Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	4,977	n/a	n/a
Engrossed in House	4,957	3	2%
Placed on Calendar Senate	5,017	8 Show Changes Hide Changes	4%

Display Version Introduced in House Engrossed in House Placed on Calendar Senate

HR 7006 EHPCSCommentsClose CommentsPermalink

110th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 7006CommentsClose CommentsPermalink

AN ACTCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide disaster assistance relief.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE, ETC.

(a) In General- This Act may be cited as the ‘Disaster Tax Relief Act of 2008’.CommentsClose CommentsPermalink





(b) Reference- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(c) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title, etc.CommentsClose CommentsPermalink





Sec. 2. Losses attributable to federally declared disasters.CommentsClose CommentsPermalink





Sec. 3. Expensing of qualified disaster expenses.CommentsClose CommentsPermalink





Sec. 4. Net operating losses attributable to federally declared disasters.CommentsClose CommentsPermalink





Sec. 5. Waiver of certain mortgage revenue bond requirements following federally declared disasters.CommentsClose CommentsPermalink





Sec. 6. Determination of standard mileage rate for charitable contributions deduction.CommentsClose CommentsPermalink





Sec. 7. Additional low income housing allocations.CommentsClose CommentsPermalink





Sec. 8. Private activity disaster bonds.CommentsClose CommentsPermalink





Sec. 9. Waiver of limitation on charitable contributions for disaster relief.CommentsClose CommentsPermalink

SEC. 2. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED DISASTERS.

(a) Waiver of Adjusted Gross Income Limitation-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (h) of section 165 is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively, and by inserting after paragraph (2) the following new paragraph:CommentsClose CommentsPermalink





‘(3) SPECIAL RULE FOR LOSSES IN FEDERALLY DECLARED DISASTERS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- If an individual has a net disaster loss for any taxable year, the amount determined under paragraph (2)(A)(ii) shall be the sum of--CommentsClose CommentsPermalink





‘(i) such net disaster loss, andCommentsClose CommentsPermalink





‘(ii) so much of the excess referred to in the matter preceding clause (i) of paragraph (2)(A) (reduced by the amount in clause (i) of this subparagraph) as exceeds 10 percent of the adjusted gross income of the individual.CommentsClose CommentsPermalink





‘(B) NET DISASTER LOSS- For purposes of subparagraph (A), the term ‘net disaster loss’ means the excess of--CommentsClose CommentsPermalink





‘(i) the personal casualty losses--CommentsClose CommentsPermalink





‘(I) attributable to a federally declared disaster occurring after December 31, 2007, and before January 1, 2012, andCommentsClose CommentsPermalink





‘(II) occurring in a disaster area, overCommentsClose CommentsPermalink





‘(ii) personal casualty gains.CommentsClose CommentsPermalink





‘(C) FEDERALLY DECLARED DISASTER- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) FEDERALLY DECLARED DISASTER- The term ‘federally declared disaster’ means any disaster subsequently determined by the President of the United States to warrant assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.CommentsClose CommentsPermalink





‘(ii) DISASTER AREA- The term ‘disaster area’ means the area so determined to warrant such assistance.’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Section 165(h)(4)(B) (as so redesignated) is amended by striking ‘paragraph (2)’ and inserting ‘paragraphs (2) and (3)’.CommentsClose CommentsPermalink





(B) Section 165(i)(1) is amended by striking ‘loss’ and all that follows through ‘Act’ and inserting ‘loss occurring in a disaster area (as defined by clause (ii) of subsection (h)(3)(C)) and attributable to a federally declared disaster (as defined by clause (i) of such subsection)’.CommentsClose CommentsPermalink





(C) Section 165(i)(4) is amended by striking ‘Presidentially declared disaster (as defined by section 1033(h)(3))’ and inserting ‘federally declared disaster (as defined by subsection (h)(3)(C)(i)’.CommentsClose CommentsPermalink





(D)(i) So much of subsection (h) of section 1033 as precedes subparagraph (A) of paragraph (1) thereof is amended to read as follows:CommentsClose CommentsPermalink





‘(h) Special Rules for Property Damaged by Federally Declared Disasters-CommentsClose CommentsPermalink





‘(1) PRINCIPAL RESIDENCES- If the taxpayer’s principal residence or any of its contents is located in a disaster area and is compulsorily or involuntarily converted as a result of a federally declared disaster--’.CommentsClose CommentsPermalink





