[Congressional Record Volume 151, Number 116 (Thursday, September 15, 2005)]
[Senate]
[Pages S10131-S10146]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 1718. Mr. KYL proposed an amendment to the bill H.R. 2862, An Act 
making appropriations for the Departments of Commerce and Justice, 
Science, and related agencies for the fiscal year ending September 30, 
2006, and for other purposes; as follows:

       On page 190, after line 14, insert the following:

     SEC. 522. UNLAWFUL INTERNET GAMBLING.

       (a) Short Title.--This section may be cited as the 
     ``Unlawful Internet Gambling Enforcement Act of 2005''.
       (b) Findings.--Congress finds the following:
       (1) Internet gambling is primarily funded through personal 
     use of payment system instruments, credit cards, and wire 
     transfers.
       (2) The National Gambling Impact Study Commission in 1999 
     recommended the passage of legislation to prohibit wire 
     transfers to Internet gambling sites or the banks which 
     represent such sites.
       (3) Internet gambling is a growing cause of debt collection 
     problems for insured depository institutions and the consumer 
     credit industry.
       (c) Prohibition on Acceptance of Any Payment Instrument for 
     Unlawful Internet Gambling.--
       (1) In general.--Chapter 53 of title 31, United States 
     Code, is amended by adding at the end the following:

 ``SUBCHAPTER IV--PROHIBITION ON FUNDING OF UNLAWFUL INTERNET GAMBLING

     ``Sec. 5361. Definitions

       ``In this subchapter, the following definitions shall 
     apply:

[[Page S10132]]

       ``(1) Bet or wager.--The term `bet or wager'--
       ``(A) means the staking or risking by any person of 
     something of value upon the outcome of a contest of others, a 
     sporting event, or a game subject to chance, upon an 
     agreement or understanding that the person or another person 
     will receive something of value in the event of a certain 
     outcome;
       ``(B) includes the purchase of a chance or opportunity to 
     win a lottery or other prize (which opportunity to win is 
     predominantly subject to chance);
       ``(C) includes any scheme of a type described in section 
     3702 of title 28;
       ``(D) includes any instructions or information pertaining 
     to the establishment or movement of funds in, to, or from an 
     account by the bettor or customer with regard to the business 
     of betting or wagering; and
       ``(E) does not include--
       ``(i) any activity governed by the securities laws (as that 
     term is defined in section 3(a)(47) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78i(a)(47)) for the purchase 
     or sale of securities (as that term is defined in section 
     3(a)(10) of that Act);
       ``(ii) any transaction conducted on or subject to the rules 
     of a registered entity or exempt board of trade under the 
     Commodity Exchange Act (7 U.S.C. 1 et seq.);
       ``(iii) any over-the-counter derivative instrument;
       ``(iv) any other transaction that--

       ``(I) is excluded or exempt from regulation under the 
     Commodity Exchange Act (7 U.S.C. 1 et seq.);
       ``(II) is exempt from State gaming or bucket shop laws 
     under section 12(e) of the Commodity Exchange Act (7 U.S.C. 
     16(e)) or section 28(a) of the Securities Exchange Act of 
     1934 (15 U.S.C. 77bb(a); or
       ``(III) is conducted in accordance with the Interstate 
     Horseracing Act of 1978 (15 U.S.C. 3001 et seq.);

       ``(v) any contract of indemnity or guarantee;
       ``(vi) any contract for insurance;
       ``(vii) any deposit or other transaction with an insured 
     institution; or
       ``(viii) any participation in a simulation sports game, an 
     educational game, or a contest, that--

       ``(I) is not dependent solely on the outcome of any single 
     sporting event or nonparticipant's singular individual 
     performance in any single sporting event;
       ``(II) has an outcome that reflects the relative knowledge 
     of the participants, or their skill at physical reaction or 
     physical manipulation (but not chance), and, in the case of a 
     simulation sports game, has an outcome that is determined 
     predominantly by accumulated statistical results of sporting 
     events; and
       ``(III) offers a prize or award to a participant that is 
     established in advance of the game or contest and is not 
     determined by the number of participants or the amount of any 
     fees paid by those participants.

       ``(2) Business of betting or wagering.--The term `business 
     of betting or wagering' does not include a financial 
     transaction provider, or any interactive computer service or 
     telecommunications service.
       ``(3) Designated payment system.--The term `designated 
     payment system' means any system utilized by a financial 
     transaction provider that the Secretary, in consultation with 
     the Board of Governors of the Federal Reserve System and the 
     Attorney General, determines, by regulation or order, could 
     be utilized in connection with, or to facilitate, any 
     restricted transaction.
       ``(4) Financial transaction provider.--The term `financial 
     transaction provider' means a creditor, credit card issuer, 
     financial institution, operator of a terminal at which an 
     electronic fund transfer may be initiated, money transmitting 
     business, or international, national, regional, or local 
     network utilized to effect a credit transaction, electronic 
     fund transfer, stored value product transaction, or money 
     transmitting service, or a participant in such network.
       ``(5) Internet.--The term `Internet' means the 
     international computer network of interoperable packet 
     switched data networks.
       ``(6) Interactive computer service.--The term `interactive 
     computer service' has the same meaning as in section 230(f) 
     of the Communications Act of 1934 (47 U.S.C. 230(f)).
       ``(7) Restricted transaction.--The term `restricted 
     transaction' means any transaction or transmittal involving 
     any credit, funds, instrument, or proceeds described in any 
     paragraph of section 5362 which the recipient is prohibited 
     from accepting under section 5362.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(9) Unlawful internet gambling.--
       ``(A) In general.--The term `unlawful Internet gambling' 
     means to place, receive, or otherwise knowingly transmit a 
     bet or wager by any means which involves the use, at least in 
     part, of the Internet where such bet or wager is unlawful 
     under any applicable Federal or State law in the State in 
     which the bet or wager is initiated, received, or otherwise 
     made.
       ``(B) Intrastate transactions.--The term `unlawful Internet 
     gambling' does not include placing, receiving, or otherwise 
     transmitting a bet or wager where--
       ``(i) the bet or wager is placed and received or otherwise 
     made within a single State;
       ``(ii) the bet or wager is expressly authorized by and 
     placed in accordance with the laws of such State, and such 
     State's laws or regulations include--

       ``(I) age and location verification requirements reasonably 
     designed to block access to minors and persons located 
     outside of such State; and
       ``(II) appropriate data security standards to prevent 
     unauthorized access by any person whose age and current 
     location has not been verified in accordance with such 
     State's laws or regulations; and

       ``(iii) the bet or wager does not violate any provision of 
     the--

       ``(I) Interstate Horseracing Act (15 U.S.C. 3001 et seq.);
       ``(II) Professional and Amateur Sports Protection Act (28 
     U.S.C. 3701 et seq.);
       ``(III) Gambling Devices Transportation Act (15 U.S.C. 1171 
     et seq.); or
       ``(IV) Indian Gaming Regulatory Act (25 U.S.C. 2701 et 
     seq.).

       ``(C) Intermediate routing.--The intermediate routing of 
     electronic data shall not determine the location or locations 
     in which a bet or wager is initiated, received, or otherwise 
     made.
       ``(10) Other terms.--
       ``(A) Credit; creditor; credit card; and card issuer.--The 
     terms `credit', `creditor', `credit card', and `card issuer' 
     have the same meanings as in section 103 of the Truth in 
     Lending Act (15 U.S.C. 1602).
       ``(B) Electronic fund transfer.--The term `electronic fund 
     transfer'--
       ``(i) has the same meaning as in section 903 of the 
     Electronic Fund Transfer Act (15 U.S.C. 1693a et seq.), 
     except that such term includes transfers that would otherwise 
     be excluded under section 903(6)(E) (15 U.S.C. 1693a(6)(E)) 
     of that Act; and
       ``(ii) includes any fund transfer covered by Article 4A of 
     the Uniform Commercial Code, as in effect in any State.
       ``(C) Financial institution.--The term `financial 
     institution' has the same meaning as in section 903 of the 
     Electronic Fund Transfer Act (15 U.S.C. 1693a et seq.), 
     except that such term does not include a casino, sports book, 
     or other business at or through which bets or wagers may be 
     placed or received.
       ``(D) Insured institution.--The term `insured institution' 
     means--
       ``(i) an insured depository institution, as defined in 
     section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
     1813); and
       ``(ii) an insured credit union, as defined in section 101 
     of the Federal Credit Union Act (12 U.S.C. 1752(7)).
       ``(E) Money transmitting business and money transmitting 
     service.--The terms `money transmitting business' and `money 
     transmitting service' have the same meanings as in section 
     5330(d) (determined without regard to any regulations issued 
     by the Secretary thereunder).

     ``Sec. 5362. Prohibition on acceptance of any financial 
       instrument for unlawful Internet gambling

       ``No person engaged in the business of betting or wagering 
     may knowingly accept, in connection with the participation of 
     another person in unlawful Internet gambling--
       ``(1) credit, or the proceeds of credit, extended to or on 
     behalf of such other person (including credit extended 
     through the use of a credit card);
       ``(2) an electronic fund transfer, or funds transmitted by 
     or through a money transmitting business, or the proceeds of 
     an electronic fund transfer or money transmitting service, 
     from or on behalf of such other person;
       ``(3) any check, draft, or similar instrument which is 
     drawn by or on behalf of such other person and is drawn on or 
     payable at or through any financial institution; or
       ``(4) the proceeds of any other form of financial 
     transaction, as the Secretary may prescribe by regulation, 
     which involves a financial institution as a payor or 
     financial intermediary on behalf of or for the benefit of 
     such other person.

     ``Sec. 5363. Policies and procedures to identify and prevent 
       restricted transactions

       ``(a) Regulations.--Not later than 270 days after the date 
     of enactment of this subchapter, the Secretary, in 
     consultation with the Board of Governors of the Federal 
     Reserve System and the Attorney General, shall prescribe 
     regulations requiring each designated payment system, and all 
     participants therein, to identify and prevent restricted 
     transactions through the establishment of policies and 
     procedures reasonably designed to--
       ``(1) allow the payment system and any person involved in 
     the payment system to identify restricted transactions by 
     means of codes in authorization messages or by other means;
       ``(2) block restricted transactions identified as a result 
     of the policies and procedures developed under paragraph (1); 
     and
       ``(3) prevent the acceptance of the products or services of 
     the payment system in connection with a restricted 
     transaction.
       ``(b) Requirements for Policies and Procedures.--In 
     prescribing regulations under subsection (a), the Secretary 
     shall--
       ``(1) identify types of policies and procedures, including 
     nonexclusive examples, which would be deemed, as applicable, 
     to be reasonably designed--
       ``(A) to identify, block, or prevent the acceptance of the 
     products or services with respect to each type of restricted 
     transaction; and
       ``(B) not to disrupt the legal transactions of persons 
     licensed to engage in the business of betting or wagering;
       ``(2) to the extent practical, permit any participant in a 
     payment system to choose among alternative means of 
     identifying and

[[Page S10133]]

     blocking, or otherwise preventing the acceptance of the 
     products or services of the payment system or participant in 
     connection with, restricted transactions; and
       ``(3) consider exempting restricted transactions from any 
     requirement imposed under such regulations, if the Secretary 
     finds that it is not reasonably practical to identify and 
     block, or otherwise prevent, such transactions without 
     significant disruption of legal business transactions.
       ``(c) Compliance With Payment System Policies and 
     Procedures.--A financial transaction provider shall be 
     considered to be in compliance with the regulations 
     prescribed under subsection (a), if--
       ``(1) such person relies on and complies with the policies 
     and procedures of a designated payment system of which it is 
     a member or participant to--
       ``(A) identify and block restricted transactions; or
       ``(B) otherwise prevent the acceptance of the products or 
     services of the payment system, member, or participant in 
     connection with restricted transactions; and
       ``(2) such policies and procedures of the designated 
     payment system comply with the requirements of regulations 
     prescribed under subsection (a).
       ``(d) No Liability for Blocking or Refusing to Honor 
     Restricted Transactions.--A person that is subject to a 
     regulation prescribed or order issued under this subchapter 
     and blocks, or otherwise refuses to honor, a restricted 
     transaction or a transaction that such person reasonably 
     believes to be a restricted transaction, or as a member of a 
     designated payment system relies on the policies and 
     procedures of the payment system, in an effort to comply with 
     regulations prescribed under subsection (a), shall not be 
     liable to any party for such action.
       ``(e) Regulatory Enforcement.--Regulations issued by the 
     Secretary under this subchapter shall be enforced by the 
     Federal functional regulators and the Federal Trade 
     Commission, in the manner provided in section 505(a) of the 
     Gramm-Leach-Bliley Act (15 U.S.C. 6805(a)).

