[Congressional Record Volume 151, Number 116 (Thursday, September 15, 2005)]
[House]
[Pages H8014-H8022]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
KATRINA EMERGENCY TAX RELIEF ACT OF 2005
Mr. McCRERY. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 3768) to provide emergency tax relief for persons affected
by Hurricane Katrina, as amended.
The Clerk read as follows:
H.R. 3768
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 ``Katrina Emergency Tax Relief
Act of 2005''.
SEC. 2. DESIGNATION AS EMERGENCY REQUIREMENT.
Any provision of this Act causing an effect on receipts,
budget authority, or outlays is designated as an emergency
requirement pursuant to section 402 of H. Con. Res. 95 (109th
Congress).
TITLE I--GENERAL TAX RELIEF PROVISIONS
SEC. 101. EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNITION
OF GAIN.
Clause (i) of section 1033(a)(2)(B) of the Internal Revenue
Code of 1986 shall be applied by substituting ``5 years'' for
``2 years'' with respect to property which--
(1) is located in an area 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 Hurricane
Katrina, and
(2) is compulsorily or involuntarily converted as a result
of such hurricane,
but only if substantially all of the use of the replacement
property is located in any such area.
SEC. 102. SUSPENSION OF LIMITATIONS ON CHARITABLE
CONTRIBUTIONS FOR RELIEF EFFORTS RELATED TO
HURRICANE KATRINA.
(a) In General.--Except as otherwise provided in subsection
(b), qualified disaster contributions shall not be taken into
account for purposes of subsections (b) and (d) of section
170 of the Internal Revenue Code of 1986.
(b) Treatment of Excess Contributions.--For purposes of
section 170 of such Code--
(1) Individuals.--In the case of an individual--
(A) Limitation.--Any qualified disaster 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 paragraph (1) of section
170(b) of such Code) over
[[Page H8015]]
the amount of all other charitable contributions allowed
under such paragraph.
(B) Carryover.--If the aggregate amount of qualified
disaster contributions made in the contribution year (within
the meaning of section 170(d)(1) of such Code) exceeds the
limitation of subparagraph (A), 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.
(2) Corporations.--In the case of a corporation--
(A) Limitation.--Any qualified disaster 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.
(B) Carryover.--Rules similar to the rules of paragraph
(1)(B) shall apply for purposes of this paragraph.
(c) Exception to Overall Limitation on Itemized
Deductions.--So much of any deduction allowed under section
170 of such Code as does not exceed the qualified disaster
contributions made during the taxable year shall not be
treated as an itemized deduction for purposes of section 68
of such Code.
(d) Qualified Disaster Contributions.--For purposes of this
section, the term ``qualified disaster contribution'' means
any charitable contribution (as defined in section 170(c) of
such Code)--
(1) made during the period beginning on August 28, 2005,
and ending on December 31, 2005, in cash to an organization
described in section 170(b)(1)(A) of such Code (other than an
organization described in section 509(a)(3) of such Code) for
relief efforts related to Hurricane Katrina, and
(2) with respect to which the taxpayer has elected the
application of this section.
In the case of a partnership or S corporation, the election
under paragraph (2) shall be made separately by each partner
or shareholder.
SEC. 103. MILEAGE RATE FOR CHARITABLE PURPOSES RELATED TO
HURRICANE KATRINA.
(a) Mileage Rate for Charitable Purposes Related to
Hurricane Katrina.--Notwithstanding subsection (i) of section
170 of the Internal Revenue Code of 1986, in the case of the
use of a vehicle described in subsection (f)(12)(E)(i) of
such section for provision of relief related to Hurricane
Katrina, the standard mileage rate for purposes of such
section shall be 70 percent of the standard mileage rate for
business purposes prescribed by the Secretary for purposes of
chapter 1 of such Code which is in effect on the date of the
contribution.
(b) Application.--Subsection (a) shall apply only with
respect to contributions made before January 1, 2007.
SEC. 104. EXCLUSION OF CERTAIN CANCELLATIONS OF INDEBTEDNESS.
(a) In General.--For purposes of the Internal Revenue Code
of 1986, gross income shall not include any amount which (but
for this section) would be includible in gross income by
reason of the discharge (in whole or in part) of qualified
nonbusiness debt of a qualified individual by an applicable
entity (as defined in section 6050P(c)).
(b) Qualified Nonbusiness Debt.--For purposes of this
section, the term ``qualified nonbusiness debt'' means any
indebtedness other than indebtedness incurred in connection
with a trade or business.
(c) Qualified Individual.--For purposes of this section,
the term ``qualified individual'' means any natural person
who was a resident (as of August 28, 2005) of, or who owned
real property (as of the date of such discharge) in, any 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 Hurricane Katrina.
(d) Exception for Real Property Outside Disaster Area.--
Subsection (a) shall not apply to any discharge of
indebtedness to the extent that real property constituting
security for such indebtedness is located outside of the area
described in subsection (c).
(e) Denial of Double Benefit.--The amount excluded from
gross income under subsection (a) shall be applied to reduce
the tax attributes of the taxpayer as provided in section
108(b) of the Internal Revenue Code of 1986.
(f) Application.--This section shall not apply to
discharges after December 31, 2006.
SEC. 105. SPECIAL RULES FOR MORTGAGE REVENUE BONDS.
(a) In General.--In the case of financing provided with
respect to a qualified Hurricane Katrina recovery residence,
subsection (d) of section 143 of the Internal Revenue Code of
1986 shall be applied as if such residence were a targeted
area residence.
(b) Qualified Hurricane Katrina Recovery Residence.--For
purposes of this section, the term ``qualified Hurricane
Katrina recovery residence'' means any residence if such
residence is located in an 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 Hurricane Katrina.
(c) Application.--Subsection (a) shall not apply to
financing provided after December 31, 2007.
SEC. 106. SUSPENSION OF CERTAIN LIMITATIONS ON PERSONAL
CASUALTY LOSSES.
Paragraphs (1) and (2)(A) of section 165(h) of the Internal
Revenue Code of 1986 shall not apply to losses described in
section 165(c)(3) of such Code which are attributable to
Hurricane Katrina. In the case of any other losses, section
165(h)(2)(A) of such Code shall be applied without regard to
the losses referred to in the preceding sentence.
SEC. 107. ADDITIONAL EXEMPTION FOR HOUSING HURRICANE KATRINA
DISPLACED INDIVIDUALS.
(a) In General.--In the case of taxable years of a natural
person beginning in 2005 and 2006, for purposes of the
Internal Revenue Code of 1986, taxable income shall be
reduced by $500 for each Hurricane Katrina displaced
individual of the taxpayer for the taxable year.
