[Congressional Record (Bound Edition), Volume 151 (2005), Part 15]
[Senate]
[Pages 20967-20973]
[From the U.S. Government Publishing Office, www.gpo.gov]




                KATRINA EMERGENCY TAX RELIEF ACT OF 2005

  Mr. BENNETT. I ask unanimous consent that the Senate proceed to the 
immediate consideration of H.R. 3768, which was received from the 
House.
  There being no objection, the Presiding officer laid before the 
Senate the following message from the House of Representatives:

                               H.R. 3768

       Resolved, That the House agree to the amendment of the 
     Senate to the bill (H.R. 3768) entitled ``An Act to provide 
     emergency tax relief for persons affected by Hurricane 
     Katrina'', with the following House amendment to Senate 
     amendment:
       In lieu of the matter proposed to be inserted by the 
     amendment of the Senate, 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.

[[Page 20968]]

       (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), 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.

[[Page 20969]]

       (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 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:

[[Page 20970]]

       ``(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 
     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

[[Page 20971]]

       (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).

  Mr. GRASSLEY. Mr. President, so far, the Finance Committee has put 
forth two Hurricane Katrina relief bills. One is the emergency tax 
relief bill passed today.
  The second is the health and welfare bill introduced last Thursday.
  And we're working on a third bill to help rebuild and rejuvenate the 
Gulf region.
  Today I met with Mississippi Governor Haley Barbour to hear about the 
needs of people in the Katrina area, both now and in the future.
  In addition to Senator Baucus, I've been working with my colleagues 
from Mississippi, Louisiana, and Alabama, including the cosponsors of 
this tax bill--Senators Lott, Landrieu, Vitter, Cochran and Shelby.
  For the next package, we're taking ideas from these senators.
  I've talked with Senator Vitter, Senator Lott and Senator Landrieu 
about tax incentives and expect to talk with the rest of the group in 
the coming days.
  We've had the biggest natural disaster in history. People are 
hurting, and we're getting them help.
  We know that tax incentives helped to revitalize New York after 9/11. 
They can do the same for New Orleans, Gulfport and the other hurricane-
hit areas.
  The immediate relief package will help get short-term aid to 
hurricane victims by encouraging food donations and the employment of 
displaced individuals, for example.
  For those who've suffered casualty losses, we've liberalized the tax 
rules to permit affected taxpayers to deduct losses from damaged 
property.
  We also want to help protect Katrina victims from undeserved IRS 
harassment.
  It's good that the House and Senate quickly worked out minor 
differences in our respective versions of the bill.
  We need to get these tax incentives on the books and help Katrina 
victims make a fresh start.
  The President is working to restore a high quality of life to the 
people of the gulf region, and today we're contributing a solid piece 
of legislation to his effort.
  After this package is completed, our focus will be on longer-term tax 
incentives to help rebuild homes and businesses.
  We're looking at depreciation changes, tax-exempt bond authority, 
tax-exempt bond refunding, and enterprise-zone initiatives.
  In the coming days and weeks, the Finance Committee will be examining 
these ideas with an eye toward the most effective and efficient use of 
the taxpayer's dollar.
  The more thoughtful we are, and the more expeditiously we act, the 
sooner the people of the gulf region can return home, earn a living, 
and rebuild their communities.
  Mr. BAUCUS. Mr. President, traveling down to the gulf coast region 
last week, I saw firsthand the havoc that Hurricane Katrina had 
wreaked. As colleagues who have been down there know, in many places, 
it is stunning. It is like a war zone. It is worse than the pictures.
  At one stop, we went into what was left of a library. Muck and ruin 
covered books and other library materials. One shiny object caught my 
eye and I picked up. It was a DVD of the film, ``The Perfect Storm.''
  The victims of Katrina have many immediate needs. The legislation 
that we pass today will address four of them.
  One, they need cash. And they need it fast. Two, they need jobs. 
Three, they need housing. And four, charities need help from Congress 
so they can help the victims of the hurricane.
  I am pleased that Congress could come together and act quickly on 
this emergency tax relief to address those needs.
  First, victims of Katrina need immediate access to cash. The working 
poor should not lose government benefits that they currently receive. 
These benefits are an important supplement to low-income working 
families. A prolonged change in their living situation could affect 
their eligibility for these benefits, such as the earned income credit 
and the child tax credit. This bill will allow displaced individuals to 
use their 2004 income to calculate benefits on their 2005 tax return. 
It will further ensure that these working families do not lose 
deductions, credits or filing status because the family is displaced 
from their home.
  We also allow victims of Katrina access to retirement accounts for 
immediate cash assistance. Under current law, there is a 10 percent 
penalty for early distributions of money in these accounts. We waive 
that penalty and allow displaced persons to recontribute to the 
retirement account over a 3-year period.
  Victims also need tax relief if a commercial lender forgives their 
debt. When a commercial lender discharges debt--such as a cancellation 
of a mortgage--this amount is included as income for tax purposes. This 
legislation ensures that individuals affected by the hurricane are not 
taxed on this personal debt relief.
  Second, victims of Katrina want to get back in the workforce. We 
provide businesses with the tools that they need to hire displaced 
workers. The Work Opportunity Tax Credit allows employers to claim a 
credit against wages paid to new workers that face barriers to 
employment. It applies to veterans, low-income families, and other 
targeted groups. We expand the Work Opportunity Tax Credit to cover all 
survivors of Hurricane Katrina who lived in the disaster zone no matter 
where they seek a job.
  We also allow employers located in the disaster zone to take a $2,400 
tax credit on wages paid to employees during the period the business 
was shut down. These employees have tapped into their savings to help 
out their employees.
  Third, we address the housing needs of people dislocated by the 
hurricane. Many folks across the country have opened up their hearts 
and opened up their homes. These generous individuals now face 
increased living expenses--higher water, electric, and grocery bills. 
This is a considerable burden. We help defray these costs.
  We create a special tax deduction for individuals who provide rent-
free housing to dislocated persons for at least 60 days. The deduction 
is $500 for each dislocated person up to a maximum of $2,000.
  Finally, the victims need the generosity of individuals and 
businesses across this country. There has been a surge in giving to 
charitable organizations. We should encourage this activity. Our bill 
provides incentives for corporations to increase gifts of cash, food, 
books, and other items sorely needed in the affected areas and 
communities.
  We didn't get everything we wanted in this bill. I regret that my 
House colleagues did not accept our provision supporting ``pay 
protection'' for military reservists and guards and I will continue to 
work with my colleagues,