     ``Sec. 5364. Civil remedies

       ``(a) Jurisdiction.--The district courts of the United 
     States shall have original and exclusive jurisdiction to 
     prevent and restrain violations of this subchapter or the 
     rules or regulations issued under this subchapter by issuing 
     appropriate orders in accordance with this section, 
     regardless of whether a prosecution has been initiated under 
     this subchapter.
       ``(b) Proceedings.--
       ``(1) Institution by federal government.--
       ``(A) In general.--The United States, acting through the 
     Attorney General, or, in the case of rules or regulations 
     issued under this subchapter, through an agency authorized to 
     enforce such regulations in accordance with this subchapter, 
     may institute proceedings under this section to prevent or 
     restrain a violation or a threatened violation of this 
     subchapter or such rules or regulations.
       ``(B) Relief.--Upon application of the United States under 
     this paragraph, the district court may enter a preliminary 
     injunction or an injunction against any person to prevent or 
     restrain a violation or threatened violation of this 
     subchapter or the rules or regulations issued under this 
     subchapter, in accordance with rule 65 of the Federal Rules 
     of Civil Procedure.
       ``(2) Institution by state attorney general.--
       ``(A) In general.--The attorney general (or other 
     appropriate State official) of a State in which a violation 
     of this subchapter allegedly has occurred or will occur may 
     institute proceedings under this section to prevent or 
     restrain the violation or threatened violation.
       ``(B) Relief.--Upon application of the attorney general (or 
     other appropriate State official) of an affected State under 
     this paragraph, the district court may enter a preliminary 
     injunction or an injunction against any person to prevent or 
     restrain a violation or threatened violation of this 
     subchapter, in accordance with rule 65 of the Federal Rules 
     of Civil Procedure.
       ``(3) Indian lands.--
       ``(A) In general.--Notwithstanding paragraphs (1) and (2), 
     for a violation of this subchapter or the rules or 
     regulations issued under this subchapter that is alleged to 
     have occurred, or may occur, on Indian lands (as that term is 
     defined in section 4 of the Indian Gaming Regulatory Act (25 
     U.S.C. 2703))--
       ``(i) the United States shall have the enforcement 
     authority provided under paragraph (1); and
       ``(ii) the enforcement authorities specified in an 
     applicable Tribal-State compact negotiated under section 11 
     of the Indian Gaming Regulatory Act (25 U.S.C. 2710) shall be 
     carried out in accordance with that compact.
       ``(B) Rule of construction.--No provision of this section 
     shall be construed as altering, superseding, or otherwise 
     affecting the application of the Indian Gaming Regulatory Act 
     (25 U.S.C. 2701 et seq.).
       ``(c) Expedited Proceedings.--In addition to any proceeding 
     under subsection (b), a district court may, in exigent 
     circumstances, enter a temporary restraining order against a 
     person alleged to be in violation of this subchapter or the 
     rules or regulations issued under this subchapter, upon 
     application of the United States under subsection (b)(1), or 
     the attorney general (or other appropriate State official) of 
     an affected State under subsection (b)(2), in accordance with 
     rule 65(b) of the Federal Rules of Civil Procedure.
       ``(d) Limitation Relating to Interactive Computer 
     Services.--
       ``(1) In general.--Relief granted under this section 
     against an interactive computer service shall--
       ``(A) be limited to the removal of, or disabling of access 
     to, an online site violating this subchapter, or a hypertext 
     link to an online site violating this subchapter, that 
     resides on a computer server that such service controls or 
     operates, except that the limitation in this subparagraph 
     shall not apply if the service is subject to liability under 
     this section under section 5366;
       ``(B) be available only after notice to the interactive 
     computer service and an opportunity for the service to appear 
     are provided;
       ``(C) not impose any obligation on an interactive computer 
     service to monitor its service or to affirmatively seek facts 
     indicating activity violating this subchapter;
       ``(D) specify the interactive computer service to which it 
     applies; and
       ``(E) specifically identify the location of the online site 
     or hypertext link to be removed or access to which is to be 
     disabled.
       ``(2) Coordination with other law.--An interactive computer 
     service that does not violate this subchapter shall not be 
     liable under section 1084 of title 18, except that the 
     limitation in this paragraph shall not apply if an 
     interactive computer service has actual knowledge and control 
     of bets and wagers and--
       ``(A) operates, manages, supervises, or directs an Internet 
     website at which unlawful bets or wagers may be placed, 
     received, or otherwise made or at which unlawful bets or 
     wagers are offered to be placed, received, or otherwise made; 
     or
       ``(B) owns or controls, or is owned or controlled by, any 
     person who operates, manages, supervises, or directs an 
     Internet website at which unlawful bets or wagers may be 
     placed, received, or otherwise made, or at which unlawful 
     bets or wagers are offered to be placed, received, or 
     otherwise made.
       ``(e) Factors To Be Considered in Certain Cases.--In 
     considering granting relief under this section against any 
     payment system, or any participant in a payment system that 
     is a financial transaction provider, the court shall 
     consider---
       ``(1) the extent to which the person extending credit or 
     transmitting funds knew or should have known that the 
     transaction was in connection with unlawful Internet 
     gambling;
       ``(2) the history of such person in extending credit or 
     transmitting funds when such person knew or should have known 
     that the transaction is in connection with unlawful Internet 
     gambling;
       ``(3) the extent to which such person has established and 
     is maintaining policies and procedures in compliance with 
     rules and regulations issued under this subchapter;
       ``(4) the extent to which it is feasible for any specific 
     remedy prescribed as part of such relief to be implemented by 
     such person without substantial deviation from normal 
     business practice; and
       ``(5) the costs and burdens that the specific remedy will 
     have on such person.
       ``(f) Notice to Regulators and Financial Institutions.--
     Before initiating any proceeding under subsection (b), with 
     respect to a violation or potential violation of this 
     subchapter or the rules or regulations issued under this 
     subchapter by any financial transaction provider, the 
     Attorney General, an attorney general (or other appropriate 
     State official) of a State, or an agency authorized to 
     initiate such proceeding under this subchapter, shall--
       ``(1) notify such person, and the appropriate regulatory 
     agency (as determined in accordance with section 5363(e) for 
     such person) of such violation or potential violation and the 
     remedy to be sought in such proceeding; and
       ``(2) allow such person not longer than 60 days to 
     implement a remedy for the violation or potential violation, 
     consistent with the factors described in subsection (e), and 
     in conjunction with such action as the appropriate regulatory 
     agency may take, if such person takes reasonable steps within 
     that 60-day period to prevent the occurrence of such 
     violation or potential violation pending implementation of 
     such remedy.

     ``Sec. 5365. Criminal penalties

       ``(a) In General.--Whoever violates section 5362 shall be 
     fined under title 18, or imprisoned for not more than 5 
     years, or both.
       ``(b) Permanent Injunction.--Upon conviction of a person 
     under this section, the court may enter a permanent 
     injunction enjoining such person from placing, receiving, or 
     otherwise making bets or wagers or sending, receiving, or 
     inviting information assisting in the placing of bets or 
     wagers.

     ``Sec. 5366. Circumventions prohibited

       ``Notwithstanding section 5361(2), a financial transaction 
     provider, or any interactive computer service or 
     telecommunications service, may be liable under this 
     subchapter if such person has actual knowledge and control of 
     bets and wagers, and--
       ``(1) operates, manages, supervises, or directs an Internet 
     website at which unlawful bets or wagers may be placed, 
     received, or otherwise made, or at which unlawful bets or 
     wagers are offered to be placed, received, or otherwise made; 
     or
       ``(2) owns or controls, or is owned or controlled by, any 
     person who operates, manages, supervises, or directs an 
     Internet

[[Page S10134]]

     website at which unlawful bets or wagers may be placed, 
     received, or otherwise made, or at which unlawful bets or 
     wagers are offered to be placed, received, or otherwise made.

     ``Sec. 5367. Rule of construction

       ``No provision of this subchapter shall be construed as 
     altering, limiting, or extending any Federal or State law or 
     Tribal-State compact prohibiting, permitting, or regulating 
     gambling within the United States.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 53 of title 31, United States Code, is 
     amended by adding at the end the following:

 ``Subchapter IV--Prohibition on Funding of Unlawful Internet Gambling

``Sec. 5361. Definitions.
``Sec. 5362. Prohibition on acceptance of any financial instrument for 
              unlawful Internet gambling.
``Sec. 5363. Policies and procedures to identify and prevent restricted 
              transactions.
``Sec. 5364. Civil remedies.
``Sec. 5365. Criminal penalties.
``Sec. 5366. Circumventions prohibited.
``Sec. 5367. Rule of construction.''
       (d) Internet Gambling in or Through Foreign 
     Jurisdictions.--
       (1) In general.--In deliberations between the United States 
     Government and any other country on money laundering, 
     corruption, and crime issues, the United States Government 
     should--
       (A) encourage cooperation by foreign governments and 
     relevant international fora in identifying whether Internet 
     gambling operations are being used for money laundering, 
     corruption, or other crimes;
       (B) advance policies that promote the cooperation of 
     foreign governments, through information sharing or other 
     measures, in the enforcement of this Act; and
       (C) encourage the Financial Action Task Force on Money 
     Laundering, in its annual report on money laundering 
     typologies, to study the extent to which Internet gambling 
     operations are being used for money laundering purposes.
       (2) Report required.--The Secretary of the Treasury shall 
     submit an annual report to Congress on any deliberations 
     between the United States and other countries on issues 
     relating to Internet gambling.
                                 ______
                                 
  SA 1719. Mr. SHELBY (for Mr. Kyl) proposed an amendment to the bill 
H.R. 2862, An Act making appropriations for the Departments of Commerce 
and Justice, Science, and related agencies for the fiscal year ending 
September 30, 2006, and for other purposes; as follows:.

       On page 120, line 24, after the colon insert the following: 
     ``Provided further, That of the funds provided under this 
     heading, $5,000,000 may be expended for hiring officers in 
     the Southwest United States dedicated to the investigation of 
     manufacturers of fraudulent Federal identity documents, 
     Federal travel documents, or documents allowing access to 
     Federal programs:''.
                                 ______
                                 
  SA 1720. Mr. SHELBY (for Mr. Baucus) proposed an amendment to the 
bill H.R. 2862, An Act making appropriations for the Departments of 
Commerce and Justice, Science, and related agencies for the fiscal year 
ending September 30, 2006, and for other purposes; as follows:.

       On page 147, line 5, strike ``$283,985,000'' and all that 
     follows through line 6 and insert the following: 
     $483,985,000, to remain available until expended: Provided, 
     That $200,000,000 shall be for assistance described in 
     section 209(c)(2) of that Act (42 U.S.C. 3149(c)(2)) and is 
     designated as an emergency requirement pursuant to section 
     402 of H. Con. Res. 95 (109th Congress).
       On page 147, line 10, strike ``$30,939,000: Provided'' and 
     insert the following: $40,939,000: Provided, That $10,000,000 
     shall be for salaries and expenses of carrying out section 
     209(c)(2) of the Public Works and Economic Development Act of 
     1965 (42 U.S.C. 3149(c)(2)) and is designated as an emergency 
     requirement pursuant to section 402 of H. Con. Res. 95 (109th 
     Congress): Provided further
                                 ______
                                 
  SA 1721. Mr. SHELBY (for Mr. Durbin (for himself and Mr. Coburn)) 
proposed an amendment to the bill H.R. 2862, An Act making 
appropriations for the Departments of Commerce and Justice, Science, 
and related agencies for the fiscal year ending September 30, 2006, and 
for other purposes; as follows:.

       At the appropriate place, insert the following:

     SEC. __. WAIVER OF LICENSING AND CERTIFICATION REQUIREMENTS 
                   APPLICABLE TO CERTAIN HEALTH PROFESSIONALS.