(b) Limitations.--
(1) Dollar limitation.--The reduction under subsection (a)
shall not exceed $2,000, reduced by the amount of the
reduction under this section for all previous taxable years.
(2) Individuals taken into account only once.--An
individual shall not be taken into account under subsection
(a) if such individual was taken into account under such
subsection by the taxpayer in any prior taxable year.
(c) Hurricane Katrina Displaced Individual.--For purposes
of this subsection, the term ``Hurricane Katrina displaced
individual'' means, with respect to any taxpayer for any
taxable year, a natural person who--
(1) was (as of August 28, 2005) a resident of any 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 Hurricane Katrina,
(2) is displaced from the person's residence located in the
area described in paragraph (1), and
(3) 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.
SEC. 108. SPECIAL RULE FOR DETERMINING EARNED INCOME.
(a) In General.--In the case of a qualified individual, if
the earned income of the taxpayer for the taxable year of
such taxpayer which includes August 28, 2005, is less than
the earned income which is attributable to 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--
(1) such earned income for the preceding taxable year, for
(2) such earned income for the taxable year which includes
August 28, 2005.
(b) Qualified Individual.--For purposes of this section,
the term ``qualified individual'' means any individual who
was (as of August 28, 2005) a resident of any 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 Hurricane Katrina.
(c) Earned Income.--For purposes of this section, the term
``earned income'' has the meaning given such term under
section 32(c) of such Code.
(d) Special Rules.--
(1) Application to joint returns.--For purpose of
subsection (a), in the case of a joint return for a taxable
year which includes August 28, 2005,
(A) such subsection shall apply if either spouse is a
qualified individual,
(B) the earned income which is attributable to the taxpayer
for the preceding taxable year shall be the sum of the earned
income which is attributable to each spouse for such
preceding taxable year, and
(C) the substitution described in such subsection shall
apply only with respect to earned income which is
attributable to a spouse who is a qualified individual.
(2) Uniform application of election.--Any election made
under subsection (a) shall apply with respect to both section
24(d) and section 32 of such Code.
(3) Errors treated as mathematical error.--For purposes of
section 6213 of such Code, an incorrect use on a return of
earned income pursuant to subsection (a) shall be treated as
a mathematical or clerical error.
(4) No effect on determination of gross income.--For
purposes of the Internal Revenue Code of 1986, gross income
shall be determined without regard to any substitution under
subsection (a).
SEC. 109. SECRETARIAL AUTHORITY TO MAKE ADJUSTMENTS REGARDING
TAXPAYER AND DEPENDENCY STATUS.
With respect to taxable years beginning in 2005 or 2006,
the Secretary of the Treasury, or his delegate, may make such
adjustments in the application of the internal revenue laws
as may be necessary to ensure that taxpayers do not lose
dependency exemptions or child credits or experience a change
of filing status by reason of temporary relocations after
Hurricane Katrina or by reason of the receipt of hurricane
relief. Any adjustments made under the preceding sentence
shall ensure that an individual is not taken into account by
more than one taxpayer with respect to the same tax benefit.
[[Page H8016]]
SEC. 110. WORK OPPORTUNITY TAX CREDIT FOR HURRICANE KATRINA
EMPLOYEES.
(a) In General.--For purposes of section 51 of the Internal
Revenue Code of 1986, a Hurricane Katrina employee shall be
treated as a member of a targeted group.
(b) Hurricane Katrina Employee.--For purposes of this
section, the term ``Hurricane Katrina employee'' means any
individual who, on August 28, 2005, had a principal place of
abode in a Hurricane Katrina disaster area.
(c) Special Rules for Determining Credit.--For purposes of
applying subpart F of part IV of subchapter A of chapter 1 of
such Code to wages paid or incurred to any Hurricane Katrina
employee--
(1) section 51(c)(4) of such Code shall not apply, and
(2) except in the case of an employee of the employer
(within the meaning of section 51 of such Code) on August 28,
2005, or an employee initially hired after such date, section
51(i)(2) of such Code shall not apply.
(d) Application of Section.--This section shall apply only
to wages (within the meaning on section 51(c) of such Code)
paid or incurred to any individual who--
(1) is being hired for a position the principal place of
employment of which is located in a Hurricane Katrina
disaster area, and
(2) who begins work for the employer during the 2-year
period beginning on August 29, 2005.
(e) Hurricane Katrina Disaster Area.--For purposes of this
section, the term ``Hurricane Katrina disaster area'' means
any 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 Hurricane
Katrina.
TITLE II--PENALTY FREE USE OF RETIREMENT FUNDS IN THE CASE OF NATURAL
DISASTERS
SEC. 201. PENALTY FREE WITHDRAWALS FROM RETIREMENT PLANS UPON
FEDERAL DECLARATION OF NATURAL DISASTER.
(a) In General.--Paragraph (2) of section 72(t) of the
Internal Revenue Code of 1986 (relating to 10-percent
additional tax on early distributions from qualified
retirement plans) is amended by adding at the end the
following new subparagraph:
``(G) Distributions from retirement plans upon federal
declaration of natural disaster.--
``(i) In general.--Any qualified disaster-relief
distribution.
``(ii) Aggregate limitation.--The aggregate amount of
payments or distributions received by an individual which may
be treated as qualified disaster-relief 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-
relief distributions with respect to such individual for all
prior taxable years.
``(iii) Amount distributed may be repaid.--
``(I) In general.--Any individual who receives a qualified
disaster-relief distribution may, at any time during the 3-
year period beginning on the day after the date on which such
distribution was made, make one or more contributions in an
aggregate amount not to exceed the amount of such
distribution to an eligible retirement plan (as defined in
section 402(c)(8)(B)) 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), as the case may be.
``(II) Treatment of repayments for distributions from
eligible retirement plans other than iras.--For purposes of
this title, if a contribution is made pursuant to subclause
(I) with respect to a qualified disaster-relief distribution
from an eligible retirement plan (as so defined) 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-relief 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 subclause (I) with respect to a qualified
disaster-relief distribution from an individual retirement
plan, then, to the extent of the amount of the contribution,
the qualified disaster-relief 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.
``(IV) Application to governmental section 457 plans.--In
determining whether any distribution is a qualified disaster-
relief distribution for purposes of this clause, an eligible
deferred compensation plan (as defined in section 457(b))
maintained by an employer described in section 457(e)(1)(A)
shall be treated as a qualified retirement plan.
