I 

113TH CONGRESS 

1ST SESSION H. R. 2137 

To amend the Internal Revenue Code of 1986 to provide tax relief for 

damages relating to Hurricane Sandy, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 23, 2013 

Mr. PASCRELL (for himself, Mr. RUNYAN, Mr. GRIMM, Mr. LANCE, Mr. KING

of New York, Mr. REED, Mr. FRELINGHUYSEN, Mr. LOBIONDO, Mr. 

SMITH of New Jersey, Mr. RANGEL, Mr. CROWLEY, Mr. LARSON of Connecticut, Mr. MEEKS, Mr. COURTNEY, Ms. DELAURO, Mr. BISHOP of 

New York, Mrs. MCCARTHY of New York, Mr. LANGEVIN, Mr. PAYNE, 

Mr. SERRANO, Mr. PALLONE, Mr. NADLER, Mr. SIRES, Mr. ANDREWS, 

Mr. ENGEL, Mr. CICILLINE, Mr. ISRAEL, Ms. MENG, and Mr. HOLT) introduced the following bill; which was referred to the Committee on Ways 

and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

tax relief for damages relating to Hurricane Sandy, 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 ‘‘Hurricane Sandy Tax Relief Act of 2013’’. 


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1 (b) AMENDMENT OF 1986 CODE.—Except as other2 wise expressly provided, whenever in this Act an amend3 ment or repeal is expressed in terms of an amendment 

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

5 shall be considered to be made to a section or other provi6 sion of the Internal Revenue Code of 1986. 

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

8 this Act is as follows: 

Sec. 1. Short title, etc. 

Sec. 2. Waiver of adjusted gross income limitation for losses and increase in 

standard deduction by disaster casualty losses attributable to 

Hurricane Sandy. 

Sec. 3. Expensing of qualified disaster expenses. 

Sec. 4. Net operating losses attributable to federally declared disasters. 

Sec. 5. Waiver of certain mortgage revenue bond requirements following federally declared disasters. 

Sec. 6. Increased expensing for Hurricane Sandy qualified disaster assistance 

property. 

Sec. 7. Increased limitation on charitable contributions for disaster relief. 

Sec. 8. Increase in new markets tax credit for investments in community development entities serving Hurricane Sandy disaster areas. 

Sec. 9. Extension of expensing for environmental remediation costs. 

Sec. 10. Special rule for public utility casualty losses. 

Sec. 11. Determination of earned income for purposes of earned income credit 

and child tax credit. 

Sec. 12. Work Opportunity Credit. 

Sec. 13. Hurricane Sandy Bonds. 

Sec. 14. Additional low-income housing credit may be allocated in States damaged by Hurricane Sandy. 

Sec. 15. Special rules for use of retirement funds. 

9 SEC. 2. WAIVER OF ADJUSTED GROSS INCOME LIMITATION 

10 FOR LOSSES AND INCREASE IN STANDARD 

11 DEDUCTION BY DISASTER CASUALTY LOSSES 

12 ATTRIBUTABLE TO HURRICANE SANDY. 

13 (a) IN GENERAL.—Subclause (I) of section 

14 165(h)(3)(B)(i) is amended by striking ‘‘January 1, 


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1 2010’’ and inserting ‘‘January 1, 2010, or the Hurricane 

2 Sandy federally declared disaster’’. 

3 (b) HURRICANE SANDY FEDERALLY DECLARED DIS4 ASTER.—Paragraph (3) of section 165(h) is amended by 

5 adding at the end the following new subparagraph: 

6 ‘‘(D) APPLICATION TO HURRICANE

7 SANDY.— 

8 ‘‘(i) IN GENERAL.—Personal casualty 

9 losses shall be treated as described in sub10 paragraph (B)(i) if such losses— 

11 ‘‘(I) are attributable to the Hur12 ricane Sandy federally declared dis13 aster, and 

14 ‘‘(II) occur in the Hurricane 

15 Sandy disaster area. 

16 ‘‘(ii) HURRICANE SANDY FEDERALLY

17 DECLARED DISASTER.—For purposes of 

18 clause (i), the term ‘Hurricane Sandy fed19 erally declared disaster’ means the disaster 

20 occurring by reason of Hurricane Sandy 

21 and determined by the President before 

22 November 4, 2012, to warrant individual 

23 or individual and public assistance from 

24 the Federal Government under the Robert 


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1 T. Stafford Disaster Relief and Emergency 

2 Assistance Act. 

3 ‘‘(iii) HURRICANE SANDY DISASTER

4 AREA.—The term ‘Hurricane Sandy dis5 aster area’ means the area so determined 

6 to warrant such assistance.’’. 

