To extend tax relief to the residents and businesses of 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 (FEMA-1711-DR) by reason of severe storms and flooding beginning on June 26, 2007, and determined by the President to warrant individual or individual and public assistance from the Federal Government under such Act.

Summary: Kansas Flood Recovery and Economic Opportunity Act of 2007 - Establishes the federal share of assistance for the state of Kansas under the Robert T. Stafford Disaster Relief and Emergency Assistance Act for the storms and flooding in that state between June 26, 2007, and July 25, 2007, at 100% of eligible costs.

Extends to certain areas in Kansas declared by the President as major disaster areas under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (FEMA-1711-DR, as in effect on the date of enactment of this Act) by reason of severe storms and flooding beginning on June 26, 2007, provisions of the Internal Revenue Code allowing: (1) suspension of certain limitations on personal casualty losses; (2) an extension of the period for replacing damaged property without recognizing gain; (3) an employee retention tax credit for affected businesses through 2007; (4) bonus depreciation for certain property acquired after June 26, 2007; (5) increased expensing of small business assets and of demolition and cleanup costs; (6) an increase in the tax credit for rehabilitation expenditures; (7) extended net operating loss carryback periods for losses attributable to storms and for public utility property disaster losses; (8) relaxed income verification requirements for tenants in low-income rental projects; and (9) penalty-free withdrawals and loans from individual retirement accounts and other tax-exempt pension plans.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Kansas Flood Recovery and Economic 
Opportunity Act of 2007''.

SEC. 2. INCREASED FEDERAL SHARE FOR DISASTER ASSISTANCE.

    (a) In General.--Notwithstanding any other provision of law, 
including any agreement, the Federal share of assistance, including 
direct Federal assistance, provided for the State of Kansas in 
connection with the severe storms and flooding which began on June 26, 
2007, and ended on July 25, 2007, under sections 403, 406, 407, and 408 
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5170b, 5172, 5173, and 5174) shall be 100 percent of the 
eligible costs under such sections.
    (b) Applicability.--
            (1) In general.--The Federal share provided by subsection 
        (a) shall apply to disaster assistance applied for before the 
        date of enactment of this Act.
            (2) Limitation.--In the case of disaster assistance 
        provided under sections 403, 406, and 407 of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act, the 
        Federal share provided by subsection (a) shall be limited to 
        assistance provided for projects for which a ``request for 
        public assistance form'' has been submitted.

SEC. 3. TEMPORARY TAX RELIEF FOR FLOODED AREAS IN KANSAS.