``(iv) Qualified disaster-relief distribution.--For
purposes of this subparagraph, the term `qualified disaster-
relief distribution' means any distribution--
``(I) to an individual who has sustained a loss as a result
of a major disaster declared under section 401 of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act by
reason of Hurricane Katrina and who has a principal place of
abode immediately before the declaration in a qualified
disaster area, and
``(II) which is made during the 1-year period beginning on
the date such declaration is made.
``(v) Qualified disaster area.--For purposes of this
subparagraph, the term `qualified disaster area' means any
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 Hurricane
Katrina.''.
(b) Exemption of Distributions From Trustee to Trustee
Transfer and Withholding Rules.--Paragraph (4) of section
402(c) of such Code (relating to eligible rollover
distribution) is amended by striking ``and'' at the end of
subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting ``, and'', and by inserting at
the end the following new subparagraph:
``(D) any qualified disaster-relief distribution (within
the meaning of section 72(t)(2)(G)).''.
(c) Conforming Amendments.--
(1) Section 401(k)(2)(B)(i) of such Code is amended by
striking ``or'' at the end of subclause (III), by striking
``and'' at the end of subclause (IV) and inserting ``or'',
and by inserting after subclause (IV) the following new
subclause:
``(V) the date on which a period referred to in section
72(t)(2)(G)(iii)(II) begins (but only to the extent provided
in section 72(t)(2)(G)), and''.
(2) Section 403(b)(7)(A)(ii) of such Code is amended by
inserting ``sustains a loss as a result of a major disaster
declared under section 401 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act by reason of Hurricane
Katrina (but only to the extent provided in section
72(t)(2)(G)),'' before ``or''.
(3) Section 403(b)(11) of such Code is amended by striking
``or'' at the end of subparagraph (A), by striking the period
at the end of subparagraph (B) and inserting ``, or'', and by
inserting after subparagraph (B) the following new
subparagraph:
``(C) for distributions to which section 72(t)(2)(G)
applies.''.
(d) Effective Date.--The amendments made by this section
shall apply to distributions received after August 28, 2005.
SEC. 202. INCOME AVERAGING FOR DISASTER-RELIEF DISTRIBUTIONS
RELATED TO HURRICANE KATRINA.
(a) In General.--In the case of any qualified disaster-
relief distribution (within the meaning of section
72(t)(2)(G) of the Internal Revenue Code of 1986) from a
qualified retirement plan (as defined in section 4974(c) of
such Code) to a qualified individual, unless the taxpayer
elects not to have this section 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 Rules.--
(1) Application to governmental section 457 plans.--In
determining whether any distribution is a qualified disaster-
relief distribution (as so defined) for purposes of this
section, an eligible deferred compensation plan (as defined
in section 457(b) of such Code) maintained by an employer
described in section 457(e)(1)(A) of such Code shall be
treated as a qualified retirement plan (as so defined)
(2) Certain rules to apply.--Rules similar to the rules of
subparagraph (E) of section 408A(d)(3) of such Code shall
apply for purposes of this section.
(c) Qualified Individual.--For purposes of this section,
the term ``qualified individual'' means an individual who has
sustained a loss as a result of the major disaster declared
under section 401 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5170) by reason of
Hurricane Katrina and who has a principal place of abode
immediately before the declaration in a Hurricane Katrina
disaster area.
(d) Hurricane Katrina Disaster Area.--For purposes of this
section, the term ``Hurricane Katrina disaster area'' means
any 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 Hurricane
Katrina.
SEC. 203. RECONTRIBUTIONS OF WITHDRAWALS FOR HOME PURCHASES
CANCELLED DUE TO HURRICANE KATRINA.
(a) Recontributions.--
(1) In general.--Any individual who received a qualified
distribution may, at any time during the 6-month period
beginning on the day after the disaster declaration date,
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), 408(d)(3), or 457(e)(16) of
such Code, as the case may be.
(2) Treatment of repayments.--
(A) Treatment of repayments for distributions from eligible
retirement plans other than iras.--For purposes of the
Internal Revenue Code of 1986, if a contribution is
[[Page H8017]]
made pursuant to paragraph (1) with respect to a qualified
distribution from an eligible retirement plan (as so defined)
other than an individual retirement plan (as defined in
section 7701(a)(37) of such Code), then the taxpayer shall,
to the extent of the amount of the contribution, be treated
as having received the qualified 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.
(B) Treatment of repayments for distributions from iras.--
For purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to paragraph (1) with respect
to a qualified distribution from an individual retirement
plan (as so defined), then, to the extent of the amount of
the contribution, the qualified 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 (as so defined) in a direct trustee to trustee transfer
within 60 days of the distribution.
(b) Definitions.--For purposes of this section--
(1) Qualified distribution.--The term ``qualified
distribution'' means any distribution--
(A) described in section 401(k)(2)(B)(i)(IV),
403(b)(7)(A)(ii), 403(b)(11)(B), 457(d)(1)(A)(iii), or
72(t)(2)(F) of the Internal Revenue Code of 1986,
(B) received after February 28, 2005, and before August 29,
2005, and
(C) which was to be used to purchase or construct a
principal residence in a Hurricane Katrina disaster area, but
which was not so purchased or constructed.
(2) Disaster declaration date.--The term ``disaster
declaration date'' means the date on which the President
designated the area as a Hurricane Katrina disaster area.
(3) Hurricane katrina disaster area.--The term ``Hurricane
Katrina disaster area'' means any 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 Hurricane Katrina.
SEC. 204. LOANS FROM QUALIFIED PLANS IN CONNECTION WITH
HURRICANE KATRINA.
(a) 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 (as
defined in section 202(c)) made after the date of enactment
of this Act and before the date which is 1 year after the
disaster declaration date (as defined in section 203(b)(2))--
(1) clause (i) of section 72(p)(2)(A) of such Code shall be
applied by substituting ``$100,000'' for ``$50,000'', and
(2) 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''.
(b) Delay of Repayment.--In the case of a qualified
individual (as defined in section 202(c)) with an outstanding
loan on or after August 26, 2005, from a qualified employer
plan (as defined in section 72(p)(4) of the Internal Revenue
Code of 1986)--
(1) 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 after August
29, 2005, and ending before August 30, 2006, such due date
shall be delayed for 1 year,
(2) 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
(3) 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, such period shall be disregarded.
SEC. 205. PROVISIONS RELATING TO PLAN AMENDMENTS.
(a) In General.--If this section applies to any plan or
contract amendment--
(1) such plan or contract shall be treated as being
operated in accordance with the terms of the plan during the
period described in subsection (b)(2)(A), and
(2) except as provided by the Secretary of the Treasury,
such plan shall not fail to meet the requirements of section
411(d)(6) of the Internal Revenue Code of 1986 and section
204(g) of the Employee Retirement Income Security Act of 1974
by reason of such amendment.