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

8 this subsection shall apply to taxable years ending after 

9 October 28, 2012. 

10 SEC. 3. EXPENSING OF QUALIFIED DISASTER EXPENSES. 

11 (a) IN GENERAL.—Paragraph (2) of 198A(b) is 

12 amended— 

13 (1) in subparagraph (A) by striking ‘‘January 

14 1, 2010’’ and inserting ‘‘January 1, 2010, or re15 leased in the Hurricane Sandy disaster area on ac16 count of the Hurricane Sandy federally declared dis17 aster, as defined by section 165(h)(3)(D)’’, 

18 (2) in subparagraph (B) by striking ‘‘such 

19 date’’ and inserting ‘‘such date or which is business20 related property in the Hurricane Sandy disaster 

21 area that is damaged or destroyed as a result of the 

22 Hurricane Sandy federally declared disaster (as so 

23 defined)’’, and 

24 (3) in subparagraph (C) by striking ‘‘such 

25 date’’ and inserting ‘‘such date or which is businessVerDate Mar 15 2010 02:05 Jun 01, 2013 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2137.IH H2137

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1 related property in the Hurricane Sandy disaster 

2 area that is damaged as a result of the Hurricane 

3 Sandy federally declared disaster (as so defined)’’. 

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

5 this section shall apply to amounts paid or incurred after 

6 October 28, 2012. 

7 SEC. 4. NET OPERATING LOSSES ATTRIBUTABLE TO FED8 ERALLY DECLARED DISASTERS. 

9 (a) IN GENERAL.—Subsection (j) of section 172 is 

10 amended by adding at the end the following new para11 graph: 

12 ‘‘(5) APPLICATION TO HURRICANE SANDY.— 

13 ‘‘(A) IN GENERAL.—Losses shall be treat14 ed as described in paragraph (1)(A)(i) if such 

15 losses are attributable to the Hurricane Sandy 

16 federally declared disaster (as defined in section 

17 165(h)(3)(D)) and occur in the Hurricane 

18 Sandy disaster area (as so defined). 

19 ‘‘(B) SPECIAL RULE.—For purposes of 

20 subparagraph (A), paragraph (4) shall not 

21 apply.’’. 

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

23 this section shall apply to taxable years ending after Octo24 ber 28, 2012. 


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1 SEC. 5. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 

2 REQUIREMENTS FOLLOWING FEDERALLY DE3 CLARED DISASTERS. 

4 (a) IN GENERAL.—Subparagraphs (A)(i) and (B)(i) 

5 of section 143(k)(12), as added by the Tax Extenders and 

6 Alternative Minimum Tax Relief Act of 2008, are each 

7 amended by striking ‘‘January 1, 2010’’ and inserting 

8 ‘‘January 1, 2010, or in the case of a residence located 

9 in the Hurricane Sandy disaster area on October 29, 

10 2012, by reason of the Hurricane Sandy federally declared 

11 disaster, as defined by section 165(h)(3)(D)’’. 

12 (b) CONFORMING AMENDMENTS.—Subparagraph 

13 (A)(ii) of such section is amended by striking ‘‘such date’’ 

14 and inserting ‘‘such date or by reason of the Hurricane 

15 Sandy federally declared disaster (as so defined)’’. 

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

17 this section shall apply to disasters occurring after Octo18 ber 28, 2012. 

19 SEC. 6. INCREASED EXPENSING FOR HURRICANE SANDY 

20 QUALIFIED DISASTER ASSISTANCE PROP21 ERTY. 

22 (a) IN GENERAL.—Subsection (e) of section 179 is 

23 amended to read as follows: 

24 ‘‘(e) SPECIAL RULES FOR HURRICANE SANDY.— 

25 ‘‘(1) IN GENERAL.—If a taxpayer elects the ap26 plication of this subsection for a taxable year and 


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1 places in service during the taxable year any Hurri2 cane Sandy qualified disaster assistance property— 

3 ‘‘(A) the dollar amount in effect under 

4 subsection (b)(1) for the taxable year shall be 

5 increased by the qualified disaster limitation 

6 amount, and 

7 ‘‘(B) the dollar amount in effect under 

8 subsection (b)(2) for the taxable year shall be 

9 increased by the qualified disaster limitation re10 duction amount. 

11 ‘‘(2) QUALIFIED DISASTER LIMITATION

12 AMOUNT.—For purposes of paragraph (1), the term 

13 ‘qualified disaster limitation amount’ means the less14 er of— 

15 ‘‘(A) $500,000, or 

16 ‘‘(B) the cost of Hurricane Sandy qualified 

17 disaster assistance property placed in service 

18 during the taxable year. 

