[Congressional Record Volume 151, Number 119 (Wednesday, September 21, 2005)]
[House]
[Pages H8189-H8195]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROVIDING FOR CONCURRENCE BY HOUSE WITH AMENDMENT IN SENATE AMENDMENT
TO H.R. 3768, KATRINA EMERGENCY TAX RELIEF ACT OF 2005
Mr. McCRERY. Mr. Speaker, I move to suspend the rules and agree to
the resolution (H. Res. 454) providing for the concurrence by the House
with an amendment in the amendment of the Senate to H.R. 3768.
The Clerk read as follows:
H. Res. 454
Resolved, That, upon the adoption of this resolution, the
House shall be considered to have taken from the Speaker's
table the bill H.R. 3768, with the Senate amendment thereto,
and to have concurred in the Senate amendment to the bill
with the following amendment:
In lieu of the matter proposed to be inserted by the
amendment of the Senate to the bill, insert the following:
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This Act may be cited as the ``Katrina
Emergency Tax Relief Act of 2005''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title, etc.
Sec. 2. Hurricane Katrina disaster area.
TITLE I--SPECIAL RULES FOR USE OF RETIREMENT FUNDS FOR RELIEF RELATING
TO HURRICANE KATRINA
Sec. 101. Tax-favored withdrawals from retirement plans for relief
relating to Hurricane Katrina.
Sec. 102. Recontributions of withdrawals for home purchases cancelled
due to Hurricane Katrina.
Sec. 103. Loans from qualified plans for relief relating to Hurricane
Katrina.
Sec. 104. Provisions relating to plan amendments.
TITLE II--EMPLOYMENT RELIEF
Sec. 201. Work opportunity tax credit for Hurricane Katrina employees.
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. Additional exemption for housing Hurricane Katrina displaced
individuals.
Sec. 303. Increase in standard mileage rate for charitable use of
vehicles.
Sec. 304. Mileage reimbursements to charitable volunteers excluded from
gross income.
Sec. 305. Charitable deduction for contributions of food inventory.
Sec. 306. Charitable deduction for contributions of book inventories to
public schools.
TITLE IV--ADDITIONAL TAX RELIEF PROVISIONS
Sec. 401. Exclusions of certain cancellations of indebtedness by reason
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 relating to Hurricane Katrina.
Sec. 404. Special rules for mortgage revenue bonds.
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--
(1) Hurricane katrina disaster area.--The term ``Hurricane
Katrina disaster area'' means an area 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 by
reason of Hurricane Katrina.
(2) Core disaster area.--The term ``core disaster area''
means that portion of the Hurricane Katrina disaster area
determined by the President to warrant individual or
individual and public assistance from the Federal Government
under such Act.
TITLE I--SPECIAL RULES FOR USE OF RETIREMENT FUNDS FOR RELIEF RELATING
TO HURRICANE KATRINA
SEC. 101. TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS FOR
RELIEF RELATING TO HURRICANE KATRINA.
(a) In General.--Section 72(t) of the Internal Revenue Code
of 1986 shall not apply to any qualified Hurricane Katrina
distribution.
(b) Aggregate Dollar Limitation.--
(1) In general.--For purposes of this section, the
aggregate amount of distributions received by an individual
which may be treated as qualified Hurricane Katrina
distributions for any taxable year shall not exceed the
excess (if any) of--
(A) $100,000, over
(B) the aggregate amounts treated as qualified Hurricane
Katrina distributions received by such individual for all
prior taxable years.
(2) Treatment of plan distributions.--If a distribution to
an individual would (without regard to paragraph (1)) be a
qualified Hurricane Katrina distribution, a plan shall not be
treated as violating any requirement of the Internal Revenue
Code of 1986 merely because the plan treats such distribution
as a qualified Hurricane Katrina 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.
(3) Controlled group.--For purposes of paragraph (2), the
term ``controlled group'' means any group treated as a single
employer under subsection (b), (c), (m), or (o) of section
414 of such Code.
(c) Amount Distributed May Be Repaid.--
(1) In general.--Any individual who receives a qualified
Hurricane Katrina distribution may, at any time during the 3-
year period beginning on the day after the date on which such
distribution was received, make one or more contributions in
an aggregate amount not to exceed the amount of such
distribution to an eligible retirement plan of which such
individual is a beneficiary and to which a rollover
contribution of such distribution could be made under section
402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) of
such Code, as the case may be.
(2) Treatment of repayments of distributions from eligible
retirement plans other than iras.--For purposes of such Code,
if a contribution is made pursuant to paragraph (1) with
respect to a qualified Hurricane Katrina distribution from an
eligible retirement plan other than an individual retirement
plan, then the taxpayer shall, to the extent of the amount of
the contribution, be treated as having received the qualified
Hurricane Katrina 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.
(3) Treatment of repayments for distributions from iras.--
For purposes of such Code, if a contribution is made pursuant
to paragraph (1) with respect to a qualified Hurricane
Katrina distribution from an individual retirement plan (as
defined by section 7701(a)(37) of such Code), then, to the
extent of the amount of the contribution, the qualified
Hurricane Katrina distribution shall be treated as a
distribution described in section 408(d)(3) of such Code and
as having been transferred to the eligible retirement plan in
a direct trustee to trustee transfer within 60 days of the
distribution.
