To provide emergency tax relief for persons affected by Hurricane Wilma.

Summary: Hurricane Wilma Taxpayer Relief Act of 2005 - Amends the Internal Revenue to provide tax relief for victims of Hurricane Wilma, including by: (1) exempting retirement plan distributions for Hurricane Wilma relief made after October 23, 2005, and before January 1, 2007, from the penalty for premature retirement plan distributions. (2) allowing three-year income averaging, for income tax purposes, of retirement plan distributions for Hurricane Wilma relief; (3) allowing the recontribution of retirement plan distributions intended for home purchases that were canceled due to Hurricane Wilma; (4) allowing tax-free loans from retirement plans for Hurricane Wilma relief; (5) suspending limitations on the tax deduction for the charitable contributions of corporations for Hurricane Wilma relief; (6) increasing the standard mileage rate for the charitable use of a vehicle for Hurricane Wilma relief; (7) excluding from the gross income of charitable volunteers reimbursements for the use of automobiles to provide Hurricane Wilma relief; (8) suspending limitations on the tax deduction for personal casualty losses attributable to Hurricane Wilma; and (9) extending from two to five years the mandatory replacement period for property compulsorily or involuntarily converted due to Hurricane Wilma.

Declares that 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]).

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``Hurricane Wilma 
Taxpayer 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 Wilma disaster area.
TITLE I--SPECIAL RULES FOR USE OF RETIREMENT FUNDS FOR RELIEF RELATING 
                           TO HURRICANE WILMA

Sec. 101. Tax-favored withdrawals from retirement plans for relief 
                            relating to Hurricane Wilma.
Sec. 102. Recontributions of withdrawals for home purchases cancelled 
                            due to Hurricane Wilma.
Sec. 103. Loans from qualified plans for relief relating to Hurricane 
                            Wilma.
Sec. 104. Provisions relating to plan amendments.
                 TITLE II--CHARITABLE GIVING INCENTIVES

Sec. 201. Temporary suspension of limitations on charitable 
                            contributions.
Sec. 202. Increase in standard mileage rate for charitable use of 
                            vehicles.
Sec. 203. Mileage reimbursements to charitable volunteers excluded from 
                            gross income.
              TITLE III--ADDITIONAL TAX RELIEF PROVISIONS

Sec. 301. Suspension of certain limitations on personal casualty 
                            losses.
Sec. 302. Extension of replacement period for nonrecognition of gain 
                            for property located in Hurricane Wilma 
                            disaster area.
                    TITLE IV--EMERGENCY REQUIREMENT

Sec. 401. Emergency requirement.

SEC. 2. HURRICANE WILMA DISASTER AREA.

    For purposes of this Act--
            (1) Hurricane wilma disaster area.--The term ``Hurricane 
        Wilma disaster area'' means an area with respect to which a 
        major disaster has been declared by the President under section 
        401 of the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act by reason of Hurricane Wilma.
            (2) Core disaster area.--The term ``core disaster area'' 
        means that portion of the Hurricane Wilma 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 WILMA

SEC. 101. TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS FOR RELIEF 
              RELATING TO HURRICANE WILMA.

    (a) In General.--Section 72(t) of the Internal Revenue Code of 1986 
shall not apply to any qualified Hurricane Wilma 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 Wilma distributions 
        for any taxable year shall not exceed the excess (if any) of--
                    (A) $100,000, over
                    (B) the sum of--
                            (i) the aggregate amounts treated as 
                        qualified Hurricane Wilma distributions 
                        received by such individual for all prior 
                        taxable years, and
                            (ii) the aggregate amounts treated as 
                        qualified Hurricane Katrina distributions (as 
                        defined in section 101 of the Katrina Emergency 
                        Relief Act of 2005) received by such individual 
                        for such taxable year and 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 Wilma 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 Wilma distribution, unless the 
        aggregate amount of such distributions and qualified Hurricane 
        Katrina distributions (as defined in section 101 of the Katrina 
        Emergency Tax Relief Act of 2005) 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 Wilma 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 Wilma 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 Wilma 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 Wilma 
        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 Wilma 
        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.
    (d) Definitions.--For purposes of this section--
            (1) Qualified hurricane wilma distribution.--Except as 
        provided in subsection (b), the term ``qualified Hurricane 
        Wilma distribution'' means any distribution from an eligible 
        retirement plan made on or after October 23, 2005, and before 
        January 1, 2007, to an individual whose principal place of 
        abode on October 23, 2005, is located in the Hurricane Wilma 
        disaster area and who has sustained an economic loss by reason 
        of Hurricane Wilma.
            (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 Wilma Distributions.--
            (1) In general.--In the case of any qualified Hurricane 
        Wilma 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 
        Wilma distributions shall not be treated as eligible rollover 
        distributions.
            (2) Qualified hurricane wilma distributions treated as 
        meeting plan distribution requirements.--For purposes of such 
        Code, a qualified Hurricane Wilma 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 WILMA.

    (a) Recontributions.--
            (1) In general.--Any individual who received a qualified 
        distribution may, during the period beginning on October 23, 
        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 October 
        24, 2005, and
            (3) which was to be used to purchase or construct a 
        principal residence in the Hurricane Wilma disaster area, but 
        which was not so purchased or constructed on account of 
        Hurricane Wilma.
    (c) Coordination With Recontributions Due to Hurricane Katrina.--In 
the case of any distribution which is a qualified distribution under 
this section and under section 102 of the Katrina Emergency Tax Relief 
Act of 2005, the amount of the contributions that may be made under 
paragraph (1) with respect to such distribution shall be reduced by the 
amount of any contributions taking into account section 102 of such 
Act.

SEC. 103. LOANS FROM QUALIFIED PLANS FOR RELIEF RELATING TO HURRICANE 
              WILMA.

    (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 October 23, 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 October 23, 
        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 October 23, 2005, is located in the Hurricane Wilma disaster 
area and who has sustained an economic loss by reason of Hurricane 
Wilma.

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--CHARITABLE GIVING INCENTIVES

SEC. 201. TEMPORARY SUSPENSION OF LIMITATIONS ON CHARITABLE 
              CONTRIBUTIONS.

    For purposes of section 301 of the Katrina Emergency Tax Relief Act 
of 2005, a charitable contribution (as defined in section 170(c) of the 
Internal Revenue Code of 1986) paid by a corporation for relief efforts 
related to Hurricane Wilma shall be treated as though such contribution 
were paid for relief efforts related to Hurricane Katrina.

SEC. 202. 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 Wilma during the 
period beginning on October 23, 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. 203. 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 
October 23, 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 Wilma during the period beginning on October 23, 
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) of such Code 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).

              TITLE III--ADDITIONAL TAX RELIEF PROVISIONS

SEC. 301. 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 Wilma disaster area on or 
after October 23, 2005, and which are attributable to Hurricane Wilma. 
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. 302. EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNITION OF GAIN 
              FOR PROPERTY LOCATED IN HURRICANE WILMA 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 Wilma disaster area which is 
compulsorily or involuntarily converted on or after October 23, 2005, 
by reason of Hurricane Wilma, but only if substantially all of the use 
of the replacement property is in such area.

                    TITLE IV--EMERGENCY REQUIREMENT

SEC. 401. 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).