II 

Calendar No. 28 

116TH CONGRESS 

1ST SESSION S. 617 

To amend the Internal Revenue Code of 1986 to extend certain expiring 

provisions, to provide disaster tax relief, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 28, 2019 

Mr. GRASSLEY (for himself and Mr. WYDEN) introduced the following bill; 

which was read the first time 

MARCH 4, 2019 

Read the second time and placed on the calendar 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

certain expiring provisions, to provide disaster tax relief, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE, ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Tax Extender and Disaster Relief Act of 2019’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amendVerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617

pamtmann on DSKBFK8HB2PROD with BILLS
2 

•S 617 PCS

1 ment or repeal is expressed in terms of an amendment 

2 to, or repeal of, a section or other provision, the reference 

3 shall be considered to be made to a section or other provi4 sion of the Internal Revenue Code of 1986. 

5 (c) TABLE OF CONTENTS.—The table of contents of 

6 this Act is as follows: 

Sec. 1. Short title, etc. 

TITLE I—EXTENSION OF EXPIRING PROVISIONS 

Subtitle A—Provisions Expiring in 2018 

Sec. 101. Nonbusiness energy property. 

Sec. 102. Qualified fuel cell motor vehicles. 

Sec. 103. Alternative fuel refueling property credit. 

Sec. 104. 2-wheeled plug-in electric vehicle credit. 

Sec. 105. Second generation biofuel producer credit. 

Sec. 106. Biodiesel and renewable diesel incentives. 

Sec. 107. Credit for electricity produced from certain renewable resources. 

Sec. 108. Production credit for Indian coal facilities. 

Sec. 109. Railroad track maintenance credit. 

Sec. 110. Energy efficient homes credit. 

Sec. 111. Classification of certain race horses as 3-year property. 

Sec. 112. Special allowance for second generation biofuel plant property. 

Sec. 113. Energy efficient commercial buildings deduction. 

Sec. 114. Election to expense advanced mine safety equipment. 

Sec. 115. Extension of special rule for sales or dispositions to implement FERC 

or State electric restructuring policy for qualified electric utilities. 

Sec. 116. Extension and clarification of excise tax credits relating to alternative 

fuels. 

Sec. 117. 7-year recovery period for motorsports entertainment complexes. 

Sec. 118. Accelerated depreciation for business property on Indian reservation. 

Sec. 119. Expensing rules for certain productions. 

Sec. 120. Indian employment credit. 

Sec. 121. Mine rescue team training credit. 

Sec. 122. Exclusion from gross income of discharge of qualified principal residence indebtedness. 

Sec. 123. Treatment of mortgage insurance premiums as qualified residence interest. 

Sec. 124. Deduction of qualified tuition and related expenses. 

Sec. 125. Extension of empowerment zone tax incentives. 

Sec. 126. American Samoa economic development credit. 

Subtitle B—Provisions Expiring in 2019 

Sec. 151. Temporary reduction in medical expense deduction floor. 

Sec. 152. Extension of oil spill liability trust fund rate. 

Sec. 153. Black lung liability trust fund excise tax. 


pamtmann on DSKBFK8HB2PROD with BILLS
3 

•S 617 PCS

TITLE II—DISASTER TAX RELIEF 

Sec. 201. Definitions. 

Sec. 202. Special disaster-related rules for use of retirement funds. 

Sec. 203. Employee retention credit for employers affected by qualified disasters. 

Sec. 204. Other disaster-related tax relief provisions. 

Sec. 205. Treatment of certain possessions. 

1 TITLE I—EXTENSION OF 

2 EXPIRING PROVISIONS 

3 Subtitle A—Provisions Expiring in 

4 2018 

5 SEC. 101. NONBUSINESS ENERGY PROPERTY. 

6 (a) IN GENERAL.—Section 25C(g)(2) is amended by 

7 striking ‘‘December 31, 2017’’ and inserting ‘‘December 

8 31, 2019’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 this section shall apply to property placed in service after 

11 December 31, 2017. 

12 SEC. 102. QUALIFIED FUEL CELL MOTOR VEHICLES. 

13 (a) IN GENERAL.—Section 30B(k)(1) is amended by 

14 striking ‘‘December 31, 2017’’ and inserting ‘‘December 

15 31, 2019’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to property purchased after De18 cember 31, 2017. 


pamtmann on DSKBFK8HB2PROD with BILLS
4 

•S 617 PCS

1 SEC. 103. ALTERNATIVE FUEL REFUELING PROPERTY 

2 CREDIT. 

3 (a) IN GENERAL.—Section 30C(g) is amended by 

4 striking ‘‘December 31, 2017’’ and inserting ‘‘December 

5 31, 2019’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to property placed in service after 

8 December 31, 2017. 

9 SEC. 104. 2-WHEELED PLUG-IN ELECTRIC VEHICLE CREDIT. 

10 (a) IN GENERAL.—Section 30D(g)(3)(E)(ii) is 

11 amended by striking ‘‘January 1, 2018’’ and inserting 

12 ‘‘January 1, 2020’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall apply to vehicles acquired after Decem15 ber 31, 2017. 

16 SEC. 105. SECOND GENERATION BIOFUEL PRODUCER 

17 CREDIT. 

18 (a) IN GENERAL.—Section 40(b)(6)(J)(i) is amended 

19 by striking ‘‘January 1, 2018’’ and inserting ‘‘January 1, 

20 2020’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to qualified second generation 

23 biofuel production after December 31, 2017. 

24 SEC. 106. BIODIESEL AND RENEWABLE DIESEL INCEN25 TIVES. 

26 (a) INCOME TAX CREDIT.— 


pamtmann on DSKBFK8HB2PROD with BILLS
5 

•S 617 PCS

1 (1) IN GENERAL.—Subsection (g) of section 

2 40A is amended by striking ‘‘December 31, 2017’’ 

3 and inserting ‘‘December 31, 2019’’. 

4 (2) EFFECTIVE DATE.—The amendment made 

5 by this subsection shall apply to fuel sold or used 

6 after December 31, 2017. 

7 (b) EXCISE TAX INCENTIVES.— 

8 (1) IN GENERAL.—Section 6426(c)(6) is 

9 amended by striking ‘‘December 31, 2017’’ and in10 serting ‘‘December 31, 2019’’. 

11 (2) PAYMENTS.—Section 6427(e)(6)(B) is 

12 amended by striking ‘‘December 31, 2017’’ and in13 serting ‘‘December 31, 2019’’. 

14 (3) EFFECTIVE DATE.—The amendments made 

15 by this subsection shall apply to fuel sold or used 

16 after December 31, 2017. 