(d) Definitions.--For purposes of this section--
(1) Qualified hurricane katrina distribution.--Except as
provided in subsection (b), the term ``qualified Hurricane
Katrina distribution'' means any distribution from an
eligible retirement plan made on or after August 25, 2005,
and before January 1, 2007, to an individual whose principal
place of abode on August 28, 2005, is located in the
Hurricane Katrina disaster area and who has sustained an
economic loss by reason of Hurricane Katrina.
(2) Eligible retirement plan.--The term ``eligible
retirement plan'' shall have the meaning given such term by
section 402(c)(8)(B) of such Code.
(e) Income Inclusion Spread Over 3 Year Period for
Qualified Hurricane Katrina Distributions.--
(1) In general.--In the case of any qualified Hurricane
Katrina distribution, unless the taxpayer elects not to have
this subsection 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.
(2) Special rule.--For purposes of paragraph (1), rules
similar to the rules of subparagraph (E) of section
408A(d)(3) of such Code shall apply.
(f) Special Rules.--
(1) Exemption of distributions from trustee to trustee
transfer and withholding rules.--For purposes of sections
401(a)(31), 402(f), and 3405 of such Code, qualified
Hurricane Katrina distributions shall not be treated as
eligible rollover distributions.
(2) Qualified hurricane katrina distributions treated as
meeting plan distribution requirements.--For purposes of such
Code, a qualified Hurricane Katrina distribution shall be
treated as meeting the requirements of sections
401(k)(2)(B)(i),
[[Page H8190]]
403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of such Code.
SEC. 102. RECONTRIBUTIONS OF WITHDRAWALS FOR HOME PURCHASES
CANCELLED DUE TO HURRICANE KATRINA.
(a) Recontributions.--
(1) In general.--Any individual who received a qualified
distribution may, during the period beginning on August 25,
2005, and ending on February 28, 2006, 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.--Rules similar to the rules of
paragraphs (2) and (3) of section 101(c) of this Act shall
apply for purposes of this section.
(b) Qualified Distribution Defined.--For purposes of this
section, the term ``qualified distribution'' means any
distribution--
(1) 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 such Code,
(2) received after February 28, 2005, and before August 29,
2005, and
(3) which was to be used to purchase or construct a
principal residence in the Hurricane Katrina disaster area,
but which was not so purchased or constructed on account of
Hurricane Katrina.
SEC. 103. LOANS FROM QUALIFIED PLANS FOR RELIEF RELATING TO
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 made
after the date of enactment of this Act and before January 1,
2007--
(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 with an outstanding loan on or after August 25,
2005, from a qualified employer plan (as defined in section
72(p)(4) of such Code)--
(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 on August 25,
2005, and ending on December 31, 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, the period described in paragraph (1) shall be
disregarded.
(c) Qualified Individual.--For purposes of this section,
the term ``qualified individual'' means an individual whose
principal place of abode on August 28, 2005, is located in
the Hurricane Katrina disaster area and who has sustained an
economic loss by reason of Hurricane Katrina.
SEC. 104. PROVISIONS RELATING TO PLAN AMENDMENTS.
(a) In General.--If this section applies to any amendment
to any plan or annuity contract, such plan or contract shall
be treated as being operated in accordance with the terms of
the plan during the period described in 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
EMPLOYEES.
(a) In General.--For purposes of section 51 of the Internal
Revenue Code of 1986, a Hurricane Katrina employee shall be
treated as a member of a targeted group.
(b) Hurricane Katrina Employee.--For purposes of this
section, the term ``Hurricane Katrina employee'' means--
(1) any individual who on August 28, 2005, had a principal
place of abode in the core disaster area and who is hired
during the 2-year period beginning on such date for a
position the principal place of employment of which is
located in the core disaster area, and
(2) any individual who on such date had a principal place
of abode in the core disaster area, who is displaced from
such abode by reason of Hurricane Katrina, and who is hired
during the period beginning on such date and ending on
December 31, 2005.
(c) Reasonable Identification Acceptable.--In lieu of the
certification requirement under subparagraph (A) of section
51(d)(12) of such Code, an individual may provide to the
employer reasonable evidence that the individual is a
Hurricane Katrina employee, and subparagraph (B) of such
section shall be applied as if such evidence were a
certification described in such subparagraph.
(d) Special Rules for Determining Credit.--For purposes of
applying subpart F of part IV of subchapter A of chapter 1 of
such Code to wages paid or incurred to any Hurricane Katrina
employee--
(1) section 51(c)(4) of such Code shall not apply, and
(2) section 51(i)(2) of such Code shall not apply with
respect to the first hire of such employee as a Hurricane
Katrina employee, unless such employee was an employee of the
employer on August 28, 2005.
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 core 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 by reason of Hurricane Katrina.
(2) Eligible employee.--The term ``eligible employee''
means with respect to an eligible employer an employee whose
principal place of employment on August 28, 2005, with such
eligible employer was in a core disaster area.