19 ‘‘(3) QUALIFIED DISASTER LIMITATION REDUC20 TION AMOUNT.—For purposes of paragraph (1), the 

21 term ‘qualified disaster limitation amount’ means 

22 the lesser of— 

23 ‘‘(A) $2,000,000, or 


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1 ‘‘(B) the cost of Hurricane Sandy qualified 

2 disaster assistance property placed in service 

3 during the taxable year. 

4 ‘‘(4) HURRICANE SANDY QUALIFIED DISASTER

5 ASSISTANCE PROPERTY.—For purposes of this sub6 section— 

7 ‘‘(A) IN GENERAL.—The term ‘Hurricane 

8 Sandy qualified disaster assistance property’ 

9 means section 179 property (as defined in sub10 section (d)) and qualified property— 

11 ‘‘(i) the original use of which in the 

12 Hurricane Sandy disaster area commences 

13 with the taxpayer on or after October 29, 

14 2012, 

15 ‘‘(ii) substantially all of the use of 

16 which is in the Hurricane Sandy disaster 

17 area, and 

18 ‘‘(iii) which— 

19 ‘‘(I) rehabilitates property dam20 aged, or replaces property destroyed 

21 or condemned, as a result of the Hur22 ricane Sandy federally declared dis23 aster, except that, for purposes of this 

24 clause, property shall be treated as re25 placing property destroyed or conVerDate Mar 15 2010 02:05 Jun 01, 2013 Jkt 029200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2137.IH H2137

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1 demned if, as part of an integrated 

2 plan, such property replaces property 

3 which is included in a continuous area 

4 which includes real property destroyed 

5 or condemned, and 

6 ‘‘(II) is located in the same coun7 ty as the property being rehabilitated 

8 or replaced, 

9 ‘‘(iv) which is placed in service or ac10 quired by the taxpayer by purchase (as de11 fined in subsection (d)) on or after October 

12 29, 2012, but only if no written binding 

13 contract for the acquisition was in effect 

14 before such date, and 

15 ‘‘(v) which is placed in service by the 

16 taxpayer on or after October 29, 2012, and 

17 before December 31, 2015 (December 31, 

18 2016, in the case of nonresidential real 

19 property and residential rental property). 

20 ‘‘(B) QUALIFIED PROPERTY.—The term 

21 ‘qualified property’ means property which is— 

22 ‘‘(i) tangible property to which section 

23 168 applies and which has a recovery pe24 riod of 39 years or less, or 


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1 ‘‘(ii) computer software (as defined in 

2 section 167(f)(1)(B)) for which a deduc3 tion is allowable under section 167(a). 

4 ‘‘(C) EXCEPTIONS.— 

5 ‘‘(i) ALTERNATIVE DEPRECIATION

6 PROPERTY.—Such term shall not include 

7 any property to which the alternative de8 preciation system under section 168(g) ap9 plies, determined without regard to para10 graph (7) thereof (relating to election to 

11 have system apply). 

12 ‘‘(ii) TAX-EXEMPT BOND FINANCED

13 PROPERTY.—Such term shall not include 

14 any property any portion of which is fi15 nanced with the proceeds of any obligation 

16 the interest on which is exempt from tax 

17 under section 103. 

18 ‘‘(D) ELECTION.—An election under this 

19 subsection for any taxable year shall— 

20 ‘‘(i) specify the items of Hurricane 

21 Sandy qualified disaster assistance prop22 erty to which the election applies and the 

23 portion of the cost of each of such items 

24 which is to be taken into account under 

25 paragraph (1), and 


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1 ‘‘(ii) be made on the taxpayer’s return 

2 of the tax imposed by this chapter for the 

3 taxable year. 

4 ‘‘(E) SPECIAL RULES.—For purposes of 

5 this subsection, rules similar to the rules of 

6 subparagraph (E) of section 168(k)(2) shall 

7 apply, except that such subparagraph shall be 

8 applied— 

9 ‘‘(i) by substituting ‘the date of the 

10 Hurricane Sandy federally declared dis11 aster’ for ‘December 31, 2007’ each place 

12 it appears therein, 

13 ‘‘(ii) by substituting ‘January 1, 

14 2016’ for ‘January 1, 2014’ in clause (i) 

15 thereof, and 

16 ‘‘(iii) by substituting ‘Hurricane 

17 Sandy qualified section 179 disaster assist18 ance property’ for ‘qualified property’ in 

19 clause (iv) thereof. 

20 ‘‘(5) TERMS RELATING TO HURRICANE

21 SANDY.—For purposes of this subsection, the terms 

22 ‘Hurricane Sandy federally declared disaster’ and 

23 ‘Hurricane Sandy disaster area’ have the meanings 

24 given such terms by section 165(h)(3)(D). 