17 (4) SPECIAL RULE FOR 2018.—Notwithstanding 

18 any other provision of law, in the case of any bio19 diesel mixture credit properly determined under sec20 tion 6426(c) of the Internal Revenue Code of 1986 

21 for the period beginning on January 1, 2018, and 

22 ending on December 31, 2018, such credit shall be 

23 allowed, and any refund or payment attributable to 

24 such credit (including any payment under section 

25 6427(e) of such Code) shall be made, only in such 


pamtmann on DSKBFK8HB2PROD with BILLS
6 

•S 617 PCS

1 manner as the Secretary of the Treasury (or the 

2 Secretary’s delegate) shall provide. Such Secretary 

3 shall issue guidance within 30 days after the date of 

4 the enactment of this Act providing for a one-time 

5 submission of claims covering periods described in 

6 the preceding sentence. Such guidance shall provide 

7 for a 180-day period for the submission of such 

8 claims (in such manner as prescribed by such Sec9 retary) to begin not later than 30 days after such 

10 guidance is issued. Such claims shall be paid by such 

11 Secretary not later than 60 days after receipt. If 

12 such Secretary has not paid pursuant to a claim 

13 filed under this subsection within 60 days after the 

14 date of the filing of such claim, the claim shall be 

15 paid with interest from such date determined by 

16 using the overpayment rate and method under sec17 tion 6621 of such Code. 

18 SEC. 107. CREDIT FOR ELECTRICITY PRODUCED FROM 

19 CERTAIN RENEWABLE RESOURCES. 

20 (a) IN GENERAL.—The following provisions of sec21 tion 45(d) are each amended by striking ‘‘January 1, 

22 2018’’ each place it appears and inserting ‘‘January 1, 

23 2020’’: 

24 (1) Paragraph (2)(A). 

25 (2) Paragraph (3)(A). 


pamtmann on DSKBFK8HB2PROD with BILLS
7 

•S 617 PCS

1 (3) Paragraph (4)(B). 

2 (4) Paragraph (6). 

3 (5) Paragraph (7). 

4 (6) Paragraph (9). 

5 (7) Paragraph (11)(B). 

6 (b) EXTENSION OF ELECTION TO TREAT QUALIFIED

7 FACILITIES AS ENERGY PROPERTY.—Section 

8 48(a)(5)(C)(ii) is amended by striking ‘‘before January 1, 

9 2018 (January 1, 2020, in the case of any facility which 

10 is described in paragraph (1) of section 45(d)), and’’ and 

11 inserting ‘‘before— 

12 ‘‘(I) January 1, 2020, in the case 

13 of any facility which is described in 

14 paragraph (1) of section 45(d), and 

15 ‘‘(II) January 1, 2020, in the 

16 case of any other facility, and’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this section shall take effect on January 1, 2018. 

19 SEC. 108. PRODUCTION CREDIT FOR INDIAN COAL FACILI20 TIES. 

21 (a) IN GENERAL.—Section 45(e)(10)(A) is amended 

22 by striking ‘‘12-year period’’ each place it appears and in23 serting ‘‘14-year period’’. 


pamtmann on DSKBFK8HB2PROD with BILLS
8 

•S 617 PCS

1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to coal produced after December 

3 31, 2017. 

4 SEC. 109. RAILROAD TRACK MAINTENANCE CREDIT. 

5 (a) IN GENERAL.—Section 45G((f) is amended by 

6 striking ‘‘January 1, 2018’’ and inserting ‘‘January 1, 

7 2020’’. 

8 (b) EFFECTIVE DATE.— 

9 (1) IN GENERAL.—The amendment made by 

10 this section shall apply to expenditures paid or in11 curred during taxable years beginning after Decem12 ber 31, 2017. 

13 (2) SAFE HARBOR ASSIGNMENTS.—Assign14 ments, including related expenditures paid or in15 curred, under paragraph (2) of section 45G(b) of the 

16 Internal Revenue Code of 1986 for any taxable year 

17 beginning on or after January 1, 2018, and before 

18 January 1, 2019, shall be treated as effective as of 

19 the close of such taxable year if made pursuant to 

20 a written agreement entered into no later than 90 

21 days following the date of the enactment of this Act. 

22 SEC. 110. ENERGY EFFICIENT HOMES CREDIT. 

23 (a) IN GENERAL.—Section 45L(g) is amended by 

24 striking ‘‘December 31, 2017’’ and inserting ‘‘December 

25 31, 2019’’. 


pamtmann on DSKBFK8HB2PROD with BILLS
9 

•S 617 PCS

1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to homes acquired after December 

3 31, 2017. 

4 SEC. 111. CLASSIFICATION OF CERTAIN RACE HORSES AS 3- 

5 YEAR PROPERTY. 

6 (a) IN GENERAL.—Section 168(e)(3)(A)(i) is amend7 ed— 

8 (1) by striking ‘‘January 1, 2018’’ in subclause 

9 (I) and inserting ‘‘January 1, 2020’’, and 

10 (2) by striking ‘‘December 31, 2017’’ in sub11 clause (II) and inserting ‘‘December 31, 2019’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to property placed in service after 

14 December 31, 2017. 

15 SEC. 112. SPECIAL ALLOWANCE FOR SECOND GENERATION 

16 BIOFUEL PLANT PROPERTY. 

17 (a) IN GENERAL.—Section 168(l)(2)(D) is amended 

18 by striking ‘‘January 1, 2018’’ and inserting ‘‘January 1, 

19 2020’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall apply to property placed in service after 

22 December 31, 2017. 


pamtmann on DSKBFK8HB2PROD with BILLS
10 

•S 617 PCS

1 SEC. 113. ENERGY EFFICIENT COMMERCIAL BUILDINGS DE2 DUCTION. 

3 (a) IN GENERAL.—Section 179D(h) is amended by 

4 striking ‘‘December 31, 2017’’ and inserting ‘‘December 

5 31, 2019’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to property placed in service after 

8 December 31, 2017. 

9 SEC. 114. ELECTION TO EXPENSE ADVANCED MINE SAFETY 

10 EQUIPMENT. 

11 (a) IN GENERAL.—Section 179E(g) is amended by 

12 striking ‘‘December 31, 2017’’ and inserting ‘‘December 

13 31, 2019’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this section shall apply to property placed in service after 

16 December 31, 2017. 

17 SEC. 115. EXTENSION OF SPECIAL RULE FOR SALES OR DIS18 POSITIONS TO IMPLEMENT FERC OR STATE 

19 ELECTRIC RESTRUCTURING POLICY FOR 

20 QUALIFIED ELECTRIC UTILITIES. 

21 (a) IN GENERAL.—Section 451(k)(3) is amended by 

22 striking ‘‘January 1, 2018’’ and inserting ‘‘January 1, 

23 2020’’. 

24 (b) EFFECTIVE DATE.—The amendment made by 

25 this section shall apply to dispositions after December 31, 

26 2017. 


pamtmann on DSKBFK8HB2PROD with BILLS
11 

•S 617 PCS

1 SEC. 116. EXTENSION AND CLARIFICATION OF EXCISE TAX 

2 CREDITS RELATING TO ALTERNATIVE FUELS. 

3 (a) EXTENSION.— 

4 (1) IN GENERAL.—Sections 6426(d)(5) and 

5 6426(e)(3) are each amended by striking ‘‘December 

6 31, 2017’’ and inserting ‘‘December 31, 2019’’. 

