HR 2953 IHCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to allow individuals either a credit against income tax or a deduction for expenses paid or incurred by reason of a voluntary or mandatory evacuation.CommentsClose CommentsPermalink

June 18, 2009CommentsClose CommentsPermalink

Mr. PAUL introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to allow individuals either a credit against income tax or a deduction for expenses paid or incurred by reason of a voluntary or mandatory evacuation.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.

This Act may be cited as the ‘Evacuees Tax Relief Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. EVACUATION EXPENSES.

(a) Credit for Evacuation Expenses- Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section:CommentsClose CommentsPermalink

‘SEC. 25E. EVACUATION EXPENSES.

‘(a) Allowance of Credit- In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the qualified evacuation expenses paid or incurred by the individual during the taxable year.CommentsClose CommentsPermalink





‘(b) Dollar Limitation- With respect to an individual, the aggregate amount of qualified evacuation expenses which may be taken into account under subsection (a) for all taxable years during the credit allowance period shall not exceed $5,000.CommentsClose CommentsPermalink





‘(c) Qualified Evacuation Expenses- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘qualified evacuation expenses’ means, with respect to any taxable year during the credit allowance period, the sum of all expenses paid or incurred by the individual during such taxable year by reason of a qualified evacuation. Such expenses shall include travel and lodging expenses as do not exceed $1,000, lost wages, and any property damage not compensated for by insurance or otherwise.CommentsClose CommentsPermalink





‘(2) QUALIFIED EVACUATION- With respect to an individual, the term ‘qualified evacuation’ means a voluntary or mandatory evacuation ordered by reason of a qualified disaster (as defined in section 139(c)) of an area in which such individual resides on the date of such disaster.CommentsClose CommentsPermalink





‘(3) CREDIT ALLOWANCE PERIOD- With respect to a qualified evacuation, the term ‘credit allowance period’ means the taxable year or years during which the evacuation occurred and each of the 3 succeeding taxable years.CommentsClose CommentsPermalink





‘(d) Portion of Credit Refundable-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The aggregate credits allowed to an individual under subpart C shall be increased by the lesser of--CommentsClose CommentsPermalink





‘(A) the credit which would be allowed under this section without regard to this subsection, orCommentsClose CommentsPermalink





‘(B) the amount by which the aggregate amount of credits allowed by this subpart (determined without regard to this subsection) would increase if the limitation imposed by section 26(a) were increased by the individual’s social security taxes for the taxable year.CommentsClose CommentsPermalink





The amount of the credit allowed under this subsection shall not be treated as a credit allowed under this subpart and shall reduce the amount of credit otherwise allowable under subsection (a).CommentsClose CommentsPermalink





‘(2) SOCIAL SECURITY TAXES- For purposes of paragraph (1)--CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘social security taxes’ means, with respect to any taxpayer for any taxable year--CommentsClose CommentsPermalink





‘(i) the amount of the taxes imposed by section 3101 and 3201(a) on amounts received by the taxpayer during the calendar year in which the taxable year begins,CommentsClose CommentsPermalink





‘(ii) 50 percent of the taxes imposed by section 1401 on the self-employment income of the taxpayer for the taxable year, andCommentsClose CommentsPermalink





‘(iii) 50 percent of the taxes imposed by section 3211(a)(1) on amounts received by the taxpayer during the calendar year in which the taxable year begins.CommentsClose CommentsPermalink





‘(B) COORDINATION WITH SPECIAL REFUND OF SOCIAL SECURITY TAXES- The term ‘social security taxes’ shall not include any taxes to the extent the taxpayer is entitled to a special refund of such taxes under section 6413(c).CommentsClose CommentsPermalink





‘(C) SPECIAL RULE- Any amounts paid pursuant to an agreement under section 3121(l) (relating to agreements entered into by American employers with respect to foreign affiliates) which are equivalent to the taxes referred to in subparagraph (A)(i) shall be treated as taxes referred to in such paragraph.CommentsClose CommentsPermalink





‘(e) Denial of Double Benefit- No credit shall be allowed under subsection (a) for any expense for which a deduction or credit is allowed under any other provision of this chapter.CommentsClose CommentsPermalink





‘(f) Election Not To Have Section Apply- An individual may elect not to have this section apply with respect to the qualified evacuation expenses of the individual for any taxable year.’.CommentsClose CommentsPermalink





(b) Deduction for Evacuation Expenses-CommentsClose CommentsPermalink





(1) IN GENERAL- Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to additional itemized deductions for individuals) is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section:CommentsClose CommentsPermalink

‘SEC. 224. DEDUCTION FOR EVACUATION EXPENSES.

‘(a) Allowance of Deduction- In the case of an individual, there shall be allowed as a deduction an amount equal to the qualified evacuation expenses paid or incurred by the individual during the taxable year.CommentsClose CommentsPermalink





‘(b) Dollar Limitation- With respect to an individual, the aggregate amount of qualified evacuation expenses which may be taken into account under subsection (a) for all taxable years during the deduction allowance period shall not exceed $5,000.CommentsClose CommentsPermalink





‘(c) Qualified Evacuation Expenses- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘qualified evacuation expenses’ means, with respect to any taxable year during the deduction allowance period, the sum of all expenses paid or incurred by the individual during such taxable year by reason of a qualified evacuation. Such expenses shall include travel and lodging expenses as do not exceed $1,000, lost wages, and any property damage not compensated for by insurance or otherwise.CommentsClose CommentsPermalink





‘(2) QUALIFIED EVACUATION- With respect to an individual, the term ‘qualified evacuation’ means a voluntary or mandatory evacuation ordered by reason of a qualified disaster (as defined in section 139(c)) of an area in which such individual resides on the date of such disaster.CommentsClose CommentsPermalink





‘(3) DEDUCTION ALLOWANCE PERIOD- With respect to a qualified evacuation, the term ‘deduction allowance period’ means the taxable year or years during which the evacuation occurred and each of the 3 succeeding taxable years.CommentsClose CommentsPermalink





‘(d) Denial of Double Benefit- No deduction shall be allowed under subsection (a) for any expense for which a deduction or credit is allowed under any other provision of this chapter.CommentsClose CommentsPermalink





‘(e) Election Not To Have Section Apply- An individual may elect not to have this section apply with respect to the qualified evacuation expenses of the individual for any taxable year.’.CommentsClose CommentsPermalink





(2) DEDUCTION ALLOWED WHETHER OR NOT INDIVIDUAL ITEMIZES OTHER DEDUCTIONS- Subsection (a) of section 62 of such Code is amended by inserting after paragraph (21) the following new paragraph:CommentsClose CommentsPermalink





‘(22) DEDUCTION FOR EVACUATION EXPENSES- The deduction allowed by section 224.’.CommentsClose CommentsPermalink





(c) Clerical Amendments-CommentsClose CommentsPermalink





(1) The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item:CommentsClose CommentsPermalink





‘Sec. 25E. Evacuation expenses.’.CommentsClose CommentsPermalink





(2) The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by striking the last item and inserting the following new items:CommentsClose CommentsPermalink





‘Sec. 224. Deduction for evacuation expenses.CommentsClose CommentsPermalink





‘Sec. 225. Cross reference.’.CommentsClose CommentsPermalink





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