(ii) Paragraph (2) of section 1033(h) is amended by striking ‘investment’ and all that follows through ‘disaster’ and inserting ‘investment is located in a disaster area and is compulsorily or involuntarily converted as a result of a federally declared disaster’.CommentsClose CommentsPermalink





(iii) Paragraph (3) of section 1033(h) is amended to read as follows:CommentsClose CommentsPermalink





‘(3) FEDERALLY DECLARED DISASTER; DISASTER AREA- The terms ‘federally declared disaster’ and ‘disaster area’ shall have the respective meaning given such terms by section 165(h)(3)(C).’.CommentsClose CommentsPermalink





(iv) Section 139(c)(2) is amended to read as follows:CommentsClose CommentsPermalink





‘(2) federally declared disaster (as defined by section 165(h)(3)(C)(i)),’.CommentsClose CommentsPermalink





(v) Subclause (II) of section 172(b)(1)(F)(ii) is amended by striking ‘Presidentially declared disasters (as defined in section 1033(h)(3))’ and inserting ‘federally declared disasters (as defined by section 165(h)(3)(C)(i))’.CommentsClose CommentsPermalink





(vi) Subclause (III) of section 172(b)(1)(F)(ii) is amended by striking ‘Presidentially declared disasters’ and inserting ‘federally declared disasters’.CommentsClose CommentsPermalink





(vii) Subsection (a) of section 7508A is amended by striking ‘Presidentially declared disaster (as defined in section 1033(h)(3))’ and inserting ‘federally declared disaster (as defined by section 165(h)(3)(C)(i))’.CommentsClose CommentsPermalink





(b) Increase in Standard Deduction by Disaster Casualty Loss-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (1) of section 63(c) is amended by striking ‘and’ at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting ‘, and’, and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(D) the disaster loss deduction.’.CommentsClose CommentsPermalink





(2) DISASTER LOSS DEDUCTION- Subsection (c) of section 63 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(8) DISASTER LOSS DEDUCTION- For the purposes of paragraph (1), the term ‘disaster loss deduction’ means the net disaster loss (as defined in section 165(h)(3)(B)).’.CommentsClose CommentsPermalink





(3) ALLOWANCE IN COMPUTING ALTERNATIVE MINIMUM TAXABLE INCOME- Subparagraph (E) of section 56(b)(1) is amended by adding at the end the following new sentence: ‘The preceding sentence shall not apply to so much of the standard deduction as is determined under section 63(c)(1)(D).’.CommentsClose CommentsPermalink





(c) Increase in Limitation on Individual Loss Per Casualty- Paragraph (1) of section 165(h) is amended by striking ‘$100’ and inserting ‘$500 ($100 for taxable years beginning after December 31, 2011)’.CommentsClose CommentsPermalink





(d) Effective Dates-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to--CommentsClose CommentsPermalink





(A) taxable years beginning after December 31, 2007, andCommentsClose CommentsPermalink





(B) the taxpayer’s last taxable year beginning before January 1, 2008, solely for purposes of determining the amount allowable as a deduction with respect to any net disaster loss (as defined in section 165(h)(3)(B) of the Internal Revenue Code of 1986) for such year by reason of an election under section 165(i) of such Code.CommentsClose CommentsPermalink





(2) INCREASE IN LIMITATION ON INDIVIDUAL LOSS PER CASUALTY- The amendment made by subsection (c) shall apply to taxable years beginning after December 31, 2008.CommentsClose CommentsPermalink

SEC. 3. EXPENSING OF QUALIFIED DISASTER EXPENSES.

(a) In General- Part VI of subchapter B of chapter 1 is amended by inserting after section 198 the following new section:CommentsClose CommentsPermalink

‘SEC. 198A. EXPENSING OF QUALIFIED DISASTER EXPENSES.