(3) Qualified wages.--The term ``qualified wages'' means
wages (as defined in section 51(c)(1) of such Code, 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.
(c) Credit not Allowed for Large Businesses.--The term
``eligible employer'' shall not include any trade or business
for any taxable year if such trade or business employed an
average of more than 200 employees on business days during
the taxable year.
(d) Certain Rules to Apply.--For purposes of this section,
rules similar to the rules of sections 51(i)(1), 52, and
280C(a) of such Code shall apply.
(e) Employee not Taken Into Account More Than Once.--An
employee shall not be treated as an eligible employee for
purposes of this section for any period with respect to any
employer if such employer is allowed a credit under section
51 of such Code with respect to such employee for such
period.
(f) 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 such Code
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
[[Page H8191]]
to qualified contributions and such contributions shall not
be taken into account for purposes of applying subsections
(b) and (d) of section 170 of such Code to other
contributions.
(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 subparagraph (F) of section
170(b)(1) of such Code) over the amount of all other
charitable contributions allowed under such section
170(b)(1).
(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 paid during the taxable year shall not be
treated as an itemized deduction for purposes of section 68
of such Code.
(d) Qualified Contributions.--
(1) In general.--For purposes of this section, the term
``qualified contribution'' means any charitable contribution
(as defined in section 170(c) of such Code)--
(A) paid 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),
(B) in the case of a contribution paid by a corporation,
such contribution is for relief efforts related to Hurricane
Katrina, and
(C) with respect to which the taxpayer has elected the
application of this section.
(2) Exception.--Such term shall not include a contribution
if the contribution is for establishment of a new, or
maintenance in an existing, segregated fund or account with
respect to which the donor (or any person appointed or
designated by such donor) has, or reasonably expects to have,
advisory privileges with respect to distributions or
investments by reason of the donor's status as a donor.
(3) Application of election to partnerships and s
corporations.--In the case of a partnership or S corporation,
the election under paragraph (1)(C) shall be made separately
by each partner or shareholder.
SEC. 302. ADDITIONAL EXEMPTION FOR HOUSING HURRICANE KATRINA
DISPLACED INDIVIDUALS.
(a) In General.--In the case of taxable years of a natural
person beginning in 2005 or 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 prior 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 for any prior taxable year.
(3) Identifying information required.--An individual shall
not be taken into account under subsection (a) for a taxable
year unless the taxpayer identification number of such
individual is included on the return of the taxpayer for such
taxable year.
(c) Hurricane Katrina Displaced Individual.--For purposes
of this section, the term ``Hurricane Katrina displaced
individual'' means, with respect to any taxpayer for any
taxable year, any natural person if--
(1) such person's principal place of abode on August 28,
2005, was in the Hurricane Katrina disaster area,
(2)(A) in the case of such an abode located in the core
disaster area, such person is displaced from such abode, or
(B) in the case of such an abode located outside of the
core disaster area, such person is displaced from such abode,
and
(i) such abode was damaged by Hurricane Katrina, or
(ii) such person was evacuated from such abode by reason of
Hurricane Katrina, and
(3) such person 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.
(d) Compensation for Housing.--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 housing.
SEC. 303. INCREASE IN STANDARD MILEAGE RATE FOR CHARITABLE
USE OF VEHICLES.
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) of such section for provision of
relief related to Hurricane Katrina during the period
beginning on August 25, 2005, and ending on December 31,
2006, 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. 304. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS
EXCLUDED FROM GROSS INCOME.
(a) In General.--For purposes of the Internal Revenue Code
of 1986, gross income of an individual for taxable years
ending on or after August 25, 2005, does not include amounts
received, from an organization described in section 170(c) of
such Code, as reimbursement of operating expenses with
respect to use of a passenger automobile for the benefit of
such organization in connection with providing relief
relating to Hurricane Katrina during the period beginning on
August 25, 2005, and ending on December 31, 2006. The
preceding sentence shall apply only to the extent that the
expenses which are reimbursed would be deductible under
chapter 1 of such Code if section 274(d) of such Code were
applied--
(1) by using the standard business mileage rate in effect
under section 162(a) at the time of such use, and
(2) as if the individual were an employee of an
organization not described in section 170(c) of such Code.
(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.--No deduction or credit shall be
allowed under any other provision of such Code with respect
to the expenses excludable from gross income under subsection
(a).
SEC. 305. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD
INVENTORY.
(a) In General.--Paragraph (3) of section 170(e) of the
Internal Revenue Code of 1986 (relating to special rule for
certain contributions of inventory and other 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 food inventory.--
``(i) General rule.--In the case of a charitable
contribution of food from any trade or business of the
taxpayer, this paragraph shall be applied--
``(I) without regard to whether the contribution is made by
a C corporation, and
``(II) only to food that is apparently wholesome food.
``(ii) Limitation.--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
aggregate net income for such taxable year from all trades or
businesses from which such contributions were made for such
year, computed without regard to this section.
``(iii) Apparently wholesome food.--For purposes of this
subparagraph, the term `apparently wholesome food' has the
meaning given to 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 subparagraph.