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1 ‘‘(6) RECAPTURE.—For purposes of this sub2 section, rules similar to the rules under subsection 

3 (d)(10) shall apply with respect to any qualified sec4 tion 179 disaster assistance property which ceases to 

5 be qualified section 179 disaster assistance prop6 erty.’’. 

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

8 this section shall apply to taxable years ending after Octo9 ber 28, 2012. 

10 SEC. 7. INCREASED LIMITATION ON CHARITABLE CON11 TRIBUTIONS FOR DISASTER RELIEF. 

12 (a) INDIVIDUALS.—Paragraph (1) of section 170(b) 

13 is amended by redesignating subparagraphs (F) and (G) 

14 as subparagraphs (G) and (H), respectively, and by insert15 ing after subparagraph (E) the following new subpara16 graph: 

17 ‘‘(F) QUALIFIED HURRICANE SANDY DIS18 ASTER CONTRIBUTIONS.— 

19 ‘‘(i) IN GENERAL.—Any qualified 

20 Hurricane Sandy disaster contribution 

21 shall be allowed to the extent that the ag22 gregate of such contributions does not ex23 ceed the excess of 80 percent of the tax24 payer’s contribution base over the amount 


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1 of all other charitable contributions allow2 able under this paragraph. 

3 ‘‘(ii) QUALIFIED HURRICANE SANDY

4 DISASTER CONTRIBUTION.—For purposes 

5 of this subparagraph, the term ‘qualified 

6 Hurricane Sandy disaster contribution’ 

7 means any charitable contribution if— 

8 ‘‘(I) such contribution— 

9 ‘‘(aa) is paid during the pe10 riod beginning on October 29, 

11 2012, and ending on December 

12 31, 2013, in cash to an organiza13 tion described in subparagraph 

14 (A), and 

15 ‘‘(bb) is made for relief ef16 forts in the Hurricane Sandy dis17 aster area related to the Hurri18 cane Sandy federally declared 

19 disaster, 

20 ‘‘(II) the taxpayer obtains from 

21 such organization contemporaneous 

22 written acknowledgment (within the 

23 meaning of subsection (f)(8)) that 

24 such contribution was used (or is to 

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1 ricane Sandy disaster area related to 

2 the Hurricane Sandy federally de3 clared disaster, and 

4 ‘‘(III) the taxpayer has elected 

5 the application of this subparagraph 

6 with respect to such contribution. 

7 ‘‘(iii) EXCEPTION.—A qualified Hurri8 cane Sandy disaster contribution shall not 

9 include a contribution by a donor if the 

10 contribution is— 

11 ‘‘(I) to an organization described 

12 in section 509(a)(3), or 

13 ‘‘(II) for establishment of a new, 

14 or maintenance of an existing, donor 

15 advised fund (as defined in section 

16 4966(d)(2)). 

17 ‘‘(iv) CARRYOVER.— 

18 ‘‘(I) IN GENERAL.—If the aggre19 gate amount of contributions de20 scribed in clause (i) exceeds the limi21 tation under clause (i), such excess 

22 shall be treated (in a manner con23 sistent with the rules of subsection 

24 (d)(1)) as a charitable contribution to 


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1 which clause (i) applies in each of the 

2 5 succeeding years in order of time. 

3 ‘‘(II) COORDINATION WITH

4 OTHER SUBPARAGRAPHS.—For pur5 poses of applying this subparagraph 

6 and subsection (d)(1), contributions 

7 described in clause (i) shall not be 

8 treated as described in subparagraph 

9 (A) and such subparagraph shall be 

10 applied without regard to such con11 tributions. 

12 ‘‘(v) APPLICATION OF ELECTION TO

13 PARTNERSHIPS AND S CORPORATIONS.—In 

14 the case of a partnership or S corporation, 

15 the election under subparagraph 

16 (F)(ii)(III) shall be made separately by 

17 each partner or shareholder. 

18 ‘‘(vi) HURRICANE SANDY FEDERALLY

19 DECLARED DISASTER AND DISASTER

20 AREA.—For purposes of this subpara21 graph, the terms ‘Hurricane Sandy feder22 ally declared disaster’ and ‘Hurricane 

23 Sandy disaster area’ have the meanings 

24 given such terms by section 

25 165(h)(3)(D).’’. 


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1 (b) CORPORATIONS.— 

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

3 170(b) is amended by redesignating subparagraph 

4 (C) as subparagraph (D) and by inserting after sub5 paragraph (B) the following new subparagraph: 

6 ‘‘(C) QUALIFIED DISASTER CONTRIBU7 TIONS.— 

8 ‘‘(i) IN GENERAL.—Any qualified 

9 Hurricane Sandy disaster contribution 

10 shall be allowed to the extent that the ag11 gregate of such contributions does not ex12 ceed the excess of 20 percent of the tax13 payer’s taxable income over the amount of 

14 charitable contributions allowed under sub15 paragraph (A). 