7 (2) OUTLAY PAYMENTS FOR ALTERNATIVE

8 FUELS.—Section 6427(e)(6)(C) is amended by strik9 ing ‘‘December 31, 2017’’ and inserting ‘‘December 

10 31, 2019’’. 

11 (3) EFFECTIVE DATE.—The amendments made 

12 by this section shall apply to fuel sold or used after 

13 December 31, 2017. 

14 (b) SPECIAL RULE FOR 2018.—Notwithstanding any 

15 other provision of law, in the case of any alternative fuel 

16 credit properly determined under section 6426(d) of the 

17 Internal Revenue Code of 1986 for the period beginning 

18 on January 1, 2018, and ending on December 31, 2018, 

19 such credit shall be allowed, and any refund or payment 

20 attributable to such credit (including any payment under 

21 section 6427(e) of such Code) shall be made, only in such 

22 manner as the Secretary of the Treasury (or the Sec23 retary’s delegate) shall provide. Such Secretary shall issue 

24 guidance within 30 days after the date of the enactment 

25 of this Act providing for a one-time submission of claims 

26 covering periods described in the preceding sentence. Such 


pamtmann on DSKBFK8HB2PROD with BILLS
12 

•S 617 PCS

1 guidance shall provide for a 180-day period for the sub2 mission of such claims (in such manner as prescribed by 

3 such Secretary) to begin not later than 30 days after such 

4 guidance is issued. Such claims shall be paid by such Sec5 retary not later than 60 days after receipt. If such Sec6 retary has not paid pursuant to a claim filed under this 

7 subsection within 60 days after the date of the filing of 

8 such claim, the claim shall be paid with interest from such 

9 date determined by using the overpayment rate and meth10 od under section 6621 of such Code. 

11 (c) CLARIFICATION OF RULES REGARDING ALTER12 NATIVE FUEL MIXTURE CREDIT.— 

13 (1) IN GENERAL.—Paragraph (2) of section 

14 6426(e) is amended by striking ‘‘mixture of alter15 native fuel’’ and inserting ‘‘mixture of alternative 

16 fuel (other than a fuel described in subparagraph 

17 (A), (C), or (F) of subsection (d)(2))’’. 

18 (2) EFFECTIVE DATE.—The amendment made 

19 by this subsection shall apply to— 

20 (A) fuel sold or used on or after the date 

21 of the enactment of this Act, and 

22 (B) fuel sold or used before such date of 

23 enactment, but only to the extent that credits 

24 and claims of credit under section 6426(e) of 

25 the Internal Revenue Code of 1986 with respect 


pamtmann on DSKBFK8HB2PROD with BILLS
13 

•S 617 PCS

1 to such sale or use have not been paid or al2 lowed as of such date. 

3 SEC. 117. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 

4 ENTERTAINMENT COMPLEXES. 

5 (a) IN GENERAL.—Section 168(i)(15)(D) is amended 

6 by striking ‘‘December 31, 2017’’ and inserting ‘‘Decem7 ber 31, 2019’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 this section shall apply to property placed in service after 

10 December 31, 2017. 

11 SEC. 118. ACCELERATED DEPRECIATION FOR BUSINESS 

12 PROPERTY ON INDIAN RESERVATION. 

13 (a) IN GENERAL.—Section 168(j)(9) is amended by 

14 striking ‘‘December 31, 2017’’ and inserting ‘‘December 

15 31, 2019’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to property placed in service after 

18 December 31, 2017. 

19 SEC. 119. EXPENSING RULES FOR CERTAIN PRODUCTIONS. 

20 (a) IN GENERAL.—Section 181(g) is amended by 

21 striking ‘‘December 31, 2017’’ and inserting ‘‘December 

22 31, 2019’’. 

23 (b) EFFECTIVE DATE.—The amendment made by 

24 this section shall apply to productions commencing after 

25 December 31, 2017. 


pamtmann on DSKBFK8HB2PROD with BILLS
14 

•S 617 PCS

1 SEC. 120. INDIAN EMPLOYMENT CREDIT. 

2 (a) IN GENERAL.—Section 45A(f) is amended by 

3 striking ‘‘December 31, 2017’’ and inserting ‘‘December 

4 31, 2019’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 this section shall apply to taxable years beginning after 

7 December 31, 2017. 

8 SEC. 121. MINE RESCUE TEAM TRAINING CREDIT. 

9 (a) IN GENERAL.—Section 45N(e) is amended by 

10 striking ‘‘December 31, 2017’’ and inserting ‘‘December 

11 31, 2019’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2017. 

15 SEC. 122. EXCLUSION FROM GROSS INCOME OF DISCHARGE 

16 OF QUALIFIED PRINCIPAL RESIDENCE IN17 DEBTEDNESS. 

18 (a) IN GENERAL.—Section 108(a)(1)(E) is amended 

19 by striking ‘‘January 1, 2018’’ each place it appears and 

20 inserting ‘‘January 1, 2020’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to discharges of indebtedness after 

23 December 31, 2017. 


pamtmann on DSKBFK8HB2PROD with BILLS
15 

•S 617 PCS

1 SEC. 123. TREATMENT OF MORTGAGE INSURANCE PRE2 MIUMS AS QUALIFIED RESIDENCE INTEREST. 

3 (a) IN GENERAL.—Section 163(h)(3)(E)(iv)(I) is 

4 amended by striking ‘‘December 31, 2017’’ and inserting 

5 ‘‘December 31, 2019’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to amounts paid or accrued after 

8 December 31, 2017. 

9 SEC. 124. DEDUCTION OF QUALIFIED TUITION AND RE10 LATED EXPENSES. 

11 (a) IN GENERAL.—Section 222(e) is amended by 

12 striking ‘‘December 31, 2017’’ and inserting ‘‘December 

13 31, 2019’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this section shall apply to taxable years beginning after 

16 December 31, 2017. 

17 SEC. 125. EXTENSION OF EMPOWERMENT ZONE TAX INCEN18 TIVES. 

19 (a) IN GENERAL.—Section 1391(d)(1)(A)(i) is 

20 amended by striking ‘‘December 31, 2017’’ and inserting 

21 ‘‘December 31, 2019’’. 

22 (b) TREATMENT OF CERTAIN TERMINATION DATES

23 SPECIFIED IN NOMINATIONS.—In the case of a designa24 tion of an empowerment zone the nomination for which 

25 included a termination date which is contemporaneous 

26 with the date specified in subparagraph (A)(i) of section 


pamtmann on DSKBFK8HB2PROD with BILLS
16 

•S 617 PCS

1 1391(d)(1) of the Internal Revenue Code of 1986 (as in 

2 effect before the enactment of this Act), subparagraph (B) 

3 of such section shall not apply with respect to such des4 ignation if, after the date of the enactment of this section, 

5 the entity which made such nomination amends the nomi6 nation to provide for a new termination date in such man7 ner as the Secretary of the Treasury (or the Secretary’s 

8 designee) may provide. 