``(iv) Termination.--This subparagraph shall not apply to
contributions made after December 31, 2005.''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made on or after August 28,
2005, in taxable years ending after such date.
SEC. 306. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK
INVENTORIES TO PUBLIC SCHOOLS.
(a) In General.--Paragraph (3) of section 170(e) of the
Internal Revenue Code of 1986 (relating to certain
contributions of ordinary income and capital gain property),
as amended by section 305, is amended by redesignating
subparagraph (D) as subparagraph (E) and by inserting after
subparagraph (C) the following new subparagraph:
``(D) Special rule for contributions of book inventory to
public schools.--
``(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 the donee is an organization described in
the matter preceding clause (i) of subparagraph (A).
``(ii) Qualified book contribution.--For purposes of this
paragraph, the term `qualified book contribution' means a
charitable contribution of books to a public school which is
an educational organization described in subsection
(b)(1)(A)(ii) and which provides elementary education or
secondary education (kindergarten through grade 12).
``(iii) Certification by donee.--Subparagraph (A) shall not
apply to any contribution unless (in addition to the
certifications required by subparagraph (A) (as modified by
[[Page H8192]]
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.
``(iv) Termination.--This subparagraph shall not apply to
contributions made after December 31, 2005.''.
(b) Effective Date.--The amendments made by this section
shall apply to contributions made on or after August 28,
2005, in taxable years ending after such date.
TITLE IV--ADDITIONAL TAX RELIEF PROVISIONS
SEC. 401. EXCLUSIONS OF CERTAIN CANCELLATIONS OF INDEBTEDNESS
BY REASON 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 described in subsection (b) by an
applicable entity (as defined in section 6050P(c)(1) of such
Code).
(b) Persons Described.--A natural person is described in
this subsection if the principal place of abode of such
person on August 25, 2005, was located--
(1) in the core disaster area, or
(2) in the Hurricane Katrina disaster area (but outside the
core disaster area) and such person suffered economic loss by
reason of Hurricane Katrina.
(c) Exceptions.--
(1) Business indebtedness.--Subsection (a) shall not apply
to any indebtedness incurred in connection with a trade or
business.
(2) Real property outside core disaster area.--Subsection
(a) shall not apply to any discharge of indebtedness to the
extent that real property constituting security for such
indebtedness is located outside of the Hurricane Katrina
disaster area.
(d) Denial of Double Benefit.--For purposes of the Internal
Revenue Code of 1986, the amount excluded from gross income
under subsection (a) shall be treated in the same manner as
an amount excluded under section 108(a) of such Code.
(e) Effective Date.--This section shall apply to discharges
made on or after August 25, 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 arise in the Hurricane
Katrina disaster area on or after August 25, 2005, and 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 RELATING TO HURRICANE KATRINA.
(a) Authority Includes Suspension of Payment of Employment
and Excise Taxes.--Subparagraphs (A) and (B) of section
7508(a)(1) of the Internal Revenue Code of 1986 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 With Respect to 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 25, 2005.
SEC. 404. SPECIAL RULES FOR MORTGAGE REVENUE BONDS.
(a) In General.--In the case of financing provided with
respect to a qualified Hurricane Katrina recovery residence,
subsection (d) of section 143 of the Internal Revenue Code of
1986 shall be applied as if such residence were a targeted
area residence.
(b) Qualified Hurricane Katrina Recovery Residence.--For
purposes of this section, the term ``qualified Hurricane
Katrina recovery residence'' means--
(1) any residence in the core disaster area, and
(2) any other residence if--
(A) such other residence is located in the same State as
the principal residence referred to in subparagraph (B), and
(B) the mortgagor with respect to such other residence
owned a principal residence on August 28, 2005, which--
(i) was located in the Hurricane Katrina disaster area, and
(ii) was rendered uninhabitable by reason of Hurricane
Katrina.
(c) Special Rule for Home Improvement Loans.--In the case
of any loan with respect to a residence in the Hurricane
Katrina disaster area, section 143(k)(4) of such Code shall
be applied by substituting $150,000 for the dollar amount
contained therein to the extent such loan is for the repair
of damage by reason of Hurricane Katrina.
(d) Application.--Subsection (a) shall not apply to
financing provided after December 31, 2007.
SEC. 405. EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNITION
OF GAIN FOR PROPERTY LOCATED IN HURRICANE
KATRINA DISASTER AREA.
Clause (i) of section 1033(a)(2)(B) of the Internal Revenue
Code of 1986 shall be applied by substituting ``5 years'' for
``2 years'' with respect to property in the Hurricane Katrina
disaster area which is compulsorily or involuntarily
converted on or after August 25, 2005, by reason of Hurricane
Katrina, 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 which
includes August 25, 2005, is less than the earned income of
the taxpayer for the preceding taxable year, the credits
allowed under sections 24(d) and 32 of the Internal Revenue
Code of 1986 may, at the election of the taxpayer, be
determined by substituting--
(1) such earned income for the preceding taxable year, for
(2) such earned income for the taxable year which includes
August 25, 2005.
