subparagraph (B) 
                        or (C) of paragraph (2), the period described 
                        in clause (i) shall be disregarded.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Qualified individual.--The term 
                        `qualified individual' means, with respect to 
                        any federally declared disaster occurring in 
                        any calendar year beginning after 2011, an 
                        individual whose principal place of abode on 
                        the applicable disaster date is located in the 
                        disaster area and who has sustained an economic 
                        loss by reason of such federally declared 
                        disaster.
                            ``(ii) Applicable period.--The applicable 
                        period is the period beginning on the 
                        applicable disaster date and ending on December 
                        31, 2016.
                            ``(iii) Federally declared disaster; 
                        disaster area.--The terms `federally declared 
                        disaster' and `disaster area' have the meanings 
                        given such terms under section 165(i)(5).
                            ``(iv) Applicable disaster date.--The term 
                        `applicable disaster date' means, with respect 
                        to any federally declared disaster, the date on 
                        which such federally declared disaster 
                        occurs.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to loans made with respect to disasters declared 
        after December 31, 2011.
    (c) Provisions Relating to Plan Amendments.--
            (1) In general.--If this subsection applies to any 
        amendment to any plan or annuity contract, such plan or 
        contract shall be treated as being operated in accordance with 
        the terms of the plan during the period described in paragraph 
        (2)(B)(i).
            (2) Amendments to which subsection applies.--
                    (A) In general.--This subsection shall apply to any 
                amendment to any plan or annuity contract which is 
                made--
                            (i) pursuant to any provision of, or 
                        amendment made by, this section, or pursuant to 
                        any regulation issued by the Secretary or the 
                        Secretary of Labor under any provision of, or 
                        amendment made by, this section, and
                            (ii) on or before the last day of the first 
                        plan year beginning on or after January 1, 
                        2016, or such later date as the Secretary may 
                        prescribe.
                In the case of a governmental plan (as defined in 
                section 414(d)), clause (ii) shall be applied by 
                substituting the date which is 2 years after the date 
                otherwise applied under clause (ii).
                    (B) Conditions.--This subsection shall not apply to 
                any amendment unless--
                            (i) during the period--
                                    (I) beginning on the date that the 
                                provisions of, and amendments made by, 
                                this section or the regulation 
                                described in subparagraph (A)(i) takes 
                                effect (or in the case of a plan or 
                                contract amendment not required by the 
                                provisions of, or amendments made by, 
                                this section or such regulation, the 
                                effective date specified by the plan), 
                                and
                                    (II) ending on the date described 
                                in subparagraph (A)(ii) (or, if 
                                earlier, the date the plan or contract 
                                amendment is adopted),
                        the plan or contract is operated as if such 
                        plan or contract amendment were in effect, and
                            (ii) such plan or contract amendment 
                        applies retroactively for such period.

SEC. 109. ADDITIONAL EXEMPTION FOR HOUSING QUALIFIED DISASTER DISPLACED 
              INDIVIDUALS.

    (a) In General.--Section 151 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(f) Additional Exemption for Certain Disaster-Displaced 
Individuals.--
            ``(1) In general.--In the case of any taxable year 
        beginning in any calendar year beginning after 2011, there 
        shall be allowed an exemption of $500 for each qualified 
        disaster-displaced individual with respect to the taxpayer for 
        the taxable year.
            ``(2) Limitations.--
                    ``(A) Dollar limitation.--The exemption under 
                paragraph (1) shall not exceed $2,000, reduced by the 
                amount of the exemption under this subsection for all 
                prior taxable years.
                    ``(B) Individuals taken into account only once.--An 
                individual shall not be taken into account under 
                paragraph (1) if such individual was taken into account 
                under this subsection by the taxpayer for any prior 
                taxable year.
                    ``(C) Identifying information required.--An 
                individual shall not be taken into account under 
                paragraph (1) for a taxable year unless the taxpayer 
                identification number of such individual is included on 
                the return of the taxpayer for such taxable year.
            ``(3) Qualified disaster-displaced individual.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified disaster-displaced individual' 
                means, with respect to any taxpayer for any taxable 
                year, any qualified individual 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.
                    ``(B) Qualified individual.--The term `qualified 
                individual' means any individual who--
                            ``(i) on the date of a federally declared 
                        disaster occurring in calendar years beginning 
                        after 2011 and before 2016 maintained such 
                        individual's principal place of abode in the 
                        disaster area declared with respect to such 
                        disaster, and
                            ``(ii) was displaced from such principal 
                        place of abode by reason of the federally 
                        declared disaster.
                For purposes of the preceding sentence, the terms 
                `federally declared disaster' and `disaster area' have 
                the meanings given such terms in section 165(i)(5).
            ``(4) Compensation for housing.--No deduction shall be 
        allowed under this subsection if the taxpayer receives any rent 
        or other amount (from any source) in connection with the 
        providing of such housing.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

SEC. 110. EXCLUSIONS OF CERTAIN CANCELLATIONS OF INDEBTEDNESS BY REASON 
              OF 2012, 2013, 2014, AND 2015 DISASTERS.

    (a) In General.--Section 108 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(j) Discharge of Indebtedness for Individuals Affected by 
Disasters in Any Calendar Year After 2011.--
            ``(1) In general.--Except as provided in paragraph (2), 
        gross income shall not include any amount which (but for this 
        subsection) would be includible in gross income by reason of 
        any discharge (in whole or in part) of indebtedness of a 
        natural person described in paragraph (3) by an applicable 
        entity (as defined in section 6050P(c)(1)) during the 
        applicable period.
            ``(2) Exceptions for business indebtedness.--Paragraph (1) 
        shall not apply to any indebtedness incurred in connection with 
        a trade or business.
            ``(3) Persons described.--A natural person is described in 
        this paragraph if the principal place of abode of such person 
        on the applicable disaster date was located in the disaster 
        area with respect to any federally declared disaster occurring 
        during any calendar year beginning after 2011 and before 2016.
            ``(4) Applicable period.--For purposes of this subsection, 
        the term `applicable period' means the period beginning on the 
        applicable disaster date and ending on the date which is 14 
        months after such date.
            ``(5) Other definitions.--For purposes of this subsection--
                    ``(A) Federally declared disaster; disaster area.--
                The terms `federally declared disaster' and `disaster 
                area' have the meanings given such terms under section 
                165(i)(5).
                    ``(B) Applicable disaster date.--The term 
                `applicable disaster date' means, with respect to any 
                federally declared disaster, the date on which such 
                federally declared disaster occurs.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to discharges made on or after December 31, 2011.

SEC. 111. SPECIAL RULE FOR DETERMINING EARNED INCOME OF INDIVIDUALS 
              AFFECTED BY FEDERALLY DECLARED DISASTERS.

    (a) In General.--Section 32 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
    ``(n) Special Rule for Determining Earned Income of Taxpayers 
Affected by Federally Declared Disasters.--
            ``(1) In general.--In the case of a qualified individual 
        with respect to any federally declared disaster occurring 
        during any calendar year beginning after 2011, if the earned 
        income of the taxpayer for the taxable year which includes the 
        applicable disaster date is less than the earned income of the 
        taxpayer for the preceding taxable year, the credit allowed 
        under this section and section 24(d) may, at the election of 
        the taxpayer, be determined by substituting--
                    ``(A) such earned income for the preceding taxable 
                year, for
                    ``(B) such earned income for the taxable year which 
                includes the applicable date.
            ``(2) Qualified individual.--For purposes of this 
        subsection, the term `qualified individual' means, with respect 
        to any federally declared disaster occurring in any calendar 
        year beginning after 2011 and before 2016, any individual whose 
        principal place of abode on the applicable disaster date, was 
        located--
                    ``(A) in any portion of a disaster area determined 
                by the President to warrant individual or individual 
                and public assistance under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act by reason 
                of the federally declared disaster, or
                    ``(B) in any portion of the disaster area not 
                described in subparagraph (A) and such individual was 
                displaced from such principal place of abode by reason 
                of the federally declared disaster.
            ``(3) Other definitions.--For purposes of this paragraph--
                    ``(A) Federally declared disaster; disaster area.--
                The terms `federally declared disaster' and `disaster 
                area' have the meanings given such terms under section 
                165(i)(5).
                    ``(B) Applicable disaster date.--The term 
                `applicable disaster date' means, with respect to any 
                federally declared disaster, the date on which such 
                federally declared disaster occurs.
            ``(4) Special rules.--
                    ``(A) Application to joint returns.--For purposes 
                of paragraph (1), in the case of a joint return for a 
                taxable year which includes the disaster date--
                            ``(i) such paragraph shall apply if either 
                        spouse is a qualified individual, and
                            ``(ii) the earned income of the taxpayer 
                        for the preceding taxable year shall be the sum 
                        of the earned income of each spouse for such 
                        preceding taxable year.
                    ``(B) Uniform application of election.--Any 
                election made under paragraph (1) shall apply with 
                respect to both section 24(d) and this section.
                    ``(C) Errors treated as mathematical error.--For 
                purposes of section 6213, an incorrect use on a return 
                of earned income pursuant to paragraph (1) shall be 
                treated as a mathematical or clerical error.
                    ``(D) No effect on determination of gross income, 
                etc.--Except as otherwise provided in this subsection, 
                this title shall be applied without regard to any 
                substitution under paragraph (1).''.
    (b) Child Tax Credit.--Section 24(d) of the Internal Revenue Code 
of 1986 is amended by inserting after paragraph (2) the following new 
paragraph:
            ``(3) Special rule for determining earned income of 
        taxpayers affected by federally declared disasters.--For 
        election by qualified individuals with respect to certain 
        federally declared disasters to substitute earned income from 
        the preceding taxable year, see section 32(n).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

