[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3287 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 3287

  To amend the Internal Revenue Code of 1986 to provide for permanent 
                            disaster relief.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 13, 2019

  Mr. Rice of South Carolina introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide for permanent 
                            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 ``Tax Relief and Expedited Assistance 
for Disasters Act of 2019'' or the ``TREAD Act''.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
            (1) Qualified disaster area.--
                    (A) In general.--The term ``qualified disaster 
                area'' means any area with respect to which a major 
                disaster was declared on or after January 1, 2018, 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 on or after 
                January 1, 2018.
                    (B) Exception.--Such term shall not include the 
                California wildfire disaster area (as defined in 
                section 20101 of subdivision 2 of division B of the 
                Bipartisan Budget Act of 2018).
            (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)(2) 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.--Any 
                qualified disaster distribution.''.
            (2) Qualified disaster distribution.--Section 72(t) of such 
        Code is amended by adding at the end the following new 
        paragraph:
            ``(11) Qualified disaster distributions.--For purposes of 
        paragraph (2)(H)--
                    ``(A) In general.--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) Limitation.--
                            ``(i) In general.--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.
                            ``(ii) Treatment of plan distributions.--If 
                        a distribution to an individual would (without 
                        regard to clause (i)) be a qualified disaster 
                        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 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.
                            ``(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.
                            ``(iv) Special rule for individuals 
                        affected by more than one disaster.--The 
                        limitation of clause (i) shall be applied 
                        separately with respect to distributions made 
                        with respect to each qualified disaster.
                    ``(C) Amount distributed may be repaid.--
                            ``(i) 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), as the 
                        case may be.
                            ``(ii) Treatment of repayments of 
                        distributions from eligible retirement plans 
                        other than iras.--If a contribution is made 
                        pursuant to clause (i) 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.
                            ``(iii) Treatment of repayments of 
                        distributions from iras.--If a contribution is 
                        made pursuant to clause (i) with respect to a 
                        qualified disaster distribution from an 
                        individual retirement plan, 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) 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 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 
                        section 408A(d)(3)(E) shall apply.
                    ``(E) 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 
                        distributions shall not be treated as eligible 
                        rollover distributions.
                            ``(ii) Qualified disaster distributions 
                        treated as meeting plan distribution 
                        requirements.--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).
                    ``(F) Disaster definitions.--Any term which is used 
                in this paragraph and is also defined in section 2 of 
                the Tax Relief and Expedited Assistance for Disasters 
                Act of 2019 shall have the meaning given such term in 
                such section.''.
    (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) In general.--Section 72(p) 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.--
                    ``(A) In general.--In the case of any loan from a 
                qualified employer plan to a qualified individual made 
                during the period beginning on the first date of the 
                incident period and ending on December 31 of the year 
                after the year in which such first date of the incident 
                period occurs--
                            ``(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 respect to any qualified 
                disaster) with an outstanding loan during or after the 
                incident period (of such qualified disaster) 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 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,
                            ``(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) of this subparagraph shall be 
                        disregarded.
                    ``(C) Qualified individual.--For purposes of this 
                paragraph, the term `qualified individual' means any 
                individual--
                            ``(i) 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
                            ``(ii) who has sustained an economic loss 
                        by reason of such qualified disaster.
                    ``(D) Disaster definitions.--Any term which used in 
                this paragraph and is also defined in section 2 of the 
                Tax Relief and Expedited Assistance for Disasters Act 
                of 2019 shall have the meaning given such term in such 
                section.''.
    (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 (and any amendment made thereby), or 
                        pursuant to any regulation issued by the 
                        Secretary or the Secretary of Labor under any 
                        such provision or amendment, 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.--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. 45T. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY 
              QUALIFIED DISASTERS.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible employer, 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), but without regard to 
        section 3306(b)(2)(B)) 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.
            ``(4) Disaster definitions.--Any term which is used in this 
        section and is also defined in section 2 of the Tax Relief and 
        Expedited Assistance for Disasters Act of 2019 shall have the 
        meaning given such term in such section 2.
    ``(c) Certain Rules To Apply.--For purposes of this subsection, 
rules similar to the rules of sections 51(i)(1), 52, and 280C(a) 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 with respect to such employee for 
such period.''.
    (b) General Business Credit.--Section 38(b) of such Code is amended 
by striking ``plus'' at the end of paragraph (31), by striking the 
period at the end of paragraph (32) and inserting ``, plus'', and by 
adding at the end the following new paragraph:
            ``(33) the qualified disaster employee retention credit 
        determined under section 45T(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45T. Employee retention credit for employers affected by 
                            qualified disasters.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to disasters occurring after December 31, 2017.

SEC. 5. OTHER DISASTER-RELATED TAX RELIEF PROVISIONS.