(b) Qualified Individual.--For purposes of this section,
the term ``qualified individual'' means any individual whose
principal place of abode on August 25, 2005, was located--
(1) in the core disaster area, or
(2) in the Hurricane Katrina disaster area (but outside the
core disaster area) and such individual was displaced from
such principal place of abode 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 25, 2005--
(A) such subsection shall apply if either spouse is a
qualified individual, and
(B) the earned income of the taxpayer for the preceding
taxable year shall be the sum of the earned income of each
spouse for such preceding taxable year.
(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, etc.--
Except as otherwise provided in this section, the Internal
Revenue Code of 1986 shall be applied 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 by reason of
Hurricane Katrina. 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).
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Louisiana (Mr. McCrery) and the gentleman from New York (Mr. Rangel)
each will control 20 minutes.
The Chair recognizes the gentleman from Louisiana (Mr. McCrery).
General Leave
Mr. McCRERY. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and to include extraneous material on the subject matter of the
resolution under consideration, H. Res. 454.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Louisiana?
There was no objection.
Mr. McCRERY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the bill before us today is a bicameral, bipartisan
compromise on the bill that we passed through this House last week
dealing with tax relief primarily for individuals who were affected by
Hurricane Katrina. The Senate, as you know, Mr. Speaker, passed a
slightly different bill, and in the time since the passage in the House
and the Senate, we have gotten together with our colleagues from the
other body and worked out those differences, and
[[Page H8193]]
today we have on the floor a bill that, when it passes the House today,
should immediately pass the Senate thereafter and be sent to the
President for his signature.
I am pleased to say that the level of cooperation across the aisle
and across the Capitol with respect to taking care of the needs of
individuals who were affected by Hurricane Katrina continues in a
manner that does us all proud.
So the bill today on the floor, Mr. Speaker, as I said, primarily
provides for individual tax relief. There are several provisions which
provide tax relief to businesses in the affected areas, but of course
those businesses, we hope, will be employing and paying residents of
the affected areas. So at least indirectly, even those provisions
promote the welfare of those individuals who were affected by Hurricane
Katrina.
Just to enumerate some of the provisions in this bill that will help
individuals over these troubled times for them, any loss of tax
benefits that would occur under current law, due to the relocation of
that individual or family, would not take place because this House will
pass this bill. In other words, this bill will hold harmless those
families and individuals who might have lost some tax benefit due to a
temporary relocation that was necessary due to the storm. Any debt that
is forgiven to these individuals, those individuals will not be taxed
on that debt. The debt forgiveness will not be counted as income to
those individuals, as it would be under current law.
Also, anybody that provides housing assistance to dislocated persons
will, under this bill, be given a tax deduction of $500 per person they
are housing, up to a maximum of $2,000 tax deduction. And, of course,
that is meant to help with the burden of bringing people into one's
home and thereby encouraging people to house dislocated persons from
that affected area.
Also, under current law, there is a deduction for personal casualty
losses, but there is a limit on that deduction. This bill would waive
that limit and allow individuals to fully deduct their loss.
This bill would allow affected individuals to withdraw from their
IRAs and pensions. For those individuals, the 10 percent penalty or 10
percent tax for early withdrawal of those funds, up to a maximum of
$100,000, those affected people could withdraw from those vehicles and
put that money into their home, helping them with repairs and so forth,
and that would be a big help to those individuals. There are provisions
that would allow those folks to repay their IRA over time and avoid any
tax on those withdrawals as well.
Several of these provisions, as I said, help businesses, help
employers; and, of course, we are trying to encourage employers in
these affected areas to bring workers back and to create jobs so that
people can come back and have an income. One thing that we will extend
to employers in this area is the work opportunity tax credit. The
credit will give a 40 percent credit for the first $6,000 of wages paid
to an employee in the first year, so up to $2,400 tax credit for hiring
somebody in these affected areas.
There is also an employee retention tax credit, which is very
important. As you know, Mr. Speaker, many of the businesses in these
affected areas are basically out of business now. Their businesses were
destroyed, so they have no ongoing business at this time. Yet many of
those employers have the wherewithal to continue paying their employees
until their business can get back up and running. And while we
certainly congratulate those employers, we know they cannot do that,
many of them cannot do that for long. Because we want to encourage them
to continue paying their employees even though their business is not up
and going, we have an employee retention tax credit available to those
employers who wish to continue paying their employees.
With respect to replacing damaged property, under current law, if it
is business property, the insurance proceeds are not taxable if they
replace that business property within 2 years. And for individuals
replacing individual property, they have 4 years to replace that
property. This bill will make the time period 5 years for either
businesses or individuals.
Also, another help to businesses and employers in this bill is an
extension of the deadline for paying excise and employment taxes. That
is going to be a problem for some of those businesses, particularly
small businesses who were destroyed by the storm.
Also, on the business side, Mr. Speaker, we encourage cash donations
by corporations by removing the limit on those corporate donations, as
well as we provide the same charitable donation the deduction for
charitable donation of food inventory to S corporations, partnerships,
and sole proprietors that is now available under the law to C
corporations.