‘(a) In General- A taxpayer may elect to treat any qualified disaster expenses which are paid or incurred by the taxpayer as an expense which is not chargeable to capital account. Any expense which is so treated shall be allowed as a deduction for the taxable year in which it is paid or incurred.CommentsClose CommentsPermalink





‘(b) Qualified Disaster Expense- For purposes of this section, the term ‘qualified disaster expense’ means any expenditure--CommentsClose CommentsPermalink





‘(1) which is paid or incurred in connection with a trade or business or with business-related property,CommentsClose CommentsPermalink





‘(2) which is--CommentsClose CommentsPermalink





‘(A) for the abatement or control of hazardous substances that were released on account of a federally declared disaster,CommentsClose CommentsPermalink





‘(B) for the removal of debris from, or the demolition of structures on, real property which is business-related property damaged or destroyed as a result of a federally declared disaster, orCommentsClose CommentsPermalink





‘(C) for the repair of business-related property damaged as a result of a federally declared disaster, andCommentsClose CommentsPermalink





‘(3) is otherwise chargeable to capital account.CommentsClose CommentsPermalink





‘(c) Other Definitions- For purposes of this section--CommentsClose CommentsPermalink





‘(1) BUSINESS-RELATED PROPERTY- The term ‘business-related property’ means property--CommentsClose CommentsPermalink





‘(A) held by the taxpayer for use in a trade or business or for the production of income, orCommentsClose CommentsPermalink





‘(B) described in section 1221(a)(1) in the hands of the taxpayer.CommentsClose CommentsPermalink





‘(2) FEDERALLY DECLARED DISASTER- The term ‘federally declared disaster’ has the meaning given such term by section 165(h)(3)(C)(i), except that such term shall not include any disaster occurring before January 1, 2008, or after December 31, 2011.CommentsClose CommentsPermalink





‘(d) Deduction Recaptured as Ordinary Income on Sale, etc- Solely for purposes of section 1245, in the case of property to which a qualified disaster expense would have been capitalized but for this section--CommentsClose CommentsPermalink





‘(1) the deduction allowed by this section for such expense shall be treated as a deduction for depreciation, andCommentsClose CommentsPermalink





‘(2) such property (if not otherwise section 1245 property) shall be treated as section 1245 property solely for purposes of applying section 1245 to such deduction.CommentsClose CommentsPermalink





‘(e) Coordination With Other Provisions- Sections 198, 280B, and 468 shall not apply to amounts which are treated as expenses under this section.CommentsClose CommentsPermalink





‘(f) Regulations- The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.’.CommentsClose CommentsPermalink





(b) Clerical Amendment- The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 198 the following new item:CommentsClose CommentsPermalink





‘Sec. 198A. Expensing of Qualified Disaster Expenses.’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to amounts paid or incurred after December 31, 2007.CommentsClose CommentsPermalink

SEC. 4. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED DISASTERS.

(a) In General- Paragraph (1) of section 172(b) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(J) CERTAIN LOSSES ATTRIBUTABLE FEDERALLY DECLARED DISASTERS- In the case of a taxpayer who has a qualified disaster loss (as defined in subsection (j)), such loss shall be a net operating loss carryback to each of the 5 taxable years preceding the taxable year of such loss.’.CommentsClose CommentsPermalink





(b) Qualified Disaster Loss- Section 172 is amended by redesignating subsections (j) and (k) as subsections (k) and (l), respectively, and by inserting after subsection (i) the following new subsection:CommentsClose CommentsPermalink





‘(j) Rules Relating to Qualified Disaster Losses- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘qualified disaster loss’ means the lesser of--CommentsClose CommentsPermalink





‘(A) the sum of--CommentsClose CommentsPermalink





‘(i) the losses allowable under section 165 for the taxable year--CommentsClose CommentsPermalink





‘(I) attributable to a federally declared disaster (as defined in section 165(h)(3)(C)(i)) occurring after December 31, 2007, and before January 1, 2012, andCommentsClose CommentsPermalink





‘(II) occurring in a disaster area (as defined in section 165(h)(3)(C)(ii)), andCommentsClose CommentsPermalink





‘(ii) the deduction for the taxable year for qualified disaster expenses which is allowable under section 198A(a) or which would be so allowable if not otherwise treated as an expense, orCommentsClose CommentsPermalink





‘(B) the net operating loss for such taxable year.CommentsClose CommentsPermalink





‘(2) COORDINATION WITH SUBSECTION (b)(2)- For purposes of applying subsection (b)(2), a qualified disaster loss for any taxable year shall be treated in a manner similar to the manner in which a specified liability loss is treated.CommentsClose CommentsPermalink