16 ‘‘(ii) CARRYOVER.—If the aggregate 

17 amount of contributions described in clause 

18 (i) exceeds the limitation under clause (i), 

19 such excess shall be treated (in a manner 

20 consistent with the rules of subsection 

21 (d)(1)) as a charitable contribution to 

22 which clause (i) applies in each of the 5 

23 succeeding years in order of time. 

24 ‘‘(iii) QUALIFIED DISASTER CON25 TRIBUTION.—The term ‘qualified HurriVerDate Mar 15 2010 02:05 Jun 01, 2013 Jkt 029200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H2137.IH H2137

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1 cane Sandy disaster contribution’ has the 

2 meaning given such term under paragraph 

3 (1)(F).’’. 

4 (2) CONFORMING AMENDMENTS.— 

5 (A) Subparagraph (A) of section 170(b)(2) 

6 is amended by striking ‘‘subparagraph (B) ap7 plies’’ and inserting ‘‘subparagraphs (B) and 

8 (C) apply’’. 

9 (B) Subparagraph (B) of section 170(b)(2) 

10 is amended by striking ‘‘subparagraph (A)’’ and 

11 inserting ‘‘subparagraphs (A) and (C)’’. 

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

13 this section shall apply to taxable years ending after the 

14 date of the enactment of this Act. 

15 SEC. 8. INCREASE IN NEW MARKETS TAX CREDIT FOR IN16 VESTMENTS IN COMMUNITY DEVELOPMENT 

17 ENTITIES SERVING HURRICANE SANDY DIS18 ASTER AREAS. 

19 (a) IN GENERAL.—Paragraph (1) of section 45D(f) 

20 is amended by striking the period at the end of subpara21 graph (G) and inserting ‘‘, and’’ and by adding at the end 

22 the following: 

23 ‘‘(H) in the case of the Hurricane Sandy 

24 Federal disaster area, $250,000,000.’’. 


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1 (b) RULES RELATING TO HURRICANE SANDY.—Sub2 section (f) of section 45D is amended by adding at the 

3 end the following new paragraph: 

4 ‘‘(4) INCREASED SPECIAL ALLOCATION FOR

5 COMMUNITY DEVELOPMENT ENTITIES SERVING HUR6 RICANE SANDY FEDERAL DISASTER AREAS.— 

7 ‘‘(A) IN GENERAL.—The limitation under 

8 paragraph (1)(H) shall be allocated among 

9 qualified community development entities to 

10 make qualified low-income community invest11 ments within the Hurricane Sandy disaster area 

12 (as defined in section 165(h)(3)(D)). 

13 ‘‘(B) ALLOCATION OF INCREASE.—The 

14 limitation under subparagraph (A) shall be allo15 cated by the Secretary under paragraph (2) to 

16 qualified community development entities and 

17 shall give priority to such entities with a record 

18 of having successfully provided capital or tech19 nical assistance to businesses or communities 

20 within the Hurricane Sandy disaster area. 

21 ‘‘(C) SEPARATE CARRYOVER OF UNUSED

22 LIMITATION.—Paragraph (3) shall be applied 

23 separately with respect to the limitation under 

24 paragraph (1)(H).’’. 


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

2 this section shall apply to calendar years beginning after 

3 2011. 

4 SEC. 9. EXTENSION OF EXPENSING FOR ENVIRONMENTAL 

5 REMEDIATION COSTS. 

6 (a) IN GENERAL.—Section 198 is amended by adding 

7 at the end the following: 

8 ‘‘(i) EXTENSION RELATING TO HURRICANE

9 SANDY.—Subsection (h) shall not apply in the case of any 

10 qualified environmental remediation expenditure paid or 

11 incurred after the date of the Hurricane Sandy federally 

12 declared disaster (as defined in section 165(h)(3)(D)) and 

13 before January 1, 2015, by reason of such disaster at a 

14 qualified contaminated site located in the Hurricane 

15 Sandy disaster area (as so defined).’’. 

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

17 subsection (a) shall apply to expenditures paid or incurred 

18 after October 28, 2012. 

19 SEC. 10. SPECIAL RULE FOR PUBLIC UTILITY CASUALTY 

20 LOSSES. 

21 (a) IN GENERAL.—Subsection (f) of section 172 is 

22 amended by adding at the end the following: 

23 ‘‘(7) HURRICANE SANDY PUBLIC UTILITY CAS24 UALTY LOSSES.— 


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1 ‘‘(A) IN GENERAL.—The amount described 

2 in paragraph (1)(A) for any taxable year shall 

3 be increased by the Hurricane Sandy public 

4 utility casualty loss for such taxable year. 