So, in sum, Mr. Speaker, this bill provides a number of tax benefits
to both individuals and businesses to help them get over these very
difficult times that they are experiencing because of their losses due
to Hurricane Katrina, and also starts us on the way to rebuilding a
business infrastructure, a jobs infrastructure, in these affected areas
which will be so critical to the overall recovery of the area.
Mr. Speaker, I reserve the balance of my time.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
First, let me thank the leadership on the other side of the aisle for
the cooperation that they have given. I have worked very closely with
the chairman, the gentleman from California (Mr. Thomas), and I am so
pleased the gentleman from Louisiana (Mr. McCrery) and the gentleman
from Louisiana (Mr. Jefferson), who come from the affected areas, have
been able to work together to assist the Congress, and especially those
of us on the committee, to see how fast we could get some type of
assistance to the victims of this horrendous disaster.
As the gentleman from Louisiana (Mr. McCrery) stated, this is a
temporary provision that is not meant to indicate that the Congress has
completed its work on this task. As a matter of fact, it is hardly even
a beginning, but that is what we thought we could do.
The good that has come out of this is a sense of bipartisanship, that
Katrina was not a Republican or a Democratic disaster, it was one that
struck America. And I think the President of the United States has
definitely set the tone as to what most all Americans, and certainly
people from all over the world realize, that this is not just building
or rebuilding a city, it is not just restoring a culture, but it
certainly is making the people there whole. So as we pass this bill on
the consent calendar, I hope that the tone that has been set on the
other side of the aisle can continue to be a bipartisan and bicameral
effort in order to do the best we can in terms of restoring the dignity
and the culture of this great city.
To do this, some of us are working very closely with the people that
come from this area, hoping that we can get an authority on the
empowerment zone concept that goes far beyond the limitations that we
have on the tax-writing committee. We hope that we can get the local
officials, the State officials, as well as the business people, to come
up with a comprehensive plan that would allow all of us, no matter what
committees that we sit on, to be a part of this great American recovery
effort.
{time} 1245
We also have to make certain that the people that are providing the
assistance down there are held accountable and that every effort is
made to make certain that, one, the people who were forced to leave the
area have an opportunity to return; and to some extent our tax policy
will reflect what we can do to provide incentives for them to come back
home. It is also important that we take into consideration the
environmental conditions that exist there to make certain that it is
not contaminated when the people come back.
We would also like to see an independent commission that goes far
beyond what has been suggested by the Speaker to make certain that as
we move forward that we do not make the same mistakes that were made in
the past, and where there have been mistakes, we do not give medals of
honor to those people who made them, but rather work to correct them
and make certain we have competent bipartisan workers doing the
Nation's business to rebuild the area that has been affected.
Some Members on this side will share their experiences with 9/11,
some of the
[[Page H8194]]
things that did and did not happen; and I would hope that we would be
able to share those views today and as we move forward to make certain
that when we do have a plan, there are jobs there and we deal with
housing, schools, and deal with all of these things with the same vigor
as the President had indicated that we would do.
Again, I would like to thank the gentleman from California (Chairman
Thomas), the gentleman from Louisiana (Mr. McCrery), and the members of
the Committee on Ways and Means for the speed with which we reacted to
this. I hope it has set a tone, if not for the entire Congress as we
relate to other things, at least to begin with Hurricane Katrina and
see what we can do to set an example for the other committees in
working together.
Mr. Speaker, I reserve the balance of my time.
Mr. McCRERY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise just to thank the gentleman from New York (Mr.
Rangel), the distinguished ranking member of the Committee on Ways and
Means, for his work in putting together not only this bill but also in
gathering ideas from his experiences with New York following 9/11 and
also ideas that he has gathered from Members on his side of the aisle
with how we best deal with the tragedy that has occurred and the
rebuilding efforts that necessarily have to follow, not only in terms
of the jurisdiction of our committee, but other areas that this
Congress must address to adequately ensure the recovery of the
devastated areas along the gulf coast. I thank the gentleman for his
help.
Mr. Speaker, I reserve the balance of my time.
Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentlewoman from
New York (Mrs. Maloney), who has done a great deal of work on 9/11; and
she would like to share some of her views with us today.
(Mrs. MALONEY asked and was given permission to revise and extend her
remarks.)
Mrs. MALONEY. Mr. Speaker, I thank the gentleman from New York (Mr.
Rangel) for his leadership. This country is united and determined to
help the victims of Hurricane Katrina. By passing this important bill,
we can quickly move refunds into the hands of families and businesses
that have worked hard and paid their taxes.
I do want to provide and share with my colleagues a report that the
New York delegation, under the leadership of the gentleman from New
York (Mr. Rangel) and others, developed for our gulf coast colleagues
that outlines the experiences that we had, the challenges that we had
in the recovery process in our efforts to help New Yorkers.
I thank this body for their swift and committed help in helping New
Yorkers. But despite the efforts of our entire delegation to get a
report about what exactly happened in the seven tax benefit programs
that came into New York, we asked for a GAO report, again under the
leadership of the gentleman from New York (Mr. Rangel) and others, and
they have told us that they do not track this information and do not
have any information on whether the tax benefits were used, who they
went to, or if anyone even benefited from them.
