[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2145 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 2145
To provide disaster relief.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 9, 2019
Mr. Rice of South Carolina (for himself, Mr. Austin Scott of Georgia,
Mr. Dunn, and Mr. Rouzer) introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide disaster relief.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Disaster Tax Relief Act of 2019''.
SEC. 2. DEFINITIONS.
For purposes of this Act--
(1) Qualified disaster area.--The term ``qualified disaster
area'' means any area with respect to which a major disaster
was declared, during the period beginning on January 1, 2018,
and ending on the date of the enactment of this Act, by the
President under section 401 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act if the incident period of
the disaster with respect to which such declaration is made
begins after January 1, 2018, and before the date of the
enactment of this Act.
(2) Qualified disaster zone.--The term ``qualified disaster
zone'' means that portion of any qualified disaster area which
is determined by the President 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 the qualified disaster with respect
to such disaster area.
(3) Qualified disaster.--The term ``qualified disaster''
means, with respect to any qualified disaster area, the
disaster by reason of which a major disaster was declared with
respect to such area.
(4) Incident period.--The term ``incident period'' means,
with respect to any qualified disaster, the period specified by
the Federal Emergency Management Agency as the period during
which such disaster occurred.
SEC. 3. SPECIAL DISASTER-RELATED RULES FOR USE OF RETIREMENT FUNDS.
(a) Tax-Favored Withdrawals From Retirement Plans.--
(1) In general.--Section 72(t) of the Internal Revenue Code
of 1986 shall not apply to any qualified disaster distribution.
(2) Aggregate dollar limitation.--
(A) In general.--For purposes of this subsection,
the aggregate amount of distributions received by an
individual which may be treated as qualified disaster
distributions for any taxable year shall not exceed the
excess (if any) of--
(i) $100,000, over
(ii) the aggregate amounts treated as
qualified disaster distributions received by
such individual for all prior taxable years.
(B) Treatment of plan distributions.--If a
distribution to an individual would (without regard to
subparagraph (A)) be a qualified disaster distribution,
a plan shall not be treated as violating any
requirement of the Internal Revenue Code of 1986 merely
because the plan treats such distribution as a
qualified disaster 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 exceeds
$100,000.
(C) Controlled group.--For purposes of subparagraph
(B), the term ``controlled group'' means any group
treated as a single employer under subsection (b), (c),
(m), or (o) of section 414 of the Internal Revenue Code
of 1986.
(D) Special rule for individuals affected by more
than one disaster.--The limitation of subparagraph (A)
shall be applied separately with respect to
distributions made with respect to each qualified
disaster.
(3) Amount distributed may be repaid.--
(A) In general.--Any individual who receives a
qualified disaster 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), of the
Internal Revenue Code of 1986, as the case may be.
(B) Treatment of repayments of distributions from
eligible retirement plans other than iras.--For
purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to subparagraph (A) with
respect to a qualified disaster 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 distribution in an
eligible rollover distribution (as defined in section
402(c)(4) of such Code) and as having transferred the
amount to the eligible retirement plan in a direct
trustee to trustee transfer within 60 days of the
distribution.
(C) Treatment of repayments of distributions from
iras.--For purposes of the Internal Revenue Code of
1986, if a contribution is made pursuant to
subparagraph (A) with respect to a qualified disaster
distribution from an individual retirement plan (as
defined by section 7701(a)(37) of such Code), then, to
the extent of the amount of the contribution, the
qualified disaster distribution shall be treated as a
distribution described in section 408(d)(3) of such
Code and as having been transferred to the eligible
retirement plan in a direct trustee to trustee transfer
within 60 days of the distribution.
(4) Definitions.--For purposes of this subsection--
(A) Qualified disaster distribution.--Except as
provided in paragraph (2), the term ``qualified
disaster distribution'' means any distribution from an
eligible retirement plan made after the incident
beginning date of a qualified disaster and on or before
December 31 of the year after the year in which the
incident period with respect to the disaster begins, to
an individual whose principal place of abode at any
time during the incident period of such qualified
disaster is located in the qualified disaster area with
respect to such qualified disaster and who has
sustained an economic loss by reason of such qualified
disaster.
(B) Eligible retirement plan.--The term ``eligible
retirement plan'' shall have the meaning given such
term by section 402(c)(8)(B) of the Internal Revenue
Code of 1986.
(5) Income inclusion spread over 3-year period.--
(A) In general.--In the case of any qualified
disaster 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.
(B) Special rule.--For purposes of subparagraph
(A), rules similar to the rules of subparagraph (E) of
section 408A(d)(3) of the Internal Revenue Code of 1986
shall apply.