5 ‘‘(B) HURRICANE SANDY PUBLIC UTILITY

6 CASUALTY LOSS.—For purposes of this para7 graph, the term ‘Hurricane Sandy public utility 

8 casualty loss’ means any casualty loss of public 

9 utility property (as defined in section 

10 168(i)(10)) located in the Hurricane Sandy dis11 aster area if— 

12 ‘‘(i) such loss is allowed as a deduc13 tion under section 165 for the taxable 

14 year, 

15 ‘‘(ii) such loss is by reason of Hurri16 cane Sandy, and 

17 ‘‘(iii) the taxpayer elects the applica18 tion of this paragraph with respect to such 

19 loss. 

20 ‘‘(C) REDUCTION FOR GAINS FROM INVOL21 UNTARY CONVERSION.—The amount of any 

22 Hurricane Sandy public utility casualty loss 

23 which would (but for this subparagraph) be 

24 taken into account under subparagraph (A) for 

25 any taxable year shall be reduced by the 


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1 amount of any gain recognized by the taxpayer 

2 for such year from the involuntary conversion 

3 by reason of Hurricane Sandy of public utility 

4 property (as so defined) located in the Hurri5 cane Sandy disaster area. 

6 ‘‘(D) HURRICANE SANDY DISASTER

7 AREA.—For purposes of this paragraph, the 

8 term ‘Hurricane Sandy disaster area’ has the 

9 meaning given such term by section 

10 165(h)(3)(D). 

11 ‘‘(E) COORDINATION WITH GENERAL DIS12 ASTER LOSS RULES.—Section 168(k) and sec13 tion 165(i) shall not apply to any Hurricane 

14 Sandy public utility casualty loss to the extent 

15 such loss is taken into account under subpara16 graph (A). 

17 ‘‘(F) ELECTION.—Any election under sub18 paragraph (B)(iii) shall be made in such man19 ner as may be prescribed by the Secretary and 

20 shall be made by the due date (including exten21 sions of time) for filing the taxpayer’s return 

22 for the taxable year of the loss. Such election, 

23 once made for any taxable year, shall be irrev24 ocable for such taxable year.’’. 


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

2 subsection (a) shall apply to losses arising in taxable years 

3 ending after October 28, 2012. 

4 SEC. 11. DETERMINATION OF EARNED INCOME FOR PUR5 POSES OF EARNED INCOME CREDIT AND 

6 CHILD TAX CREDIT. 

7 (a) EARNED INCOME CREDIT.—Section 32 is amend8 ed by adding at the end the following new subsection: 

9 ‘‘(n) SPECIAL RULE RELATING TO HURRICANE

10 SANDY.—For purposes of this section and section 24(d)— 

11 ‘‘(1) IN GENERAL.—In the case of a qualified 

12 individual, if the earned income of the taxpayer for 

13 the taxable year which includes the applicable date 

14 is less than the earned income of the taxpayer for 

15 the preceding taxable year, the credit allowed under 

16 subsection (a) may, at the election of the taxpayer, 

17 be determined by substituting— 

18 ‘‘(A) such earned income for the preceding 

19 taxable year, for 

20 ‘‘(B) such earned income for the taxable 

21 year which includes the applicable date. 

22 ‘‘(2) QUALIFIED INDIVIDUAL.—For purposes of 

23 this subsection, the term ‘qualified individual’ means 

24 any individual— 


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1 ‘‘(A) whose principal place of abode on the 

2 applicable date was located in the Hurricane 

3 Sandy disaster area and such individual was 

4 displaced from such principal place of abode by 

5 reason of the Hurricane Sandy federally de6 clared disaster, or 

7 ‘‘(B) who performed substantially all em8 ployment services in the disaster area and was 

9 so employed on the applicable date. 

10 ‘‘(3) OTHER DEFINITIONS.—For purposes of 

11 this subsection— 

12 ‘‘(A) APPLICABLE DATE.—The term ‘appli13 cable date’ means any day on or after October 

14 29, 2012, and on or before November 3, 2012. 

15 ‘‘(B) HURRICANE SANDY FEDERALLY DE16 CLARED DISASTER AND DISASTER AREA.—The 

17 terms ‘Hurricane Sandy federally declared dis18 aster’ and ‘Hurricane Sandy disaster area’ have 

19 the meanings given such terms by section 

20 165(h)(3)(D). 