I share that experience with my colleagues so they might want to add
to the legislation, if it is not already in it, that there be a mandate
that the impact of what we are trying to do to help people in fact is
tracked when we are spending, or may spend, billions of dollars. The
taxpayers, the victims, and this body deserve an accurate tracking of
what exactly happened and if our intentions to help people really was
realized in dollars in their pockets and dollars in economic
development. I want to share with my colleagues from the gulf region
this report.
Our recovery in New York is still ongoing 4 years afterwards. I hope
we are not here 4 years from now waving a similar report from
Louisiana, Mississippi and Alabama trying to find out what happened
with the efforts that I truly support today to help families and
victims of Hurricane Katrina, and I strongly support this legislation.
Mr. Speaker, anyone interested in viewing the reports mentioned in my
speech please visit my website at www.house.gov/maloney.
Mr. RANGEL. Mr. Speaker, I yield 2 minutes to the gentleman from Ohio
(Mr. Kucinich).
Mr. KUCINICH. Mr. Speaker, I will vote for this bill; but I have to
hand it to this administration, they want to lower your taxes so
earnestly that they will even lower your wages to do it.
Through an executive order, the President lowered the wages workers
will be paid to rebuild the hurricane-affected region. He suspended the
Davis-Bacon Act, a 74-year-old law which requires that companies
receiving Federal contracts pay the average wage to employees hired to
perform those Federal contracts. With smaller incomes, workers will pay
less.
But corporate income, unlike worker incomes, will rise. The corporate
contractors will be able to keep more of the contract for themselves
through a combination of setting lower wages for workers and receiving
tax exemptions under the provisions of H.R. 3768. Suspension of the
Davis-Bacon Act will give contractors unprecedented power to set wages.
That is because the hurricane destroyed the labor market in the region.
Nearly everyone is out of work; nearly everyone needs a job. After
losing everything, how many people will be able to hold out for higher
wages? Not many.
Thus, labor market forces will not determine wages. Instead,
hurricane victims and workers who may be brought into the region are at
the mercy of Halliburton and Fluor corporations, just to name a couple
contractors who have won or will win construction contracts in
hurricane reconstruction and which will dictate wage levels.
The bottom line is this: hurricane tax relief means one thing if you
are a hurricane victim and another if you a corporate contractor
receiving Federal funds to rebuild the hurricane-affected region. Tax
relief for hurricane victims will primarily take the form of paying
less taxes on smaller wages. But tax relief means something very
different to the corporate contractors. They will be paying less taxes
on increased income.
Mr. RANGEL. Mr. Speaker, I yield 2\1/2\ minutes to the gentlewoman
from Ohio (Mrs. Jones), an outstanding member of the Committee on Ways
and Means.
Mrs. JONES of Ohio. Mr. Speaker, I would like to compliment both the
gentleman from New York (Mr. Rangel) and the gentleman from Louisiana
(Mr. McCrery) on the work they have done on this legislation.
I introduced a piece of legislation. This bill's number is H.R. 3768,
mine is H.R. 3769. I hope as we go through the process you would take a
look at the legislation that I have. The legislation I have has two of
the same provisions, the temporary housing tax credit as well as the
work opportunity tax credit for Hurricane Katrina victims.
But I would ask Members to consider expanding the low-income tax
credit to assist Katrina victims in obtaining affordable housing. This
legislation would make the following changes to low-income housing tax
credit. It will double the housing tax credit authority for Louisiana,
Mississippi, and Alabama for 2006 and 2007 to $3.70 times State
population. The current cap is $1.85.
It would extend difficult development area designation to Federal
disaster areas in Louisiana, Mississippi, Alabama, and Florida through
2007. The difficult development areas are currently those areas with
high construction land and utility costs because of their location. In
DDAs, the tax credit is based on 130 percent of the project's total
cost instead of the normal 100 percent, providing an incentive to
developers to invest in these most-distressed areas.
This legislation will make affordable housing projects in Federal
disaster areas in Louisiana, Mississippi, Alabama, and Florida eligible
for the DDA designation and the basis boost, increasing investment and
economic development in the region.
It would also waive the national pool ``full subscription''
requirement for Louisiana, Mississippi, Alabama, and Florida through
2007. Currently, the low-income housing tax credit not used by States
is added to a national pool. The tax credit in that national pool is
then distributed to those States that apply for the excess credits.
However, to be eligible for those credits, a State must have used all
of its previously allocated tax credits, or full subscription.
[[Page H8195]]
This legislation waives the requirement for Louisiana, Alabama,
Mississippi, and Florida. I would hope that you would take a look at
this piece of legislation because I think it will also help Katrina
victims.
Last, I would ask you to consider giving them a home buyer tax credit
that would encourage people from these States to go back to the States
where they lived and they would get a $5,000 tax credit to rebuild a
new home in those communities. I support this legislation. I would
encourage you to consider the two areas that I mentioned.
Mr. McCRERY. Mr. Speaker, I yield myself such time as I may consume.
I want to congratulate the gentlewoman from Ohio, a distinguished
member of the Committee on Ways and Means for coming up with some good
ideas to assist in getting people back home and into housing. Her ideas
are on a list that we are examining. I am very attracted to the
substance of her ideas on this matter.