       (a) In General.--Notwithstanding any other provision of 
     law, an eligible health professional may provide health-
     related services under the medicare, medicaid, or SCHIP 
     program under title XVIII, XIX, or XXI of the Social Security 
     Act (42 U.S.C. 1395 et seq., 1396 et seq., and 1397 et seq.) 
     and under Indian Health Service programs, regardless of the 
     licensing or certification laws of the State in which such 
     services are being provided, during the 90-day period that 
     begins on the date on which eligibility is determined by the 
     State licensing board of the State in which such professional 
     will provide health-related services under this subsection.
       (b) Eligible Health Professional.--To be eligible to 
     provide health-related services in a State during the period 
     referred to in subsection (a) without State licensure or 
     certification, a health professional shall--
       (1) be a physician, nurse, dentist, pharmacist, mental 
     health professional, or allied health profession, or any 
     other professional determined appropriate by the Secretary of 
     Health and Human Services;
       (2) have a valid license from, or be certified in, at least 
     one of the States affected by Hurricane Katrina, as described 
     in subsection (d), and not be affirmatively barred from 
     practicing in that State;
       (3) have been evacuated from Louisiana or Mississippi as a 
     result of Hurricane Katrina; and
       (4) have applied, prior to March 31, 2006, for a license or 
     certification in the State in which such professional will 
     provide the health-related services under subsection (a) 
     without State licensure or certification.
       (c) Evidence of Licensure.--
       (1) In general.--A State may develop a process to verify 
     the licensing credentials of a health professional to which 
     this section applies if the professional has no official 
     evidence of licensure in his or her possession.
       (2) Fraud.--An individual who wilfully provides any false 
     or misleading information to a Federal, State, or local 
     official for purposes of being covered under the provisions 
     of this section shall, in addition to any State penalties 
     that may apply, be subject to a fine, as determined 
     appropriate by the Attorney General in accordance with title 
     18, United States Code.
       (d) States Described.--The States described in this 
     subsection are Louisiana and Mississippi.
       (e) Limitation.--A health professional may only elect to 
     utilize the provisions of this section for a single 90-day 
     period.
       (f) Rule of Construction.--Nothing in this section shall be 
     construed as altering or affecting any procedures adopted by 
     State health professional licensing or certification boards 
     relating to waivers of licensing and certification 
     requirements for health professionals affected by Hurricane 
     Katrina.
       (g) Definition.--In this section, the term ``health-related 
     services'', as such term is applied to health professional 
     under this section, means services provided by a health 
     professional that are consistent with the scope of practice 
     of the professional in the State in which such professional 
     is seeking licensure or certification.
                                 ______
                                 
  SA 1722. Mr. GRASSLEY (for himself and Mr. Baucus) proposed an 
amendment to the bill S. 1696, to provide tax relief for the victims of 
Hurricane Katrina, to provide incentives for charitable giving, and for 
other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Hurricane 
     Katrina Tax Relief Act of 2005''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.
Sec. 2. Hurricane Katrina disaster area.

   TITLE I--PENALTY FREE USE OF RETIREMENT FUNDS BY NATURAL DISASTER 
                                VICTIMS

Sec. 101. Penalty free withdrawals from retirement plans for victims of 
              federally declared natural disasters.
Sec. 102. Income averaging for disaster-relief distributions related to 
              Hurricane Katrina.
Sec. 103. Recontributions of withdrawals for home purchases cancelled 
              due to Hurricane Katrina.
Sec. 104. Loans from qualified plans to victims of Hurricane Katrina.
Sec. 105. Provisions relating to plan amendments.

                      TITLE II--EMPLOYMENT RELIEF

Sec. 201. Work opportunity tax credit for Hurricane Katrina employee 
              survivors.
Sec. 202. Employee retention credit for employers affected by Hurricane 
              Katrina.

                TITLE III--CHARITABLE GIVING INCENTIVES

Sec. 301. Temporary increase in limitation on individual and corporate 
              charitable cash contributions.
Sec. 302. Tax-free distributions from individual retirement accounts 
              for charitable purposes.
Sec. 303. Charitable deduction for contributions of food inventories.
Sec. 304. Charitable deduction for contributions of book inventories.
Sec. 305. Additional personal exemption amount for Hurricane Katrina 
              houseguest.

[[Page S10135]]

Sec. 306. Increase in standard mileage rate for charitable use of 
              passenger automobile.

               TITLE IV--ADDITIONAL TAX RELIEF PROVISIONS

Sec. 401. Exclusions of certain cancellations of indebtedness for 
              victims of Hurricane Katrina.
Sec. 402. Modification to casualty loss rules for victims of Hurricane 
              Katrina.
Sec. 403. Required exercise of authority under section 7508A for tax 
              relief for victims of Hurricane Katrina.
Sec. 404. Special mortgage financing rules for residences located in 
              Hurricane Katrina disaster area.
Sec. 405. Extension of replacement period for nonrecognition of gain 
              for property located in Hurricane Katrina disaster area.
Sec. 406. Special rule for determining earned income.
Sec. 407. Secretarial authority to make adjustments regarding taxpayer 
              and dependency status.

                     TITLE V--ADDITIONAL PROVISIONS

Sec. 501. Disclosure to State officials of proposed actions related to 
              exempt organizations.
Sec. 502. Dedication and use of certain fees.

     SEC. 2. HURRICANE KATRINA DISASTER AREA.

       For purposes of this Act, the term ``Hurricane Katrina 
     disaster area'' means an area--
       (1) with respect to which a major disaster has been 
     declared by the President before September 14, 2005, under 
     section 401 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act in connection with Hurricane 
     Katrina, and
       (2) which is determined by the President before such date 
     to warrant individual assistance, or individual and public 
     assistance, from the Federal Government under such Act.

   TITLE I--PENALTY FREE USE OF RETIREMENT FUNDS BY NATURAL DISASTER 
                                VICTIMS

     SEC. 101. PENALTY FREE WITHDRAWALS FROM RETIREMENT PLANS FOR 
                   VICTIMS OF FEDERALLY DECLARED NATURAL 
                   DISASTERS.

       (a) In General.--Paragraph (2) of section 72(t) (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 to victims of 
     federally declared natural disasters.--
       ``(i) Distribution allowed.--Any qualified disaster-relief 
     distribution.
       ``(ii) 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), 408(d)(3), or 457(e)(16), 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.

       ``(iii) Qualified disaster-relief distribution.--Except as 
     provided in clause (iv), 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 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.

       ``(iv) Dollar limitation.--

       ``(I) In general.--The term `qualified disaster-relief 
     distribution' shall not include any distributions with 
     respect to any major disaster described in clause (iii)(I) to 
     the extent the aggregate amount of such distributions exceeds 
     $100,000.
       ``(II) Treatment of plan distributions.--If a distribution 
     to an individual with respect to any such major disaster 
     would (without regard to subclause (I)) be a qualified 
     disaster-relief distribution, a plan shall not be treated as 
     violating any requirement of this title merely because it 
     treats such distribution as a qualified disaster-relief 
     distribution, unless the aggregate amount of such 
     distributions from all plans maintained by the employer (and 
     any member of controlled group which includes the employer) 
     to such individual with respect to such major disaster 
     exceeds $100,000.

       ``(v) Qualified disaster area.--For purposes of this 
     subparagraph, the term `qualified disaster area' means an 
     area--

       ``(I) with respect to which a major disaster has been 
     declared by the President under section 401 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act, and
       ``(II) which is determined by the President to warrant 
     individual assistance, or individual and public assistance, 
     from the Federal Government under such Act.''.

       (b) Exemption of Distributions From Trustee to Trustee 
     Transfer and Withholding Rules.--Paragraph (4) of section 
     402(c) (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) 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) 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 (but only to the extent provided 
     in section 72(t)(2)(G)),'' before ``or''.
       (3) Section 403(b)(11) 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.''.
       (4) Section 457(d)(1)(A) is amended by striking ``or'' at 
     the end of clause (ii), by adding ``or'' at the end of clause 
     (iii), and by adding at the end the following new clause:
       ``(iv) in the case of an eligible deferred compensation 
     plan established and maintained by an employer described in 
     subsection (e)(1)(A), when the participant 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 (but only to the extent provided in section 
     72(t)(2)(G)),''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to distributions received after August 28, 2005.

     SEC. 102. 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) in connection 
     with Hurricane Katrina and who has a principal place of abode 
     immediately before the declaration in a Hurricane Katrina 
     disaster area.

     SEC. 103. 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,

[[Page S10136]]

     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.
       (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 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) (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) 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.

     SEC. 104. LOANS FROM QUALIFIED PLANS TO VICTIMS OF 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 102(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 103(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 102(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. 105. PROVISIONS RELATING TO PLAN AMENDMENTS.

       (a) In General.--If this section applies to any plan or 
     contract amendment 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).
       (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 II--EMPLOYMENT RELIEF

     SEC. 201. WORK OPPORTUNITY TAX CREDIT FOR HURRICANE KATRINA 
                   EMPLOYEE SURVIVORS.

       (a) In General.--For purposes of section 51 of the Internal 
     Revenue Code of 1986, a Hurricane Katrina employee survivor 
     shall be treated as a member of a targeted group.
       (b) Hurricane Katrina Employee Survivor.--For purposes of 
     this section, the term ``Hurricane Katrina employee 
     survivor'' means any individual who is certified as an 
     individual who--
       (1) on August 28, 2005, had a principal place of abode in a 
     Hurricane Katrina disaster area, and
       (2) became unemployed as a result of Hurricane Katrina.
       (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 survivor--
       (1) section 51(c)(4) of such Code shall not apply,
       (2) notwithstanding section 51(d)(12) of such Code, the 
     certification under subsection (b) shall be made in such 
     manner and at such time as determined by the Secretary of the 
     Treasury, except that the certification shall be made by a 
     person other than the such employee survivor or the employer 
     (within the meaning of section 51 of such Code), and
       (3) section 51(i)(2) of such Code shall not apply with 
     respect to the first hire of such employee survivor, unless 
     such employee survivor was an employee of the employer on 
     August 28, 2005.
       (d) Application of Section.--This section shall apply to 
     wages (within the meaning on section 51(c) of such Code) paid 
     or incurred to any individual who begins work--
       (1) for an employer during the 1-year period beginning on 
     August 29, 2005, or
       (2) in the case of an individual who is being hired for a 
     position the principal place of employment of which is 
     located in a Hurricane Katrina disaster area, for any 
     employer during the 3-year period beginning on such date.

     SEC. 202. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY 
                   HURRICANE KATRINA.

       (a) In General.--In the case of an eligible employer, there 
     shall be allowed as a credit against the tax imposed by 
     chapter 1 of the Internal Revenue Code of 1986 for the 
     taxable year 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 on August 
     28, 2005, in a Hurricane Katrina disaster area, and
       (B) with respect to whom the trade or business described in 
     subparagraph (A) is inoperable on any day after August 28, 
     2005, and before January 1, 2006, as a result of damage 
     sustained in connection with Hurricane Katrina.
       (2) Eligible employee.--The term ``eligible employee'' 
     means with respect to an eligible employer--
       (A) an employee whose principal place of employment on 
     August 28, 2005, with such eligible employer was in a 
     Hurricane Katrina disaster area, or
       (B) a Ready Reserve-National Guard employee of such 
     eligible employer who is performing qualified active duty and 
     whose principal place of employment immediately before the 
     date on which such employee began performing such qualified 
     active duty was in a Hurricane Katrina disaster area.
       (3) Qualified wages.--The term ``qualified wages'' means 
     wages (as defined in section 51(c)(1) of the Internal Revenue 
     Code of 1986, but without regard to section 3306(b)(2)(B) of 
     such Code) paid or incurred by an eligible employer with 
     respect to an eligible employee on any day after August 28, 
     2005, and before January 1, 2006, 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 Hurricane Katrina, 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

[[Page S10137]]

     such principal place of employment before significant 
     operations have resumed.
       (4) Ready reserve-national guard employee.--The term 
     ``Ready Reserve-National Guard employee'' means an employee 
     who is a member of the Ready Reserve of a reserve component 
     of an Armed Force of the United States as described in 
     section 10142 and 10101 of title 10, United States Code and 
     who is performing qualified active duty.
       (5) Qualified active duty.--The term ``qualified active 
     duty'' means--
       (A) active duty, other than the training duty specified in 
     section 10147 of title 10, United States Code (relating to 
     training requirements for Ready Reserve), or section 502(a) 
     of title 32, United States Code (relating to required drills 
     and field exercises for the National Guard), in connection 
     with which an employee is entitled to reemployment rights and 
     other benefits or to a leave of absence from employment under 
     chapter 43 of title 38, United States Code, and
       (B) hospitalization incident to such duty.
       (c) Certain Rules to Apply.--For purposes of this section, 
     rules similar to the rules of sections 51(i)(1), 52, and 
     280C(a) of the Internal Revenue Code of 1986 of the shall 
     apply.
       (d) Credit To Be Part of General Business Credit.--The 
     credit allowed under this section shall be added to the 
     current year business credit under section 38(b) of the 
     Internal Revenue Code of 1986 and shall be treated as a 
     credit allowed under subpart D of part IV of subchapter A of 
     chapter 1 of such Code.

