[Congressional Record Volume 155, Number 173 (Friday, November 20, 2009)]
[Senate]
[Pages S11885-S11886]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY:
  S. 2815. A bill to extend certain housing-related deadlines in the 
Heartland Disaster Tax Relief Act of 2008; to the Committee on Finance.
  Mr. GRASSLEY. Mr. President, today I have introduced a bill to extend 
deadlines by one year for three provisions in the Heartland Disaster 
Tax Relief Act of 2008.
  The Heartland Disaster Tax Relief Act has been critical in rebuilding 
the lives and communities of those affected by the terrible floods and 
tornadoes from last year.
  Because of delays in Federal funding and tighter credit conditions, 
many homeowners affected by the 2008 floods and storms will be unable 
to meet the deadline for the tax relief intended to help with recovery.
  It is only fair to extend the deadline and give these homeowners the 
chance to recover and rebuild. A lot of people are still trying to fix 
their ruined homes or move on to new housing. A house is ruined in a 
few minutes, but banks and governments take what seems like an 
eternity.
  The first provision is a one-year extension of the provision allowing 
disaster victims with damage to their primary residence to use their 
own assets

[[Page S11886]]

to buy a new home or repair an existing home by withdrawing money from 
their retirement plans without tax penalties.
  The second provision is a one-year extension of a provision allowing 
disaster victims that have borrowed from their retirement account for 
disaster recovery to repay their own account without penalty.
  The final provision is a 1-year extension of a provision allowing 
disaster victims whose banks cancel mortgage debt to not have the 
cancelled debt counted as taxable income. I urge my colleagues to help 
me in getting this important legislation enacted into law as soon as 
possible.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2815

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXTENSION OF SPECIAL RULES FOR USE OF RETIREMENT 
                   FUNDS.

       Section 702(d)(10) of the Heartland Disaster Tax Relief Act 
     of 2008 (Public Law 110-343; 122 Stat. 3916) is amended--
       (1) by striking ``January 1, 2010'' both places it appears 
     and inserting ``January 1, 2011'', and
       (2) by striking ``December 31, 2009'' both places it 
     appears and inserting ``December 31, 2010''.

     SEC. 2. EXTENSION OF EXCLUSION OF CERTAIN CANCELLATION OF 
                   INDEBTEDNESS INCOME.

       Section 702(e)(4)(C) of the Heartland Disaster Tax Relief 
     Act of 2008 (Public Law 110-343; 122 Stat. 3918) is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2011''.

                          ____________________