I cannot guarantee that it is going to be in future legislation; but
it is something that I am looking at very closely, as are others on the
committee, including the gentleman from New York (Mr. Rangel), I am
sure. I think we will be able to get together on some of the
gentlewoman's comments. I thank the gentlewoman for her assistance in
helping us put together even more legislation following today's bill to
help those folks get back home.
Mr. RANGEL. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from
Illinois (Mr. Emanuel).
Mr. EMANUEL. Mr. Speaker, I want to commend the gentleman from
California (Chairman Thomas); the ranking member, the gentleman from
New York (Mr. Rangel); and the gentleman from Louisiana (Mr. McCrery)
for working on a bipartisan basis to bring this legislation to the
floor. It will go a long ways towards helping the 1.3 million families
devastated by Hurricane Katrina.
I am especially pleased that this bill prevents the loss of tax
benefits, like the earned income tax credit and the child credit, by
reason of job loss or relocation due to Hurricane Katrina. I believe,
as I have talked on the floor, that we can do more in this area.
I hope in the future tax bills that we look at, we will consider
legislation introduced by the gentleman from Georgia (Mr. Lewis), the
gentleman from Mississippi (Mr. Taylor), and the gentleman from
Louisiana (Mr. Melacon), and I to immediately fast track the earned
income tax credit and the child tax credit refunds earned by working
families so they receive them now rather than later.
Many constituents of the gentleman from Mississippi (Mr. Taylor) and
the gentleman from Louisiana (Mr. Melacon) have lost their belongings
and their homes. Others have been left destitute with nothing more than
the clothes on their backs. The Federal Government can respond as they
have in past instances, advancing the refunds that Hurricane Katrina
victims have earned. By taking these steps, we can fast track the
refunds to families that have worked, paid taxes and earned them, all
the while stimulating local economies. It is a win-win for those
families and communities in America.
I would like to draw attention to the Congressional Research Service
that on Monday issued a report entitled ``Tax Policy Options After
Hurricane Katrina.'' The study says that measures directed at the
earned income tax credit and refundable child credits are the best ways
to stimulate the local economy.
I understand that the gentleman from California (Chairman Thomas) and
the gentleman from Louisiana (Mr. McCrery) plan to introduce a third
Hurricane Katrina tax bill in the coming weeks. I hope that they look
at this report just issued on Monday by the Congressional Research
Service that this would be the best way to help families and local
communities through fast-tracking the earned income tax credits and the
refundable child credit.
Mr. RANGEL. Mr. Speaker, I yield 3 minutes to the gentlewoman from
Texas (Ms. Jackson-Lee).
{time} 1300
Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the esteemed ranking
member for yielding me this time, and I thank the sponsor of this
legislation and the bipartisan effort that has been offered here today.
Mr. Speaker, as the Members well know, Hurricane Rita is fast
approaching the gulf coast again. My own community of Galveston,
Houston, and other surrounding areas that many of us represent is about
to face the unknown, and it is important for the face of Congress today
to be bipartisan.
I want to congratulate the gentleman from New York (Mr. Rangel), the
gentleman from Louisiana (Mr. McCrery), and all of the supporters, the
gentleman from Louisiana (Mr. Jefferson), all who have lived this in a
very unique and special way.
But as we move toward this legislation, might I reinforce some
concepts that are so very important, particularly if the New Orleans
region is hit again and the tragedy of the levees again spills water
into that region, we want to go forward in the reconstruction in a
bipartisan way. We want Members and local leaders to be consulted. We
also want regional development authorities to be developed. And,
particularly, as I was asked today, we want an inspector general or a
recovery czar to make sure that, as we give tax relief, that we also
give dollars for reconstruction. These dollars will be used effectively
and invested not only in the large corporations, the standard bearers
of Rebuild America that have gone on to Iraq and other places, but let
us put those dollars that will help rebuild small businesses in the
hands of small businesses, minority-owned businesses and women-owned
businesses. Let us make sure that the relief that has been given
impacts individuals in their properties that still exist in New
Orleans, for example, although under water. The physical structure of
the house may be leveled, but they will need to have the tax benefits
so that they can make sure that they are able to rebuild.
This legislation, for example, exempts income from forgiveness of
debt from tax. It prevents loss of tax benefits such as the earned
income tax credit, waives the 10 percent penalty on early distributions
from retirement plans, provides the work opportunity tax credit, and
many others. It also deals with the charitable incentives that will
allow people to give.
But I think the main point is we are still facing the forward road.
It is time to work together for the rebuilding of the region and to
prepare us for whatever the results are of Hurricane Rita.
May God bless those in Houston and the surrounding areas and those
who will be facing this horrible storm. May they know that we are
focused on their work and on their future. May God bless them, and our
prayers are with them.
Mr. RANGEL. Mr. Speaker, I yield back the balance of my time.
Mr. McCRERY. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Shimkus). The question is on the motion
offered by the gentleman from Louisiana (Mr. McCrery) that the House
suspend the rules and agree to the resolution, H. Res. 454.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. RANGEL. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
____________________