(6) Special rules.--
(A) Exemption of distributions from trustee to
trustee transfer and withholding rules.--For purposes
of sections 401(a)(31), 402(f), and 3405 of the
Internal Revenue Code of 1986, qualified disaster
distributions shall not be treated as eligible rollover
distributions.
(B) Qualified disaster distributions treated as
meeting plan distribution requirements.--For purposes
of the Internal Revenue Code of 1986, a qualified
disaster 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) of such
Code.
(b) Recontributions of Withdrawals for Home Purchases.--
(1) Recontributions.--
(A) In general.--Any individual who received a
qualified distribution may, during the applicable
period, make one or more contributions in an aggregate
amount not to exceed the amount of such qualified
distribution to an eligible retirement plan (as defined
in section 402(c)(8)(B) of the Internal Revenue Code of
1986) 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), or 408(d)(3), of such Code, as the case may
be.
(B) Treatment of repayments.--Rules similar to the
rules of subparagraphs (B) and (C) of subsection (a)(3)
shall apply for purposes of this subsection.
(2) Qualified distribution.--For purposes of this
subsection, the term ``qualified distribution'' means any
distribution--
(A) described in section 401(k)(2)(B)(i)(IV),
403(b)(7)(A)(ii) (but only to the extent such
distribution relates to financial hardship),
403(b)(11)(B), or 72(t)(2)(F), of the Internal Revenue
Code of 1986,
(B) which was to be used to purchase or construct a
principal residence in a qualified disaster area, but
which was not so used on account of the qualified
disaster with respect to such area, and
(C) which was received on or after the date that is
270 days before the first day of incident period of the
disaster, and before the date which is 30 days after
the last day of the incident period of such qualified
disaster.
(3) Applicable period.--For purposes of this subsection,
the term ``applicable period'' means, with respect to any
qualified distribution, the period beginning on the first day
of the incident period of the disaster and ending on the date
that is 180 days after the last day of such incident period.
(c) Loans From Qualified Plans.--
(1) Increase in limit on loans not treated as
distributions.--In the case of any loan from a qualified
employer plan (as defined under section 72(p)(4) of the
Internal Revenue Code of 1986) to a qualified individual made
during the period beginning on the date of the enactment of
this Act and ending on December 31 of the year after the year
in which the incident period with respect to the disaster
begins--
(A) clause (i) of section 72(p)(2)(A) of such Code
shall be applied by substituting ``$100,000'' for
``$50,000'', and
(B) clause (ii) of such section 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''.
(2) Delay of repayment.--In the case of a qualified
individual (with respect to any qualified disaster) with an
outstanding loan on or after the incident beginning date (of
such qualified disaster) from a qualified employer plan (as
defined in section 72(p)(4) of the Internal Revenue Code of
1986)--
(A) if the due date pursuant to subparagraph (B) or
(C) of section 72(p)(2) of such Code for any repayment
with respect to such loan occurs during the period
beginning on the incident beginning date of such
qualified disaster and ending on December 31 of the
year after the year in which the incident period with
respect to the disaster begins, such due date shall be
delayed for 1 year,
(B) any subsequent repayments with respect to any
such loan shall be appropriately adjusted to reflect
the delay in the due date under paragraph (1) and any
interest accruing during such delay, and
(C) in determining the 5-year period and the term
of a loan under subparagraph (B) or (C) of section
72(p)(2) of such Code, the period described in
subparagraph (A) of this paragraph shall be
disregarded.
(3) Qualified individual.--For purposes of this subsection,
the term ``qualified individual'' means any individual--
(A) whose principal place of abode at any time
during the incident period of any qualified disaster is
located in the qualified disaster area with respect to
such qualified disaster, and
(B) who has sustained an economic loss by reason of
such qualified disaster.
(d) 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 this
section, or pursuant to any regulation issued
by the Secretary or the Secretary of Labor
under any provision of this section, and
(ii) on or before the last day of the first
plan year beginning on or after January 1,
2020, or such later date as the Secretary may
prescribe.
In the case of a governmental plan (as defined in
section 414(d) of the Internal Revenue Code of 1986),
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 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 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. 4. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY QUALIFIED
DISASTERS.
(a) In General.--For purposes of section 38 of the Internal Revenue
Code of 1986, in the case of an eligible employer, the qualified
disaster employee retention credit shall be treated as a credit listed
in subsection (b) of such section. For purposes of this subsection, the
qualified disaster employee retention credit for any taxable year is an
amount equal to 40 percent of the qualified wages with respect to each
eligible employee of such employer for such taxable year. For purposes
of the preceding sentence, the amount of qualified wages which may be
taken into account with respect to any individual shall not exceed
$6,000.