(b) Amendments to Which Section Applies.--
(1) In general.--This section shall apply to any amendment
to any plan or annuity contract which is made--
(A) pursuant to any amendment made by this title, or
pursuant to any regulation issued by the Secretary of the
Treasury or the Secretary of Labor under this title, and
(B) on or before the last day of the first plan year
beginning on or after January 1, 2007, or such later date as
the Secretary of the Treasury may prescribe.
In the case of a governmental plan (as defined in section
414(d) of the Internal Revenue Code of 1986), subparagraph
(B) shall be applied by substituting the date which is 2
years after the date otherwise applied under subparagraph
(B).
(2) Conditions.--This section shall not apply to any
amendment unless--
(A) during the period--
(i) beginning on the date the legislative or regulatory
amendment described in paragraph (1)(A) takes effect (or in
the case of a plan or contract amendment not required by such
legislative or regulatory amendment, the effective date
specified by the plan), and
(ii) ending on the date described in paragraph (1)(B) (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
(B) such plan or contract amendment applies retroactively
for such period.
TITLE III--EXTENSION OF CERTAIN PROVISIONS TO FLORIDA AND OTHER
AFFECTED AREAS
SEC. 301. EXTENSION OF CERTAIN PROVISIONS TO FLORIDA AND
OTHER AFFECTED AREAS.
(a) In General.--The following provisions shall be applied
as if they did not include the phrase ``individual or
individual and public'':
(1) Section 101 of this Act (relating to extension of
replacement period for nonrecognition of gain).
(2) Section 104 of this Act (relating to exclusion of
certain cancellations of indebtedness), but only if the
discharge is on account of Hurricane Katrina.
(3) Section 105 of this Act (relating to special rules for
mortgage revenue bonds), but only with respect to residences
damaged as a result of Hurricane Katrina.
(4) Section 106 of this Act (relating to suspension of
certain limitations on personal casualty losses).
(5) Section 107 of this Act (relating to additional
exemption for housing Hurricane Katrina displaced
individuals).
(6) Sections 108 and 109 of this Act (relating to special
rule for certain family related benefits), but only with
respect to individuals dislocated from their residence by
reason of Hurricane Katrina.
(7) Title II of this Act (relating to penalty free use of
retirement funds in the case of natural disasters) and
section 72(t)(2)(G) of the Internal Revenue Code of 1986 (as
added by section 201 of this Act).
(b) Clarification of Scope of Provisions Relating to
Charitable Contributions.--The provisions of sections 102 and
103 shall apply to relief efforts related to Hurricane
Katrina whether or not such efforts are carried out in an
area directly impacted by Hurricane Katrina.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Louisiana (Mr. McCrery) and the gentleman from Louisiana (Mr.
Jefferson) each will control 20 minutes.
The Chair recognizes the gentleman from Louisiana (Mr. McCrery).
Mr. McCRERY. Madam Speaker, I yield myself such time as I may
consume.
Madam Speaker, I rise today in strong support of the Katrina
Emergency Tax Relief Act of 2005. I want to thank my colleagues on both
sides of the aisle for their work and support in moving this critical
legislation quickly to the House floor. In particular, I want to thank
the members of the Committee on Ways and Means, the gentleman from
Louisiana (Mr. Jefferson), the gentleman from New York (Mr. Rangel),
and all the members of the Louisiana delegation for their continued
assistance in crafting hurricane-related legislation.
This bill is the Committee on Ways and Means' second installment of
providing targeted relief for individuals and families hurt by
Hurricane Katrina. These tax provisions are aimed at easing the
financial burdens of people of the region as they begin to rebuild
their lives.
The bill also address the generosity of many Good Samaritans across
the country who have opened up their homes to individuals and families
displaced by the hurricane. H.R. 3768 would provide a special $500
income tax deduction for those who are providing temporary housing. In
addition, the Katrina Emergency Tax Relief Act encourages cash
donations to help victims by relaxing some restrictions regarding how
much charitable contribution can be deducted on an individual's tax
return.
H.R. 3768 continues the efforts of this Congress to bring immediate
relief to these individuals and families devastated by Hurricane
Katrina.
{time} 1230
Madam Speaker, last week, the members of the Committee on Ways and
Means on both sides of the aisle acted quickly, and the House passed
the TANF Emergency Response and Recovery Act. That bill will provide
aid by cutting down red tape and bringing more Federal dollars to the
affected areas through the Temporary Assistance for Needy Families
program, with the welfare program.
The Committee on Ways and Means continues to look at programs within
[[Page H8018]]
our jurisdiction and how they might be used to assist those affected by
Hurricane Katrina. I expect that we will bring to the House floor
additional legislation in the coming weeks. We know that the people and
businesses of New Orleans and the gulf coast areas hit by Katrina will
rebuild, and we are committed to helping them do that.
Today, Congress will vote on much-needed tax relief for the affected
areas. I urge my colleagues to support this legislation so we can
quickly work with our colleagues in the Senate and further demonstrate
that this Congress stands ready to help those most affected by
Hurricane Katrina.
Madam Speaker, I reserve the balance of my time.
Mr. JEFFERSON. Madam Speaker, I yield myself such time as I may
consume.
First, I want to thank the gentleman from Louisiana (Mr. McCrery), my
friend and colleague, for joining me in introducing this important
piece of legislation. I also want to thank the gentleman from
California (Mr. Thomas), the chairman of the committee, and the
gentleman from New York (Mr. Rangel), our ranking member, for their
swift action in bringing this bill to the floor, as well as the members
of the Committee on Ways and Means.
I also would be remiss if I failed to thank both the Republican and
Democratic staff of the committee for their extraordinary bipartisan
effort to put this tax package together in such a timely way.
Madam Speaker, the Katrina Emergency Tax Relief Act of 2005 provides
much-needed aid and comfort to the victims of Hurricane Katrina and the
many thousands of good Samaritans who have opened their arms, wallets
and homes to provide food, clothing, shelter and medical care and other
necessities to the thousands of Americans who have been uprooted in the
wake of this horrible storm.
As we have all seen, while Hurricane Katrina was indiscriminate in
the destruction it wrought, the unprecedented property damage, human
toll and economic loss fell disproportionately on the backs of our
poorest and most vulnerable citizens.
A disproportionate share of the damage in my hometown of New Orleans
was meted out on parts of our great city that were already
extraordinarily economically disadvantaged. The poverty, disability and
economic disenfranchisement in these areas in no small way were factors
in the extraordinary loss of life and property experienced by my
constituents.