SEC. 112. INCREASE IN REHABILITATION CREDIT FOR BUILDINGS IN 2012, 
              2013, 2014, AND 2015 DISASTER AREAS.

    (a) In General.--Section 47 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
    ``(e) Special Rule for Expenditures Made in Connection With Certain 
Disasters.--
            ``(1) In general.--In the case of qualified rehabilitation 
        expenditures paid or incurred during the applicable period with 
        respect to any qualified rehabilitated building or certified 
        historic structure located in a disaster area with respect to 
        any federally declared disaster occurring in, subsection (a) 
        shall be applied--
                    ``(A) by substituting `13 percent' for `10 percent' 
                in paragraph (1) thereof, and
                    ``(B) by substituting `26 percent' for `20 percent' 
                in paragraph (2) thereof.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Federally declared disaster; disaster area.--
                The terms `federally declared disaster' and `disaster 
                area' have the meanings given such terms under section 
                165(i)(5).
                    ``(B) Applicable period.--The term `applicable 
                period' means the period beginning on the applicable 
                disaster date and ending on December 31, 2015.
                    ``(C) Applicable disaster date.--The term 
                `applicable disaster date' means, with respect to any 
                federally declared disaster, the date on which such 
                federally declared disaster occurs.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2011.

SEC. 113. ADVANCED REFUNDINGS OF CERTAIN TAX-EXEMPT BONDS.

    (a) In General.--Section 149(d) of the Internal Revenue Code of 
1986 is amended by redesignating paragraph (7) as paragraph (8) and by 
inserting after paragraph (6) the following new paragraph:
            ``(7) Special rule with respect to certain natural 
        disasters.--
                    ``(A) In general.--With respect to a bond described 
                in subparagraph (C), one additional advance refunding 
                after the date of the enactment of this paragraph and 
                before January 1, 2018, shall be allowed under the 
                rules of this subsection if--
                            ``(i) the Governor of the State designates 
                        the advance refunding bond for purposes of this 
                        subsection, and
                            ``(ii) the requirements of subparagraph (E) 
                        are met.
                    ``(B) Certain private activity bonds.--With respect 
                to a bond described in subparagraph (C) which is an 
                exempt facility bond described in paragraph (1) or (2) 
                of section 142(a), one advance refunding after the date 
                of the enactment of this paragraph and before January 
                1, 2018, shall be allowed under the applicable rules of 
                this subsection (notwithstanding paragraph (2) thereof) 
                if the requirements of clauses (i) and (ii) of 
                subparagraph (A) are met.
                    ``(C) Bonds described.--A bond is described in this 
                paragraph if, with respect to any federally declared 
                disaster, such bond--
                            ``(i) was outstanding on the applicable 
                        disaster date, and
                            ``(ii) is issued by an applicable State or 
                        a political subdivision thereof.
                    ``(D) 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 
                $4,500,000,000.
                    ``(E) Additional requirements.--The requirements of 
                this subparagraph are met with respect to any advance 
                refunding of a bond described in subparagraph (C) if--
                            ``(i) no advance refundings of such bond 
                        would be allowed under this title on or after 
                        the applicable disaster date,
                            ``(ii) the advance refunding bond is the 
                        only other outstanding bond with respect to the 
                        refunded bond, and
                            ``(iii) the requirements of section 148 are 
                        met with respect to all bonds issued under this 
                        paragraph.
                    ``(F) Definitions.--For purposes of this 
                subsection--
                            ``(i) Federally declared disaster; disaster 
                        area.--The terms `federally declared disaster' 
                        and `disaster area' have the meanings given 
                        such terms under section 165(i)(5).
                            ``(ii) Applicable disaster date.--The term 
                        `applicable disaster date' means, with respect 
                        to any federally declared disaster, the date on 
                        which such federally declared disaster occurs.
                            ``(iii) Applicable state.--The term 
                        `applicable State' means, with respect to any 
                        federally declared disaster, any State in which 
                        a portion of the disaster area is located.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to bonds issued after the date of the enactment of this Act.

SEC. 114. QUALIFIED DISASTER AREA RECOVERY BONDS.

    (a) In General.--Subpart A of part IV of subchapter B of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 146 the following new section:

``SEC. 146A. QUALIFIED DISASTER AREA RECOVERY BONDS.

    ``(a) In General.--For purposes of this title, any qualified 
disaster area recovery bond shall--
            ``(1) be treated as an exempt facility bond, and
            ``(2) not be subject to section 146.
    ``(b) Qualified Disaster Area Recovery Bond.--For purposes of this 
section, the term `qualified disaster area recovery bond' means any 
bond issued as part of an issue if--
            ``(1) 95 percent or more of the net proceeds of such issue 
        are to be used for qualified project costs,
            ``(2) such bond is issued by a State or any political 
        subdivision thereof any part of which is in a qualified 
        disaster area,
            ``(3) the Governor of the issuing State designates such 
        bond for purposes of this section, and
            ``(4) such bond is issued after the date of the enactment 
        of this section and before January 1, 2017.
    ``(c) Limitation on Amount of Bonds.--
            ``(1) In general.--The maximum aggregate face amount of 
        bonds which may be designated under this section by any State 
        shall not exceed $10,000,000,000.
            ``(2) Movable property.--No bonds shall be issued which are 
        to be used for movable fixtures and equipment.
            ``(3) Treatment of current refunding bonds.--Paragraph (1) 
        shall not apply to any bond (or series of bonds) issued to 
        refund a qualified disaster area recovery bond, if--
                    ``(A) the average maturity date of the issue of 
                which the refunding bond is a part is not later than 
                the average maturity date of the bonds to be refunded 
                by such issue,
                    ``(B) the amount of the refunding bond does not 
                exceed the outstanding amount of the refunded bond, and
                    ``(C) the net proceeds of the refunding bond are 
                used to redeem the refunded bond not later than 90 days 
                after the date of the issuance of the refunding bond.
        For purposes of subparagraph (A), average maturity shall be 
        determined in accordance with section 147(b)(2)(A).
    ``(d) Qualified Project Costs.--For purposes of this section, the 
term `qualified project costs' means the cost of acquisition, 
construction, reconstruction, and renovation of--
            ``(1) residential rental property (as defined in section 
        142(d)),
            ``(2) nonresidential real property (including fixed 
        improvements associated with such property),
            ``(3) a facility described in paragraph (2) or (3) of 
        section 142(a), or
            ``(4) public utility property (as defined in section 
        168(i)(10)),
which is located in a qualified disaster area and was damaged or 
destroyed by reason of a federally declared disaster.
    ``(e) Special Rules.--In applying this title to any qualified 
disaster area recovery bond, the following modifications shall apply:
            ``(1) Section 147(d) (relating to acquisition of existing 
        property not permitted) shall be applied by substituting `50 
        percent' for `15 percent' each place it appears.
            ``(2) Section 148(f)(4)(C) (relating to exception from 
        rebate for certain proceeds to be used to finance construction 
        expenditures) shall apply to the available construction 
        proceeds of bonds issued under this section. For purposes of 
        the preceding sentence, the following spending requirements 
        shall apply in lieu of the requirements in clause (ii) of such 
        section:
                    ``(A) 40 percent of such available construction 
                proceeds are spent for the governmental purposes of the 
                issue within the 2-year period beginning on the date 
                the bonds are issued.
                    ``(B) 60 percent of such proceeds are spent for 
                such purposes within the 3-year period beginning on 
                such date.
                    ``(C) 80 percent of such proceeds are spent for 
                such purposes within the 4-year period beginning on 
                such date.
                    ``(D) 100 percent of such proceeds are spent for 
                such purposes within the 5-year period beginning on 
                such date.
            ``(3) Repayments of principal on financing provided by the 
        issue--
                    ``(A) may not be used to provide financing, and
                    ``(B) must be used not later than the close of the 
                first semiannual period beginning after the date of the 
                repayment to redeem bonds which are part of such issue.
        The requirement of subparagraph (B) shall be treated as met 
        with respect to amounts received within 5 years after the date 
        of issuance of the issue (or, in the case of a refunding bond, 
        the date of issuance of the original bond) if such amounts are 
        used by the close of such 5 years to redeem bonds which are 
        part of such issue.
            ``(4) Section 57(a)(5) shall not apply.
    ``(f) Separate Issue Treatment of Portions of an Issue.--This 
section shall not apply to the portion of an issue which (if issued as 
a separate issue) would be treated as a qualified bond or as a bond 
that is not a private activity bond (determined without regard to 
paragraph (1)), if the issuer elects to so treat such portion.
    ``(g) Qualified Disaster Area; Federally Declared Disaster.--
            ``(1) Qualified disaster area.--The term `qualified 
        disaster area' means any area determined to warrant individual 
        or individual and public assistance from the Federal Government 
        under the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act by reason of a federally declared disaster 
        occurring during the period beginning after December 31, 2011, 
        and before January 1, 2016.
            ``(2) Federally declared disaster.--The term `federally 
        declared disaster' has the meaning given to such term under 
        section 165(i)(5).''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter B of chapter 1 of such Code is amended by 
inserting after the item relating to section 146 the following new 
item:

``Sec. 146A. Qualified disaster area recovery bonds.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2015.

SEC. 115. ADDITIONAL LOW-INCOME HOUSING CREDIT ALLOCATIONS.

    (a) In General.--Paragraph (3) of section 42(h) of the Internal 
Revenue Code of 1986 (relating to limitation on aggregate credit 
allowable with respect to projects located in a State) is amended by 
adding at the end the following new subparagraph:
                    ``(J) Increase in state housing credit for states 
                damaged by natural disasters.--
                            ``(i) In general.--In the case of calendar 
                        year 2016, the State housing credit ceiling of 
                        each State any portion of which includes any 
                        portion of a qualifying disaster area shall be 
                        increased by so much of the aggregate housing 
                        credit dollar amount as does not exceed the 
                        applicable limitation allocated by the State 
                        housing credit agency of such State for such 
                        calendar year to buildings located in 
                        qualifying disaster areas.
                            ``(ii) Applicable limitation.--For purposes 
                        of clause (i), the applicable limitation is the 
                        greater of--
                                    ``(I) $8 multiplied by the 
                                population of the qualifying disaster 
                                areas in such State, or
                                    ``(II) 50 percent of the State 
                                housing credit ceiling (determined 
                                without regard to this subparagraph) 
                                for 2015.
                            ``(iii) Applicable percentage.--For 
                        purposes of this section, the applicable 
                        percentage with respect to any building to 
                        which amounts allocated under clause (i) shall 
                        be determined under subsection (b)(2), except 
                        that subparagraph (A) thereof shall be applied 
                        by substituting `January 1, 2016' for `January 
                        1, 2015'.
                            ``(iv) Allocations treated as made first 
                        from additional allocation amount for purposes 
                        of determining carryover.--For purposes of 
                        determining the unused State housing credit 
                        ceiling under subparagraph (C) for any calendar 
                        year, any increase in the State housing credit 
                        ceiling under clause (i) shall be treated as an 
                        amount described in clause (ii) of such 
                        subparagraph.
                            ``(v) Qualifying disaster area.--For 
                        purposes of this subparagraph, the term 
                        `qualifying federally declared disaster area' 
                        means--
                                    ``(I) each county which is 
                                determined to warrant individual or 
                                individual and public assistance from 
                                the Federal Government under a 
                                qualifying natural disaster declaration 
                                described in clause (vi)(I), and
                                    ``(II) each county not described in 
                                subclause (I) which is included in the 
                                geographical area covered by a 
                                qualifying natural disaster declaration 
                                described in subclause (II) or (III) of 
                                clause (vi).
                            ``(vi) Qualifying natural disaster 
                        declaration.--For purposes of clause (v), the 
                        term `qualifying natural disaster declaration' 
                        means--
                                    ``(I) a federally declared disaster 
                                (as defined in section 165(i)(5)) 
                                occurring during the period beginning 
                                after December 31, 2011, and before 
                                January 1, 2016,
                                    ``(II) a natural disaster declared 
                                by the Secretary of Agriculture in 2011 
                                due to damaging weather and other 
                                conditions relating to Hurricane Irene 
                                or Tropical Storm Lee under section 
                                321(a) of the Consolidated Farm and 
                                Rural Development Act (7 U.S.C. 
                                1961(a)), or
                                    ``(III) a major disaster or 
                                emergency designated by the President 
                                in 2011 due to damaging weather and 
                                other conditions relating to Hurricane 
                                Irene or Tropical Storm Lee under the 
                                Robert T. Stafford Disaster Relief and 
                                Emergency Assistance Act (42 U.S.C. 
                                5121 et seq.).''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 116. FACILITATION OF TRANSFER OF WATER LEASING AND WATER BY MUTUAL 
              DITCH OR IRRIGATION COMPANIES IN DISASTER AREAS.

    (a) In General.--Paragraph (12) of section 501(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(I) Treatment of mutual ditch or irrigation 
                companies in certain disaster areas.--
                            ``(i) In general.--In the case of a 
                        qualified mutual ditch or irrigation company or 
                        like organization, subparagraph (A) shall be 
                        applied without taking into account any income 
                        received or accrued during the applicable 
                        period--
                                    ``(I) from the sale, lease, or 
                                exchange of fee or other interests in 
                                real property, including interests in 
                                water,
                                    ``(II) from the sale or exchange of 
                                stock in a mutual ditch or irrigation 
                                company or like organization or 
                                contract rights for the delivery or use 
                                of water,
                                    ``(III) from the investment of 
                                proceeds from sales, leases, or 
                                exchanges under subclauses (I) and 
                                (II), or
                                    ``(IV) from the United States, or a 
                                State or local government, resulting 
                                from the federally declared disaster,
                        except that any income received under subclause 
                        (I), (II), (III), or (IV) which is distributed 
                        or expended for expenses (other than for 
                        operations, maintenance, and capital 
                        improvements) of the qualified mutual ditch or 
                        irrigation company or like organization shall 
                        be treated as nonmember income in the year in 
                        which it is distributed or expended.
                            ``(ii) Qualified mutual ditch or irrigation 
                        company or like organization.--For purposes of 
                        this paragraph--
                                    ``(I) In general.--The term 
                                `qualified mutual ditch or irrigation 
                                company or like organization' means any 
                                mutual ditch or irrigation company or 
                                like organization that diverted, 
                                delivered, transported, stored, or used 
                                its water for agricultural irrigation 
                                purposes on its own or through its 
                                shareholders in a qualified disaster 
                                area during any of calendar years 2012 
                                through 2015.
                                    ``(II) Qualified asset.--The term 
                                `qualified asset' means any real 
                                property or tangible personal property 
                                used in the mutual ditch or irrigation 
                                company's (or like organization's) 
                                system.
                                    ``(III) Multiple areas.--Under 
                                regulations, if the qualified assets of 
                                any mutual ditch or irrigation company 
                                or like organization are located in 
                                more than 1 qualified disaster area, 
                                all such areas shall be treated as 1 
                                area and if more than 1 federally 
                                declared disaster is involved, the date 
                                on which the last of such disasters 
                                occurred shall be the date used for 
                                purposes of this paragraph.
                            ``(iii) Applicable period.--For purposes of 
                        this paragraph, the term `applicable period' 
                        means the taxable year in which the federally 
                        declared disaster occurred and the 5 following 
                        taxable years.
                            ``(iv) Other definitions.--
                                    ``(I) Qualified disaster area.--The 
                                term `qualified disaster area' means 
                                any area determined to warrant 
                                individual or individual and public 
                                assistance from the Federal Government 
                                under the Robert T. Stafford Disaster 
                                Relief and Emergency Assistance Act by 
                                reason of a federally declared disaster 
                                occurring during the period beginning 
                                on January 1, 2012, and ending on 
                                December 31, 2015.
                                    ``(II) Federally declared 
                                disaster.--The term `federally declared 
                                disaster' has the meaning given to such 
                                term under section 165(i)(5).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years ending after December 31, 2011.