‘(3) ELECTION- Any taxpayer entitled to a 5-year carryback under subsection (b)(1)(J) from any loss year may elect to have the carryback period with respect to such loss year determined without regard to subsection (b)(1)(J). Such election shall be made in such manner as may be prescribed by the Secretary and shall be made by the due date (including extensions of time) for filing the taxpayer’s return for the taxable year of the net operating loss. Such election, once made for any taxable year, shall be irrevocable for such taxable year.’.CommentsClose CommentsPermalink





(c) Loss Deduction Allowed in Computing Alternative Minimum Taxable Income- Subsection (d) of section 56 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(3) NET OPERATING LOSS ATTRIBUTABLE TO FEDERALLY DECLARED DISASTERS- In the case of a taxpayer which has a qualified disaster loss (as defined by section 172(b)(1)(J)) for the taxable year, paragraph (1) shall be applied by increasing the amount determined under subparagraph (A)(ii)(I) thereof by the sum of the carrybacks and carryovers of such loss.’.CommentsClose CommentsPermalink





(d) Conforming Amendments-CommentsClose CommentsPermalink





(1) Clause (ii) of section 172(b)(1)(F) is amended by inserting ‘or qualified disaster loss (as defined in subsection (j))’ before the period at the end of the last sentence.CommentsClose CommentsPermalink





(2) Paragraph (1) of section 172(i) is amended by adding at the end the following new flush sentence:CommentsClose CommentsPermalink





‘Such term shall not include any qualified disaster loss (as defined in subsection (j)).’.CommentsClose CommentsPermalink





(e) Effective Date- The amendments made by this section shall apply to net operating losses for taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 5. WAIVER OF CERTAIN MORTGAGE REVENUE BOND REQUIREMENTS FOLLOWING FEDERALLY DECLARED DISASTERS.

(a) In General- Paragraph (11) of section 143(k) is amended to read as follows:CommentsClose CommentsPermalink





‘(11) SPECIAL RULES FOR FEDERALLY DECLARED DISASTERS-CommentsClose CommentsPermalink





‘(A) PRINCIPAL RESIDENCE DESTROYED- If the principal residence (within the meaning of section 121) of a taxpayer is--CommentsClose CommentsPermalink





‘(i) rendered unsafe for use as a residence by reason of a federally declared disaster, orCommentsClose CommentsPermalink





‘(ii) demolished or relocated by reason of an order of the government of a State or political subdivision thereof on account of a federally declared disaster,CommentsClose CommentsPermalink





then for the 2-year period beginning on the date of the disaster declaration, subsection (d)(1) shall not apply with respect to such taxpayer and subsection (e) shall be applied by substituting ‘110’ for ‘90’ in paragraph (1) thereof.CommentsClose CommentsPermalink





‘(B) PRINCIPAL RESIDENCE DAMAGED-CommentsClose CommentsPermalink





‘(i) IN GENERAL- If the principal residence (within the meaning of section 121) of a taxpayer resulting from a federally declared disaster, was damaged, any owner-financing provided in connection with the repair or reconstruction of such residence shall be treated as a qualified rehabilitation loan.CommentsClose CommentsPermalink





‘(ii) LIMITATION- The aggregate owner-financing to which clause (i) applies shall not exceed the lesser of--CommentsClose CommentsPermalink





‘(I) the cost of such repair or reconstruction, orCommentsClose CommentsPermalink





‘(II) $150,000.CommentsClose CommentsPermalink





‘(C) FEDERALLY DECLARED DISASTER- For purposes of this paragraph, the term ‘federally declared disaster’ has the meaning given such term by section 165(h)(3)(C)(i), except that such term shall not include any disaster occurring before January 1, 2008, or after December 31, 2011.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by subsection (a) shall apply to obligations issued after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 6. DETERMINATION OF STANDARD MILEAGE RATE FOR CHARITABLE CONTRIBUTIONS DEDUCTION.

(a) In General- Subsection (i) of section 170 (relating to standard mileage rate for use of passenger automobile) is amended by adding at the end the following new sentence: ‘In the case of the use of a passenger automobile after the date of the enactment of this sentence and before January 1, 2012, the standard mileage rate shall be the rate determined by the Secretary, which rate shall not be less than the standard mileage rate used for purposes of section 213.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 7. ADDITIONAL LOW INCOME HOUSING ALLOCATIONS.