    The following provisions of or relating to the Internal Revenue 
Code of 1986 shall apply, in addition to the areas described in such 
provisions, to 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 (FEMA-1711-DR, as in 
effect on the date of the enactment of this Act) by reason of severe 
storms and flooding beginning on June 26, 2007, and determined by the 
President to warrant individual or individual and public assistance 
from the Federal Government under such Act with respect to damages 
attributed to such storms and flooding:
            (1) Suspension of certain limitations on personal casualty 
        losses.--Section 1400S(b)(1) of the Internal Revenue Code of 
        1986, by substituting ``June 26, 2007'' for ``August 25, 
        2005''.
            (2) Extension of replacement period for nonrecognition of 
        gain.--Section 405 of the Katrina Emergency Tax Relief Act of 
        2005, by substituting ``on or after June 26, 2007, by reason of 
        the severe storms and flooding described in the Kansas Flood 
        Recovery and Economic Opportunity Act of 2007'' for ``on or 
        after August 25, 2005, by reason of Hurricane Katrina''.
            (3) Employee retention credit for employers affected by 
        june 26 storms and floods.--Section 1400R(a) of the Internal 
        Revenue Code of 1986--
                    (A) by substituting ``June 26, 2007'' for ``August 
                28, 2005'' each place it appears,
                    (B) by substituting ``January 1, 2008'' for 
                ``January 1, 2006'' both places it appears, and
                    (C) only with respect to eligible employers who 
                employed an average of not more than 200 employees on 
                business days during the most recent taxable year 
                ending before June 26, 2007.
            (4) Special allowance for certain property acquired on or 
        after june 26, 2007.--Section 1400N(d) of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                property'' for ``qualified Gulf Opportunity Zone 
                property'' each place it appears,
                    (B) by substituting ``June 26, 2007'' for ``August 
                28, 2005'' each place it appears,
                    (C) by substituting ``December 31, 2008'' for 
                ``December 31, 2007'' in paragraph (2)(A)(v),
                    (D) by substituting ``December 31, 2009'' for 
                ``December 31, 2008'' in paragraph (2)(A)(v),
                    (E) by substituting ``June 25, 2007'' for ``August 
                27, 2005'' in paragraph (3)(A),
                    (F) by substituting ``January 1, 2009'' for 
                ``January 1, 2008'' in paragraph (3)(B), and
                    (G) determined without regard to paragraph (6) 
                thereof.
            (5) Increase in expensing under section 179.--Section 
        1400N(e) of such Code, by substituting ``qualified section 179 
        Recovery Assistance property'' for ``qualified section 179 Gulf 
        Opportunity Zone property'' each place it appears.
            (6) Expensing for certain demolition and clean-up costs.--
        Section 1400N(f) of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                clean-up cost'' for ``qualified Gulf Opportunity Zone 
                clean-up cost'' each place it appears, and
                    (B) by substituting ``beginning on June 26, 2007, 
                and ending on December 31, 2009'' for ``beginning on 
                August 28, 2005, and ending on December 31, 2007'' in 
                paragraph (2) thereof.
            (7) Increase in rehabilitation credit.--Section 1400N(h) of 
        such Code by substituting ``on June 26, 2007, and ending on 
        December 31, 2009'' for ``on August 28, 2005, and ending on 
        December 31, 2008''.
            (8) Treatment of net operating losses attributable to storm 
        losses.--Section 1400N(k) of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                loss'' for ``qualified Gulf Opportunity Zone loss'' 
                each place it appears,
                    (B) by substituting ``after June 25, 2007, and 
                before January 1, 2010'' for ``after August 27, 2005, 
                and before January 1, 2008'' each place it appears,
                    (C) by substituting ``June 26, 2007'' for ``August 
                28, 2005'' in paragraph (2)(B)(ii)(I) thereof,
                    (D) by substituting ``qualified Recovery Assistance 
                property'' for ``qualified Gulf Opportunity Zone 
                property'' in paragraph (2)(B)(iv) thereof, and
                    (E) by substituting ``qualified Recovery Assistance 
                casualty loss'' for ``qualified Gulf Opportunity Zone 
                casualty loss'' each place it appears.
            (9) Treatment of public utility property disaster losses.--
        Section 1400N(o) of such Code.
            (10) Treatment of representations regarding income 
        eligibility for purposes of qualified rental project 
        requirements.--Section 1400N(n) of such Code.
            (11) Special rules for use of retirement funds.--Section 
        1400Q of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                distribution'' for ``qualified hurricane distribution'' 
                each place it appears,
                    (B) by substituting ``on or after June 26, 2007, 
                and before January 1, 2009'' for ``on or after August 
                25, 2005, and before January 1, 2007'' in subsection 
                (a)(4)(A)(i),
                    (C) by substituting ``qualified storm 
                distribution'' for ``qualified Katrina distribution'' 
                each place it appears,
                    (D) by substituting ``after December 27, 2006, and 
                before June 26, 2007'' for ``after February 28, 2005, 
                and before August 29, 2005'' in subsection 
                (b)(2)(B)(ii),
                    (E) by substituting ``beginning on June 26, 2007, 
                and ending on December 27, 2007'' for ``beginning on 
                August 25, 2005, and ending on February 28, 2006'' in 
                subsection (b)(3)(A),
                    (F) by substituting ``qualified storm individual'' 
                for ``qualified Hurricane Katrina individual'' each 
                place it appears,
                    (G) by substituting ``December 31, 2008'' for 
                ``December 31, 2006'' in subsection (c)(2)(A),
                    (H) by substituting ``beginning on the date of the 
                enactment of the Kansas Flood Recovery and Economic 
                Opportunity Act of 2007, and ending on December 31, 
                2008'' for ``beginning on September 24, 2005, and 
                ending on December 31, 2006'' in subsection 
                (c)(4)(A)(i),
                    (I) by substituting ``June 26, 2007'' for ``August 
                25, 2005'' in subsection (c)(4)(A)(ii), and
                    (J) by substituting ``January 1, 2008'' for 
                ``January 1, 2007'' in subsection (d)(2)(A)(ii).