For this reason, I am grateful that the bill we consider today
provides important relief to these vulnerable families.
First, families who have been displaced in the wake of Hurricane
Katrina are held harmless against the loss of critical economic
security and benefits. Damage caused by the hurricane has displaced
hundreds of thousands of individuals, who are temporarily living with
family, friends or good Samaritans.
Under current law, a prolonged change in their living situation could
affect their eligibility for various tax benefits. The proposal allows
individuals the option of using their 2004 income tax returns to
calculate their child credit and the Earned Income Tax Credit on their
2005 tax returns. This special rule applies to individuals who lived in
areas eligible for individual assistance from the Federal Government as
a result of the disaster as of August 28, 2005.
The proposal also grants the U.S. Treasury Department authority to
ensure that taxpayers do not lose dependency exemptions or child
credits for 2005 due to temporary relocations.
In many areas of the gulf coast devastated by Hurricane Katrina,
including my hometown of New Orleans, the EITC is a vitally important
part of many families' economic security. This bill ensures the
continuing eligibility of the thousands of families displaced by
Katrina.
Second, the legislation ensures that the victims of Hurricane Katrina
are able to account fully for the losses they have suffered in the
aftermath of the hurricane. Moreover, it exempts the value of forgiven
mortgages and other debt from taxable income. These two very important
provisions demonstrate compassion by prohibiting the IRS from kicking
these families when, for many of them, they are at the lowest points in
their lives.
Madam Speaker, this Act also provides an added measure of financial
security to the many victims of this storm by providing them with added
flexibility to access the savings they have set aside in 401(k) plans
and individual retirement accounts without the usual penalties. In a
time when so many have lost jobs and, consequently, their paychecks,
denying or penalizing access to their savings is inappropriate, and
this bill recognizes that.
As I have said repeatedly over the past 2 weeks, the recovery,
reconstruction and revival of the gulf coast region, and particularly
New Orleans, will require an unprecedented Federal commitment.
The bill we will pass today takes two important steps toward that
recovery.
First, the bill expands the availability of low-interest mortgages
for the building and purchasing of homes in the affected areas. We all
understand that the most solid foundation for the economic security of
our Nation's families is homeownership. By lifting some of the
restrictions on the use of mortgage revenue bonds, this bill will help
to build a solid economic foundation for the families whose lives have
been turned upside down by Hurricane Katrina.
In addition, the Katrina Emergency Tax Relief Act also provides
targeted incentives for returning businesses and new businesses to
employ the thousands of hardworking Americans who have been displaced
or lost jobs to Hurricane Katrina. By encouraging businesses to hire
workers from the affected areas, this bill takes another very important
step toward our uniform goal of rebuilding and resettling New Orleans
and other areas tragically struck by the hurricane.
Finally, Madam Speaker, the legislation we consider today recognizes
the important contributions that good-hearted and generous Americans
have made to the recovery effort. By increasing the value of the
charitable deductions and providing relief to the thousands of
Americans who have opened their homes to my constituents who have lost
theirs, this bill is an important expression of gratitude from this
Congress to the American people for rising to the challenge of
Hurricane Katrina in truly extraordinary ways.
Madam Speaker, the efforts of my colleagues in providing the relief
we need in the gulf coast has been unparalleled to any I have witnessed
during my tenure in Congress. For that, I am extraordinarily grateful.
However, we still have a long row to hoe before we have achieved the
full recovery that I know we all want. I look forward to working with
each of you in the coming weeks and months as we rise to the challenge
of ensuring that, like the Phoenix of myth and fable, New Orleans rises
from the devastation of Hurricane Katrina as a bright, shining model of
American ingenuity and opportunity.
Madam Speaker, I reserve the balance of my time.
Mr. McCRERY. Madam Speaker, I yield 2 minutes to the gentleman from
Florida (Mr. Foley), a distinguished member of the Committee on Ways
and Means.
Mr. FOLEY. Madam Speaker, I want to particularly thank the gentleman
from Louisiana (Chairman McCrery) and the gentleman from California
(Chairman Thomas) and others for their collaborative efforts in helping
the victims of Katrina. It has been a horrific time for America to
witness on TV what those fine folk in Mississippi, Alabama, Florida and
Louisiana have endured.
It really brings out the best in America, the character, the courage,
the ability to help their neighbor, and here on the floor, we are
providing relief by virtue of the Tax Code.
I want to specifically thank the gentleman from Florida (Mr. Shaw)
and the gentleman from Florida (Mr. Mario Diaz-Balart), our colleagues
who brought to the committee a very urgent need of helping Floridians
as well.
The three States that were dramatically impacted have been visualized
on TV, but Katrina did start off the coast of Florida, off the Bahamas
and made its way through southern Florida, Dayton, Broward Counties.
They suffered significant damage. The gentlewoman from Florida (Ms.
Wasserman Schultz), our colleague, as well lent a
[[Page H8019]]
hand in trying to see that our constituents were brought whole in this
effort as well.
The chairman was specific in providing targeted relief for those that
were directly impacted by the storm, and we applaud that. No tax relief
measure should be a grab bag for others to dip into simply because they
thought they were close to a proximity of damage.
In this bill, we establish criteria that there is significant and
real damage, not perceived, not illusory, but real damage. Forgiveness
of debt if, in fact, your home has been decimated and you have to
discharge the mortgage obligation, relieving that would be a gain under
the Tax Code for a person that has not only lost their home, had their
mortgage foreclosed but is being considered by the IRS for gain on that
asset simply because they got a forgiveness of debt.
Ability to reach into your IRA for the specific use in this
emergency. The IRA is an important asset for future financial
strengthening of all persons' assets. So we do not let people just go
into the account, but it is strictly provided for on the case of
emergency.
So I applaud this bill. The gentleman from Louisiana (Mr. Jefferson),
my colleague, I know has suffered himself personally. We are delighted
that we worked in a bipartisan spirit to bring about relief for the
very people that have suffered so much.
Mr. JEFFERSON. Madam Speaker, I am pleased to yield 3 minutes to the
gentleman from Maryland (Mr. Cardin), a distinguished member of the
Committee on Ways and Means.
(Mr. CARDIN asked and was given permission to revise and extend his
remarks.)
Mr. CARDIN. Madam Speaker, let me thank the gentleman from Louisiana
(Mr. Jefferson) for his leadership in focusing what we can do to help
the victims of Katrina. I want to thank the gentleman from Louisiana
(Mr. McCrery) for his leadership on the committee.