21 ‘‘(4) SPECIAL RULES.— 

22 ‘‘(A) APPLICATION TO JOINT RETURNS.— 

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

24 a joint return for a taxable year which includes 

25 the applicable date— 


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1 ‘‘(i) such paragraph shall apply if ei2 ther spouse is a qualified individual, and 

3 ‘‘(ii) the earned income of the tax4 payer for the preceding taxable year shall 

5 be the sum of the earned income of each 

6 spouse for such preceding taxable year. 

7 ‘‘(B) UNIFORM APPLICATION OF ELEC8 TION.—Any election made under paragraph (1) 

9 shall apply with respect to both this section and 

10 section 24(d). 

11 ‘‘(C) ERRORS TREATED AS MATHEMATICAL

12 ERROR.—For purposes of section 6213, an in13 correct use on a return of earned income pursu14 ant to paragraph (1) shall be treated as a 

15 mathematical or clerical error. 

16 ‘‘(D) NO EFFECT ON DETERMINATION OF

17 GROSS INCOME, ETC.—Except as otherwise pro18 vided in this subsection, this title shall be ap19 plied without regard to any substitution under 

20 paragraph (1).’’. 

21 (b) CHILD TAX CREDIT.—Subsection (d) of section 

22 24 is amended by adding at the end the following new 

23 paragraph: 

24 ‘‘(5) SPECIAL RULE RELATING TO HURRICANE

25 SANDY.—See section 32(n) for determination of 


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1 earned income with respect to the Hurricane Sandy 

2 federally declared disaster.’’. 

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

4 this section shall apply to taxable years ending after Octo5 ber 28, 2012. 

6 SEC. 12. WORK OPPORTUNITY CREDIT. 

7 (a) IN GENERAL.—Paragraph (1) of section 51(d) is 

8 amended by striking ‘‘or’’ at the end of subparagraph (H), 

9 by striking the period at the end of subparagraph (I) and 

10 inserting ‘‘, or’’, and by inserting after subparagraph (I) 

11 the following new subparagraph: 

12 ‘‘(J) a Hurricane Sandy employee.’’. 

13 (b) HURRICANE SANDY EMPLOYEE.—Subsection (d) 

14 of section 51 is amended by adding at the end the fol15 lowing: 

16 ‘‘(15) HURRICANE SANDY EMPLOYEE.— 

17 ‘‘(A) IN GENERAL.—The term ‘Hurricane 

18 Sandy employee’ means any individual— 

19 ‘‘(i) who, on or after October 29, 

20 2012, and on or before November 3, 2012, 

21 had a principal place of abode in the Hur22 ricane Sandy disaster area, 

23 ‘‘(ii) who did not apply for or receive 

24 unemployment compensation under State 

25 or Federal law in 2012 before October 29, 


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1 2012, but first applied for or received such 

2 compensation after such date and before 

3 February 15, 2013, 

4 ‘‘(iii) who receives such compensation 

5 without a break until the earlier of ex6 hausting such compensation under Federal 

7 or State law or the hiring date, and 

8 ‘‘(iv) whose hiring date for a position 

9 the principal place of employment of which 

10 is located in the Hurricane Sandy disaster 

11 area (as defined in section 165(h)(3)(D)) 

12 is before January 1, 2014. 

13 ‘‘(B) REASONABLE IDENTIFICATION AC14 CEPTABLE.—In lieu of the certification require15 ment under subparagraph (A) of paragraph 

16 (13), an individual may provide to the employer 

17 reasonable evidence that the individual is a 

18 Hurricane Sandy employee, and subparagraph 

19 (B) of such paragraph shall be applied as if 

20 such evidence were a certification described in 

21 such subparagraph. 

22 ‘‘(C) SPECIAL RULES.—For purposes of 

23 this paragraph— 

24 ‘‘(i) subsection (c)(4) shall not apply, 

25 and 


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1 ‘‘(ii) subsection (i)(2) shall not apply 

2 with respect to the first hire of such em3 ployee as a Hurricane Sandy employee, un4 less such employee was an employee of the 

5 employer on October 28, 2012.’’. 

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

7 this section shall apply to taxable years ending after Octo8 ber 28, 2012. 

9 SEC. 13. HURRICANE SANDY BONDS. 

10 (a) IN GENERAL.—Subpart A of part IV of sub11 chapter B of chapter 1 is amended by inserting after sec12 tion 146 the following new section: 

13 ‘‘SEC. 146A. HURRICANE SANDY BONDS. 

14 ‘‘(a) IN GENERAL.—For purposes of this title, any 

15 qualified Hurricane Sandy Bond shall— 

16 ‘‘(1) be treated as an exempt facility bond, and 

17 ‘‘(2) not be subject to section 146. 