             TITLE II--OTHER DISASTER TAX RELIEF PROVISIONS

SEC. 201. EXCLUSION FOR DISASTER MITIGATION PAYMENTS RECEIVED FROM 
              STATE AND LOCAL GOVERNMENTS.

    (a) In General.--Paragraph (2) of section 139(g) of the Internal 
Revenue Code of 1986 is amended by inserting ``, or any other amount 
which is paid by a State or local government or agency or 
instrumentality thereof,'' after ``(as in effect on such date)''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments received after the date of the enactment of this Act.

SEC. 202. NATURAL DISASTER FUNDS.

    (a) Natural Disaster Fund.--Subpart C of part II of subchapter E of 
chapter 1 of the Internal Revenue Code of 1986 is amended by inserting 
after section 468B the following new section:

``SEC. 468C. SPECIAL RULES FOR NATURAL DISASTER FUNDS.

    ``(a) In General.--If a qualified taxpayer elects the application 
of this section, there shall be allowed as a deduction for any taxable 
year the amount of payments made by the taxpayer to a natural disaster 
fund during such taxable year.
    ``(b) Natural Disaster Fund.--The term `natural disaster fund' 
means a fund meeting the following requirements:
            ``(1) Designation.--The taxpayer designates--
                    ``(A) the fund as a natural disaster fund in the 
                manner prescribed by the Secretary, and
                    ``(B) the line or lines of business to which the 
                fund applies.
            ``(2) Segregation.--The assets of the fund are segregated 
        from other assets of the taxpayer.
            ``(3) Investments.--
                    ``(A) The assets of the fund are maintained in one 
                or more qualified accounts and are invested only in--
                            ``(i) deposits with banks whose deposits 
                        are insured subject to applicable limits by the 
                        Federal Deposit Insurance Corporation, or
                            ``(ii) in stock or other securities in 
                        which the fund would be permitted to invest if 
                        it were a capital construction fund subject to 
                        the investment limitations of paragraphs (2) 
                        and (3) of section 7518(b)(2).
                    ``(B) All investment earnings (including gains and 
                losses) from investments of the fund become part of the 
                fund.
            ``(4) Contributions to the fund.--The fund does not accept 
        any deposits (or other amounts) other than cash payments with 
        respect to which a deduction is allowable under subsection (a) 
        and earnings (including gains and losses) from fund 
        investments.
            ``(5) Purpose.--The fund is established and maintained for 
        the purposes of covering costs, expenses, and losses (including 
        business interruption losses) resulting from a Federally 
        declared natural disaster to the extent such costs are not 
        covered by insurance.
            ``(6) Maximum balance.--The balance of the fund does not 
        exceed the lesser of--
                    ``(A) the sum of--
                            ``(i) 150 percent of the maximum 
                        deductible, and
                            ``(ii) 100 percent of the maximum co-
                        insurance (to the extent not taken into account 
                        in clause (i)),
                that, in the case of a Federally declared natural 
                disaster resulting in losses, the taxpayer could be 
                expected to pay with respect to property and business 
                interruption insurance maintained by the taxpayer for 
                the line of business to which the fund applies and that 
                would cover losses resulting from a Federally declared 
                natural disaster, and
                    ``(B) the maximum loss under any insurance coverage 
                that the taxpayer could reasonably expect to occur for 
                the line of business in the case of a severe natural 
                disaster.
            ``(7) Financial statements.--The fund or the balance of the 
        fund is recorded in the taxpayer's financial statements in 
        accordance with generally accepted accounting principles and 
        not as a current asset and the footnotes to the taxpayer's 
        financial statements include a short description of the fund 
        and its purposes.
            ``(8) Insurance.--The taxpayer property insurance 
        maintained by the qualified taxpayer applies to 75 percent or 
        more of the property used--
                    ``(A) in the qualified taxpayer's line of business 
                to which the fund relates, and
                    ``(B) in the United States.
    ``(c) Qualified Taxpayer.--For purposes of this section, the term 
`qualified taxpayer' means any taxpayer that--
            ``(1) actively conducts a trade or business, and
            ``(2) maintains property insurance with respect to such 
        trade or business that insures against losses in natural 
        disasters.
    ``(d) Failure To Meet Requirements.--If a fund that was a natural 
disaster fund ceases to meet any of the requirements of subsection (b) 
or a taxpayer who has a natural disaster fund ceases to meet the 
requirement of subsection (c), the entire balance of the fund shall be 
deemed distributed in a nonqualified distribution at the time the fund 
ceases to meet such requirements.
    ``(e) Taxation of Fund.--
            ``(1) In general.--The earnings (including gains and 
        losses) from the investment and reinvestment of amounts held in 
        the fund shall not be taken into account in determining the 
        gross income of the taxpayer that owns the fund.
            ``(2) Not a separate taxpayer.--A natural disaster fund 
        shall not be considered a separate taxpayer for purposes of 
        this subtitle.
    ``(f) Taxation of Distributions From the Fund.--
            ``(1) Qualified distributions.--For purposes of this 
        chapter, qualified distributions shall be treated in the same 
        manner as proceeds from property or business interruption 
        insurance.
            ``(2) Nonqualified distributions.--
                    ``(A) In general.--In the case of any taxable year 
                for which there is a nonqualified distribution--
                            ``(i) such nonqualified distributions shall 
                        be excluded from the gross income of the 
                        taxpayer, and
                            ``(ii) the tax imposed by this chapter 
                        (determined without regard to this subsection) 
                        shall be increased by the product of the amount 
                        of such nonqualified distribution and the 
                        highest rate of tax specified in section 1 
                        (section 11 in the case of a corporation).
                    ``(B) Tax benefit rule; coordination with deduction 
                for net operating losses.--Rules similar to the rules 
                of subparagraphs (B) and (C) of section 7518(g)(6) 
                shall apply for purposes of this paragraph.
            ``(3) Additional tax.--The tax imposed by this chapter for 
        any taxable year on any taxpayer that a owns natural disaster 
        fund shall be increased by the greater of--
                    ``(A) 20 percent of the amount of any non-qualified 
                distributions from the fund in the taxable year, and
                    ``(B) an amount equal to interest, at the 
                underpayment rate established under section 6621, on 
                the nonqualified distribution from the time the amount 
                is added to the fund to the time the amount is 
                distributed.
            ``(4) Interest calculation.--For purposes of calculating 
        interest under paragraph (3)(B)--
                    ``(A) all investment earnings (including gains or 
                losses) in the taxable year shall be treated as added 
                to the fund on the last day of the taxable year, and
                    ``(B) amounts distributed from the fund shall be 
                treated as distributed on a first-in, first-out basis.
    ``(g) Definitions.--For purposes of this section--
            ``(1) Federally declared natural disaster.--The term 
        `Federally declared natural disaster' means a natural disaster 
        that is determined by Presidential declaration under the Robert 
        T. Stafford Disaster Relief and Emergency Assistance Act to 
        warrant individual or individual and public assistance under 
        such Act.
            ``(2) Nonqualified distribution.--The term `nonqualified 
        distribution' means a distribution from a natural disaster fund 
        other than a qualified distribution.
            ``(3) Qualified account.--The term `qualified account' 
        means an account with a bank (as defined in section 581) or a 
        brokerage account but only if the investments of such accounts 
        are limited to those permitted by subsection (b)(3) and no 
        investments are made in a related person (as defined in section 
        465(b)(3)(C)) to the taxpayer.
            ``(4) Qualified distribution.--
                    ``(A) In general.--The term `qualified 
                distribution' means with respect to a natural disaster 
                fund an amount equal to the excess of--
                            ``(i) costs, expenses, and losses 
                        (including losses of a type reimbursable by 
                        proceeds of business interruption insurance) 
                        incurred by the taxpayer as a result of the 
                        Federally declared natural disaster with 
                        respect to the line or lines of business for 
                        which the fund was designated, over
                            ``(ii) the proceeds of property and 
                        business interruption insurance paid for the 
                        benefit of the taxpayer with respect to costs, 
                        expenses, and losses described in clause (i).
                    ``(B) Limitation.--A distribution from a natural 
                disaster fund shall not be treated as a qualified 
                distribution if such distribution is allocated to a 
                Federally declared natural disaster occurring more than 
                3 years before the date of such distribution.
    ``(h) Special Rules.--For purposes of this section--
            ``(1) No double counting.--Any portion of any deductible or 
        coinsurance taken into account under subsection (b)(6) in 
        determining the maximum balance for a natural disaster fund 
        shall not be taken into account in determining the maximum 
        balance for another natural disaster fund.
            ``(2) Excess balance.--
                    ``(A) In general.--If the balance of a natural 
                disaster fund exceeds the maximum balance permitted by 
                subsection (b)(6) by reason of investment earnings or a 
                reduction in the maximum balance, the account shall not 
                cease to be a natural disaster fund as the result of 
                exceeding such limit if the excess is distributed 
                within 120 days of the date that such excess first 
                occurred.
                    ``(B) Treatment of distributions of excess 
                balance.--In the case of any distribution of the excess 
                balance of a natural disaster fund within 120 days of 
                the date that such excess first occurred--
                            ``(i) paragraphs (2) and (3) of subsection 
                        (f) shall not apply to the distribution of such 
                        excess if distributed within such period, and
                            ``(ii) the amount of such distribution 
                        shall be included in the gross income of the 
                        taxpayer in the year such distribution was 
                        made.
                    ``(C) Anti-abuse rule.--Subparagraph (B) shall not 
                apply in the case of any reduction in the maximum 
                balance resulting from any action of the taxpayer the 
                primary purpose of which was to reduce the maximum 
                balance to enable a distribution that would not be 
                subject to the maximum tax rate calculation or the 
                additional tax.
            ``(3) Certain asset acquisitions.--The transfer of a 
        natural disaster fund (or the portion of a natural disaster 
        fund) from one person to another person shall not constitute a 
        nonqualified distribution if--
                    ``(A) such transfer is part of a transaction--
                            ``(i) to which section 381 applies,
                            ``(ii) the transferee acquires 
                        substantially all of the assets of the 
                        transferor used in the line or lines of 
                        business for which the fund was designated,
                            ``(iii) the transferee acquires 
                        substantially all of the assets of the 
                        transferor used in one, but not all, of the 
                        lines of business for which the fund was 
                        designated, or
                            ``(iv) the transferee acquires 
                        substantially all of the transferor's assets 
                        located in a geographical area and used in a 
                        line of business for which the fund was 
                        designated, and
                    ``(B) the transferee elects to treat the acquired 
                natural disaster fund (or portion thereof) as a natural 
                disaster fund for the line of business for which the 
                transferor had previously designated the fund and as a 
                continuation of the fund (or pro rata portion thereof) 
                for purposes of determining the additional tax imposed 
                by subsection (f)(4).
    ``(i) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the provisions of this 
section.''.
    (b) Clerical Amendment.--The table of sections for subpart C of 
part II of subchapter E of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 468B 
the following new item:

``Sec. 468C. Special rules for natural disaster funds.''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2014.

          TITLE III--PERMANENT TAX DISASTER RELIEF PROVISIONS

SEC. 301. INCREASE PROPERTY REPLACEMENT PERIOD TO 5 YEARS.

    (a) In General.--Section 1033(a)(2) of the Internal Revenue Code of 
1986 is amended by adding at the end the following:
                    ``(F) Federally declared disaster.--
                            ``(i) In general.--In the case of converted 
                        property that is located in the disaster area 
                        of a federally declared disaster occurring 
                        during a calendar year beginning after 2011 and 
                        that is damaged or destroyed by the federally 
                        declared disaster, subparagraph (B)(i) shall be 
                        applied by substituting `5 years' for `2 
                        years'.
                            ``(ii) Federally declared disaster and 
                        disaster area.--For purposes of clause (i), the 
                        terms `federally declared disaster' and 
                        `disaster area' have the meanings given such 
                        terms under section 165(i)(5).''.
    (b) Conforming Amendment.--Section 1033(h)(1)(B) of the Internal 
Revenue Code of 1986 is amended by striking ``4 years'' and inserting 
``5 years''.
    (c) Effective Date.--The amendments made by this section shall 
apply to disasters declared after December 31, 2015.

SEC. 302. WAGE CREDIT FOR SPECIFIED DISASTER-DAMAGED BUSINESSES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45S. WAGE CREDIT FOR SPECIFIED DISASTER-DAMAGED BUSINESSES.

    ``(a) General Rule.--For purposes of section 38, in the case of an 
eligible employer, the specified disaster-damaged business wage credit 
for any taxable year is an amount equal to 40 percent of the qualified 
wages for such year.
    ``(b) Qualified Wages Defined.--For purposes of this section--
            ``(1) In general.--The term `qualified wages' means, with 
        respect to any covered employee, wages paid or incurred by the 
        eligible employer to the employee who is not able to work at 
        the disaster-damaged business of the employer during an 
        inoperability period because of a federally declared disaster. 
        Such term shall not include amounts paid or incurred for 
        overtime compensation.
            ``(2) Limitations.--
                    ``(A) Limitation on wages taken into account.--The 
                amount of the qualified wages with respect to any 
                individual which may be taken into account with respect 
                to a federally declared disaster shall not exceed 
                $6,000.
                    ``(B) Inoperability period.--The inoperability 
                period with respect to a federally declared disaster is 
                the period beginning with the first day the trade or 
                business is rendered inoperable due to damage from the 
                federally declared disaster and ending on the earlier 
                of--
                            ``(i) the last day on which the trade or 
                        business is inoperable, or
                            ``(ii) 16 weeks after the first day of such 
                        disaster.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible employer.--
                    ``(A) In general.--The term `eligible employer' 
                means, with respect to any taxable year, any employer 
                which--
                            ``(i) employed an average of less than 200 
                        employees on business days during such taxable 
                        year, and
                            ``(ii) has a disaster-damaged business.
                    ``(B) Disaster-damaged business.--The term 
                `disaster-damaged business' means a place of business 
                within a disaster area which is rendered inoperable due 
                to damage from the federally declared disaster.
                    ``(C) Controlled groups.--For purposes of this 
                section, all persons treated as a single employer under 
                subsection (b), (c), (m), or (o) of section 414 shall 
                be treated as a single employer.
            ``(2) Covered employee.--The term `covered employee' means, 
        with respect to an eligible employer, an individual--
                    ``(A) whose principal place of employment is in a 
                disaster area with respect to a federally declared 
                disaster, and
                    ``(B) who has been employed by the employer for 
                more than 30 days before the first day of the federally 
                declared disaster.
            ``(3) Federally declared disaster and disaster area.--For 
        purposes of clause (i), the terms `federally declared disaster' 
        and `disaster area' have the meanings given such terms under 
        section 165(i)(5).''.
    (b) Allowance as General Business Credit.--Section 38(b) of the 
Internal Revenue Code of 1986 is amended by striking ``plus'' at the 
end of paragraph (35), by striking the period at the end of paragraph 
(36) and inserting ``, plus'', and by adding at the end the following:
            ``(37) the specified disaster-damaged business wage credit 
        determined under section 45S(a).''.
    (c) Denial of Double Benefit.--Subsection (a) of section 280C of 
the Internal Revenue Code of 1986 is amended by inserting ``45S(a),'' 
after ``45P(a)''.
    (d) Clerical Amendment.--The table of contents for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45S. Wage credit for specified disaster-damaged businesses.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 303. DISASTER-RELATED MEDICAL EXPENSES.

    (a) In General.--Section 213 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(g) Disaster-Related Medical Expenses.--
            ``(1) In general.--In the case of expenses directly related 
        to an injury caused by a federally declared disaster occurring 
        during the taxable year or the preceding taxable year, there 
        shall be allowed a separate deduction under this section, which 
        shall be determined under this section (without regard to this 
        subsection), except that--
                    ``(A) subsection (a) shall be applied by 
                substituting `zero percent' for `10 percent', and
                    ``(B) subsection (f) shall be applied by 
                substituting `zero percent' for `7.5 percent'.
            ``(2) Coordination.--Any expense taken into account under 
        paragraph (1) shall not be treated as an expense taken into 
        account under this section (without regard to this section).
            ``(3) Federally declared disaster.--For purposes of this 
        subsection, the term `federally declared disaster' shall have 
        the meaning given such term under section 165(i)(5).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to disasters occurring after the date of the 
enactment of this Act.

SEC. 304. EXPENSING OF QUALIFIED DISASTER EXPENSES.

    (a) In General.--Section 198A(b)(2)(A)(ii) of the Internal Revenue 
Code of 1986, as added by section 101 of this Act, is amended by 
striking ``and before January 1, 2016,''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after December 31, 2015.

SEC. 305. LOSSES ATTRIBUTABLE TO DISASTERS.

    (a) In General.--Section 165(h)(3)(B)(i)(I) of the Internal Revenue 
Code of 1986, as amended by section 103 of this Act, is amended by 
striking ``the period beginning after December 31, 2011, and before 
January 1, 2016,'' and inserting ``any period beginning after December 
31, 2011,''.
    (b) Effective Date.--The amendment made by this section shall apply 
to disasters declared in taxable years beginning after December 31, 
2015.