This is exactly what we need to do. Obviously, all of us were
devastated by what happened with Katrina and the failure of our
government to respond in a timely and effective way, and people who
were vulnerable paid a very heavy price.
What this bill does is try to deal with the problems of the victims
of Katrina by looking at our Tax Code. Our first priority today must be
to help those who were devastated by Katrina, and this bill looks at
the Tax Code to find ways in which we can be helpful. I applaud the
specific provisions that are in it because I think it will help.
To deal with the practical problems such as residency, people who now
live in different parts of the country would not comply with the
technical requirements in our Tax Code on residency, which is required
to take advantage of some of the tax provisions. This bill provides the
needed relief.
Our colleague, the gentleman from Louisiana (Mr. Jefferson), talked
about the Earned Income Tax Credit, a very important tool to help low-
wage families in this Nation. This bill will make sure that those who
are entitled to that relief, who were affected by Katrina, will
continue to be able to receive that help.
Along with the forgiveness of loans which is taking place, if we do
not pass this bill, there could be tax consequences to that.
We provide incentives in this bill for individuals who have opened up
their homes to take in those who are now without a home, and we provide
full deductibility for personal casualty losses, as we should.
For job opportunity, we expand the Work Opportunity Tax Credit, as we
should do, and we now make it easier for individuals to be able to give
cash donations to the victims of Katrina.
Bottom line, Madam Speaker, is this bill takes care of some of the
practical problems that our Tax Code could not anticipate as a result
of Katrina, and I want to thank the leadership on both sides of the
aisle for expediting the process to bring this bill forward so that we
can try, in a constructive way, to make it easier for those who were
victimized by this horrible hurricane.
Mr. McCRERY. Madam Speaker, I yield 2 minutes to the gentlewoman from
Pennsylvania (Ms. Hart), another distinguished member of the Committee
on Ways and Means.
Ms. HART. Madam Speaker, I thank the chairman and also the gentleman
from California (Chairman Thomas) and the gentleman from New York
(Ranking Member Rangel) and my colleagues of the Committee on Ways and
Means for finding some creative and very practical ways to help the
victims of Hurricane Katrina.
Since it was one of the deadliest disasters, or the deadliest
disaster, in U.S. history, it has left countless individuals without
the most basic needs, and the American people's response has been
historic, with millions being donated in time and money, nearly $800
million already donated privately to the relief effort on top of
government assistance.
Unfortunately, despite this outpouring, the people in the communities
in Louisiana, Mississippi and Alabama still need help. H.R. 3768 will
help these families rebuild their lives in a number of different ways.
One, it will encourage even more private help from individuals. It
encourages more cash donations by individuals by allowing them to
deduct more of the contributions that they give.
It will also encourage more deductions by corporations. Under current
law, they can only deduct 10 percent of those donations. That is waived
under this bill.
It increases the opportunity for people to provide more physical help
by increasing the reimbursement rate for mileage for those who actually
will spend their gasoline getting to places to help, ways that people
can get involved personally.
Also, those who have had savings, who are going to need to tap it,
who have been victims, are assisted in accessing their own money. It
was mentioned earlier that people can access their IRAs without the
penalty that they currently would have for accessing that money before
their retirement. It is important for us to allow these victims access
to whatever they can get, whatever assets they can get to help them get
their lives back on track sooner.
I think it is the least that we can do to address some very simple
but very practical issues via this bill.
Mr. JEFFERSON. Madam Speaker, I reserve the balance of my time.
Mr. McCRERY. Madam Speaker, I yield such time as he may consume to
the gentleman from California (Mr. Thomas), the distinguished chairman
of the Committee on Ways and Means.
Mr. THOMAS. Madam Speaker, I thank the gentleman for the time.
I just want to remind Members, as we move forward with yet another
piece of legislation which has taken a little longer to craft because
it becomes more structural in dealing with the Tax Code, as we had
indicated when we came back from our summer district work period, we
will probably have another piece of legislation which will deal with
more additional structural assistance that takes a little longer to
craft dealing with the reconstruction portion of assistance.
I took the time at the microphone this morning to indicate to my
colleagues how frustrating this process has been.
{time} 1245
More than a week ago, this House moved swiftly, in a bipartisan way,
to simply open up the pipeline that had money already in it as direct
assistance to individuals under the targeted assistance for families,
or the TANF program. That bill moved off the floor of the House without
even a recorded vote, and it has not yet been taken up by the Senate.
The procedure of putting a hold on legislation, which is an
individual or a group of Senators' way of stopping the process, has
been exercised by Members of the Senate. And I want to indicate to
people how outrageous that procedure is on a bill which should have
been moved last week to assist people. I take the time on this floor to
say this particular legislation, a bit more structured, we had an extra
week to think it out, being moved again on a bipartisan basis should
not be subject to a hold in the Senate.
If the Senate cannot get its act together to move legislation, then
simply allow the House's bipartisan effort to go forward. These people
need help. That area needs help. The House has moved in a bipartisan
way and the Senate has obstructed the movement of
[[Page H8020]]
needed legislation by allowing even in normal times the somewhat
unseemly procedure of holds by individuals or groups of Senators, but
on this legislation it is unconscionable.
Mr. JEFFERSON. Madam Speaker, I am pleased to yield 3 minutes to my
colleague and friend, the gentleman from Mississippi (Mr. Taylor).
Mr. TAYLOR of Mississippi. Madam Speaker, I want to thank the members
of the Committee on Ways and Means for bringing this to the floor. As
you know, south Mississippi, south Louisiana suffered a catastrophe of
biblical proportions; and there is really no other way to describe it.
A 30-foot wall of water hit south Mississippi, resulting in the
breaking of the floodgates in New Orleans.
Whole communities, the city of Waveland, it is pretty fair to say no
longer exists. The city of Bay Saint Louis, probably 80 percent of the
people in that town lost their homes. In portions of Harrison County,
in Pass Christian and Biloxi, there are entire blocks leveled, with one
person not able to distinguish the parts of furniture from his house
with the parts of furniture from another.
I consider myself a deficit hawk. I have voted against almost every
tax bill that came to this floor because I did not want to see the
deficit go up by the $2 trillion it has. This is different. I felt that
those bills took care of the wealthiest Americans. I think this bill
takes care of the neediest Americans. It is truly a step in the right
direction when we have so much to do.
One of the fights that the gentleman from Louisiana (Mr. McCrery) and
all of us from the affected area will have is to help those people who
could never have conceived they would flood with their insurance needs.
They had wind insurance. They are now being told it did not cover a
flood, and places that had never flooded in recorded history of the
Europeans coming to America flooded. They are being left out in the
cold. We have to find a way to help them.