9 (c) EFFECTIVE DATE.—The amendment made by 

10 subsection (a) shall apply to taxable years beginning after 

11 December 31, 2017. 

12 SEC. 126. AMERICAN SAMOA ECONOMIC DEVELOPMENT 

13 CREDIT. 

14 (a) IN GENERAL.—Section 119(d) of division A of 

15 the Tax Relief and Health Care Act of 2006 is amended— 

16 (1) by striking ‘‘January 1, 2018’’ each place 

17 it appears and inserting ‘‘January 1, 2020’’, 

18 (2) by striking ‘‘first 12 taxable years’’ in para19 graph (1) and inserting ‘‘first 14 taxable years’’, 

20 (3) by striking ‘‘first 6 taxable years’’ in para21 graph (2) and inserting ‘‘first 8 taxable years’’, and 

22 (4) by adding at the end the following flush 

23 sentence: 

24 ‘‘In the case of a corporation described in subsection 

25 (a)(2), the Internal Revenue Code of 1986 shall be applied 


pamtmann on DSKBFK8HB2PROD with BILLS
17 

•S 617 PCS

1 and administered without regard to the amendments made 

2 by section 401(d)(1) of the Tax Technical Corrections Act 

3 of 2018.’’. 

4 (b) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2017. 

7 Subtitle B—Provisions Expiring in 

8 2019 

9 SEC. 151. TEMPORARY REDUCTION IN MEDICAL EXPENSE 

10 DEDUCTION FLOOR. 

11 (a) IN GENERAL.—Section 213(f) is amended to read 

12 as follows: 

13 ‘‘(f) SPECIAL RULE.—In the case of taxable years be14 ginning before January 1, 2020, subsection (a) shall be 

15 applied by substituting ‘7.5 percent’ for ‘10 percent’.’’. 

16 (b) ALTERNATIVE MINIMUM TAX.—Section 

17 56(b)(1)(B) is amended by striking ‘‘January 1, 2019’’ 

18 and inserting ‘‘January 1, 2020’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to taxable years ending after De21 cember 31, 2018. 


pamtmann on DSKBFK8HB2PROD with BILLS
18 

•S 617 PCS

1 SEC. 152. EXTENSION OF OIL SPILL LIABILITY TRUST FUND 

2 RATE. 

3 (a) IN GENERAL.—Section 4611(f)(2) is amended by 

4 striking ‘‘December 31, 2018’’ and inserting ‘‘December 

5 31, 2019’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply on and after the first day of the 

8 first calendar month beginning after the date of the enact9 ment of this Act. 

10 SEC. 153. BLACK LUNG LIABILITY TRUST FUND EXCISE TAX. 

11 (a) IN GENERAL.—Section 4121(e)(2)(A) is amended 

12 by striking ‘‘December 31, 2018’’ and inserting ‘‘Decem13 ber 31, 2019’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this section shall apply on and after the first day of the 

16 first calendar month beginning after the date of the enact17 ment of this Act. 

18 TITLE II—DISASTER TAX RELIEF 

19 SEC. 201. DEFINITIONS. 

20 For purposes of this title— 

21 (1) QUALIFIED DISASTER AREA.— 

22 (A) IN GENERAL.—The term ‘‘qualified 

23 disaster area’’ means any area with respect to 

24 which a major disaster was declared after Janu25 ary 1, 2018, and before March 1, 2019, by the 

26 President under section 401 of the Robert T. 


pamtmann on DSKBFK8HB2PROD with BILLS
19 

•S 617 PCS

1 Stafford Disaster Relief and Emergency Assist2 ance Act if the incident period of the disaster 

3 with respect to which such declaration is made 

4 begins before January 1, 2019. 

5 (B) EXCEPTION.—Such term shall not in6 clude the California wildfire disaster area (as 

7 defined in section 20101 of subdivision 2 of di8 vision B of the Bipartisan Budget Act of 2018). 

9 (2) QUALIFIED DISASTER ZONE.—The term 

10 ‘‘qualified disaster zone’’ means that portion of any 

11 qualified disaster area which was determined by the 

12 President after January 1, 2018, and before March 

13 1, 2019, to warrant individual or individual and 

14 public assistance from the Federal Government 

15 under the Robert T. Stafford Disaster Relief and 

16 Emergency Assistance Act by reason of the qualified 

17 disaster with respect to such disaster area. 

18 (3) QUALIFIED DISASTER.—The term ‘‘quali19 fied disaster’’ means, with respect to any qualified 

20 disaster area, the disaster by reason of which a 

21 major disaster was declared with respect to such 

22 area. 

23 (4) INCIDENT PERIOD.—The term ‘‘incident pe24 riod’’ means, with respect to any qualified disaster, 

25 the period specified by the Federal Emergency ManVerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617

pamtmann on DSKBFK8HB2PROD with BILLS
20 

•S 617 PCS

1 agement Agency as the period during which such 

2 disaster occurred (except that for purposes of this 

3 title such period shall not be treated as beginning 

4 before January 1, 2018, or ending after December 

5 31, 2018). 

6 SEC. 202. SPECIAL DISASTER-RELATED RULES FOR USE OF 

7 RETIREMENT FUNDS. 

8 (a) TAX-FAVORED WITHDRAWALS FROM RETIRE9 MENT PLANS.— 

10 (1) IN GENERAL.—Section 72(t) of the Internal 

11 Revenue Code of 1986 shall not apply to any quali12 fied disaster distribution. 

13 (2) AGGREGATE DOLLAR LIMITATION.— 

14 (A) IN GENERAL.—For purposes of this 

15 subsection, the aggregate amount of distribu16 tions received by an individual which may be 

17 treated as qualified disaster distributions for 

18 any taxable year shall not exceed the excess (if 

19 any) of— 

20 (i) $100,000, over 

21 (ii) the aggregate amounts treated as 

22 qualified disaster distributions received by 

23 such individual for all prior taxable years. 

24 (B) TREATMENT OF PLAN DISTRIBU25 TIONS.—If a distribution to an individual would 


pamtmann on DSKBFK8HB2PROD with BILLS
21 

•S 617 PCS

1 (without regard to subparagraph (A)) be a 

2 qualified disaster distribution, a plan shall not 

3 be treated as violating any requirement of the 

4 Internal Revenue Code of 1986 merely because 

5 the plan treats such distribution as a qualified 

6 disaster distribution, unless the aggregate 

7 amount of such distributions from all plans 

8 maintained by the employer (and any member 

9 of any controlled group which includes the em10 ployer) to such individual exceeds $100,000. 