(b) Definitions.--For purposes of this section--
(1) Eligible employer.--The term ``eligible employer''
means any employer--
(A) which conducted an active trade or business in
a qualified disaster zone at any time during the
incident period of the qualified disaster with respect
to such qualified disaster zone, and
(B) with respect to whom the trade or business
described in subparagraph (A) is inoperable at any time
after the incident beginning date of such qualified
disaster, and before January 1 of the year after the
year of such incident beginning date, as a result of
damage sustained by reason of such qualified disaster.
(2) Eligible employee.--The term ``eligible employee''
means with respect to an eligible employer an employee whose
principal place of employment at any time during the incident
period of the qualified disaster referred to in paragraph (1)
with such eligible employer was in the qualified disaster zone
referred to in such paragraph.
(3) Qualified wages.--The term ``qualified wages'' means
wages (as defined in section 51(c)(1) of the Internal Revenue
Code of 1986, but without regard to section 3306(b)(2)(B) of
such Code) paid or incurred by an eligible employer with
respect to an eligible employee at any time during the period
described in paragraph (1)(B), and which occurs during the
period--
(A) beginning on the date on which the trade or
business described in paragraph (1) first became
inoperable at the principal place of employment of the
employee immediately before the qualified disaster
referred to in such paragraph, and
(B) ending on the date on which such trade or
business has resumed significant operations at such
principal place of employment.
Such term shall include wages paid without regard to whether
the employee performs no services, performs services at a
different place of employment than such principal place of
employment, or performs services at such principal place of
employment before significant operations have resumed.
(c) Certain Rules To Apply.--For purposes of this subsection, rules
similar to the rules of sections 51(i)(1), 52, and 280C(a), of the
Internal Revenue Code of 1986, shall apply.
(d) Employee Not Taken Into Account More Than Once.--An employee
shall not be treated as an eligible employee for purposes of this
subsection for any period with respect to any employer if such employer
is allowed a credit under section 51 of the Internal Revenue Code of
1986 with respect to such employee for such period.
SEC. 5. OTHER DISASTER-RELATED TAX RELIEF PROVISIONS.
(a) Temporary Suspension of Limitations on Charitable
Contributions.--
(1) In general.--Except as otherwise provided in paragraph
(2), subsection (b) of section 170 of the Internal Revenue Code
of 1986 shall not apply to qualified contributions and such
contributions shall not be taken into account for purposes of
applying subsections (b) and (d) of such section to other
contributions.
(2) Treatment of excess contributions.--For purposes of
section 170 of the Internal Revenue Code of 1986--
(A) Individuals.--In the case of an individual--
(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
(as defined in subparagraph (H) of section
170(b)(1) of such Code) over the amount of all
other charitable contributions allowed under
section 170(b)(1) of such Code.
(ii) Carryover.--If the aggregate amount of
qualified contributions made in the
contribution year (within the meaning of
section 170(d)(1) of such Code) exceeds the
limitation of clause (i), such excess shall be
added to the excess described in the portion of
subparagraph (A) of such section which precedes
clause (i) thereof for purposes of applying
such section.
(B) Corporations.--In the case of a corporation--
(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 paragraph (2) of section
170(b) of such Code) over the amount of all
other charitable contributions allowed under
such paragraph.
(ii) Carryover.--Rules similar to the rules
of subparagraph (A)(ii) shall apply for
purposes of this subparagraph.
(3) Qualified contributions.--
(A) In general.--For purposes of this subsection,
the term ``qualified contribution'' means any
charitable contribution (as defined in section 170(c)
of the Internal Revenue Code of 1986) if--
(i) such contribution--
(I) is made for relief efforts in
one or more qualified disaster areas,
and
(II) is paid during the period
beginning on the first day of the
incident period for any such disaster,
and ending on December 31 of the year
in which such incident period begins,
in cash to an organization described in
section 170(b)(1)(A) of such Code,
(ii) the taxpayer obtains from such
organization contemporaneous written
acknowledgment (within the meaning of section
170(f)(8) of such Code) that such contribution
was used (or is to be used) for relief efforts
described in clause (i)(I), 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 of election to partnerships and s
corporations.--In the case of a partnership or S
corporation, the election under subparagraph (A)(iii)
shall be made separately by each partner or
shareholder.