                TITLE III--CHARITABLE GIVING INCENTIVES

     SEC. 301. TEMPORARY INCREASE IN LIMITATION ON INDIVIDUAL AND 
                   CORPORATE CHARITABLE CASH CONTRIBUTIONS.

       (a) In General.--In the case of qualified contributions 
     made during the period beginning on August 29, 2005, and 
     ending on December 31, 2005, in the case of any taxable year 
     which includes any portion of such period--
       (1) subsection (b)(1)(A) of section 170 of the Internal 
     Revenue Code of 1986 shall be applied separately--
       (A) first without regard to such contributions, and
       (B) next with regard to such contributions by substituting 
     ``60 percent of the taxpayer's contribution base less the 
     other contributions allowable under this paragraph for the 
     taxable year'' for ``50 percent of the taxpayer's 
     contribution base for the taxable year'', and
       (2) subsection (b)(2) of section 170 of such Code shall be 
     applied separately--
       (A) first without regard to such contributions, and
       (B) next with regard to such contributions by substituting 
     ``15 percent of the taxpayer's taxable income less the other 
     charitable contributions allowable for the taxable year'' for 
     ``10 percent of the taxpayer's taxable income''.
       (b) Qualified Contributions.--For purposes of this section, 
     the term ``qualified contributions'' means any charitable 
     contributions (as defined in section 170(c) of such Code) 
     made in cash to an organization described in section 
     170(b)(1)(A) of such Code.
       (c) Application of Carryover Rules.--For purposes of 
     section 170 of such Code--
       (1) qualified contributions shall not be taken into account 
     under section 170(d)(1)(A)(i) of such Code in determining the 
     amount of the deduction allowable under such section with 
     respect to such contributions, and
       (2) to the extent qualified contributions increase the 
     amount allowable under section 170 of such Code by reason of 
     subsection (a), such contributions shall not be taken into 
     account under section 170(d) of such Code.
       (d) Fiscal Year Taxpayers.--In the case of a taxpayer whose 
     taxable year ends after August 28, 2005, and before December 
     31, 2005, subsection (a) shall apply to only the one taxable 
     year that the taxpayer elects.

     SEC. 302. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT 
                   ACCOUNTS FOR CHARITABLE PURPOSES.

       (a) In General.--Subsection (d) of section 408 (relating to 
     individual retirement accounts) is amended by adding at the 
     end the following new paragraph:
       ``(8) Distributions for charitable purposes.--
       ``(A) In general.--No amount shall be includible in gross 
     income by reason of a qualified charitable distribution.
       ``(B) Qualified charitable distribution.--For purposes of 
     this paragraph, the term `qualified charitable distribution' 
     means any distribution made after August 28, 2005, and before 
     January 1, 2006, from an individual retirement account--
       ``(i) which is made directly by the trustee--

       ``(I) to an organization described in section 170(c), or
       ``(II) to a split-interest entity, and

       ``(ii) which is made on or after--

       ``(I) in the case of any distribution described in clause 
     (i)(I), the date that the individual for whose benefit the 
     account is maintained has attained age 70\1/2\, and
       ``(II) in the case of any distribution described in clause 
     (i)(II), the date that such individual has attained age 59\1/
     2\.

     A distribution shall be treated as a qualified charitable 
     distribution only to the extent that the distribution would 
     be includible in gross income without regard to subparagraph 
     (A) and, in the case of a distribution to a split-interest 
     entity, only if no person holds an income interest in the 
     amounts in the split-interest entity attributable to such 
     distribution other than one or more of the following: the 
     individual for whose benefit such account is maintained, the 
     spouse of such individual, or any organization described in 
     section 170(c).
       ``(C) Contributions must be otherwise deductible.--For 
     purposes of this paragraph--
       ``(i) Direct contributions.--A distribution to an 
     organization described in section 170(c) shall be treated as 
     a qualified charitable distribution only if a deduction for 
     the entire distribution would be allowable under section 170 
     (determined without regard to subsection (b) thereof and this 
     paragraph).
       ``(ii) Split-interest gifts.--A distribution to a split-
     interest entity shall be treated as a qualified charitable 
     distribution only if a deduction for the entire value of the 
     interest in the distribution for the use of an organization 
     described in section 170(c) would be allowable under section 
     170 (determined without regard to subsection (b) thereof and 
     this paragraph).
       ``(D) Application of section 72.--Notwithstanding section 
     72, in determining the extent to which a distribution is a 
     qualified charitable distribution, the entire amount of the 
     distribution shall be treated as includible in gross income 
     without regard to subparagraph (A) to the extent that such 
     amount does not exceed the aggregate amount which would have 
     been so includible if all amounts were distributed from all 
     individual retirement accounts treated as 1 contract under 
     paragraph (2)(A) for purposes of determining the inclusion on 
     such distribution under section 72. Proper adjustments shall 
     be made in applying section 72 to other distributions in such 
     taxable year and subsequent taxable years.
       ``(E) Special rules for split-interest entities.--
       ``(i) Charitable remainder trusts.--Notwithstanding section 
     664(b), distributions made from a trust described in 
     subparagraph (G)(i) shall be treated as ordinary income in 
     the hands of the beneficiary to whom is paid the annuity 
     described in section 664(d)(1)(A) or the payment described in 
     section 664(d)(2)(A).
       ``(ii) Pooled income funds.--No amount shall be includible 
     in the gross income of a pooled income fund (as defined in 
     subparagraph (G)(ii)) by reason of a qualified charitable 
     distribution to such fund, and all distributions from the 
     fund which are attributable to qualified charitable 
     distributions shall be treated as ordinary income to the 
     beneficiary.
       ``(iii) Charitable gift annuities.--Qualified charitable 
     distributions made for a charitable gift annuity shall not be 
     treated as an investment in the contract.
       ``(F) Denial of deduction.--Qualified charitable 
     distributions shall not be taken into account in determining 
     the deduction under section 170.
       ``(G) Split-interest entity defined.--For purposes of this 
     paragraph, the term `split-interest entity' means--
       ``(i) a charitable remainder annuity trust or a charitable 
     remainder unitrust (as such terms are defined in section 
     664(d)) which must be funded exclusively by qualified 
     charitable distributions,
       ``(ii) a pooled income fund (as defined in section 
     642(c)(5)), but only if the fund accounts separately for 
     amounts attributable to qualified charitable distributions, 
     and
       ``(iii) a charitable gift annuity (as defined in section 
     501(m)(5)).''.
       (b) Modifications Relating to Information Returns by 
     Certain Trusts.--
       (1) Returns.--Section 6034 (relating to returns by trusts 
     described in section 4947(a)(2) or claiming charitable 
     deductions under section 642(c)) is amended to read as 
     follows:

     ``SEC. 6034. RETURNS BY TRUSTS DESCRIBED IN SECTION 
                   4947(A)(2) OR CLAIMING CHARITABLE DEDUCTIONS 
                   UNDER SECTION 642(C).

       ``(a) Trusts described in Section 4947(a)(2).--Every trust 
     described in section 4947(a)(2) shall furnish such 
     information with respect to the taxable year as the Secretary 
     may by forms or regulations require.
       ``(b) Trusts claiming a charitable deduction under Section 
     642(c).--
       ``(1) In general.--Every trust not required to file a 
     return under subsection (a) but claiming a deduction under 
     section 642(c) for the taxable year shall furnish such 
     information with respect to such taxable year as the 
     Secretary may by forms or regulations prescribe, including--
       ``(A) the amount of the deduction taken under section 
     642(c) within such year,
       ``(B) the amount paid out within such year which represents 
     amounts for which deductions under section 642(c) have been 
     taken in prior years,
       ``(C) the amount for which such deductions have been taken 
     in prior years but which has not been paid out at the 
     beginning of such year,
       ``(D) the amount paid out of principal in the current and 
     prior years for the purposes described in section 642(c),
       ``(E) the total income of the trust within such year and 
     the expenses attributable thereto, and
       ``(F) a balance sheet showing the assets, liabilities, and 
     net worth of the trust as of the beginning of such year.
       ``(2) Exceptions.--Paragraph (1) shall not apply to a trust 
     for any taxable year if--
       ``(A) all the net income for such year, determined under 
     the applicable principles of the law of trusts, is required 
     to be distributed currently to the beneficiaries, or

[[Page S10138]]

       ``(B) the trust is described in section 4947(a)(1).''.
       (2) Increase in penalty relating to filing of information 
     return by split-interest trusts.--Paragraph (2) of section 
     6652(c) (relating to returns by exempt organizations and by 
     certain trusts) is amended by adding at the end the following 
     new subparagraph:
       ``(C) Split-interest trusts.--In the case of a trust which 
     is required to file a return under section 6034(a), 
     subparagraphs (A) and (B) of this paragraph shall not apply 
     and paragraph (1) shall apply in the same manner as if such 
     return were required under section 6033, except that--
       ``(i) the 5 percent limitation in the second sentence of 
     paragraph (1)(A) shall not apply,
       ``(ii) in the case of any trust with gross income in excess 
     of $250,000, the first sentence of paragraph (1)(A) shall be 
     applied by substituting `$100' for `$20', and the second 
     sentence thereof shall be applied by substituting `$50,000' 
     for `$10,000', and
       ``(iii) the third sentence of paragraph (1)(A) shall be 
     disregarded.
     In addition to any penalty imposed on the trust pursuant to 
     this subparagraph, if the person required to file such return 
     knowingly fails to file the return, such penalty shall also 
     be imposed on such person who shall be personally liable for 
     such penalty.''.
       (3) Confidentiality of noncharitable beneficiaries.--
     Subsection (b) of section 6104 (relating to inspection of 
     annual information returns) is amended by adding at the end 
     the following new sentence: ``In the case of a trust which is 
     required to file a return under section 6034(a), this 
     subsection shall not apply to information regarding 
     beneficiaries which are not organizations described in 
     section 170(c).''.
       (c) Effective Dates.--
       (1) Subsection (a).--The amendment made by subsection (a) 
     shall apply to distributions made after August 28, 2005.
       (2) Subsection (b).--The amendments made by subsection (b) 
     shall apply to returns for taxable years beginning after 
     December 31, 2004.

     SEC. 303. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD 
                   INVENTORIES.

       (a) In General.--Subsection (e) of section 170 (relating to 
     certain contributions of ordinary income and capital gain 
     property) is amended by adding at the end the following new 
     paragraph:
       ``(7) Application of paragraph (3) to certain contributions 
     of food inventory.--For purposes of this section--
       ``(A) Extension to individuals.--In the case of a 
     charitable contribution of apparently wholesome food--
       ``(i) paragraph (3)(A) shall be applied without regard to 
     whether the contribution is made by a C corporation, and
       ``(ii) in the case of a taxpayer other than a C 
     corporation, the aggregate amount of such contributions for 
     any taxable year which may be taken into account under this 
     section shall not exceed 10 percent of the taxpayer's net 
     income for such taxable year from all trades or businesses 
     from which such contributions were made for such taxable 
     year, computed without regard to this section.
       ``(B) Limitation on reduction.--In the case of a charitable 
     contribution of apparently wholesome food, notwithstanding 
     paragraph (3)(B), the amount of the reduction determined 
     under paragraph (1)(A) shall not exceed the amount by which 
     the fair market value of such property exceeds twice the 
     basis of such property.
       ``(C) Determination of basis.--If a taxpayer--
       ``(i) does not account for inventories under section 471, 
     and
       ``(ii) is not required to capitalize indirect costs under 
     section 263A,
     the taxpayer may elect, solely for purposes of paragraph 
     (3)(B), to treat the basis of any apparently wholesome food 
     as being equal to 25 percent of the fair market value of such 
     food.
       ``(D) Determination of fair market value.--In the case of a 
     charitable contribution of apparently wholesome food which is 
     a qualified contribution (within the meaning of paragraph 
     (3), as modified by subparagraph (A) of this paragraph) and 
     which, solely by reason of internal standards of the taxpayer 
     or lack of market, cannot or will not be sold, the fair 
     market value of such contribution shall be determined--
       ``(i) without regard to such internal standards or such 
     lack of market and
       ``(ii) by taking into account the price at which the same 
     or substantially the same food items (as to both type and 
     quality) are sold by the taxpayer at the time of the 
     contribution (or, if not so sold at such time, in the recent 
     past).
       ``(E) Apparently wholesome food.--For purposes of this 
     paragraph, the term `apparently wholesome food' has the 
     meaning given such term by section 22(b)(2) of the Bill 
     Emerson Good Samaritan Food Donation Act (42 U.S.C. 
     1791(b)(2)), as in effect on the date of the enactment of 
     this paragraph.
       ``(F) Application.--This paragraph shall apply to 
     contributions made after August 28, 2005, and before January 
     1, 2006.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after August 28, 2005.