11 (C) CONTROLLED GROUP.—For purposes 

12 of subparagraph (B), the term ‘‘controlled 

13 group’’ means any group treated as a single 

14 employer under subsection (b), (c), (m), or (o) 

15 of section 414 of the Internal Revenue Code of 

16 1986. 

17 (D) SPECIAL RULE FOR INDIVIDUALS AF18 FECTED BY MORE THAN ONE DISASTER.—The 

19 limitation of subparagraph (A) shall be applied 

20 separately with respect to distributions made 

21 with respect to each qualified disaster. 

22 (3) AMOUNT DISTRIBUTED MAY BE REPAID.— 

23 (A) IN GENERAL.—Any individual who re24 ceives a qualified disaster distribution may, at 

25 any time during the 3-year period beginning on 


pamtmann on DSKBFK8HB2PROD with BILLS
22 

•S 617 PCS

1 the day after the date on which such distribu2 tion was received, make 1 or more contributions 

3 in an aggregate amount not to exceed the 

4 amount of such distribution to an eligible retire5 ment plan of which such individual is a bene6 ficiary and to which a rollover contribution of 

7 such distribution could be made under section 

8 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 

9 457(e)(16), of the Internal Revenue Code of 

10 1986, as the case may be. 

11 (B) TREATMENT OF REPAYMENTS OF DIS12 TRIBUTIONS FROM ELIGIBLE RETIREMENT

13 PLANS OTHER THAN IRAS.—For purposes of 

14 the Internal Revenue Code of 1986, if a con15 tribution is made pursuant to subparagraph (A) 

16 with respect to a qualified disaster distribution 

17 from an eligible retirement plan other than an 

18 individual retirement plan, then the taxpayer 

19 shall, to the extent of the amount of the con20 tribution, be treated as having received the 

21 qualified disaster distribution in an eligible roll22 over distribution (as defined in section 

23 402(c)(4) of such Code) and as having trans24 ferred the amount to the eligible retirement 


pamtmann on DSKBFK8HB2PROD with BILLS
23 

•S 617 PCS

1 plan in a direct trustee to trustee transfer with2 in 60 days of the distribution. 

3 (C) TREATMENT OF REPAYMENTS OF DIS4 TRIBUTIONS FROM IRAS.—For purposes of the 

5 Internal Revenue Code of 1986, if a contribu6 tion is made pursuant to subparagraph (A) 

7 with respect to a qualified disaster distribution 

8 from an individual retirement plan (as defined 

9 by section 7701(a)(37) of such Code), then, to 

10 the extent of the amount of the contribution, 

11 the qualified disaster distribution shall be treat12 ed as a distribution described in section 

13 408(d)(3) of such Code and as having been 

14 transferred to the eligible retirement plan in a 

15 direct trustee to trustee transfer within 60 days 

16 of the distribution. 

17 (4) DEFINITIONS.—For purposes of this sub18 section— 

19 (A) QUALIFIED DISASTER DISTRIBU20 TION.—Except as provided in paragraph (2), 

21 the term ‘‘qualified disaster distribution’’ means 

22 any distribution from an eligible retirement 

23 plan made— 

24 (i) on or after the first day of the in25 cident period of a qualified disaster and 


pamtmann on DSKBFK8HB2PROD with BILLS
24 

•S 617 PCS

1 before the date which is 180 days after the 

2 date of the enactment of this Act, and 

3 (ii) to an individual whose principal 

4 place of abode at any time during the inci5 dent period of such qualified disaster is lo6 cated in the qualified disaster area with re7 spect to such qualified disaster and who 

8 has sustained an economic loss by reason 

9 of such qualified disaster. 

10 (B) ELIGIBLE RETIREMENT PLAN.—The 

11 term ‘‘eligible retirement plan’’ shall have the 

12 meaning given such term by section 

13 402(c)(8)(B) of the Internal Revenue Code of 

14 1986. 

15 (5) INCOME INCLUSION SPREAD OVER 3-YEAR

16 PERIOD.— 

17 (A) IN GENERAL.—In the case of any 

18 qualified disaster distribution, unless the tax19 payer elects not to have this paragraph apply 

20 for any taxable year, any amount required to be 

21 included in gross income for such taxable year 

22 shall be so included ratably over the 3-taxable23 year period beginning with such taxable year. 

24 (B) SPECIAL RULE.—For purposes of sub25 paragraph (A), rules similar to the rules of subVerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617

pamtmann on DSKBFK8HB2PROD with BILLS
25 

•S 617 PCS

1 paragraph (E) of section 408A(d)(3) of the In2 ternal Revenue Code of 1986 shall apply. 

3 (6) SPECIAL RULES.— 

4 (A) EXEMPTION OF DISTRIBUTIONS FROM

5 TRUSTEE TO TRUSTEE TRANSFER AND WITH6 HOLDING RULES.—For purposes of sections 

7 401(a)(31), 402(f), and 3405 of the Internal 

8 Revenue Code of 1986, qualified disaster dis9 tributions shall not be treated as eligible roll10 over distributions. 

11 (B) QUALIFIED DISASTER DISTRIBUTIONS

12 TREATED AS MEETING PLAN DISTRIBUTION RE13 QUIREMENTS.—For purposes the Internal Rev14 enue Code of 1986, a qualified disaster dis15 tribution shall be treated as meeting the re16 quirements of sections 401(k)(2)(B)(i), 

17 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) 

18 of such Code. 

19 (b) RECONTRIBUTIONS OF WITHDRAWALS FOR

20 HOME PURCHASES.— 

21 (1) RECONTRIBUTIONS.— 

22 (A) IN GENERAL.—Any individual who re23 ceived a qualified distribution may, during the 

24 applicable period, make 1 or more contributions 

25 in an aggregate amount not to exceed the 


pamtmann on DSKBFK8HB2PROD with BILLS
26 

•S 617 PCS

1 amount of such qualified distribution to an eli2 gible retirement plan (as defined in section 

3 402(c)(8)(B) of the Internal Revenue Code of 

4 1986) of which such individual is a beneficiary 

5 and to which a rollover contribution of such dis6 tribution could be made under section 402(c), 

7 403(a)(4), 403(b)(8), or 408(d)(3), of such 

8 Code, as the case may be. 

9 (B) TREATMENT OF REPAYMENTS.—Rules 

10 similar to the rules of subparagraphs (B) and 

11 (C) of subsection (a)(3) shall apply for purposes 

12 of this subsection. 

13 (2) QUALIFIED DISTRIBUTION.—For purposes 

14 of this subsection, the term ‘‘qualified distribution’’ 

15 means any distribution— 

16 (A) described in section 

17 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only 

18 to the extent such distribution relates to finan19 cial hardship), 403(b)(11)(B), or 72(t)(2)(F), 

20 of the Internal Revenue Code of 1986, 

21 (B) which was to be used to purchase or 

22 construct a principal residence in a qualified 

23 disaster area, but which was not so used on ac24 count of the qualified disaster with respect to 

25 such area, and 


pamtmann on DSKBFK8HB2PROD with BILLS
27 

•S 617 PCS

1 (C) which was received during the period 

2 beginning on the date which is 180 days before 

3 the first day of the incident period of such 

4 qualified disaster and ending on the date which 

5 is 30 days after the last day of such incident 

6 period. 