(b) Special Rules for Qualified Disaster-Related Personal Casualty
Losses.--
(1) In general.--If an individual has a net disaster loss
for any taxable year--
(A) the amount determined under section
165(h)(2)(A)(ii) of the Internal Revenue Code of 1986
shall be equal to the sum of--
(i) such net disaster loss, and
(ii) so much of the excess referred to in
the matter preceding clause (i) of section
165(h)(2)(A) of such Code (reduced by the
amount in clause (i) of this subparagraph) as
exceeds 10 percent of the adjusted gross income
of the individual,
(B) section 165(h)(1) of such Code shall be applied
by substituting ``$500'' for ``$500 ($100 for taxable
years beginning after December 31, 2009)'',
(C) the standard deduction determined under section
63(c) of such Code shall be increased by the net
disaster loss, and
(D) section 56(b)(1)(E) of such Code shall not
apply to so much of the standard deduction as is
attributable to the increase under subparagraph (C) of
this paragraph.
(2) Net disaster loss.--For purposes of this subsection,
the term ``net disaster loss'' means the excess of qualified
disaster-related personal casualty losses over personal
casualty gains (as defined in section 165(h)(3)(A) of the
Internal Revenue Code of 1986).
(3) Qualified disaster-related personal casualty losses.--
For purposes of this subsection, the term ``qualified disaster-
related personal casualty losses'' means losses described in
section 165(c)(3) of the Internal Revenue Code of 1986 which
arise in a qualified disaster area on or after the incident
beginning date of the qualified disaster to which such area
relates, and which are attributable to such qualified disaster.
(c) Special Rule for Determining Earned Income.--
(1) In general.--In the case of a qualified individual, if
the earned income of the taxpayer for the applicable taxable
year is less than the earned income of the taxpayer for the
preceding taxable year, the credits allowed under sections
24(d) and 32 of the Internal Revenue Code of 1986 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 applicable taxable
year.
(2) Qualified individual.--For purposes of this subsection,
the term ``qualified individual'' means any individual whose
principal place of abode at any time during the incident period
of any qualified disaster was located--
(A) in the qualified disaster zone with respect to
such qualified disaster, or
(B) in the qualified disaster area with respect to
such qualified disaster (but outside the qualified
disaster zone with respect to such qualified disaster)
and such individual was displaced from such principal
place of abode by reason of such qualified disaster.
(3) Applicable taxable year.--The term ``applicable taxable
year'' means, with respect to any qualified individual, any
taxable year which includes any day during the incident period
of the qualified disaster to which the qualified disaster area
referred to in paragraph (2) relates.
(4) Earned income.--For purposes of this subsection, the
term ``earned income'' has the meaning given such term under
section 32(c) of the Internal Revenue Code of 1986.
(5) Special rules.--
(A) Application to joint returns.--For purposes of
paragraph (1), in the case of a joint return for an
applicable taxable year--
(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 sections 24(d) and 32 of the Internal Revenue Code
of 1986.
(C) Errors treated as mathematical error.--For
purposes of section 6213 of the Internal Revenue Code
of 1986, 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,
the Internal Revenue Code of 1986 shall be applied
without regard to any substitution under paragraph (1).
SEC. 6. TREATMENT OF CERTAIN POSSESSIONS.
(a) Payments to Guam and the Commonwealth of the Northern Mariana
Islands.--The Secretary of the Treasury shall pay to Guam and the
Commonwealth of the Northern Mariana Islands amounts equal to the loss
to that possession by reason of the application of the provisions of
this Act. Such amounts shall be determined by the Secretary of the
Treasury based on information provided by the government of the
respective possession.
(b) Payments to American Samoa.--
(1) In general.--The Secretary of the Treasury shall pay to
American Samoa amounts estimated by the Secretary of the
Treasury as being equal to the aggregate benefits that would
have been provided to residents of American Samoa by reason of
the provisions of this Act if a mirror code tax system had been
in effect in American Samoa. The preceding sentence shall not
apply unless American Samoa has a plan, which has been approved
by the Secretary of the Treasury, under which American Samoa
will promptly distribute such payments to its residents.
(2) 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.
(c) Treatment of Payments.--For purposes of section 1324 of title
31, United States Code, the payments under this section shall be
treated in the same manner as a refund due from a credit provision
referred to in subsection (b)(2) of such section.
SEC. 7. AUTOMATIC EXTENSION OF FILING DEADLINE.
(a) In General.--Section 7508A is amended by adding at the end the
following new subsection:
``(d) Mandatory 60-Day Extension.--In the case of--
``(1) any individual whose principal place of abode is in a
disaster area (as defined in section 165(i)(5)(B)), and
``(2) any taxpayer if the taxpayer's principal place of
business (other than the business of performing services of an
employee) is located in a disaster area (as so defined),
the period beginning on the earliest incident date specified in the
declaration to which such area relates and ending on the date which is
60 days after the latest incident date so specified shall be
disregarded in the same manner as a period specified under subsection
(a).''.
(b) Effective Date.--The amendment made by this section shall apply
to Federally declared disasters declared after December 31, 2018.
<all>