     SEC. 304. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK 
                   INVENTORIES.

       (a) In General.--Section 170(e)(3) (relating to certain 
     contributions of ordinary income and capital gain property) 
     is amended by redesignating subparagraph (C) as subparagraph 
     (D) and by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) Special rule for contributions of book inventory for 
     educational purposes.--
       ``(i) Contributions of book inventory.--In determining 
     whether a qualified book contribution is a qualified 
     contribution, subparagraph (A) shall be applied without 
     regard to whether--

       ``(I) the donee is an organization described in the matter 
     preceding clause (i) of subparagraph (A), and
       ``(II) the property is to be used by the donee solely for 
     the care of the ill, the needy, or infants.

       ``(ii) Amount of reduction.--Notwithstanding subparagraph 
     (B), the amount of the reduction determined under paragraph 
     (1)(A) shall not exceed the amount by which the fair market 
     value of the contributed property (as determined by the 
     taxpayer using a bona fide published market price for such 
     book) exceeds twice the basis of such property.
       ``(iii) Qualified book contribution.--For purposes of this 
     paragraph, the term `qualified book contribution' means a 
     charitable contribution of books, but only if the 
     requirements of clauses (iv) and (v) are met.
       ``(iv) Identity of donee.--The requirement of this clause 
     is met if the contribution is to an organization--

       ``(I) described in subclause (I) or (III) of paragraph 
     (6)(B)(i), or
       ``(II) described in section 501(c)(3) and exempt from tax 
     under section 501(a) (other than a private foundation, as 
     defined in section 509(a), which is not an operating 
     foundation, as defined in section 4942(j)(3)), which is 
     organized primarily to make books available to the general 
     public at no cost or to operate a literacy program.

       ``(v) Certification by donee.--The requirement of this 
     clause is met if, in addition to the certifications required 
     by subparagraph (A) (as modified by this subparagraph), the 
     donee certifies in writing that--

       ``(I) the books are suitable, in terms of currency, 
     content, and quantity, for use in the donee's educational 
     programs, and
       ``(II) the donee will use the books in its educational 
     programs.

       ``(vi) Bona fide published market price.--For purposes of 
     this subparagraph, the term `bona fide published market 
     price' means, with respect to any book, a price--

       ``(I) determined using the same printing and edition,
       ``(II) determined in the usual market in which such a book 
     has been customarily sold by the taxpayer, and
       ``(III) for which the taxpayer can demonstrate to the 
     satisfaction of the Secretary that the taxpayer customarily 
     sold such books in arm's length transactions within 7 years 
     preceding the contribution of such a book.

       ``(vii) Application.--This subparagraph shall apply to 
     contributions made after August 28, 2005, and before January 
     1, 2006.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to contributions made after August 28, 2005.

     SEC. 305. ADDITIONAL PERSONAL EXEMPTION AMOUNT FOR HURRICANE 
                   KATRINA HOUSEGUEST.

       (a) In General.--In the case of the a taxpayer's taxable 
     year beginning in 2005, the amount allowed as a deduction in 
     computing taxable income of the taxpayer under section 151 of 
     the Internal Revenue Code of 1986 shall be increased by the 
     lesser of--
       (1) the product of--
       (A) $500, and
       (B) the number of Hurricane Katrina houseguests of the 
     taxpayer, or
       (2) $2,000.
       (b) Hurricane Katrina Houseguest.--For purposes of this 
     section, the term ``Hurricane Katrina houseguest'' means any 
     individual--
       (1) who would not otherwise qualify for an exemption amount 
     with respect to the taxpayer for the taxable year,
       (2) whose principal place of abode in a Hurricane Katrina 
     disaster area was rendered uninhabitable after August 28, 
     2005, and
       (3) is provided shelter for not less than 60 days after 
     August 28, 2005, and before January 1, 2006, by the taxpayer 
     in the taxpayer's principal place of abode.
       (c) Limitation.--No deduction shall be allowed under this 
     section if the taxpayer receives any rent or other amount 
     (from any source) in connection with the providing of such 
     shelter.

     SEC. 306. INCREASE IN STANDARD MILEAGE RATE FOR CHARITABLE 
                   USE OF PASSENGER AUTOMOBILE.

       Notwithstanding section 170(i) of the Internal Revenue Code 
     of 1986, for purposes of computing the deduction under 
     section 170 of such Code for use of a passenger automobile 
     for the period beginning on August 29, 2005, and ending 
     before January 1, 2006, the standard mileage rate shall be 60 
     percent of the standard mileage rate in effect under section 
     162(a) of such Code at the time of such use. Any increase 
     under this section shall be rounded to the next highest cent.

               TITLE IV--ADDITIONAL TAX RELIEF PROVISIONS

     SEC. 401. EXCLUSIONS OF CERTAIN CANCELLATIONS OF INDEBTEDNESS 
                   FOR VICTIMS OF HURRICANE KATRINA.

       (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

[[Page S10139]]

     by reason of the discharge (in whole or in part) of 
     indebtedness of a natural person by an applicable entity (as 
     defined in section 6050P(c)(1)) if the discharge is by reason 
     of the damage sustained by the taxpayer in connection with 
     Hurricane Katrina.
       (b) Exception.--Subsection (a) shall not apply to any 
     indebtedness incurred in connection with a trade or business.
       (c) 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 such Code.
       (d) Effective Date.--This section shall apply to discharges 
     made on or after August 29, 2005, and before January 1, 2007.

     SEC. 402. MODIFICATION TO CASUALTY LOSS RULES FOR VICTIMS OF 
                   HURRICANE KATRINA.

       In the case of an individual with a personal casualty loss 
     which arises in connection with Hurricane Katrina--
       (1) section 165(h)(2)(A) of the Internal Revenue Code of 
     1986 shall not apply, and
       (2) in applying such section to other personal casualty 
     losses during the taxable year, losses to which this section 
     applies shall be disregarded.

     SEC. 403. REQUIRED EXERCISE OF AUTHORITY UNDER SECTION 7508A 
                   FOR TAX RELIEF FOR VICTIMS OF HURRICANE 
                   KATRINA.

       (a) Authority Includes Suspension of Payment of Employment 
     and Excise Taxes.--Subparagraphs (A) and (B) of section 
     7508(a)(1) are amended to read as follows:
       ``(A) Filing any return of income, estate, gift, 
     employment, or excise tax;
       ``(B) Payment of any income, estate, gift, employment, or 
     excise tax or any installment thereof or of any other 
     liability to the United States in respect thereof;''.
       (b) Application to Victims of Hurricane Katrina.--In the 
     case of any taxpayer determined by the Secretary of the 
     Treasury to be affected by the Presidentially declared 
     disaster relating to Hurricane Katrina, any relief provided 
     by the Secretary of the Treasury under section 7508A of the 
     Internal Revenue Code of 1986 shall be for a period ending 
     not earlier than February 28, 2006, and shall be treated as 
     applying to the filing of returns relating to, and the 
     payment of, employment and excise taxes.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply for any period for performing an act which has 
     not expired before August 29, 2005.

     SEC. 404. SPECIAL MORTGAGE FINANCING RULES FOR RESIDENCES 
                   LOCATED IN HURRICANE KATRINA DISASTER AREA.

       In the case of a residence located in a Hurricane Katrina 
     disaster area, section 143 of the Internal Revenue Code of 
     1986 shall be applied with the following modifications to 
     financing provided with respect to such residence within 3 
     years after the date of the disaster declaration:
       (1) Subsections (d), (e) and (f) of such section 143 shall 
     be applied as if such residence were a targeted area 
     residence.
       (2) Subsection (f)(3) of such section 143 shall be applied 
     without regard to subparagraph (A) thereof.
       (3) The limitation under subsection (k)(4) of such section 
     143 shall be increased (but not above $150,000) to the extent 
     the qualified home-improvement loan is for the repair of 
     damage caused by Hurricane Katrina.

     This section shall apply only with respect to bonds issued 
     after August 28, 2005, and before August 29, 2008.

     SEC. 405. EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNITION 
                   OF GAIN FOR PROPERTY LOCATED IN HURRICANE 
                   KATRINA DISASTER AREA.

       Notwithstanding subsections (g) and (h) of section 1033 of 
     the Internal Revenue Code of 1986, clause (i) of section 
     1033(a)(2)(B) of such Code shall be applied by substituting 
     ``5 years'' for ``2 years'' with respect to property which is 
     compulsorily or involuntarily converted as a result of 
     Hurricane Katrina in a Hurricane Katrina disaster area, but 
     only if substantially all of the use of the replacement 
     property is in such area.

     SEC. 406. 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. 407. 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 the Secretary's delegate may 
     make such adjustments in the application of the internal 
     revenue laws as may be necessary to ensure that taxpayers do 
     not lose any deduction or credit 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.

                     TITLE V--ADDITIONAL PROVISIONS

     SEC. 501. DISCLOSURE TO STATE OFFICIALS OF PROPOSED ACTIONS 
                   RELATED TO EXEMPT ORGANIZATIONS.

       (a) In General.--Subsection (c) of section 6104 is amended 
     by striking paragraph (2) and inserting the following new 
     paragraphs:
       ``(2) Disclosure of proposed actions related to charitable 
     organizations.--
       ``(A) Specific notifications.--In the case of an 
     organization to which paragraph (1) applies, the Secretary 
     may disclose to the appropriate State officer--
       ``(i) a notice of proposed refusal to recognize such 
     organization as an organization described in section 
     501(c)(3) or a notice of proposed revocation of such 
     organization's recognition as an organization exempt from 
     taxation,
       ``(ii) the issuance of a letter of proposed deficiency of 
     tax imposed under section 507 or chapter 41 or 42, and
       ``(iii) the names, addresses, and taxpayer identification 
     numbers of organizations which have applied for recognition 
     as organizations described in section 501(c)(3).
       ``(B) Additional disclosures.--Returns and return 
     information of organizations with respect to which 
     information is disclosed under subparagraph (A) may be made 
     available for inspection by or disclosed to an appropriate 
     State officer.
       ``(C) Procedures for disclosure.--Information may be 
     inspected or disclosed under subparagraph (A) or (B) only--
       ``(i) upon written request by an appropriate State officer, 
     and
       ``(ii) for the purpose of, and only to the extent necessary 
     in, the administration of State laws regulating such 
     organizations.

     Such information may only be inspected by or disclosed to a 
     person other than the appropriate State officer if such 
     person is an officer or employee of the State and is 
     designated by the appropriate State officer to receive the 
     returns or return information under this paragraph on behalf 
     of the appropriate State officer.
       ``(D) Disclosures other than by request.--The Secretary may 
     make available for inspection or disclose returns and return 
     information of an organization to which paragraph (1) applies 
     to an appropriate State officer of any State if the Secretary 
     determines that such inspection or disclosure may facilitate 
     the resolution of Federal or State issues relating to the 
     tax-exempt status of such organization.
       ``(3) Disclosure with respect to certain other exempt 
     organizations.--Upon written request by an appropriate State 
     officer, the Secretary may make available for inspection or 
     disclosure returns and return information of an organization 
     described in paragraph (2), (4), (6), (7), (8), (10), or (13) 
     of section 501(c) for the purpose of, and to the extent 
     necessary in, the administration of State laws regulating the 
     solicitation or administration of the charitable funds or 
     charitable assets of such organizations. Such information may 
     only be inspected by or disclosed to a person other than the 
     appropriate State officer if such person is an officer or 
     employee of the State and is designated by the appropriate 
     State officer to receive the returns or return information 
     under this paragraph on behalf of the appropriate State 
     officer.
       ``(4) Use in civil judicial and administrative 
     proceedings.--Returns and return information disclosed 
     pursuant to this subsection may be disclosed in civil 
     administrative and civil judicial proceedings pertaining to 
     the enforcement of State laws regulating such organizations 
     in a manner prescribed by the Secretary similar to that for 
     tax administration proceedings under section 6103(h)(4).