7 (3) APPLICABLE PERIOD.—For purposes of this 

8 subsection, the term ‘‘applicable period’’ means, in 

9 the case of a principal residence in a qualified dis10 aster area with respect to any qualified disaster, the 

11 period beginning on the first day of the incident pe12 riod of such qualified disaster and ending on the 

13 date which is 180 days after the date of the enact14 ment of this Act. 

15 (c) LOANS FROM QUALIFIED PLANS.— 

16 (1) INCREASE IN LIMIT ON LOANS NOT TREAT17 ED AS DISTRIBUTIONS.—In the case of any loan 

18 from a qualified employer plan (as defined under 

19 section 72(p)(4) of the Internal Revenue Code of 

20 1986) to a qualified individual made during the 180- 

21 day period beginning on the date of the enactment 

22 of this Act— 

23 (A) clause (i) of section 72(p)(2)(A) of 

24 such Code shall be applied by substituting 

25 ‘‘$100,000’’ for ‘‘$50,000’’, and 


pamtmann on DSKBFK8HB2PROD with BILLS
28 

•S 617 PCS

1 (B) clause (ii) of such section shall be ap2 plied by substituting ‘‘the present value of the 

3 nonforfeitable accrued benefit of the employee 

4 under the plan’’ for ‘‘one-half of the present 

5 value of the nonforfeitable accrued benefit of 

6 the employee under the plan’’. 

7 (2) DELAY OF REPAYMENT.—In the case of a 

8 qualified individual (with respect to any qualified 

9 disaster) with an outstanding loan (on or after the 

10 first day of the incident period of such qualified dis11 aster) from a qualified employer plan (as defined in 

12 section 72(p)(4) of the Internal Revenue Code of 

13 1986)— 

14 (A) if the due date pursuant to subpara15 graph (B) or (C) of section 72(p)(2) of such 

16 Code for any repayment with respect to such 

17 loan occurs during the period beginning on the 

18 first day of the incident period of such qualified 

19 disaster and ending on the date which is 180 

20 days after the last day of such incident period, 

21 such due date shall be delayed for 1 year (or, 

22 if later, until the date which is 180 days after 

23 the date of the enactment of this Act), 

24 (B) any subsequent repayments with re25 spect to any such loan shall be appropriately 


pamtmann on DSKBFK8HB2PROD with BILLS
29 

•S 617 PCS

1 adjusted to reflect the delay in the due date 

2 under subparagraph (A) and any interest accru3 ing during such delay, and 

4 (C) in determining the 5-year period and 

5 the term of a loan under subparagraph (B) or 

6 (C) of section 72(p)(2) of such Code, the period 

7 described in subparagraph (A) of this para8 graph shall be disregarded. 

9 (3) QUALIFIED INDIVIDUAL.—For purposes of 

10 this subsection, the term ‘‘qualified individual’’ 

11 means any individual— 

12 (A) whose principal place of abode at any 

13 time during the incident period of any qualified 

14 disaster is located in the qualified disaster area 

15 with respect to such qualified disaster, and 

16 (B) who has sustained an economic loss by 

17 reason of such qualified disaster. 

18 (d) PROVISIONS RELATING TO PLAN AMEND19 MENTS.— 

20 (1) IN GENERAL.—If this subsection applies to 

21 any amendment to any plan or annuity contract, 

22 such plan or contract shall be treated as being oper23 ated in accordance with the terms of the plan during 

24 the period described in paragraph (2)(B)(i). 


pamtmann on DSKBFK8HB2PROD with BILLS
30 

•S 617 PCS

1 (2) AMENDMENTS TO WHICH SUBSECTION AP2 PLIES.— 

3 (A) IN GENERAL.—This subsection shall 

4 apply to any amendment to any plan or annuity 

5 contract which is made— 

6 (i) pursuant to any provision of this 

7 section, or pursuant to any regulation 

8 issued by the Secretary or the Secretary of 

9 Labor under any provision of this section, 

10 and 

11 (ii) on or before the last day of the 

12 first plan year beginning on or after Janu13 ary 1, 2020, or such later date as the Sec14 retary may prescribe. 

15 In the case of a governmental plan (as defined 

16 in section 414(d) of the Internal Revenue Code 

17 of 1986), clause (ii) shall be applied by sub18 stituting the date which is 2 years after the 

19 date otherwise applied under clause (ii). 

20 (B) CONDITIONS.—This subsection shall 

21 not apply to any amendment unless— 

22 (i) during the period— 

23 (I) beginning on the date that 

24 this section or the regulation de25 scribed in subparagraph (A)(i) takes 


pamtmann on DSKBFK8HB2PROD with BILLS
31 

•S 617 PCS

1 effect (or in the case of a plan or con2 tract amendment not required by this 

3 section or such regulation, the effec4 tive date specified by the plan), and 

5 (II) ending on the date described 

6 in subparagraph (A)(ii) (or, if earlier, 

7 the date the plan or contract amend8 ment is adopted), 

9 the plan or contract is operated as if such plan 

10 or contract amendment were in effect, and 

11 (ii) such plan or contract amendment 

12 applies retroactively for such period. 

13 SEC. 203. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS 

14 AFFECTED BY QUALIFIED DISASTERS. 

15 (a) IN GENERAL.—For purposes of section 38 of the 

16 Internal Revenue Code of 1986, in the case of an eligible 

17 employer, the 2018 qualified disaster employee retention 

18 credit shall be treated as a credit listed at the end of sub19 section (b) of such section. For purposes of this section, 

20 the 2018 qualified disaster employee retention credit for 

21 any taxable year is an amount equal to 40 percent of the 

22 qualified wages with respect to each eligible employee of 

23 such employer for such taxable year. The amount of quali24 fied wages with respect to any employee which may be 

25 taken into account under this section by the employer for 


pamtmann on DSKBFK8HB2PROD with BILLS
32 

•S 617 PCS

1 any taxable year shall not exceed $6,000 (reduced by the 

2 amount of qualified wages with respect to such employee 

3 which may be so taken into account for any prior taxable 

4 year). 

5 (b) DEFINITIONS.—For purposes of this section— 

6 (1) ELIGIBLE EMPLOYER.—The term ‘‘eligible 

7 employer’’ means any employer— 

8 (A) which conducted an active trade or 

9 business in a qualified disaster zone at any time 

10 during the incident period of the qualified dis11 aster with respect to such qualified disaster 

12 zone, and 

13 (B) with respect to whom the trade or 

14 business described in subparagraph (A) is inop15 erable at any time on or after the first day of 

16 the incident period of such qualified disaster, 

17 and before January 1, 2019, as a result of 

18 damage sustained by reason of such qualified 

19 disaster. 