(a) In General- Subsection (h) of section 42 of is amended by redesignating paragraph (8) as paragraph (9) and by inserting after paragraph (7) the following new paragraph:CommentsClose CommentsPermalink





‘(8) ADDITIONAL ALLOCATIONS FOR DISASTERS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In addition to any other allocation made under this subsection, the Secretary may, upon application by any State, make allocations of housing credit dollar amounts to such State for allocation to buildings in such State consistent with the requirements of subparagraph (C).CommentsClose CommentsPermalink





‘(B) LIMITATIONS- The aggregate qualified disaster allocations made by the Secretary under this paragraph may not exceed $190,000,000. Any allocation which is terminated by the Secretary (by reason of disuse or otherwise) shall not be treated as having been allocated for purposes of the preceding sentence.CommentsClose CommentsPermalink





‘(C) DISASTER HOUSING ALLOCATIONS- For purposes of this section--CommentsClose CommentsPermalink





‘(i) IN GENERAL- Allocations under this paragraph may be made by the Secretary only to States which include a disaster area.CommentsClose CommentsPermalink





‘(ii) PRIORITY FOR HOUSING LOSS DISASTER AREAS- In making allocation under this paragraph, the Secretary shall give priority to housing loss disaster areas.CommentsClose CommentsPermalink





‘(iii) LIMITATION TO BUILDINGS LOCATED IN HOUSING LOSS DISASTER AREAS- Any allocation of housing credit dollar amounts under this paragraph may be allocated by such State (or a housing credit agency of such State) only to--CommentsClose CommentsPermalink





‘(I) buildings located in a disaster area, andCommentsClose CommentsPermalink





‘(II) in the case of any allocation made by reason of a priority under clause (ii), buildings located in the housing loss disaster area with respect to which such priority was given.CommentsClose CommentsPermalink





‘(iv) PRO RATA ALLOCATIONS- The allocations made by the Secretary under this paragraph shall be made ratably over the period described in subparagraph (F) unless the Secretary determines, on the basis of the severity or frequency of disasters, that a different allocation is appropriate.CommentsClose CommentsPermalink





‘(D) HOUSING LOSS DISASTER AREA- For purposes of this paragraph, the term ‘housing loss disaster area’ means any county or municipality--CommentsClose CommentsPermalink





‘(i) with respect to which the Governor of the State in which such county or municipality is located demonstrates to the satisfaction of the Secretary that the lesser of--CommentsClose CommentsPermalink





‘(I) 1,000 dwelling units, orCommentsClose CommentsPermalink





‘(II) 10 percent of the dwelling units located in such county or municipality,CommentsClose CommentsPermalink





have been rendered uninhabitable by reason of damage to or destruction of such units caused by a federally declared disaster, andCommentsClose CommentsPermalink





‘(ii) which is located in a disaster area.CommentsClose CommentsPermalink





‘(E) DEFINITIONS AND SPECIAL RULES- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) FEDERALLY DECLARED DISASTER; DISASTER AREA- The terms ‘federally declared disaster’ and ‘disaster area’ shall have the respective meaning given such terms by section 165(h)(3)(C).CommentsClose CommentsPermalink





‘(ii) NO EFFECT ON CARRYOVERS- An allocation of housing credit dollar amount to a State under this paragraph shall not be taken into account under paragraph (3).CommentsClose CommentsPermalink





‘(iii) CONSULTATION WITH FEMA- Any allocation made under this paragraph by the Secretary shall be made after consultation with the Director of the Federal Emergency Management Agency.CommentsClose CommentsPermalink





‘(F) TERMINATION- Allocations under this paragraph may be made only with respect to disasters occurring during the period beginning on January 1, 2008, and ending on December 31, 2011. No allocation under this paragraph may be made to any building after December 31, 2012.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to allocations made after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 8. PRIVATE ACTIVITY DISASTER BONDS.

(a) In General- Section 144 is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(d) Qualified Disaster Bond-CommentsClose CommentsPermalink





‘(1) IN GENERAL- For purposes of this part, the term ‘qualified disaster bond’ means any bond issued as part of an issue if--CommentsClose CommentsPermalink





‘(A) 95 percent or more of the net proceeds of the issue are to be used for the replacement, repair, reconstruction, or renovation of property of a character subject to the allowance for depreciation which was damaged or destroyed as a result of a federally declared disaster, andCommentsClose CommentsPermalink





‘(B) such bond is designated by a State for purposes of this subsection.CommentsClose CommentsPermalink