[[Page S10140]]

       ``(5) No disclosure if impairment.--Returns and return 
     information shall not be disclosed under this subsection, or 
     in any proceeding described in paragraph (4), to the extent 
     that the Secretary determines that such disclosure would 
     seriously impair Federal tax administration.
       ``(6) Definitions.--For purposes of this subsection--
       ``(A) Return and return information.--The terms `return' 
     and `return information' have the respective meanings given 
     to such terms by section 6103(b).
       ``(B) Appropriate state officer.--The term `appropriate 
     State officer' means--
       ``(i) the State attorney general,
       ``(ii) the State tax officer,
       ``(iii) in the case of an organization to which paragraph 
     (1) applies, any other State official charged with overseeing 
     organizations of the type described in section 501(c)(3), and
       ``(iv) in the case of an organization to which paragraph 
     (3) applies, the head of an agency designated by the State 
     attorney general as having primary responsibility for 
     overseeing the solicitation of funds for charitable 
     purposes.''.
       (b) Conforming Amendments.--
       (1) Subparagraph (A) of section 6103(p)(3) is amended by 
     inserting ``and section 6104(c)'' after ``section'' in the 
     first sentence.
       (2) Paragraph (4) of section 6103(p) is amended--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``, or any appropriate State officer (as defined in section 
     6104(c)),'' before ``or any other person'',
       (B) in subparagraph (F)(i), by inserting ``or any 
     appropriate State officer (as defined in section 6104(c)),'' 
     before ``or any other person'', and
       (C) in the matter following subparagraph (F), by inserting 
     ``, an appropriate State officer (as defined in section 
     6104(c)),'' after ``including an agency'' each place it 
     appears.
       (3) The heading for paragraph (1) of section 6104(c) is 
     amended by inserting ``for charitable organizations'' after 
     ``rule''.
       (4) Paragraph (2) of section 7213(a) is amended by 
     inserting ``or under section 6104(c)'' after ``6103''.
       (5) Paragraph (2) of section 7213A(a) is amended by 
     inserting ``or 6104(c)'' after ``6103''.
       (6) Paragraph (2) of section 7431(a) is amended by 
     inserting ``(including any disclosure in violation of section 
     6104(c))'' after ``6103''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act 
     but shall not apply to requests made before such date.

     SEC. 502. DEDICATION AND USE OF CERTAIN FEES.

       Notwithstanding section 202(c) of Public Law 108-89, the 
     Secretary of the Treasury may retain and use fees from 
     employee plan and exempt organization letter rulings and 
     determination letters charged under section 7528 of the 
     Internal Revenue Code of 1986--
       (1) in fiscal years 2005 and 2006--
       (A) for the administration of the provisions of, and 
     amendments made by, this Act,
       (B) to provide taxpayer assistance to any taxpayer 
     determined by the Secretary of the Treasury to be affected by 
     the Presidentially declared disaster relating to Hurricane 
     Katrina, and
       (C) to aid the Internal Revenue Service in repairing, 
     rebuilding, and recovering from the damage to Internal 
     Revenue Service offices, equipment, and support caused by 
     Hurricane Katrina, and
       (2) in any fiscal year after 2006--
       (A) on oversight, enforcement, and administration by the 
     Tax-Exempt and Government Entities Division of the Internal 
     Revenue Service, and
       (B) on oversight, enforcement, and administration of 
     section 170 of such Code.
                                 ______
                                 
  SA 1723. Mr. GRASSLEY (for Mr. Bond (for himself and Mrs. Murray)) 
proposed an amendment to the bill H.R. 3649, to ensure funding for 
sportfishing and boating safety programs funded out of the Highway 
Trust Fund through the end of fiscal year 2005, and for other purposes; 
as follows:

     SEC.   . CORRECTION OF DISTRIBUTION OF OBLIGATION AUTHORITY 
                   UNDER SECTION 1102(C)(4)(A) OF PUBLIC LAW 109-
                   59.

       Notwithstanding section 1102(c)(4)(A) of Public Law 109-59; 
     119 Stat. 1144, et seq., or any other provision of law, for 
     fiscal year 2005, obligation authority for funds made 
     available under title I of division H of Public Law 108-447; 
     118 Stat. 3216 for expenses necessary to discharge the 
     functions of the Secretary of Transportation with respect to 
     traffic and highway safety under chapter 301 of title 49, 
     United States Code, and part C of subtitle VI of title 49, 
     United States Code, shall be made available in an amount 
     equal to the funds provided therein: Provided, That the 
     additional obligation authority needed to meet the 
     requirements of this section shall be withdrawn from the 
     obligation authority previously distributed to the other 
     programs, projects, and activities funded by the amount 
     deducted under section 117 of title I of division H of Public 
     Law 108-447.
                                 ______
                                 
  SA 1724. Mr. KERRY (for himself and Ms. Landrieu) proposed an 
amendment to the bill H.R. 2862, An Act making appropriations for the 
Departments of Commerce and Justice, Science, and related agencies, for 
the fiscal year ending September 30, 2006, and for other purposes; as 
follows:

       At the end of title V, add the following:

     SEC. 5___. SMALL BUSINESS FEES.

       (a) Fees.--Section 7(a)(23) of the Small Business Act (15 
     U.S.C. 636(a)(23)) is amended by striking subparagraph (C) 
     and inserting the following:
       ``(C) Lowering of fees.--
       ``(i) In general.--Subject to clauses (ii) and (iii)--

       ``(I) the Administrator shall reduce fees paid by small 
     business borrowers and lenders under clauses (i) through (iv) 
     of paragraph (18)(A) and subparagraph (A) of this paragraph; 
     and
       ``(II) fees paid by small business borrowers and lenders 
     shall not be increased above the levels in effect on the date 
     of enactment of the Consolidated Appropriations Act, 2005.

       ``(ii) Determinations.--A reduction in fees under clause 
     (i) shall occur in any case in which the fees paid by all 
     small business borrowers and by lenders for guarantees under 
     this subsection, or the sum of such fees plus any amount 
     appropriated to carry out this subsection, as applicable, is 
     more than the amount necessary to equal the cost to the 
     Administration of making such guarantees.''.
                                 ______
                                 
  SA 1725. Mr. SHELBY (for Mr. Reid) proposed an amendment to the bill 
H.R. 2862, An Act making appropriations for the Departments of Commerce 
and Justice, Science, and related agencies for the fiscal year ending 
September 30, 2006, and for other purposes; as follows:

       On page 121, line 19, after the semicolon insert ``of which 
     not less than $1,200,000 shall be for the Federal Bureau of 
     Investigation for processing of background checks for 
     petitions and applications pending before U.S. Citizenship 
     and Immigration Services;''.
                                 ______
                                 
  SA 1726. Mr. BENNETT (for himself and Mr. Kohl) proposed an amendment 
to the bill H.R. 2744, making appropriations for Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies for the 
fiscal year ending September 30, 2006, and for other purposes; as 
follows:

       On Page 154, line 20, after ``Iowa,'', insert the 
     following:

     ``the Steeple Run and West Branch DuPage River Watershed 
     projects in DuPage County, Illinois,''
       On page 167, line 22, strike ``(a)'' through and including 
     ``required fee.'' on page 170, line 11, and insert the 
     following:

     ``The Rural Electrification Act of 1936 is amended by 
     inserting after section 315 (7 U.S.C. 940e) the following:

     ``SEC. 316. EXTENSION OF PERIOD OF EXISTING GUARANTEE.

       ``(a) In General.--Subject to the limitations in this 
     section and the provisions of the Federal Credit Reform Act 
     of 1990, as amended, a borrower of a loan made by the Federal 
     Financing Bank and guaranteed under this Act may request an 
     extension of the final maturity of the outstanding principal 
     balance of such loan or any loan advance thereunder. If the 
     Secretary and the Federal Financing Bank approve such an 
     extension, then the period of the existing guarantee shall 
     also be considered extended.
       ``(b) Limitations.--
       ``(1) Feasibility and Security.--Extensions under this 
     section shall not be made unless the Secretary first finds 
     and certifies that, after giving effect to the extension, in 
     his judgment the security for all loans to the borrower made 
     or guaranteed under this Act is reasonably adequate and that 
     all such loans will be repaid within the time agreed.
       ``(2) Extension of Useful Life of Collateral.--Extensions 
     under this section shall not be granted unless the borrower 
     first submits with its request either--
       ``(A) evidence satisfactory to the Secretary that a Federal 
     or State agency with jurisdiction and expertise has made an 
     official determination, such as through a licensing 
     proceeding, extending the useful life of a generating plant 
     or transmission line pledged as collateral to or beyond the 
     new final maturity date being requested by the borrower, or
       ``(B) a certificate from an independent licensed engineer 
     concluding, on the basis of a thorough engineering analysis 
     satisfactory to the Secretary, that the useful life of the 
     generating plant or transmission line pledged as collateral 
     extends to or beyond the new final maturity date being 
     requested by the borrower.
       ``(3) Amount Eligible for Extension.--Extensions under this 
     section shall not be granted if the principal balance 
     extended exceeds the appraised value of the generating plant 
     or transmission line referred to in subsection paragraph (2).
       ``(4) Period of Extension.--Extensions under this section 
     shall in no case result in a final maturity greater than 55 
     years from the time of original disbursement and shall in no 
     case result in a final maturity greater than the useful life 
     of the plant.
       ``(5) Number of Extensions.--Extensions under this section 
     shall not be granted more than once per loan advance.
       ``(c) Fees.--
       ``(1) In General.--A borrower that receives an extension 
     under this section shall pay a fee to the Secretary which 
     shall be credited

[[Page S10141]]

     to the Rural Electrification and Telecommunications Loans 
     Program account. Such fees shall remain available without 
     fiscal year limitation to pay the modification costs for 
     extensions.
       ``(2) Amount.--The amount of the fee paid shall be equal to 
     the modification cost, calculated in accordance with section 
     502 of the Federal Credit Reform Act of 1990, as amended, of 
     such extension.
       ``(3) Payment.--The borrower shall pay the fee required 
     under this section at the time the existing guarantee is 
     extended by making a payment in the amount of the required 
     fee.''.
                                 ______
                                 
  SA 1727. Ms. MURKOWSKI submitted an amendment intended to be proposed 
by her to the bill S. 1195, to provide the necessary authority to the 
Secretary of Commerce for the establishment and implementation of a 
regulatory system for offshore aquaculture in the United States 
Exclusive Economic Zone, and for other purposes; which was referred to 
the Committee on Commerce, Science, and Transportation; as follows:

       On page 20, between lines 13 and 14, insert the following:
       (j) Prohibition on Permits for Aquaculture.--
       (1) Definitions.--In this subsection:
       (A) Agency with jurisdiction to regulate aquaculture.--The 
     term `agency with jurisdiction to regulate aquaculture' 
     means--
       (i) the Department of Agriculture;
       (ii) the Coast Guard;
       (iii) the Department of Commerce;
       (iv) the Environmental Protection Agency;
       (v) the Department of the Interior; and
       (vi) the Corps of Engineers.
       (B) Regional fishery management council.--The term 
     `regional fishery management council' means a regional 
     fishery management council established under section 302(a) 
     of the Magnuson-Stevens Fishery Conservation and Management 
     Act (16 U.S.C. 1852(a)).
       (2) Prohibition.--The head of an agency with jurisdiction 
     to regulate aquaculture may not issue a permit or license to 
     permit an aquaculture facility located in the exclusive 
     economic zone to operate until after the date on which a bill 
     is enacted into law that--
       (A) sets out the type and specificity of the analyses that 
     the head of the agency with jurisdiction to regulate 
     aquaculture shall carry out prior to issuing any such permit 
     or license, including analyses relating to--
       (i) disease control;
       (ii) structural engineering;
       (iii) pollution;
       (iv) biological and genetic impacts;
       (v) access and transportation;
       (vi) food safety; and
       (vii) social and economic impacts of the aquaculture 
     facility on other marine activities, including commercial and 
     recreational fishing; and
       (B) requires that a decision to issue such a permit or 
     license be--
       (i) made only after the head of the agency that issues the 
     license or permit consults with the Governor of each State 
     located within a 200-mile radius of the aquaculture facility; 
     and
       (ii) approved by the regional fishery management council 
     that is granted authority under title III of the Magnuson-
     Stevens Fishery Conservation and Management Act (16 U.S.C. 
     1851 et seq.) over a fishery in the region in which the 
     aquaculture facility will be located.
                                 ______
                                 
  SA 1728. Mr. FRIST (for Mr. Grassley (for himself and Mr. Baucus)) 
proposed an amendment to the bill H.R. 3768, to provide emergency tax 
relief for persons affected by Hurricane Katrina; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Hurricane 
     Katrina Tax Relief Act of 2005''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.
Sec. 2. Hurricane Katrina disaster area.