    (a) Temporary Suspension of Limitations on Charitable 
Contributions.--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) Temporary Suspension of Limitations on Charitable 
Contributions.--
            ``(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.--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 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.--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 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 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 
                                subsection (b)(1)(A),
                            ``(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)(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), or
                            ``(ii) for the establishment of a new, or 
                        maintenance of an existing, donor advised fund 
                        (as defined in section 4966(d)(2)).
                    ``(C) Application of election to partnerships and s 
                corporations.--In the case of a partnership or S 
                corporation, the election under subparagraph (A)(iii) 
                shall be made separately by each partner or 
                shareholder.
            ``(4) Disaster definitions.--Any term which is used in this 
        subsection and is also defined in section 2 of the Tax Relief 
        and Expedited Assistance for Disasters Act of 2019 shall have 
        the meaning given such term in such section.''.
    (b) Special Rules for Qualified Disaster-Related Personal Casualty 
Losses.--Section 165(h) of such Code is amended by redesignating 
paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), 
respectively, and by inserting after paragraph (2) the following new 
paragraph:
            ``(3) Special rules for qualified disaster-related personal 
        casualty losses.--
                    ``(A) In general.--If an individual has a net 
                disaster loss for any taxable year--
                            ``(i) 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,
                            ``(ii) paragraph (1) shall be applied by 
                        substituting `$500' for `$500 ($100 for taxable 
                        years beginning after December 31, 2009)',
                            ``(iii) the standard deduction determined 
                        under section 63(c) shall be increased by the 
                        net disaster loss, and
                            ``(iv) section 56(b)(1)(E) shall not apply 
                        to so much of the standard deduction as is 
                        attributable to the increase under subparagraph 
                        (C) of this paragraph.
                    ``(B) Net disaster loss.--For purposes of this 
                paragraph, the term `net disaster loss' means the 
                excess of qualified disaster-related personal casualty 
                losses over personal casualty gains.
                    ``(C) Qualified disaster-related personal casualty 
                losses.--For purposes of this paragraph, the term 
                `qualified disaster-related personal casualty losses' 
                means losses described in subsection (c)(3) 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. Any term which used in this 
                subparagraph and is also defined in section 2 of the 
                Tax Relief and Expedited Assistance for Disasters Act 
                of 2019 shall have the meaning given such term in such 
                section.''.
    (c) Special Rule for Determining Earned Income.--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.--
            ``(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 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 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) Definition and special rules.--
                    ``(A) Disaster definitions.--Any term which is used 
                in this subsection and is also defined in section 2 of 
                the Tax Relief and Expedited Assistance for Disasters 
                Act of 2019 shall have the meaning given such term in 
                such section.
                    ``(B) 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.
                    ``(C) Uniform application of election.--Any 
                election made under paragraph (1) shall apply with 
                respect to both this section and section 24(d).
                    ``(D) 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.
                    ``(E) 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).''.
    (d) Child Tax Credit.--Section 24(d) of such Code 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).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

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 DEADLINES IN CASE OF CERTAIN 
              TAXPAYERS AFFECTED BY FEDERALLY DECLARED DISASTERS.

    (a) In General.--Section 7508A of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(d) Mandatory 60-Day Extension.--
            ``(1) In general.--In the case of any qualified taxpayer, 
        the period--
                    ``(A) beginning on the earliest incident date 
                specified in the declaration to which the disaster area 
                referred to in paragraph (2) relates, and
                    ``(B) 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).
            ``(2) Qualified taxpayer.--For purposes of this subsection, 
        the term `qualified taxpayer' means--
                    ``(A) any individual whose principal residence (for 
                purposes of section 1033(h)(4)) is located in a 
                disaster area,
                    ``(B) any taxpayer if the taxpayer's principal 
                place of business (other than the business of 
                performing services as an employee) is located in a 
                disaster area,
                    ``(C) any individual who is a relief worker 
                affiliated with a recognized government or 
                philanthropic organization and who is assisting in a 
                disaster area,
                    ``(D) any taxpayer whose records necessary to meet 
                a deadline for an act described in section 7508(a)(1) 
                are maintained in a disaster area,
                    ``(E) any individual visiting a disaster area who 
                was killed or injured as a result of the disaster, and
                    ``(F) solely with respect to a joint return, any 
                spouse of an individual described in any preceding 
                subparagraph of this paragraph.
            ``(3) Disaster area.--For purposes of this subsection, the 
        term `disaster area' has the meaning given such term under 
        subparagraph (B) of section 165(i)(5) with respect to a 
        Federally declared disaster (as defined in subparagraph (A) of 
        such section).
            ``(4) Application to rules regarding pensions.--In the case 
        of any person described in subsection (b), a rule similar to 
        the rule of paragraph (1) shall apply for purposes of 
        subsection (b) with respect to--
                    ``(A) making contributions to a qualified 
                retirement plan (within the meaning of section 4974(c)) 
                under section 219(f)(3), 404(a)(6), 404(h)(1)(B), or 
                404(m)(2),
                    ``(B) making distributions under section 408(d)(4),
                    ``(C) recharacterizing contributions under section 
                408A(d)(6), and
                    ``(D) making a rollover under section 402(c), 
                403(a)(4), 403(b)(8), or 408(d)(3).
            ``(5) Coordination with periods specified by the 
        secretary.--Any period described in paragraph (1) with respect 
        to any person (including by reason of the application of 
        paragraph (4)) shall be in addition to (or concurrent with, as 
        the case may be) any period specified under subsection (a) or 
        (b) with respect to such person.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to federally declared disasters declared after the date of the 
enactment of this Act.
                                 <all>