‘(2) DESIGNATION OF BONDS-CommentsClose CommentsPermalink





‘(A) DESIGNATION BY STATE- The maximum aggregate face amount of bonds designated under paragraph (1)(B) by any State may not exceed the bond limitation allocated to such State by the Secretary under subparagraph (B).CommentsClose CommentsPermalink





‘(B) ALLOCATION OF BOND LIMITATION-CommentsClose CommentsPermalink





‘(i) IN GENERAL- The Secretary may, upon application by any State, make allocation of bond limitation to such State if such State includes a disaster area.CommentsClose CommentsPermalink





‘(ii) LIMITATION- The aggregate amount of bond limitation allocated to the States by the Secretary under clause (i) may not exceed $13,000,000,000. Any allocation which is terminated by the Secretary (by reason of disuse or otherwise) shall not be treated as having been allocated for purposes of the preceding sentence.CommentsClose CommentsPermalink





‘(iii) PRIORITY FOR BUSINESS LOSS DISASTER AREAS- In making allocation under this subsection, the Secretary shall give priority to business loss disaster areas.CommentsClose CommentsPermalink





‘(iv) LIMITATION TO BUILDINGS LOCATED IN BUSINESS LOSS DISASTER AREAS- Any allocation of bond limitation under this subsection may be used by such State only to issue bonds with respect to--CommentsClose CommentsPermalink





‘(I) property located in a disaster area, andCommentsClose CommentsPermalink





‘(II) in the case of any allocation made by reason of a priority under clause (iii), property located in the business loss disaster area with respect to which such priority was given.CommentsClose CommentsPermalink





‘(v) PRO RATA ALLOCATIONS- The allocations made by the Secretary under this subparagraph shall be made ratably over the period described in paragraph (5) unless the Secretary determines, on the basis of the severity or frequency of disasters, that a different allocation is appropriate.CommentsClose CommentsPermalink





‘(3) BUSINESS LOSS DISASTER AREA- For purposes of this subsection, the term ‘business loss disaster area’ means any county or municipality--CommentsClose CommentsPermalink





‘(A) with respect to which the Governor of the State in which such county or municipality is located demonstrates to the satisfaction of the Secretary that business property located in such county or municipality has sustained damages by reason of a federally declared disaster of at least the lesser of--CommentsClose CommentsPermalink





‘(i) $50,000,000, orCommentsClose CommentsPermalink





‘(ii) 5 percent of the value of all such business property (determined immediately before such disaster on the basis of property tax records or such other method as the Secretary determines appropriate), andCommentsClose CommentsPermalink





‘(B) which is located in a disaster area.CommentsClose CommentsPermalink





‘(4) DEFINITIONS AND SPECIAL RULES- For purposes of this subsection--CommentsClose CommentsPermalink





‘(A) FEDERALLY DECLARED DISASTER; DISASTER AREA- The terms ‘federally declared disaster’ and ‘disaster area’ shall have the respective meaning given such terms by section 165(h)(3)(C).CommentsClose CommentsPermalink





‘(B) CERTAIN USES PROHIBITED- A bond which is part of an issue shall not be treated as a qualified disaster bond if any proceeds of such issue are to be used for any property described in section 1400N(p)(3).CommentsClose CommentsPermalink





‘(C) CONSULTATION WITH FEMA- Any allocation made under this subsection by the Secretary shall be made after consultation with the Director of the Federal Emergency Management Agency.CommentsClose CommentsPermalink





‘(5) TERMINATION- Allocations under this subsection may be made only--CommentsClose CommentsPermalink





‘(A) before December 31, 2012, andCommentsClose CommentsPermalink





‘(B) with respect to disasters occurring during the period beginning on January 1, 2008, and ending on December 31, 2011.’.CommentsClose CommentsPermalink





(b) Exemption From Alternative Minimum Tax-CommentsClose CommentsPermalink





(1) Subparagraph (C) of section 57(a)(5) is amended by redesignating clauses (iv) and (v) as clauses (v) and (vi) and by inserting after clause (iii) the following new clause:CommentsClose CommentsPermalink





‘(iv) EXCEPTION FOR QUALIFIED DISASTER BONDS- For purposes of clause (i), the term ‘private activity bond’ shall not include any qualified disaster bond (as defined in section 144(d)).’.CommentsClose CommentsPermalink





(2) Clause (iii) of section 56(g)(4)(B) is amended--CommentsClose CommentsPermalink