 TITLE I--PENALTY FREE USE OF RETIREMENT FUNDS IN THE CASE OF NATURAL 
                               DISASTERS

Sec. 101. Penalty free withdrawals from retirement plans for victims of 
              federally declared natural disasters.
Sec. 102. Income averaging for disaster-relief distributions related to 
              Hurricane Katrina.
Sec. 103. Recontributions of withdrawals for home purchases cancelled 
              due to Hurricane Katrina.
Sec. 104. Loans from qualified plans to victims of Hurricane Katrina.
Sec. 105. Provisions relating to plan amendments.

                      TITLE II--EMPLOYMENT RELIEF

Sec. 201. Work opportunity tax credit for Hurricane Katrina employee 
              survivors.
Sec. 202. Employee retention credit for employers affected by Hurricane 
              Katrina.

                TITLE III--CHARITABLE GIVING INCENTIVES

Sec. 301. Temporary suspension of limitations on charitable 
              contributions.
Sec. 302. Charitable deduction for contributions of food inventories.
Sec. 303. Charitable deduction for contributions of book inventories.
Sec. 304. Additional exemption for housing Hurricane Katrina displaced 
              individuals.
Sec. 305. Increase in standard mileage rate for charitable use of 
              passenger automobile.
Sec. 306. Mileage reimbursements to charitable volunteers excluded from 
              gross income.

               TITLE IV--ADDITIONAL TAX RELIEF PROVISIONS

Sec. 401. Exclusions of certain cancellations of indebtedness for 
              victims of Hurricane Katrina.
Sec. 402. Suspension of certain limitations on personal casualty 
              losses.
Sec. 403. Required exercise of authority under section 7508A for tax 
              relief for victims of Hurricane Katrina.
Sec. 404. Special mortgage financing rules for residences located in 
              Hurricane Katrina disaster area.
Sec. 405. Extension of replacement period for nonrecognition of gain 
              for property located in Hurricane Katrina disaster area.
Sec. 406. Special rule for determining earned income.
Sec. 407. Secretarial authority to make adjustments regarding taxpayer 
              and dependency status.

                     TITLE V--EMERGENCY REQUIREMENT

Sec. 501. Emergency requirement.

     SEC. 2. HURRICANE KATRINA DISASTER AREA.

       For purposes of this Act, the term ``Hurricane Katrina 
     disaster area'' means an area--
       (1) with respect to which a major disaster has been 
     declared by the President before September 14, 2005, under 
     section 401 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act in connection with Hurricane 
     Katrina, and
       (2) which--
       (A) except as provided in subparagraph (B), is determined 
     by the President before such date to warrant assistance from 
     the Federal Government under such Act, and
       (B) in the case of sections 201 and 202, is determined by 
     the President before such date to warrant individual 
     assistance, or individual and public assistance, from the 
     Federal Government under such Act.

 TITLE I--PENALTY FREE USE OF RETIREMENT FUNDS IN THE CASE OF NATURAL 
                               DISASTERS

     SEC. 101. PENALTY FREE WITHDRAWALS FROM RETIREMENT PLANS FOR 
                   VICTIMS OF FEDERALLY DECLARED NATURAL 
                   DISASTERS.

       (a) In General.--Paragraph (2) of section 72(t) (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 to victims of 
     federally declared natural disasters.--
       ``(i) Distribution allowed.--Any qualified disaster-relief 
     distribution.
       ``(ii) 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), 408(d)(3), or 457(e)(16), 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.

[[Page S10142]]

       ``(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.

       ``(iii) Qualified disaster-relief distribution.--Except as 
     provided in clause (iv), 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 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.

       ``(iv) Dollar limitation.--

       ``(I) In general.--The term `qualified disaster-relief 
     distribution' shall not include any distributions for any 
     taxable year to the extent the aggregate amount of such 
     distributions exceeds $100,000, reduced by the aggregate 
     amounts treated as qualified disaster-relief distributions 
     with respect to such individual for all prior taxable years.
       ``(II) Treatment of plan distributions.--If a distribution 
     to an individual with respect to any such major disaster 
     would (without regard to subclause (I)) be a qualified 
     disaster-relief distribution, a plan shall not be treated as 
     violating any requirement of this title merely because it 
     treats such distribution as a qualified disaster-relief 
     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.

       ``(v) Qualified disaster area.--For purposes of this 
     subparagraph, the term `qualified disaster area' means an 
     area--

       ``(I) with respect to which a major disaster has been 
     declared by the President before September 14, 2005, under 
     section 401 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act in connection with Hurricane 
     Katrina, and
       ``(II) which is determined by the President before such 
     date to warrant assistance from the Federal Government under 
     such Act.''.

       (b) Exemption of Distributions From Trustee to Trustee 
     Transfer and Withholding Rules.--Paragraph (4) of section 
     402(c) (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) 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) 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) 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.''.
       (4) Section 457(d)(1)(A) is amended by striking ``or'' at 
     the end of clause (ii), by adding ``or'' at the end of clause 
     (iii), and by adding at the end the following new clause:
       ``(iv) in the case of an eligible deferred compensation 
     plan established and maintained by an employer described in 
     subsection (e)(1)(A), when the participant 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)),''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to distributions received after August 28, 2005.

     SEC. 102. 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) in connection 
     with Hurricane Katrina and who has a principal place of abode 
     immediately before the declaration in a Hurricane Katrina 
     disaster area.

     SEC. 103. 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), or 408(d)(3) 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 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) (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) 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.

     SEC. 104. LOANS FROM QUALIFIED PLANS TO VICTIMS OF 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 102(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 103(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 102(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.

[[Page S10143]]

     SEC. 105. PROVISIONS RELATING TO PLAN AMENDMENTS.

       (a) In General.--If this section applies to any plan or 
     contract amendment 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).
       (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 II--EMPLOYMENT RELIEF

     SEC. 201. WORK OPPORTUNITY TAX CREDIT FOR HURRICANE KATRINA 
                   EMPLOYEE SURVIVORS.

       (a) In General.--For purposes of section 51 of the Internal 
     Revenue Code of 1986, a Hurricane Katrina employee survivor 
     shall be treated as a member of a targeted group.
       (b) Hurricane Katrina Employee Survivor.--For purposes of 
     this section, the term ``Hurricane Katrina employee 
     survivor'' means any individual who is certified as an 
     individual who--
       (1) on August 28, 2005, had a principal place of abode in a 
     Hurricane Katrina disaster area, and
       (2) became unemployed as a result of Hurricane Katrina.
       (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 survivor--
       (1) section 51(c)(4) of such Code shall not apply,
       (2) notwithstanding section 51(d)(12) of such Code, the 
     certification under subsection (b) shall be made in such 
     manner and at such time as determined by the Secretary of the 
     Treasury, except that the certification shall be made by a 
     person other than the such employee survivor or the employer 
     (within the meaning of section 51 of such Code), and
       (3) section 51(i)(2) of such Code shall not apply with 
     respect to the first hire of such employee survivor, unless 
     such employee survivor was an employee of the employer on 
     August 28, 2005.
       (d) Application of Section.--This section shall apply to 
     wages (within the meaning on section 51(c) of such Code) paid 
     or incurred to any individual who begins work--
       (1) for an employer during the 6-month period beginning on 
     August 29, 2005, or
       (2) in the case of an individual who is being hired for a 
     position the principal place of employment of which is 
     located in a Hurricane Katrina disaster area, for any 
     employer during the 2-year period beginning on such date.

     SEC. 202. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY 
                   HURRICANE KATRINA.

       (a) In General.--In the case of an eligible employer, there 
     shall be allowed as a credit against the tax imposed by 
     chapter 1 of the Internal Revenue Code of 1986 for the 
     taxable year 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 on August 
     28, 2005, in a Hurricane Katrina disaster area, and
       (B) with respect to whom the trade or business described in 
     subparagraph (A) is inoperable on any day after August 28, 
     2005, and before January 1, 2006, as a result of damage 
     sustained in connection with Hurricane Katrina.
       (2) Eligible employee.--The term ``eligible employee'' 
     means with respect to an eligible employer--
       (A) an employee whose principal place of employment on 
     August 28, 2005, with such eligible employer was in a 
     Hurricane Katrina disaster area, or
       (B) a Ready Reserve-National Guard employee of such 
     eligible employer who is performing qualified active duty and 
     whose principal place of employment immediately before the 
     date on which such employee began performing such qualified 
     active duty was in a Hurricane Katrina disaster area.
       (3) Qualified wages.--The term ``qualified wages'' means 
     wages (as defined in section 51(c)(1) of the Internal Revenue 
     Code of 1986, but without regard to section 3306(b)(2)(B) of 
     such Code) paid or incurred by an eligible employer with 
     respect to an eligible employee on any day after August 28, 
     2005, and before January 1, 2006, 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 Hurricane Katrina, 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) Ready reserve-national guard employee.--The term 
     ``Ready Reserve-National Guard employee'' means an employee 
     who is a member of the Ready Reserve of a reserve component 
     of an Armed Force of the United States as described in 
     section 10142 and 10101 of title 10, United States Code and 
     who is performing qualified active duty.
       (5) Qualified active duty.--The term ``qualified active 
     duty'' means--
       (A) active duty, other than the training duty specified in 
     section 10147 of title 10, United States Code (relating to 
     training requirements for Ready Reserve), or section 502(a) 
     of title 32, United States Code (relating to required drills 
     and field exercises for the National Guard), in connection 
     with which an employee is entitled to reemployment rights and 
     other benefits or to a leave of absence from employment under 
     chapter 43 of title 38, United States Code, and
       (B) hospitalization incident to such duty.
       (c) Certain Rules to Apply.--For purposes of this section, 
     rules similar to the rules of sections 51(i)(1), 52, and 
     280C(a) of the Internal Revenue Code of 1986 of the shall 
     apply.
       (d) Credit to Be Part of General Business Credit.--The 
     credit allowed under this section shall be added to the 
     current year business credit under section 38(b) of the 
     Internal Revenue Code of 1986 and shall be treated as a 
     credit allowed under subpart D of part IV of subchapter A of 
     chapter 1 of such Code.

                TITLE III--CHARITABLE GIVING INCENTIVES

     SEC. 301. TEMPORARY SUSPENSION OF LIMITATIONS ON CHARITABLE 
                   CONTRIBUTIONS.

       (a) In General.--Except as otherwise provided in subsection 
     (b), section 170(b) of the Internal Revenue Code of 1986 
     shall not apply to qualified contributions and such 
     contributions shall not be taken into account for purposes of 
     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 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 the amount of all other charitable 
     contributions allowed under such paragraph.
       (B) Carryover.--If the aggregate amount of qualified 
     contributions made in the contribution year (within the 
     meaning of section 170(d)(1) of such Code) exceeds the 
     limitation of 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 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 
     contributions made during the taxable year shall not be 
     treated as an itemized deduction for purposes of section 68 
     of such Code.
       (d) Qualified Contributions.--For purposes of this section, 
     the term ``qualified 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), 
     and
       (2) with respect to which the taxpayer has elected the 
     application of this section.

[[Page S10144]]

     In the case of a partnership or S corporation, the election 
     under paragraph (2) shall be made separately by each partner 
     or shareholder.
       For purposes of subsection (b)(2), a contribution shall be 
     treated as a qualified contribution only if the contribution 
     is for relief efforts related to Hurricane Katrina.

     SEC. 302. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD 
                   INVENTORIES.