There is going to be, based on the Florida experience, a number,
probably in the tens of thousands of people, who will be told by FEMA
that their house has been 51 percent destroyed and, by regulation, it
has to be bulldozed. And then it is complicated by, I am told, based on
the Florida experience, the insurance companies who will go to them and
say FEMA says there is only 51 percent destruction, so we are only
going to give you 51 percent of what you thought your premium was. So
if you had a $100,000 house, it is bulldozed; but you only get $51,000
in payment. We have to fix that. We cannot let that happen again. There
are too many hard-working people who are looking to Congress for
leadership.
I do not say this often, because I did vote for the war in Iraq and I
share in the responsibility for every one of those Americans who were
wounded there and everyone who died there, but on a daily basis we hire
Iraqis to clean the streets, just to give them something to do and give
them a chance at life. On a daily basis we are fixing sewer lines in
Iraq. On a daily basis we are building schools in Iraq. We need to do
for our fellow Americans what we so willingly do for the Iraqi people.
So I thank the committee for this great step in the right direction.
It is such a, quite frankly, small step on such a monumental journey
that we have to take; but it is at least a step in the right direction,
and thank you for doing it.
Mr. McCRERY. Madam Speaker, I can assure the gentleman from
Mississippi that I agree with his remarks, and there will be more
coming from this Congress.
Madam Speaker, I yield 2\1/2\ minutes to the gentleman from Arizona
(Mr. Hayworth), another member of the Committee on Ways and Means.
(Mr. HAYWORTH asked and was given permission to revise and extend his
remarks.)
Mr. HAYWORTH. Madam Speaker, I thank my colleague from the Committee
on Ways and Means for yielding me this time.
Members of this House from States directly affected by this natural
disaster have come to this floor and spoken eloquently and movingly of
the needs their constituents have. Just as a natural disaster does not
distinguish partisanship, so too has this House moved forward to deal
effectively and, yes, as a consequence of the Tax Code and the nature
of what we do, methodically and sequentially to deal in a thoughtful
and compassionate manner with what we confront as a people and as a
Nation.
By the same token, Madam Speaker, Americans from coast to coast and
beyond have opened their hearts, opened their homes, and opened their
pocketbooks to help their fellow Americans in need. And as these are
the worst of times for so many affected by this natural disaster, in
many ways the best of America comes through with this compassionate
impulse to help others. Fittingly and properly, many of the actions we
take in this legislation are targeted directly at the people whose
lives have been changed and affected by this storm, but also we take
into account the generosity of fellow Americans and, in dealing with
the Tax Code, a couple of provisions that we need to emphasize that
affect people not only who call the gulf coast home but help those
around the Nation.
Briefly, the fact that we are providing tax relief for housing
assistance to dislocated persons; the fact that we are encouraging cash
donations by individuals and by corporations, and moving in a way to
encourage yet more giving by the incredibly compassionate people known
as Americans is something that should be lauded and something that I
believe will go a long way in Americans helping Americans and this
House, as a collective body, reaching out to help those Americans most
in need.
Mr. JEFFERSON. Madam Speaker, I am pleased to yield 2\1/2\ minutes to
the gentleman from Oregon (Mr. Blumenauer).
Mr. BLUMENAUER. Madam Speaker, I thank the gentleman for yielding me
this time and for his courtesy in permitting me to speak on this
proposal. I applaud what the committee has done, moving forward with
specific tax relief that is going to make a difference for people in
this devastated area.
I am hopeful that this will signify the start of a creative effort on
the part of a number of committees, people on both sides of the aisle,
to figure out ways that we can have assistance that is commensurate
with the challenge and, in fact, employs some of the techniques that we
have used in other parts of the world.
Some of us visited the tsunami-ravaged area days after that
devastation, and we saw on the ground people in Indonesia, in Sri
Lanka, and in Thailand that were being put to work virtually overnight
with a cash-for-work program that had people doing essential labor-
intensive work that made the community better so that the recovery
could proceed.
I would hope the creativity, ingenuity, and bipartisan spirit
demonstrated by the Committee on Ways and Means on these important
provisions could be extended to other committees, other parts of our
organizational efforts here to have a program so that every able-bodied
person in the three States who wants to be able to work restoring their
community is given that opportunity. It will be far cheaper in the long
run than employing expensive contracts from people out of State, and it
will give people a sense of ownership and involvement, and it will get
money circulating in those devastated local economies.
Madam Speaker, I am hopeful that we will be able to use the
creativity to bring other people together for a planning effort that
involves the people in Mississippi, in Alabama, and in New Orleans,
because we are going to be putting at least another $100 billion on the
ground. We ought to make sure that this is not just a monument for
rapid Federal reaction. It should be a model, for the very first time
on this scale, taking this blank slate and working with the people who
had their lives turned upside down, and making them full partners in
putting the pieces back together.
Mr. McCRERY. Madam Speaker, I yield 2 minutes to the gentleman from
Mississippi (Mr. Wicker), a distinguished member of the Committee on
Appropriations.
Mr. WICKER. Madam Speaker, I thank my friend for yielding me this
time.
Madam Speaker, forces have been marshaled from across the Nation and,
indeed, from around the globe to assist in the relief and recovery from
Hurricane Katrina. But the biggest asset in
[[Page H8021]]
this effort is not the Federal Government; it is the generosity of our
fellow citizens. From the corner lemonade stands to the corporate board
rooms, people are opening their hearts, homes, churches, and their
pocketbooks to assist in the relief efforts. Donations continue to pour
in to countless nongovernmental organizations and to the faith
community as we begin to take stock in the breadth of Katrina's
destruction.
According to the 2004 generosity index, based on IRS statistics,
Mississippi is the most charitable State in the country. Now we find
ourselves in need of charity. It is something we take great pride in
back home, that we are the leader in generosity; and with that in mind,
I am thankful to see that the provisions of H.R. 3724, the charitable
donation legislation I introduced last week, have been included in the
relief package.
Under current law, the amount of individual or corporate deductions
is now capped. This bill includes provisions to lift those caps for
Katrina-related donations. In doing so, we are unleashing the awesome
power of the American public and our capacity to care for our own.
This past weekend, I was part of a caravan of trucks and vans loaded
with supplies from north Mississippi to several churches in the ravaged
portions of my State. While I saw the pain on the faces of those who
had lost so much, I also saw a determination that is strong among our
people. We are already working hard on recovery and rebuilding, spurred
on by the compassion and generosity of so many Americans. This bill
will help provide individuals affected by this tragedy with the
charitable assistance they need.