[[Page 20972]]

Senators Landrieu and Kerry, to get this enacted. As passed by the 
Senate, employers in the disaster zone who continued to pay employees 
that were activated by the reserves or the National Guard would also be 
entitled to the employee retention credit. Over a third of the Guard 
members in Mississippi and Louisiana are currently serving in Iraq, and 
in Alabama, all major Guard units who have been activated for the 
disaster have already served in Iraq or are there currently. Around 500 
of the 3,700 Louisiana National Guard members serving in Iraq lost 
their homes or their families were displaced due to Hurricane Katrina. 
If their loyal employers, who despite being hit by Hurricane Katrina, 
were continuing to help out these military families, why shouldn't 
Congress at a minimum extend this $2,400 employee retention credit? I 
am disappointed, but resolved to keep fighting on this matter.
  In the coming weeks, I plan to work with my colleagues to draft a 
long-term tax relief package. We will draft legislation that will help 
rebuild homes and businesses, pump money into local economies, and help 
distressed working families.
  I thank all Senators for allowing this emergency legislation to move 
forward today. Today, we have taken real steps, concrete steps, that 
will make a difference in the lives of people who can use the help. 
This is what we came here to government service to do. And I am glad 
that we have been able to do it.
  Mr. KERRY. Mr. President, today, we are passing legislation which 
will provide immediate tax relief to those directly affected by this 
incredible disaster. This tax relief will help put cash in the hands of 
victims and encourage charitable giving. This legislation is needed, 
but I am deeply disappointed that this legislation is missing an 
extremely important component--relief for military reservists.
  We have rightfully focused on rescuing, reuniting and rebuilding, but 
we must also make sure to take care of our strained military families. 
The first and best definition of patriotism is keeping faith with those 
who wear our uniform. That means giving our troops the resources they 
need to keep safe while they are keeping us safe. And it means 
supporting our troops at home as well as abroad.
  The Senate passed Hurricane Katrina tax relief legislation which 
looked out for our military reservists. More than 40 percent of 
military reservists and National Guard members suffer a pay cut when 
they are called to defend our nation, including those serving in the 
gulf coast today. These citizens serve nobly. They are much more than 
weekend warriors. Currently, there are over 140,000 reservists called 
up for active duty in the war against terrorism and over ten thousand 
of these reservists and guardsman are from Louisiana, Alabama, and 
Mississippi. Over 50,000 National Guard members have been called up to 
assist with Hurricane Katrina.
  Many of these reservists are being hit with a double-whammy. After 
recent service in Iraq or Afghanistan, they are coming home to an area 
that has been devastated. The all-volunteer army depends on these 
reservists. They have been serving our country with distinction and 
pride for many years, and should not be penalized financially for their 
honorable service.
  The Senate passed bill included an employee retention credit which 
provides a 40 percent tax credit for wages paid up to $6,000 after 
August 28, 2005 and before December 31, 2005. This credit would help 
employers in the gulf coast who pay employees that are not able to work 
because the business was either damaged or destroyed and pay reservists 
and guardsmen that worked for them right up to the time before they 
were deployed.
  Giving employers' incentives to pay reservist employees is the right 
thing to do. We have read about the Louisiana reservists who have come 
home from Iraq and found that they have lost everything. According to 
the Washington Post, nearly 550 of the Louisiana brigade's troops lost 
homes or loved ones or were otherwise affected by Katrina. The brigade 
is coming to the end of its rotation in Baghdad. This is exactly why we 
must provide a tax incentive that helps employers pay wages to these 
reservists. Businesses on the gulf coast want to do the right thing for 
their employees. But in the wake of this disaster, most just cannot 
afford it.
  During negotiations between the House and the Senate on a final 
Hurricane Katrina tax package, the employee retention credit was scaled 