SEC. 306. NET OPERATING LOSSES ATTRIBUTABLE TO DISASTERS.

    (a) In General.--Section 172(i)(1)(A)(i)(I) of the Internal Revenue 
Code of 1986 is amended by striking ``and before January 1, 2016,''.
    (b) Effective Date.--The amendment made by this section shall apply 
to disasters declared in taxable years beginning after December 31, 
2015.

SEC. 307. SPECIAL RULES FOR USE OF RETIREMENT FUNDS IN CONNECTION WITH 
              FEDERALLY DECLARED DISASTERS.

    (a) Withdrawals.--Section 72(t)(11)(A) of the Internal Revenue Code 
of 1986, as amended by section 108 of this Act, is amended by striking 
``2011 and before January 1, 2016,'' and inserting ``2011,''.
    (b) Loans.--Section 72(p)(6)(C)(ii) of such Code is amended by 
striking ``and ending on December 31, 2016''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions with respect to disasters declared after 
December 31, 2015.

SEC. 308. ADDITIONAL EXEMPTION FOR HOUSING QUALIFIED DISASTER DISPLACED 
              INDIVIDUALS.

    (a) In General.--Section 151(f)(3)(B)(i) of the Internal Revenue 
Code of 1986, as amended by section 109 of this Act, is amended by 
striking ``and before 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 309. EXCLUSIONS OF CERTAIN CANCELLATIONS OF INDEBTEDNESS BY REASON 
              OF DISASTERS.

    (a) In General.--Section 108(j)(3) of the Internal Revenue Code of 
1986, as amended by section 110 of this Act, is amended by striking 
``and before 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to discharges made on or after December 31, 2015.

SEC. 310. SPECIAL RULE FOR DETERMINING EARNED INCOME OF INDIVIDUALS 
              AFFECTED BY FEDERALLY DECLARED DISASTERS.

    (a) In General.--Section 32(n)(2) of the Internal Revenue Code of 
1986, as amended by section 111 of this Act, is amended by striking 
``and before 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 311. QUALIFIED DISASTER AREA RECOVERY BONDS.

    (a) In General.--Section 146A(b)(4) of the Internal Revenue Code of 
1986, as amended by section 114 of this Act, is further amended by 
striking ``and before January 1, 2017''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after December 31, 2015.

SEC. 312. ADDITIONAL LOW-INCOME HOUSING CREDIT ALLOCATIONS.

    (a) In General.--Section 42(h)(3)(J) of the Internal Revenue Code 
of 1986, as amended by section 115 of this Act, is amended--
            (1) in clause (i) by striking ``In the case of calendar 
        year 2016,'' and inserting ``In the case of a calendar year 
        beginning after 2015,'',
            (2) in clause (ii)(II) by striking ``2015'' and inserting 
        ``the preceding calendar year'', and
            (3) in clause (iii) by striking ``January 1, 2016'' and 
        inserting ``January 1 of the calendar year in which the taxable 
        year ends''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 313. SUSPENSION OF LIMITATION ON CHARITABLE CONTRIBUTIONS FOR 
              DISASTER RELIEF EFFORTS.

    (a) In General.--Section 170 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (p) as subsection (q) and by 
inserting after subsection (o) the following new subsection:
    ``(p) Suspension of Limitation on Charitable Contributions for 
Disaster Relief Efforts.--
            ``(1) In general.--Except as otherwise provided in 
        paragraph (2), subsection (b) shall not apply to qualified 
        contributions and such contributions shall not be taken into 
        account for purposes of applying subsections (b) and (d) to 
        other contributions.
            ``(2) Treatment of excess contributions.--
                    ``(A) Individuals.--
                            ``(i) Limitation.--Any qualified 
                        contribution shall be allowed only to the 
                        extent that the aggregate of such contributions 
                        does not exceed the excess of the taxpayer's 
                        contribution base over the amount of all other 
                        charitable contributions allowed under 
                        subsection (b)(1).
                            ``(ii) Carryover.--If the aggregate amount 
                        of qualified contributions made in the 
                        contribution year (within the meaning of 
                        subsection (d)(1)) exceeds the limitation of 
                        clause (i), such excess shall be added to the 
                        excess described in the portion of subparagraph 
                        (A) of such subsection which precedes clause 
                        (i) thereof for purposes of applying such 
                        subsection.
                    ``(B) Corporations.--
                            ``(i) Limitation.--Any qualified 
                        contribution shall be allowed only to the 
                        extent that the aggregate of such contributions 
                        does not exceed the excess of the taxpayer's 
                        taxable income (as determined under subsection 
                        (b)(2)) over the amount of all other charitable 
                        contributions allowed under such subsection.
                            ``(ii) Carryover.--Rules similar to the 
                        rules of subparagraph (A)(ii) shall apply for 
                        purposes of this subparagraph.
            ``(3) Exception to overall limitation on itemized 
        deductions.--So much of any deduction allowed under this 
        section as does not exceed the qualified contributions paid 
        during the taxable year shall not be treated as an itemized 
        deduction for purposes of section 68 of such Code.
            ``(4) Qualified contributions.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified contribution' means any charitable 
                contribution if--
                            ``(i) such contribution--
                                    ``(I) is paid during the 120-day 
                                period beginning on the date a 
                                Federally declared disaster first 
                                occurred, in cash to an organization 
                                described in subsection (b)(1)(A), and
                                    ``(II) is made for relief efforts 
                                in the disaster area with respect to 
                                which such declaration relates,
                            ``(ii) the taxpayer obtains from such 
                        organization contemporaneous written 
                        acknowledgment that such contribution was used 
                        (or is to be used) for relief efforts described 
                        in clause (i)(II), 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) of the Internal Revenue Code 
                        of 1986, or
                            ``(ii) for the establishment of a new, or 
                        maintenance of an existing, donor advised fund 
                        (as defined in section 4966(d)(2) of such 
                        Code).
                    ``(C) Application 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.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 314. INCREASE IN NEW MARKETS TAX CREDIT ALLOCATIONS.

    (a) Extension.--Section 45D(f)(4) of the Internal Revenue Code of 
1986, as amended by the preceding provisions of this Act, is amended--
            (1) by striking ``and before 2017'', in subparagraph (A), 
        and
            (2) by striking ``, and before January 1, 2016'' in 
        subparagraph (D).
    (b) Effective Date.--The amendments made by this section shall 
apply to disasters occurring after December 31, 2015.

SEC. 315. INCREASE IN REHABILITATION CREDIT FOR BUILDINGS IN DISASTER 
              AREAS.

    (a) In General.--Section 47(e)(2)(B) of the Internal Revenue Code 
of 1986, as added by this Act, is amended by striking ``and ending on 
December 31, 2015'' and inserting ``and ending on the date that is 6 
years after such applicable disaster date''.
    (b) Effective Date.--The amendment made by this section shall apply 
to periods beginning after December 31, 2015.

SEC. 316. WAIVER OF CERTAIN MORTGAGE REVENUE BOND REQUIREMENTS 
              FOLLOWING DISASTERS.

    (a) In General.--Section 143(k)(13) of the Internal Revenue Code of 
1986, as amended by this Act, is amended by striking ``, and before 
January 1, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to disasters occurring after December 31, 2015.

SEC. 317. ADVANCED REFUNDINGS OF CERTAIN TAX-EXEMPT BONDS.

    (a) In General.--Section 149(d)(7)(A) of the Internal Revenue Code 
of 1986, as added by this Act, is amended by striking ``and before 
January 1, 2018,''.
    (b) Effective Date.--The amendment made by this section shall apply 
to bonds issued after December 31, 2017.

SEC. 318. FACILITATION OF TRANSFER OF WATER LEASING AND WATER BY MUTUAL 
              DITCH OR IRRIGATION COMPANIES IN DISASTER AREAS.

    (a) In General.--Section 501(c)(12)(I) of the Internal Revenue Code 
of 1986, as added by this Act, is amended--
            (1) by striking ``through 2015'' in clause (ii)(I), and
            (2) by striking ``, and ending on December 31, 2015'' in 
        clause (iv)(I).
    (b) Effective Date.--The amendments made by this section shall 
apply to disasters occurring after December 31, 2015.

SEC. 319. EXCLUSION OF EMPLOYER PROVIDED HOUSING FOR INDIVIDUAL 
              AFFECTED BY DISASTER.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting before section 
140 the following new section:

``SEC. 139G. EMPLOYER-PROVIDED HOUSING FOR INDIVIDUAL AFFECTED BY 
              DISASTER.