Mr. JEFFERSON. Madam Speaker, I am pleased to yield 2\1/2\ minutes to
the gentleman from Illinois (Mr. Emanuel), a distinguished member of
the Committee on Ways and Means and whose family has donated generously
to our food relief efforts in the affected area.
{time} 1300
Mr. EMANUEL. Madam Speaker, I would like to thank both my colleagues
who serve on the Ways and Means Committee who are from Louisiana and
the affected area.
As you look at the overall part of this bill, both from the
charitable piece to also helping the families, whether that is on debt
forgiveness, dislocation as relates to building a home, and also their
own family income or casualty loss, finally the Tax Code is beginning
to reflect America's values: When something happens to an American, all
Americans pull together to help those individuals affected restore
their lives, rebuild their communities, and get back on with their own
lives.
I want to isolate a particular part of this bill which deals with the
Earned Income Tax Credit. I have introduced a bill with Senator Obama
in the Senate that would fast-track the Earned Income Tax Credit and
child credit and other educational credits to affected individuals.
There is a precedent for this. During 9/11, the United States Congress
fast-tracked the authority and allowed the Secretary of Treasury to get
to affected families during 9/11 the child credit. In the same way, we
should get to the Earned Income Tax Credit, the child credit, as well
as educational credits like the Hope Scholarship to affected
individuals on a fast-track basis so they, as a family, can get their
lives restored, families who have children, families who work.
These are all for individuals who have worked and who have paid their
taxes, ensuring that they get the benefits and credits that are due to
them. It would lock in and ensure that the Secretary of Treasury would
fast-track and get those resources to these families and allow them to
establish themselves again and get their income moving again.
One of the most important things we are going to talk about in
another tax bill is helping businesses get their feet on the ground.
The Earned Income Tax Credit, the child credit, other educational
credits help families get their feet on the ground, going again, and
operating as a family.
Today's provisions, whether it is Earned Income Tax Credit, whether
it deals with the forgiven debt, whether it deals with the charity,
whether it deals with deductibility for personal casualty, it reflects
all of our values that we as Americans act as one in a time of need.
I compliment both of my colleagues from Louisiana, my colleagues from
Mississippi, and others in Alabama from affected areas working on this
legislation, the bipartisanship here, and hope that would spread to
other parts of this Congress as we work on other pieces of legislation.
I hope to work with them in the future on the legislation that Senator
Obama and I introduced so we can not only help families use the 2004
tax that they submitted, their tax forms, but also that we now direct
the Secretary of Treasury to fast-track those checks so those families
can actually get moving.
Mr. McCRERY. Madam Speaker, I would compliment the gentleman from
Illinois for his thoughts on speeding relief to the people most in
need; and, of course, the bill before us today does take some steps
toward protecting those who are on the EITC already, to make sure that
changed circumstances that they might encounter as a result of the
disaster do not affect their eligibility for those checks. We are doing
that in this legislation, but the gentleman makes an excellent point
about the need for those checks to arrive in a speedy manner. I look
forward to discussing that with the gentleman.
Madam Speaker, I yield 2 minutes to the gentleman from Indiana (Mr.
Souder).
Mr. SOUDER. Madam Speaker, I thank the gentleman from Louisiana (Mr.
McCrery), the gentleman from Louisiana (Mr. Jefferson), and I rise in
support of this bill, but I would like to make a cautionary point. I
have been a long advocate of the charitable points in this bill, and I
think they are very important. After 9/11, however, what we saw was
charitable giving diverted from people all over America into New York
City.
If the giving is not sacrificial above and beyond what you already
give, there are going to be children who are hungry, people without
homes, people who cannot get the drug addiction assistance, juveniles
who cannot find a place to go, people who cannot get immunized all over
America as the money just pours into one region. Sometimes the
unintended consequences of giving a preferential advantage in
charitable giving over others can drive this trend even more.
As I have talked to different groups in my district who have poured
down into this region, this is not a 3-month project or a 2-day
project, this is going to be 7 to 9 years as they reorient their
mission programs as they try to do this. We need to make sure that the
broader Charitable Giving Act is passed as well so that we do not dry
up charities around the country and other people who are hurting in
other areas are abandoned.
I strongly favor all the incentives in this bill, I believe we
absolutely need to do it in this region, but we also need to make sure
that the same charitable options are there for the rest of the country,
where they are not getting $60 billion of assistance and probably $200
billion more that is desperately needed. Because if you are hungry, if
you are hurting, it is the same no matter what city you are in, and we
need to make sure this charitable giving applies to the whole Nation,
not just here. I am strongly in support of this, but I hope we can move
an additional bill so we do not have an unintended consequence coming
out of this bill.
Mr. JEFFERSON. Madam Speaker, I yield myself the balance of my time.
I again want to thank my colleague from Louisiana (Mr. McCrery) and
others who have worked so carefully on this bill. This has been an
important debate, an important discussion about where this Congress is
going and how it is helping out and the generosity of this Congress as
we tackle these important issues and the difficult issues back home.
To those who say this is not a huge step forward, I should say to
them that it is huge for the people who are involved. We take to heart
the remarks made by Mr. Emanuel, the bill that he and Mr. Obama are
pushing to get this relief out fast. I think it is very important.
This is a huge step, but it simply is not the last step. It is far
from the last step in providing relief to our region. We want this
Congress to walk along
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with us as we make one step after another toward realizing the vision
of restoring our area and rebuilding it to a new, better, higher place.
I look forward to this walk with this Congress over the next months
and years. I hope that we will stay engaged as fully as we are in these
early days throughout this lengthy process.
Madam Speaker, I yield back the balance of my time.
Mr. McCRERY. Madam Speaker, I yield myself the balance of my time.
I would be remiss if I did not thank the Bush administration, the
Department of Treasury and the IRS for administratively doing a great
many things that they could do without legislation to make sure that
the needs of the victims of Hurricane Katrina are met vis-a-vis the Tax
Code. I want to thank the administration for their important work on
this subject as well.
I also want to reiterate my thanks to the gentleman from Louisiana
(Mr. Jefferson) for working so closely with me and my staff to craft
these very important individual tax provisions that, thanks to the
leadership on both sides of the aisle, we have been able to bring to
the floor in such a speedy manner.
Lastly, I would thank the chairman of the Committee on Ways and Means
for lending the full support of his staff to this effort over the past
couple of weeks. That will continue for some time to come.
I urge all Members to support this important legislation and get this
needed relief to individuals who were affected by Hurricane Katrina.
Madam Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mrs. Emerson). The question is on the motion
offered by the gentleman from Louisiana (Mr. McCrery) that the House
suspend the rules and pass the bill, H.R. 3768, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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