(A) by striking ‘section 57(a)(5)(C)(iii)’ and inserting ‘clause (iii) or (iv) of section 57(a)(5)(C)’, andCommentsClose CommentsPermalink





(B) by striking ‘HOUSING’ in the heading thereof.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 141(e)(1) is amended by striking ‘or’ at the end of subparagraph (F), by striking the period at the end of subparagraph (G) and inserting ‘, or’, and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(H) qualified disaster bond.’.CommentsClose CommentsPermalink





(2) Section 146(g) is amended by striking ‘and’ at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting ‘, and’, and by inserting after paragraph (4) the following new paragraph:CommentsClose CommentsPermalink





‘(5) any qualified disaster bond.’.CommentsClose CommentsPermalink





(3) The heading of section 144 is amended by inserting ‘; qualified disaster bond’ after ‘qualified redevelopment bond’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 9. WAIVER OF LIMITATION ON CHARITABLE CONTRIBUTIONS FOR DISASTER RELIEF.

(a) In General- Section 170(b) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(3) WAIVER OF LIMITATION IN CASE OF DISASTER RELIEF-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Except as otherwise provided in subparagraph (B), paragraphs (1) and (2) shall not apply to qualified disaster contributions and such contributions shall not be taken into account for purposes of applying such paragraphs or subsection (d) to other contributions.CommentsClose CommentsPermalink





‘(B) TREATMENT OF EXCESS CONTRIBUTIONS- For purposes of this section--CommentsClose CommentsPermalink





‘(i) INDIVIDUALS- In the case of an individual--CommentsClose CommentsPermalink





‘(I) LIMITATION- Any qualified disaster contribution shall be allowed only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer’s contribution base over the amount of all other charitable contributions allowable under paragraph (1).CommentsClose CommentsPermalink





‘(II) CARRYOVER- If the aggregate amount of qualified disaster contributions made in the contribution year (within the meaning of subsection (d)(1)) exceeds the limitation of subclause (I), such excess shall be added to the excess described in the portion of subparagraph (A) of such subsection which precedes clause (i) thereof for purposes of applying such subsection.CommentsClose CommentsPermalink





‘(ii) CORPORATIONS- In the case of a corporation--CommentsClose CommentsPermalink





‘(I) LIMITATION- Any qualified disaster contribution shall be allowed only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer’s taxable income (as determined under paragraph (2)) over the amount of all other charitable contributions allowable under such paragraph.CommentsClose CommentsPermalink





‘(II) CARRYOVER- Rules similar to the rules of clause (i)(II) shall apply for purposes of this clause.CommentsClose CommentsPermalink





‘(C) EXCEPTION TO OVERALL LIMITATION ON ITEMIZED DEDUCTIONS- So much of any deduction allowed under this section as does not exceed the qualified disaster contributions paid during the taxable year shall not be treated as an itemized deduction for purposes of section 68.CommentsClose CommentsPermalink





‘(D) QUALIFIED DISASTER CONTRIBUTIONS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- For purposes of this subsection, the term ‘qualified disaster contribution’ means any charitable contribution if--CommentsClose CommentsPermalink





‘(I) such contribution is paid during the period beginning on the date of the enactment of this paragraph, and ending on December 31, 2009, in cash to an organization described in paragraph (1)(A) (other than an organization described in section 509(a)(3)),CommentsClose CommentsPermalink





‘(II) such contribution is for relief efforts related to a federally declared disaster (as defined in section 165(h)(3)(C)(i)), andCommentsClose CommentsPermalink





‘(III) the taxpayer has elected the application of this subsection with respect to such contribution.CommentsClose CommentsPermalink





‘(ii) EXCEPTION- Such term shall not include a contribution if the contribution is for establishment of a new, or maintenance in a donor advised fund (as defined in section 4966(d)(2)).CommentsClose CommentsPermalink





‘(iii) APPLICATION OF ELECTION TO PARTNERSHIPS AND S CORPORATIONS- In the case of a partnership or S corporation, the election under clause (i)(III) shall be made separately by each partner or shareholder.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.CommentsClose CommentsPermalink

Passed the House of Representatives September 24, 2008.CommentsClose CommentsPermalink

Attest:CommentsClose CommentsPermalink

Clerk. LORRAINE C. MILLER, CommentsClose CommentsPermalink

110th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 7006CommentsClose CommentsPermalink

AN ACTCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide disaster assistance relief.CommentsClose CommentsPermalink