20 (2) ELIGIBLE EMPLOYEE.—The term ‘‘eligible 

21 employee’’ means with respect to an eligible em22 ployer an employee whose principal place of employ23 ment with such eligible employer (determined imme24 diately before the qualified disaster referred to in 


pamtmann on DSKBFK8HB2PROD with BILLS
33 

•S 617 PCS

1 paragraph (1)) was in the qualified disaster zone re2 ferred to in such paragraph. 

3 (3) QUALIFIED WAGES.—The term ‘‘qualified 

4 wages’’ means wages (as defined in section 51(c)(1) 

5 of the Internal Revenue Code of 1986, but without 

6 regard to section 3306(b)(2)(B) of such Code) paid 

7 or incurred by an eligible employer with respect to 

8 an eligible employee at any time on or after the date 

9 on which the trade or business described in para10 graph (1) first became inoperable at the principal 

11 place of employment of the employee (determined 

12 immediately before the qualified disaster referred to 

13 in such paragraph) and before the earlier of— 

14 (A) the date on which such trade or busi15 ness has resumed significant operations at such 

16 principal place of employment, or 

17 (B) the date which is 150 days after the 

18 last day of the incident period of the qualified 

19 disaster referred to in paragraph (1). 

20 Such term shall include wages paid without regard 

21 to whether the employee performs no services, per22 forms services at a different place of employment 

23 than such principal place of employment, or per24 forms services at such principal place of employment 

25 before significant operations have resumed. 


pamtmann on DSKBFK8HB2PROD with BILLS
34 

•S 617 PCS

1 (c) CERTAIN RULES TO APPLY.—For purposes of 

2 this section, rules similar to the rules of sections 51(i)(1), 

3 52, and 280C(a), of the Internal Revenue Code of 1986, 

4 shall apply. 

5 (d) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE

6 THAN ONCE.—An employee shall not be treated as an eli7 gible employee for purposes of this section for any period 

8 with respect to any employer if such employer is allowed 

9 a credit under section 51 of the Internal Revenue Code 

10 of 1986 with respect to such employee for such period. 

11 SEC. 204. OTHER DISASTER-RELATED TAX RELIEF PROVI12 SIONS. 

13 (a) TEMPORARY INCREASE IN LIMITATION ON

14 QUALIFIED CONTRIBUTIONS.— 

15 (1) SUSPENSION OF CURRENT LIMITATION.— 

16 Except as otherwise provided in paragraph (2), 

17 qualified contributions shall be disregarded in apply18 ing subsections (b) and (d) of section 170 of the In19 ternal Revenue Code of 1986. 

20 (2) APPLICATION OF INCREASED LIMITATION.— 

21 For purposes of section 170 of the Internal Revenue 

22 Code of 1986— 

23 (A) INDIVIDUALS.—In the case of an indi24 vidual— 


pamtmann on DSKBFK8HB2PROD with BILLS
35 

•S 617 PCS

1 (i) LIMITATION.—Any qualified con2 tribution shall be allowed as a deduction 

3 only to the extent that the aggregate of 

4 such contributions does not exceed the ex5 cess of the taxpayer’s contribution base (as 

6 defined in subparagraph (H) of section 

7 170(b)(1) of such Code) over the amount 

8 of all other charitable contributions allowed 

9 under section 170(b)(1) of such Code. 

10 (ii) CARRYOVER.—If the aggregate 

11 amount of qualified contributions made in 

12 the contribution year (within the meaning 

13 of section 170(d)(1) of such Code) exceeds 

14 the limitation of clause (i), such excess 

15 shall be added to the excess described in 

16 section 170(b)(1)(G)(ii). 

17 (B) CORPORATIONS.—In the case of a cor18 poration— 

19 (i) LIMITATION.—Any qualified con20 tribution shall be allowed as a deduction 

21 only to the extent that the aggregate of 

22 such contributions does not exceed the ex23 cess of the taxpayer’s taxable income (as 

24 determined under paragraph (2) of section 

25 170(b) of such Code) over the amount of 


pamtmann on DSKBFK8HB2PROD with BILLS
36 

•S 617 PCS

1 all other charitable contributions allowed 

2 under such paragraph. 

3 (ii) CARRYOVER.—If the aggregate 

4 amount of qualified contributions made in 

5 the contribution year (within the meaning 

6 of section 170(d)(2) of such Code) exceeds 

7 the limitation of clause (i), such excess 

8 shall be appropriately taken into account 

9 under section 170(d)(2) subject to the limi10 tations thereof. 

11 (3) QUALIFIED CONTRIBUTIONS.— 

12 (A) IN GENERAL.—For purposes of this 

13 subsection, the term ‘‘qualified contribution’’ 

14 means any charitable contribution (as defined 

15 in section 170(c) of the Internal Revenue Code 

16 of 1986) if— 

17 (i) such contribution— 

18 (I) is paid during 2018 in cash to 

19 an organization described in section 

20 170(b)(1)(A) of such Code, and 

21 (II) is made for relief efforts in 

22 one or more qualified disaster areas, 

23 (ii) the taxpayer obtains from such or24 ganization contemporaneous written ac25 knowledgment (within the meaning of secVerDate Sep 11 2014 22:46 Mar 04, 2019 Jkt 089200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S617.PCS S617

pamtmann on DSKBFK8HB2PROD with BILLS
37 

•S 617 PCS

1 tion 170(f)(8) of such Code) that such con2 tribution was used (or is to be used) for 

3 relief efforts described in clause (i)(II), 

4 and 

5 (iii) the taxpayer has elected the ap6 plication of this subsection with respect to 

7 such contribution. 

8 (B) EXCEPTION.—Such term shall not in9 clude a contribution by a donor if the contribu10 tion is— 

11 (i) to an organization described in sec12 tion 509(a)(3) of the Internal Revenue 

13 Code of 1986, or 

14 (ii) for the establishment of a new, or 

15 maintenance of an existing, donor advised 

16 fund (as defined in section 4966(d)(2) of 

17 such Code). 

18 (C) APPLICATION OF ELECTION TO PART19 NERSHIPS AND S CORPORATIONS.—In the case 

20 of a partnership or S corporation, the election 

21 under subparagraph (A)(iii) shall be made sepa22 rately by each partner or shareholder. 

