To provide tax relief with respect to the Hurricane Isaac disaster area.

Summary: Investment Savings Access After Catastrophes Act of 2012 - Defines "Hurricane Isaac disaster area" for purposes of this Act as any parish or county of Louisiana or Mississippi in an area in which a major disaster has been declared before September 10, 2012, under the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of Hurricane Isaac.

Provides for tax preferences in the Hurricane Isaac disaster area, including: (1) suspension of limitations on the tax deduction for personal casualty losses, (2) an extension of the carryback period for net operating losses, and (3) tax-free distributions from a retirement plan made on or after August 26, 2012, and before September 11, 2014, to an individual whose principal place of abode on August 26, 2012, was located in the Hurricane Isaac disaster area and who sustained an economic loss due to Hurricane Isaac.

Rescinds unobligated funds in an amount equal to the reduction in revenues resulting from the enactment of this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Investment Savings Access After 
Catastrophes Act of 2012''.

SEC. 2. HURRICANE ISAAC DISASTER AREA.

    For purposes of this Act, the term ``Hurricane Isaac disaster 
area'' means any parish or county of Louisiana or Mississippi which is 
(in whole or in part) in the area with respect to which a major 
disaster has been declared by the President before September 10, 2012, 
under section 401 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act by reason of Hurricane Isaac.

SEC. 3. SUSPENSION OF PERSONAL CASUALTY LOSS LIMITATIONS.

    Paragraphs (1) and (2) 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 Isaac disaster area during 
the 2-year period beginning on August 26, 2012, and which are 
attributable to Hurricane Isaac. 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. 4. TREATMENT OF NET OPERATING LOSSES ATTRIBUTABLE TO HURRICANE 
              ISAAC.

    (a) Extension of Carryback Period.--During the 2-year period 
beginning on August 26, 2012, if a portion of any net operating loss of 
the taxpayer for any taxable year is a Hurricane Isaac loss, section 
172(b)(1) of the Internal Revenue Code of 1986 shall be applied with 
respect to such portion--
            (1) by substituting ``5 taxable years'' for ``2 taxable 
        years'' in subparagraph (A)(i) thereof, and
            (2) by not taking such portion into account in determining 
        any eligible loss of the taxpayer under subparagraph (F) 
        thereof for the taxable year.
    (b) Suspension of 90 Percent AMT Limitation.--Section 56(d)(1) of 
such Code shall be applied by increasing the amount determined under 
subparagraph (A)(ii)(I) thereof by the sum of the carrybacks and 
carryovers of any net operating loss attributable to the portion 
described in subsection (a).
    (c) Hurricane Isaac Loss.--For purposes of this section--
            (1) In general.--The term ``Hurricane Isaac loss'' means 
        the lesser of--
                    (A) the excess of--
                            (i) the net operating loss for such taxable 
                        year, over
                            (ii) the specified liability loss for such 
                        taxable year to which a 10-year carryback 
                        applies under section 172(b)(1)(C) of such 
                        Code, or
                    (B) the amount of any deduction for any qualified 
                Hurricane Isaac casualty loss to the extent taken into 
                account in computing the net operating loss for such 
                taxable year.
            (2) Qualified hurricane isaac casualty loss.--
                    (A) In general.--The term ``qualified Hurricane 
                Isaac casualty loss'' means any uncompensated section 
                1231 loss (as defined in section 1231(a)(3)(B) of such 
                Code) of property located in the Hurricane Isaac 
                disaster area if--
                            (i) such loss is allowed as a deduction 
                        under section 165 of such Code for the taxable 
                        year, and
                            (ii) such loss is by reason of Hurricane 
                        Isaac.
                    (B) Applicable rules.--For purposes of subparagraph 
                (A), rules similar to the rules of subparagraphs (B) 
                and (C) of paragraph (3), and paragraph (4), of section 
                1400N(k) of such Code and shall apply.

SEC. 5. TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS.

    (a) In General.--A qualified Hurricane Isaac distribution shall be 
treated as a qualified hurricane distribution for purposes of section 
1400Q(a) of the Internal Revenue Code of 1986.
    (b) Qualified Hurricane Isaac Distribution.--For purposes of 
subsection (a), the term ``qualified Hurricane Isaac distribution'' 
means any distribution from an eligible retirement plan made on or 
after August 26, 2012, and before September 11, 2014, to an individual 
whose principal place of abode on August 26, 2012, is located in the 
Hurricane Isaac disaster area and who has sustained an economic loss by 
reason of Hurricane Isaac.
    (c) Applicable Rules.--For purposes of this section, rules similar 
to the rules of section 1400Q(a) of such Code (other than paragraph 
(4)(A) thereof) shall apply.

SEC. 6. RESCISSION OF UNSPENT AND UNCOMMITTED FEDERAL FUNDS.

    (a) In General.--Notwithstanding any other provision of law, of all 
available unobligated Federal funds, an amount in appropriated 
discretionary unexpired funds determined by the Director of the Office 
of Management and Budget to be equal to the reduction in Federal 
revenues by reason of the enactment of this Act is rescinded.
    (b) Implementation.--Not later than 60 days after the date of 
enactment of this Act, the Director of the Office of Management and 
Budget shall--
            (1) identify the accounts and amounts rescinded to 
        implement subsection (a); and
            (2) submit a report to the Secretary of the Treasury and 
        Congress of the accounts and amounts identified under paragraph 
        (1) for rescission.
    (c) Exception.--This section shall not apply to the unobligated 
Federal funds of the Department of Defense or the Department of 
Veterans Affairs.