       (a) In General.--Subsection (e) of section 170 (relating to 
     certain contributions of ordinary income and capital gain 
     property) is amended by adding at the end the following new 
     paragraph:
       ``(7) Application of paragraph (3) to certain contributions 
     of food inventory.--For purposes of this section--
       ``(A) Extension to individuals.--In the case of a 
     charitable contribution of apparently wholesome food--
       ``(i) paragraph (3)(A) shall be applied without regard to 
     whether the contribution is made by a C corporation, and
       ``(ii) in the case of a taxpayer other than a C 
     corporation, the aggregate amount of such contributions for 
     any taxable year which may be taken into account under this 
     section shall not exceed 10 percent of the taxpayer's net 
     income for such taxable year from all trades or businesses 
     from which such contributions were made for such taxable 
     year, computed without regard to this section.
       ``(B) Limitation on reduction.--In the case of a charitable 
     contribution of apparently wholesome food, notwithstanding 
     paragraph (3)(B), the amount of the reduction determined 
     under paragraph (1)(A) shall not exceed the amount by which 
     the fair market value of such property exceeds twice the 
     basis of such property.
       ``(C) Determination of basis.--If a taxpayer--
       ``(i) does not account for inventories under section 471, 
     and
       ``(ii) is not required to capitalize indirect costs under 
     section 263A,

     the taxpayer may elect, solely for purposes of paragraph 
     (3)(B), to treat the basis of any apparently wholesome food 
     as being equal to 25 percent of the fair market value of such 
     food.
       ``(D) Determination of fair market value.--In the case of a 
     charitable contribution of apparently wholesome food which is 
     a qualified contribution (within the meaning of paragraph 
     (3), as modified by subparagraph (A) of this paragraph) and 
     which, solely by reason of internal standards of the taxpayer 
     or lack of market, cannot or will not be sold, the fair 
     market value of such contribution shall be determined--
       ``(i) without regard to such internal standards or such 
     lack of market and
       ``(ii) by taking into account the price at which the same 
     or substantially the same food items (as to both type and 
     quality) are sold by the taxpayer at the time of the 
     contribution (or, if not so sold at such time, in the recent 
     past).
       ``(E) Apparently wholesome food.--For purposes of this 
     paragraph, the term `apparently wholesome food' has the 
     meaning given such term by section 22(b)(2) of the Bill 
     Emerson Good Samaritan Food Donation Act (42 U.S.C. 
     1791(b)(2)), as in effect on the date of the enactment of 
     this paragraph.
       ``(F) Application.--This paragraph shall apply to 
     contributions made after August 28, 2005, and before January 
     1, 2006.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after August 28, 2005.

     SEC. 303. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK 
                   INVENTORIES.

       (a) In General.--Section 170(e)(3) (relating to certain 
     contributions of ordinary income and capital gain property) 
     is amended by redesignating subparagraph (C) as subparagraph 
     (D) and by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) Special rule for contributions of book inventory for 
     educational purposes.--
       ``(i) Contributions of book inventory.--In determining 
     whether a qualified book contribution is a qualified 
     contribution, subparagraph (A) shall be applied without 
     regard to whether--

       ``(I) the donee is an organization described in the matter 
     preceding clause (i) of subparagraph (A), and
       ``(II) the property is to be used by the donee solely for 
     the care of the ill, the needy, or infants.

       ``(ii) Amount of reduction.--Notwithstanding subparagraph 
     (B), the amount of the reduction determined under paragraph 
     (1)(A) shall not exceed the amount by which the fair market 
     value of the contributed property (as determined by the 
     taxpayer using a bona fide published market price for such 
     book) exceeds twice the basis of such property.
       ``(iii) Qualified book contribution.--For purposes of this 
     paragraph, the term `qualified book contribution' means a 
     charitable contribution of books, but only if the 
     requirements of clauses (iv) and (v) are met.
       ``(iv) Identity of donee.--The requirement of this clause 
     is met if the contribution is to an organization--

       ``(I) described in subclause (I) or (III) of paragraph 
     (6)(B)(i), or
       ``(II) described in section 501(c)(3) and exempt from tax 
     under section 501(a) (other than a private foundation, as 
     defined in section 509(a), which is not an operating 
     foundation, as defined in section 4942(j)(3)), which is 
     organized primarily to make books available to the general 
     public at no cost or to operate a literacy program.

       ``(v) Certification by donee.--The requirement of this 
     clause is met if, in addition to the certifications required 
     by subparagraph (A) (as modified by this subparagraph), the 
     donee certifies in writing that--

       ``(I) the books are suitable, in terms of currency, 
     content, and quantity, for use in the donee's educational 
     programs, and
       ``(II) the donee will use the books in its educational 
     programs.

       ``(vi) Bona fide published market price.--For purposes of 
     this subparagraph, the term `bona fide published market 
     price' means, with respect to any book, a price--

       ``(I) determined using the same printing and edition,
       ``(II) determined in the usual market in which such a book 
     has been customarily sold by the taxpayer, and
       ``(III) for which the taxpayer can demonstrate to the 
     satisfaction of the Secretary that the taxpayer customarily 
     sold such books in arm's length transactions within 7 years 
     preceding the contribution of such a book.

       ``(vii) Application.--This subparagraph shall apply to 
     contributions made after August 28, 2005, and before January 
     1, 2006.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to contributions made after August 28, 2005.

     SEC. 304. 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 Hurricane 
     Katrina disaster area,
       (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. 305. INCREASE IN STANDARD MILEAGE RATE FOR CHARITABLE 
                   USE OF PASSENGER AUTOMOBILE.

       Notwithstanding section 170(i) of the Internal Revenue Code 
     of 1986, for purposes of computing the deduction under 
     section 170 of such Code for use of a vehicle described in 
     subsection (f)(12)(E)(i) for provision of relief related to 
     Hurricane Katrina for the period beginning on August 29, 
     2005, and ending before January 1, 2007, the standard mileage 
     rate shall be 70 percent of the standard mileage rate in 
     effect under section 162(a) of such Code at the time of such 
     use. Any increase under this section shall be rounded to the 
     next highest cent.

     SEC. 306. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS 
                   EXCLUDED FROM GROSS INCOME.

       (a) In General.--Part III of subchapter B of chapter 1 is 
     amended by inserting after section 139A the following new 
     section:

     ``SEC. 139B. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS.

       ``(a) In General.--Gross income of an individual does not 
     include amounts received, from an organization described in 
     section 170(c), as reimbursement of operating expenses with 
     respect to use of a passenger automobile for the benefit of 
     such organization. The preceding sentence shall apply only to 
     the extent that the expenses which are reimbursed would be 
     deductible under this chapter if section 274(d) were 
     applied--
       ``(1) by using the standard business mileage rate 
     established under such section, and
       ``(2) as if the individual were an employee of an 
     organization not described in section 170(c).
       ``(b) Application to Volunteer Services Only.--Subsection 
     (a) shall not apply with respect to any expenses relating to 
     the performance of services for compensation.
       ``(c) No Double Benefit.--A taxpayer may not claim a 
     deduction or credit under any other provision of this title 
     with respect to the expenses under subsection (a).
       ``(d) Exemption From Reporting Requirements.--Section 6041 
     shall not apply with respect to reimbursements excluded from 
     income under subsection (a).
       ``(e) Termination.--This section shall not apply to use of 
     a passenger automobile after December 31, 2006.''.
       (b) Clerical Amendment.--The table of sections for part III 
     of subchapter B of chapter 1 is amended by inserting after 
     the item

[[Page S10145]]

     relating to section 139A the following new item:

``Sec. 139B. Mileage reimbursements to charitable volunteers''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to the use of a passenger automobile after the 
     date of the enactment of this Act, in taxable years ending 
     after such date.

               TITLE IV--ADDITIONAL TAX RELIEF PROVISIONS

     SEC. 401. EXCLUSIONS OF CERTAIN CANCELLATIONS OF INDEBTEDNESS 
                   FOR VICTIMS OF HURRICANE KATRINA.

       (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 indebtedness 
     of a natural person by an applicable entity (as defined in 
     section 6050P(c)(1)) if the discharge is by reason of the 
     damage sustained by the taxpayer in connection with Hurricane 
     Katrina.
       (b) Exception.--Subsection (a) shall not apply to any 
     indebtedness incurred in connection with a trade or business.
       (c) 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 such Code.
       (d) Effective Date.--This section shall apply to discharges 
     made on or after August 29, 2005, and before January 1, 2007.

     SEC. 402. 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. 403. REQUIRED EXERCISE OF AUTHORITY UNDER SECTION 7508A 
                   FOR TAX RELIEF FOR VICTIMS OF HURRICANE 
                   KATRINA.

       (a) Authority Includes Suspension of Payment of Employment 
     and Excise Taxes.--Subparagraphs (A) and (B) of section 
     7508(a)(1) are amended to read as follows:
       ``(A) Filing any return of income, estate, gift, 
     employment, or excise tax;
       ``(B) Payment of any income, estate, gift, employment, or 
     excise tax or any installment thereof or of any other 
     liability to the United States in respect thereof;''.
       (b) Application to Victims of Hurricane Katrina.--In the 
     case of any taxpayer determined by the Secretary of the 
     Treasury to be affected by the Presidentially declared 
     disaster relating to Hurricane Katrina, any relief provided 
     by the Secretary of the Treasury under section 7508A of the 
     Internal Revenue Code of 1986 shall be for a period ending 
     not earlier than February 28, 2006, and shall be treated as 
     applying to the filing of returns relating to, and the 
     payment of, employment and excise taxes.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply for any period for performing an act which has 
     not expired before August 29, 2005.

     SEC. 404. SPECIAL MORTGAGE FINANCING RULES FOR RESIDENCES 
                   LOCATED IN HURRICANE KATRINA DISASTER AREA.

       In the case of a residence located in a Hurricane Katrina 
     disaster area which replaces a residence destroyed by 
     Hurricane Katrina or which is being repaired for damage 
     caused by Hurricane Katrina, section 143 of the Internal 
     Revenue Code of 1986 shall be applied with the following 
     modifications to financing provided with respect to such 
     residence within 3 years after the date of the disaster 
     declaration:
       (1) Subsections (d) of such section 143 shall be applied as 
     if such residence were a targeted area residence.
       (2) The limitation under subsection (k)(4) of such section 
     143 shall be increased (but not above $150,000) to the extent 
     the qualified home-improvement loan is for the repair of 
     damage caused by Hurricane Katrina.

     This section shall apply only with respect to bonds issued 
     after August 28, 2005, and before August 29, 2008.

     SEC. 405. EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNITION 
                   OF GAIN FOR PROPERTY LOCATED IN HURRICANE 
                   KATRINA DISASTER AREA.

       Notwithstanding subsections (g) and (h) of section 1033 of 
     the Internal Revenue Code of 1986, clause (i) of section 
     1033(a)(2)(B) of such Code shall be applied by substituting 
     ``5 years'' for ``2 years'' with respect to property which is 
     compulsorily or involuntarily converted as a result of 
     Hurricane Katrina in a Hurricane Katrina disaster area, but 
     only if substantially all of the use of the replacement 
     property is in such area.

     SEC. 406. 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 whose 
     principal place of abode was (as of August 28, 2005) in any 
     Hurricane Katrina disaster area.
       (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. 407. 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 the Secretary's delegate may 
     make such adjustments in the application of the internal 
     revenue laws as may be necessary to ensure that taxpayers do 
     not lose any deduction or credit 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.

                     TITLE V--EMERGENCY REQUIREMENT

     SEC. 501. 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).
                                 ______
                                 
  SA 1729. Mr. AKAKA submitted an amendment intended to be proposed by 
him to the bill H.R. 2744, making appropriations for Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 173, after line 24, insert the following:
       Sec. 7___. None of the funds made available by this Act may 
     be used to provide funding to a research facility that 
     purchases animals from a dealer that holds a Class B license 
     under the Animal Welfare Act (7 U.S.C. 2131 et seq.).
                                 ______
                                 
  SA 1730. Mr. AKAKA submitted an amendment intended to be proposed by 
him to the bill H.R. 2744, making appropriations for Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies for the 
fiscal year ending September 30, 2006, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 173, after line 24, insert the following:
       Sec. 7___. None of the funds made available by this Act may 
     be used to approve for human consumption under the Federal 
     Meat Inspection Act (21 U.S.C. 601 et seq.) any cattle, 
     sheep, swine, or goats, or horses, mules, or other equines 
     that are unable to stand or walk unassisted at a 
     slaughtering, packing, meat-canning, rendering, or similar 
     establishment subject to inspection at the point of 
     examination and inspection under section 3(a) of that Act (21 
     U.S.C. 603(a)).
                                 ______
                                 
  SA 1731. Mr. VITTER (for himself and Mr. Coburn) submitted an 
amendment intended to be proposed by him to the bill H.R. 2744, making 
appropriations for Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies for the fiscal year ending 
September 30, 2006, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 173, after line 24, insert the following:
       Sec. 7___. None of the funds appropriated or otherwise made 
     available by this Act for the Food and Drug Administration 
     may be used under section 801 of the Federal Food, Drug, and 
     Cosmetic Act to prevent an individual not in the business of 
     importing a prescription drug within the meaning of section 
     801(g) of such Act, wholesalers, or pharmacists from 
     importing a prescription drug which complies with sections 
     501, 502, and 505 of such Act.

[[Page S10146]]



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