back. Wages paid to reservists are no longer eligible for the credit. 
This is the wrong message to be sending to our reservists who put their 
lives on the line defending our country.
  Due to Operations Iraqi Freedom and Enduring Freedom in Afghanistan, 
the military has placed greater training and participation demands on 
reservists, taking them away from their families and jobs. We should be 
doing all we can to help these reservists, and this includes providing 
tax incentives to their employers who provide extended pay coverage.
  Providing tax incentives to help employers in the gulf coast impacted 
by Hurricane Katrina was a step in the right direction in helping 
reservists. For the last couple of years, Senator Landrieu and I have 
worked on legislation to provide assistance to businesses that employ 
reservists who have been called up to active duty. That legislation 
would provide tax credits to employers who pay reservists wages that 
are above their military pay and to help with the costs of hiring 
replacement workers. This provision passed the Senate twice last year, 
unfortunately, it was not enacted into law.
  This past Monday, I chaired a field hearing of the Committee on Small 
Business and Entrepreneurship entitled ``Military Reservists and Small 
Business: Supporting our Military Families and their Patriotic Small 
Business Employers.'' The hearing focused on the financial difficulties 
reservists who work for small businesses and their families face when 
they are called up to active duty.
  Lieutenant Colonel Sam Poulten told his compelling story. He was a 
partner in a real estate firm and he received a three-day notice that 
he was being called-up to serve as a medical Army reservist in Iraq. 
Lieutenant Colonel Poulten spent 13 months away from his business, 
which saw a loss in sales due to his absence. His wife had to resort to 
using credit cards to pay for basic necessities. Lieutenant Colonel 
Poulten is one of the many examples of a reservist whose family and 
business faced financial struggles due to long mobilization.
  Captain Marshall Hanson, USNR (Ret), Legislative Director of the 
Reserve Officers Association, discussed the consequences of 
mobilization and demobilization on military families and employers. He 
stated:

       Families and employers play a large role in a citizen-
     warrior's decision on whether or not to enlist and to remain 
     in the military. Employer pressure is cited as one of the top 
     reasons why reservists quit military service.

  We left military reservists who were personally impacted by Katrina 
out of this tax bill and this is wrong. After Monday's field hearing, I 
am convinced more than ever that we need to provide tax credits to 
small employers who pay reservists above their military wages and to 
help with the cost of a temporary replacement employee.
  I thank Chairman Grassley and Ranking Member Baucus for working with 
me to include wages paid to eligible reservists and guardsman as part 
of the employee retention tax credit. Unfortunately, we were not able 
to have this provision included in the final package.
  I will continue to work on providing tax incentives for small 
business employers who have military reservists as employees. We must 
pass these tax incentives. If we do not make it easier for small 
businesses to employ military reservists, we will see a substantial 
decline in our reserve forces. According to published reports, the Army 
National Guard has missed its recruiting targets every month this year 
and appears certain to miss its third straight annual recruiting goal. 
Our military depends on these civilian-warriors. We need to recognize 
that the needs of our reserve forces are different

[[Page 20973]]

than the needs of the career military. Our reservists did not sign-up 
for active duty, and they have been faced with long-term call ups and 
multiple call ups.
  I do not understand why we cannot pass legislation which provides tax 
incentive to help employer's of civilian-warriors when we continue to 
pass tax cuts that just benefit the wealthy.
  We need to do all that we can to help our reservists and the 
businesses that employ them to ensure that our great tradition of 
citizen soldiers does not fade or end because of the effect service can 
have on work and family in this time of crisis.
  Mr. BENNETT. I ask unanimous consent the Senate concur in the House 
amendment to the Senate amendment and that the motion to reconsider be 
laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________