23 (b) SPECIAL RULES FOR QUALIFIED DISASTER-RE24 LATED PERSONAL CASUALTY LOSSES.— 


pamtmann on DSKBFK8HB2PROD with BILLS
38 

•S 617 PCS

1 (1) IN GENERAL.—If an individual has a net 

2 disaster loss for any taxable year— 

3 (A) the amount determined under section 

4 165(h)(2)(A)(ii) of the Internal Revenue Code 

5 of 1986 shall be equal to the sum of— 

6 (i) such net disaster loss, and 

7 (ii) so much of the excess referred to 

8 in the matter preceding clause (i) of sec9 tion 165(h)(2)(A) of such Code (reduced 

10 by the amount in clause (i) of this sub11 paragraph) as exceeds 10 percent of the 

12 adjusted gross income of the individual, 

13 (B) section 165(h)(1) of such Code shall 

14 be applied by substituting ‘‘$500’’ for ‘‘$500 

15 ($100 for taxable years beginning after Decem16 ber 31, 2009)’’, 

17 (C) the standard deduction determined 

18 under section 63(c) of such Code shall be in19 creased by the net disaster loss, and 

20 (D) section 56(b)(1)(E) of such Code shall 

21 not apply to so much of the standard deduction 

22 as is attributable to the increase under sub23 paragraph (C) of this paragraph. 

24 (2) NET DISASTER LOSS.—For purposes of this 

25 subsection, the term ‘‘net disaster loss’’ means the 


pamtmann on DSKBFK8HB2PROD with BILLS
39 

•S 617 PCS

1 excess of qualified disaster-related personal casualty 

2 losses over personal casualty gains (as defined in 

3 section 165(h)(3)(A) of the Internal Revenue Code 

4 of 1986). 

5 (3) QUALIFIED DISASTER-RELATED PERSONAL

6 CASUALTY LOSSES.—For purposes of this sub7 section, the term ‘‘qualified disaster-related personal 

8 casualty losses’’ means losses described in section 

9 165(c)(3) of the Internal Revenue Code of 1986 

10 which arise in a qualified disaster area on or after 

11 the first day of the incident period of the qualified 

12 disaster to which such area relates, and which are 

13 attributable to such qualified disaster. 

14 (c) SPECIAL RULE FOR DETERMINING EARNED IN15 COME.— 

16 (1) IN GENERAL.—In the case of a qualified in17 dividual, if the earned income of the taxpayer for the 

18 applicable taxable year is less than the earned in19 come of the taxpayer for the preceding taxable year, 

20 the credits allowed under sections 24(d) and 32 of 

21 the Internal Revenue Code of 1986 may, at the elec22 tion of the taxpayer, be determined by sub23 stituting— 

24 (A) such earned income for the preceding 

25 taxable year, for 


pamtmann on DSKBFK8HB2PROD with BILLS
40 

•S 617 PCS

1 (B) such earned income for the applicable 

2 taxable year. 

3 (2) QUALIFIED INDIVIDUAL.—For purposes of 

4 this subsection, the term ‘‘qualified individual’’ 

5 means any individual whose principal place of abode 

6 at any time during the incident period of any quali7 fied disaster was located— 

8 (A) in the qualified disaster zone with re9 spect to such qualified disaster, or 

10 (B) in the qualified disaster area with re11 spect to such qualified disaster (but outside the 

12 qualified disaster zone with respect to such 

13 qualified disaster) and such individual was dis14 placed from such principal place of abode by 

15 reason of such qualified disaster. 

16 (3) APPLICABLE TAXABLE YEAR.—The term 

17 ‘‘applicable taxable year’’ means, with respect to any 

18 qualified individual, any taxable year which includes 

19 any portion of the incident period of the qualified 

20 disaster to which the qualified disaster area referred 

21 to in paragraph (2) relates. 

22 (4) EARNED INCOME.—For purposes of this 

23 subsection, the term ‘‘earned income’’ has the mean24 ing given such term under section 32(c) of the Inter25 nal Revenue Code of 1986. 


pamtmann on DSKBFK8HB2PROD with BILLS
41 

•S 617 PCS

1 (5) SPECIAL RULES.— 

2 (A) APPLICATION TO JOINT RETURNS.— 

3 For purposes of paragraph (1), in the case of 

4 a joint return for an applicable taxable year— 

5 (i) such paragraph shall apply if ei6 ther spouse is a qualified individual, and 

7 (ii) the earned income of the taxpayer 

8 for the preceding taxable year shall be the 

9 sum of the earned income of each spouse 

10 for such preceding taxable year. 

11 (B) UNIFORM APPLICATION OF ELEC12 TION.—Any election made under paragraph (1) 

13 shall apply with respect to both sections 24(d) 

14 and 32 of the Internal Revenue Code of 1986. 

15 (C) ERRORS TREATED AS MATHEMATICAL

16 ERROR.—For purposes of section 6213 of the 

17 Internal Revenue Code of 1986, an incorrect 

18 use on a return of earned income pursuant to 

19 paragraph (1) shall be treated as a mathe20 matical or clerical error. 

21 (D) NO EFFECT ON DETERMINATION OF

22 GROSS INCOME, ETC.—Except as otherwise pro23 vided in this subsection, the Internal Revenue 

24 Code of 1986 shall be applied without regard to 

25 any substitution under paragraph (1). 


pamtmann on DSKBFK8HB2PROD with BILLS
42 

•S 617 PCS

1 SEC. 205. TREATMENT OF CERTAIN POSSESSIONS. 

2 (a) PAYMENTS TO GUAM AND THE COMMONWEALTH

3 OF THE NORTHERN MARIANA ISLANDS.—In the case of 

4 Guam and the Commonwealth of the Northern Mariana 

5 Islands, the Secretary of the Treasury shall pay to each 

6 such possession amounts equal to the loss in revenues (if 

7 any) to that possession by reason of the application of the 

8 provisions of this title. Such amounts shall be determined 

9 by the Secretary of the Treasury based on information 

10 provided by the government of the respective possession. 

11 (b) PAYMENTS TO AMERICAN SAMOA.—The Sec12 retary of the Treasury shall pay to American Samoa 

13 amounts estimated by the Secretary of the Treasury as 

14 being equal to the aggregate benefits (if any) that would 

15 have been provided to residents of American Samoa by 

16 reason of the provisions of this title if American Samoa 

17 had in effect a tax system under which the income tax 

18 liability of residents of American Samoa were determined 

19 by reference to the income tax laws of the United States. 

20 The preceding sentence shall not apply unless American 

21 Samoa has a plan, which has been approved by the Sec22 retary of the Treasury, under which it will promptly dis23 tribute such payments to its residents. 

24 (c) TREATMENT OF PAYMENTS.—For purposes of 

25 section 1324 of title 31, United States Code, the payments 

26 under this section shall be treated in the same manner 


pamtmann on DSKBFK8HB2PROD with BILLS
43 

•S 617 PCS

1 as a refund due from a credit provision referred to in sub2 section (b)(2) of such section. 


pamtmann on DSKBFK8HB2PROD with BILLS
Calendar No. 28 

116TH CONGRESS 

1ST SESSION S. 617 

A BILL 

To amend the Internal Revenue Code of 1986 to 

aster tax relief, and for other purposes. extend certain expiring provisions, to provide disMARCH 4, 2019 

Read the second time and placed on the calendar 


pamtmann on DSKBFK8HB2PROD with BILLS