    ``(a) In General.--Gross income of a qualified employee shall not 
include the value of any lodging furnished in-kind to such employee 
(and such employee's spouse or any of such employee's dependents) by or 
on behalf of a qualified employer for any month during the taxable 
year.
    ``(b) Limitation.--The amount which may be excluded under this 
section for any month for which lodging is furnished during the taxable 
year shall not exceed $600.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualified employee.--The term `qualified employee' 
        means, with respect to any month, an individual--
                    ``(A) who had a principal residence (as defined in 
                section 121) in a disaster area, and
                    ``(B) who performs substantially all employment 
                services--
                            ``(i) in such area, and
                            ``(ii) for the qualified employer which 
                        furnishes lodging to such individual.
            ``(2) Qualified employer.--For purposes of this section, 
        the term `qualified employer' means any employer with a trade 
        or business located in the disaster area.
            ``(3) Disaster area; federally declared disaster.--The 
        terms `disaster area' and `Federally declared disaster area' 
        shall have the respective meanings given such terms in section 
        165(i).
            ``(4) Certain rules to apply.--For purposes of this 
        section, rules similar to the rules of sections 51(i)(1) and 52 
        shall apply.
            ``(5) Application of section.--This section shall apply to 
        lodging furnished to an individual during the 6-month period 
        beginning on the date the Federally declared disaster first 
        occurred with respect to such disaster area.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting before 
section 140 the following new item:

``Sec. 139G. Employer-provided housing for individual affected by 
                            disaster.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.

SEC. 320. INCREASED EXPENSING AND BONUS DEPRECIATION FOR QUALIFIED 
              DISASTER ASSISTANCE PROPERTY.

    (a) In General.--Subclause (I) of section 168(n)(2)(A)(ii) of the 
Internal Revenue Code of 1986, as amended by this Act, is amended by 
striking ``or during the period beginning after December 31, 2011, and 
before January 1, 2016'' and inserting ``or after December 31, 2011''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2016, with 
respect to disasters declared after such date.

SEC. 321. INCREASE IN STANDARD MILEAGE RATE FOR CHARITABLE USE OF 
              VEHICLE.

    (a) In General.--Section 170(i) of the Internal Revenue Code of 
1986 is amended by adding at the end the following: ``For use of a 
vehicle described in subsection (f)(12)(E)(i) for provision of relief 
related to a Federally declared disaster during the 1-year period 
beginning on the date the Federally declared disaster first occurred, 
the standard mileage rate shall be 70 percent of the standard mileage 
rate in effect under section 162(a) at the time of such use. Any 
increase under the preceding sentence shall be rounded to the next 
highest cent.''.

SEC. 322. WORK OPPORTUNITY TAX CREDIT FOR EMPLOYEES IN DISASTER AREA.

    (a) In General.--Section 51(d)(1) of the Internal Revenue Code of 
1986 is amended by striking ``or'' at the end of subparagraph (I), by 
striking the period at the end of subparagraph (J) and inserting ``, 
or'', and by adding at the end the following new subparagraph:
                    ``(K) a disaster area employee.''.
    (b) Disaster Area Employee.--Section 51(d) of such Code is amended 
by adding at the end the following new paragraph:
            ``(16) Disaster area employee.--
                    ``(A) In general.--The term `disaster area 
                employee' means any individual who--
                            ``(i) as of the date the Federally declared 
                        disaster first occurred had a principal place 
                        of abode in a disaster area and is hired during 
                        the 4-year period beginning on such date for a 
                        position the principal place of employment of 
                        which is located such disaster area, or
                            ``(ii) as of such date had a principal 
                        place of abode in the disaster area, which is 
                        displaced from such abode by reason of such 
                        disaster, and who is hired during the 120-day 
                        period beginning on such date.
                    ``(B) Special rules for determining credit.--For 
                purposes of determining the credit under this section 
                with respect to a disaster area employee--
                            ``(i) subsection (c)(4) shall not apply, 
                        and
                            ``(ii) subsection (i)(2) shall not apply 
                        with respect to the first hire of such employee 
                        as a disaster area employee, unless such 
                        employee was an employee of the employer on the 
                        date the Federally declared disaster first 
                        occurred.
                    ``(C) Disaster area; federally declared disaster.--
                The terms `disaster area' and `Federally declared 
                disaster area' shall have the respective meanings given 
                such terms in section 165(i).''.

SEC. 323. EXPENSING FOR ENVIRONMENTAL REMEDIATION COSTS IN DISASTER 
              AREAS.

    (a) In General.--Section 198 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(i) Special Rules for Remediation Costs in Disaster Areas.--With 
respect to any qualified environmental remediation expenditure paid or 
incurred on or after the date of the enactment of this subsection in 
connection with a qualified contaminated site located in a disaster 
area--
            ``(1) in the case of any such expenditures paid or incurred 
        during the 120-day period beginning on the date the Federally 
        declared disaster first occurred with respect to such disaster 
        area, subsection (h) shall not apply, and
            ``(2) this section shall be applied, except as provided in 
        subsection (d)(2), by treating petroleum products (as defined 
        in section 4612(a)(3)) as a hazardous substance.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to disasters occurring after December 31, 2015.

SEC. 324. TAXPAYER FILING ASSISTANCE.

    (a) In General.--Section 7508A of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(d) State-Declared Disasters or Emergencies.--
            ``(1) In general.--In the case of a taxpayer determined by 
        the Governor of a State (or in the case of the District of 
        Columbia, the Mayor) to be affected by a state of emergency or 
        disaster declared by such Governor (or Mayor), the Secretary 
        may, pursuant to a request by such Governor (or Mayor) made 
        under this subsection, specify a period described in subsection 
        (a) with respect to such taxpayer.
            ``(2) State.--For purposes of this subsection, the term 
        `State' includes the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to declarations made after December 31, 2015.

   TITLE IV--RELIEF RELATING TO PUERTO RICO AND UNITED STATES VIRGIN 
                                ISLANDS

SEC. 401. APPLICATION OF DISASTER-RELATED TAX RELIEF TO POSSESSIONS OF 
              UNITED STATES.

    (a) Payments to United States Virgin Islands and Puerto Rico.--
            (1) Provisions of this act.--
                    (A) United states virgin islands.--The Secretary of 
                the Treasury shall periodically (but not less 
                frequently than annually) pay to the United States 
                Virgin Islands amounts equal to the sum of loss in 
                revenues to the United States Virgin Islands by reason 
                of the application of the provisions of this Act and 
                amendments made by this Act.
        Such amounts shall be determined by the Secretary of the 
        Treasury based on information provided by the government of the 
        United States Virgin Islands.
                    (B) Puerto rico.--The Secretary of the Treasury 
                shall pay to Puerto Rico amounts estimated by the 
                Secretary of the Treasury as being equal to the 
                aggregate benefits that would have been provided to 
                residents of Puerto Rico by reason of the provisions of 
                this Act if a mirror code tax system had been in effect 
                in Puerto Rico. The preceding sentence shall not apply 
                unless the government of Puerto Rico has a plan, which 
                has been approved by the Secretary of the Treasury, 
                under which Puerto Rico will promptly distribute such 
                payments to its residents.
            (2) Earned income credit.--Section 32 of the Internal 
        Revenue Code of 1986, as amended by this Act, is amended by 
        adding at the end the following:
    ``(o) Treatment of Possessions.--
            ``(1) Payments to possessions.--
                    ``(A) Virgin islands.--The Secretary of the 
                Treasury shall periodically (but not less frequently 
                than annually) pay to the Virgin Islands amounts equal 
                to the loss to that possession by reason of the 
                application of this section (determined without regard 
                to paragraph (2)) with respect to taxable years 
                beginning after December 31, 2016. Such amounts shall 
                be determined by the Secretary of the Treasury based on 
                information provided by the government of such 
                possession.
                    ``(B) Puerto rico.--The Secretary of the Treasury 
                shall periodically (but no less frequently than 
                annually) pay to Puerto Rico amounts estimated by the 
                Secretary of the Treasury as being equal to the 
                aggregate benefits that would have been provided to 
                residents of such possession by reason of the 
                application of this section for taxable years beginning 
                after December 31, 2016, if a mirror code tax system 
                had been in effect in such possession. The preceding 
                sentence shall not apply unless the government of 
                Puerto Rico has a plan, which has been approved by the 
                Secretary of the Treasury, under which such possession 
                will promptly distribute such payments to the residents 
                of such possession.
            ``(2) Coordination with credit allowed against united 
        states income taxes.--No credit shall be allowed under this 
        section for any taxable year to any person--
                    ``(A) to whom a credit is allowed against taxes 
                imposed by the Virgin Islands or Puerto Rico by reason 
                of this section (determined without regard to this 
                paragraph) for such taxable year, or
                    ``(B) who is eligible for a payment under a plan 
                described in paragraph (1)(B) with respect to such 
                taxable year.
            ``(3) Treatment of payments.--For purposes of section 
        1324(b)(2) of title 31, United States Code, or any similar rule 
        of law, any payment made under this subsection shall be treated 
        in the same manner as a refund due from the credit allowed 
        under this section.''.
    (b) Child Tax Credit.--Section 24 of such Code is amended by adding 
at the end the following:
    ``(h) Payments to Virgin Islands and Puerto Rico for Lost 
Revenue.--The Secretary shall make annual payments to the Virgin 
Islands and to Puerto Rico in amounts equal to the aggregate loss to 
the Virgin Islands or Puerto Rico, as the case may be, by reason of the 
application of this section with respect to taxable years beginning 
after 2016. Such amounts shall be determined by the Secretary based on 
information provided by the governments of the Virgin Islands and 
Puerto Rico. For purposes of section 1324(b)(2) of title 31, United 
States Code, the payments under this subsection shall be treated in the 
same manner as a refund due from the credit allowed under this 
section.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years beginning after December 31, 2016.
    (d) Definition and Special Rules.--
            (1) Mirror code tax system.--For purposes of this 
        subsection, the term ``mirror code tax system'' means, with 
        respect to any possession of the United States, the income tax 
        system of such possession if the income tax liability of the 
        residents of such possession under such system is determined by 
        reference to the income tax laws of the United States as if 
        such possession were the United States.
            (2) Treatment of payments.--For purposes of section 1324 of 
        title 31, United States Code, the payments under this 
        subsection shall be treated in the same manner as a refund due 
        from a credit provision referred to in subsection (b)(2) of 
        such section.
            (3) Coordination with united states income taxes.--In the 
        case of any person with respect to whom a tax benefit is taken 
        into account with respect to the taxes imposed by any 
        possession of the United States by reason of this Act, the 
        Internal Revenue Code of 1986 shall be applied with respect to 
        such person without regard to the provisions of this Act which 
        provide such benefit.

SEC. 402. APPLICATION TO PUERTO RICO AND VIRGIN ISLANDS OF DEDUCTION 
              FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION 
              ACTIVITIES.

    (a) Extension of Treatment for Puerto Rico.--Section 199(d)(8) of 
the Internal Revenue Code of 1986 is amended by striking subparagraph 
(C).
    (b) Inclusion of Virgin Islands.--
            (1) In general.--Paragraph (8) of section 199(d) of the 
        Internal Revenue Code of 1986, as amended by this section, is 
        further amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``Puerto Rico, if'' and 
                        inserting ``Puerto Rico or the Virgin Islands, 
                        if'', and
                            (ii) by striking ``Puerto Rico.'' and 
                        inserting ``Puerto Rico and the Virgin 
                        Islands.'', and
                    (B) in subparagraph (B), by striking ``Puerto 
                Rico.'' and inserting ``Puerto Rico or the Virgin 
                Islands.''.
            (2) Conforming amendment.--The heading for paragraph (8) of 
        section 199(d) is amended by inserting ``and virgin islands'' 
        after ``Puerto rico''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.

SEC. 403. FULL RUM COVER OVER.

    (a) In General.--Section 7652(f) of the Internal Revenue Code of 
1986 is amended by striking ``exceed the lesser of'' and all that 
follows through the period at the end and inserting ``exceed the tax 
imposed under section 5001(a)(1), on each proof gallon.''.
    (b) Effective Date.--The amendments made by this section apply with 
respect to distilled spirits brought into the United States after 
December 31, 2016.

SEC. 404. PUERTO RICO RESIDENTS ELIGIBLE FOR EARNED INCOME TAX CREDIT.

    (a) In General.--Section 32 of the Internal Revenue Code of 1986 
(relating to earned income) is amended by adding at the end the 
following new subsection:
    ``(n) Residents of Puerto Rico.--
            ``(1) In general.--In the case of residents of Puerto 
        Rico--
                    ``(A) the United States shall be treated as 
                including Puerto Rico for purposes of subsections 
                (c)(1)(A)(ii)(I) and (c)(3)(C),
                    ``(B) subsection (c)(1)(D) shall not apply to 
                nonresident alien individuals who are residents of 
                Puerto Rico,
                    ``(C) adjusted gross income and gross income shall 
                be computed without regard to section 933 for purposes 
                of subsections (a)(2)(B) and (c)(2)(A)(i),
                    ``(D) subsection (c)(1)(A)(ii)(II) shall be applied 
                by substituting `age 21' for `age 25', and
                    ``(E) notwithstanding subsection (b)--
                            ``(i) the credit percentage is 40,
                            ``(ii) the phaseout percentage is 21.06,
                            ``(iii) the earned income amount is $8,890, 
                        and
                            ``(iv) the phaseout amount is $11,610 
                        (increased by $3,000 in the case of a joint 
                        return).
            ``(2) Inflation adjustment.--Subsection (j) shall apply to 
        the dollar amounts in subparagraph (D), determined by treating 
        the $8,890 and $11,610 amounts as though such amounts were 
        contained in subsection (b)(2)(A) and by treating the $3,000 
        amount as though such amount were contained in subsection 
        (b)(2)(B)(iii).''.
    (b) Child Tax Credit Not Reduced.--Subclause (II) of section 
24(d)(1)(B)(ii) of such Code (relating to child tax credit) is amended 
by inserting before the period ``(determined without regard to section 
32(n) in the case of residents of Puerto Rico)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 405. EQUITABLE TREATMENT FOR RESIDENTS OF PUERTO RICO WITH RESPECT 
              TO THE REFUNDABLE PORTION OF THE CHILD TAX CREDIT.

    (a) In General.--Section 24(d)(1) of the Internal Revenue Code of 
1986 is amended by inserting ``or section 933'' after ``section 112''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2015.

SEC. 406. TECHNICAL ASSISTANCE AND ADMINISTRATIVE RELIEF.

    (a) Technical Assistance.--The Secretary of the Treasury shall 
provide to the governments of Puerto Rico and the Virgin Islands such 
technical assistance and administrative support as may be necessary to 
carry out the provisions of this Act.
    (b) Administrative Relief.--The Secretary may provide such relief 
as may be necessary or appropriate, due to federally declared disasters 
(as defined in section 165(i)(5)), for filing returns, statements, or 
such other information as the Secretary designates.

                        TITLE V--MEDICARE RELIEF

SEC. 501. MEDICARE ENROLLMENT FILING DEADLINE RELIEF.

    (a) Part B.--Section 1837 of the Social Security Act (42 U.S.C. 
1395p) is amended by adding at the end the following new subsection:
    ``(m)(1) Subject to paragraph (2), in the case of an individual who 
resides in an emergency area and has an initial, special, or general 
enrollment period prescribed under this section, any day of which 
occurs during an emergency period with respect to such area, the 
Secretary may extend such enrollment period with respect to such 
individual.
    ``(2)(A) Subject to subparagraph (B), in no case may an extension 
described in paragraph (1) extend past the earlier of the following:
            ``(i) the termination of the applicable emergency period 
        (as defined in paragraph (3)(B)); and
            ``(ii) the termination of a period of 120 days beginning on 
        the date that such enrollment period would have otherwise 
        ended.
    ``(B) The Secretary may, by notice, extend a termination described 
in clause (i) or (ii) of subparagraph (A), as applicable, for a period 
or periods (not to exceed 60 days each).
    ``(3) In this subsection:
            ``(A) The term `emergency area' means a geographical area 
        in which there exists an emergency or disaster declared by the 
        President pursuant to the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act.
            ``(B) The term `emergency period' means the period during 
        which such emergency or disaster exists.''.
    (b) Part D.--Section 1860D-13(b) of the Social Security Act (42 
U.S.C. 1395w-113(b)) is amended by adding at the end the following new 
paragraph:
            ``(9) Waiver in exceptional circumstances.--In the case of 
        an individual who resides in a geographical area in which there 
        exists an emergency or disaster declared by the President 
        pursuant to the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act and who enrolls in a prescription drug 
        plan under this part during a special enrollment period 
        established with respect to such individual by reason of such 
        emergency or disaster pursuant to section 1860D-1(b)(3)(C), the 
        Secretary may waive any applicable late enrollment penalty 
        under this subsection with respect to such individual.''.
                                 <all>