18 ‘‘(b) QUALIFIED HURRICANE SANDY BOND.—For 

19 purposes of this section, the term ‘qualified Hurricane 

20 Sandy bond’ means any bond issued as part of an issue 

21 if— 

22 ‘‘(1) 95 percent or more of the net proceeds of 

23 such issue are to be used for qualified project costs, 


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1 ‘‘(2) such bond is issued by a State or any po2 litical subdivision thereof any part of which is in the 

3 Hurricane Sandy disaster area, 

4 ‘‘(3) the Governor of the issuing State des5 ignates such bond for purposes of this section, and 

6 ‘‘(4) such bond is issued after the date of the 

7 enactment of this section and before January 1, 

8 2016. 

9 ‘‘(c) LIMITATION ON AMOUNT OF BONDS.— 

10 ‘‘(1) IN GENERAL.—The maximum aggregate 

11 face amount of bonds which may be designated 

12 under this section shall not exceed— 

13 ‘‘(A) $3,200,000,000 in the case of Con14 necticut, 

15 ‘‘(B) $9,200,000,000 in the case of New 

16 Jersey, and 

17 ‘‘(C) $9,200,000,000 in the case of New 

18 York. 

19 ‘‘(2) REDUCTION FOR FAILURE TO ISSUE

20 BONDS.— 

21 ‘‘(A) 2013.—If after the date of enactment 

22 of this section and before January 1, 2014, less 

23 than 10 percent of the face amount of the bond 

24 limitation for a State has been issued, the au25 thorized limitation for such State under paraVerDate Mar 15 2010 02:05 Jun 01, 2013 Jkt 029200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H2137.IH H2137

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1 graph (1) shall be reduced by the amount by 

2 which 10 percent of the face amount of the 

3 bond limitation for such State exceeds the face 

4 amount of issued bonds. 

5 ‘‘(B) 2014.—If after the date of enactment 

6 of this section and before January 1, 2015, less 

7 than 30 percent of the face amount of the bond 

8 limitation for a State has been issued, the au9 thorized limitation for such State shall be re10 duced by the amount by which 10 percent of 

11 the face amount of the bond limitation for such 

12 State exceeds the face amount of issued bonds. 

13 ‘‘(3) MOVABLE PROPERTY.—No bonds shall be 

14 issued which are to be used for movable fixtures and 

15 equipment. 

16 ‘‘(4) TREATMENT OF CURRENT REFUNDING

17 BONDS.—Paragraph (1) shall not apply to any bond 

18 (or series of bonds) issued to refund a qualified 

19 Hurricane Sandy bond, if— 

20 ‘‘(A) the average maturity date of the issue 

21 of which the refunding bond is a part is not 

22 later than the average maturity date of the 

23 bonds to be refunded by such issue, 


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1 ‘‘(B) the amount of the refunding bond 

2 does not exceed the outstanding amount of the 

3 refunded bond, and 

4 ‘‘(C) the net proceeds of the refunding 

5 bond are used to redeem the refunded bond not 

6 later than 90 days after the date of the 

7 issuance of the refunding bond. 

8 For purposes of subparagraph (A), average maturity 

9 shall be determined in accordance with section 

10 147(b)(2)(A). 

11 ‘‘(d) QUALIFIED PROJECT COSTS.—For purposes of 

12 this section, the term ‘qualified project costs’ means the 

13 cost of acquisition, construction, reconstruction, and ren14 ovation of— 

15 ‘‘(1) residential rental property (as defined in 

16 section 142(d)), 

17 ‘‘(2) nonresidential real property (including 

18 fixed improvements associated with such property), 

19 ‘‘(3) a facility described in paragraph (2) or (3) 

20 of section 142(a), or 

21 ‘‘(4) public utility property (as defined in sec22 tion 168(i)(10)), 

23 which is located in the Hurricane Sandy Disaster area and 

24 was damaged or destroyed by reason of the Hurricane 

25 Sandy federally declared disaster. 


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1 ‘‘(e) SPECIAL RULES.—In applying this title to any 

2 qualified Hurricane Sandy Bond, the following modifica3 tions shall apply: 

4 ‘‘(1) Section 147(d) (relating to acquisition of 

5 existing property not permitted) shall be applied by 

6 substituting ‘50 percent’ for ‘15 percent’ each place 

7 it appears. 

8 ‘‘(2) Section 148(f)(4)(C) (relating to exception 

9 from rebate for certain proceeds to be used to fi10 nance construction expenditures) shall apply to the 

11 available construction proceeds of bonds issued 

12 under this section. For purposes of the preceding 

13 sentence, the following spending requirements shall 

14 apply in lieu of the requirements in clause (ii) of 

15 such section: 

16 ‘‘(A) 40 percent of such available construc17 tion proceeds are spent for the governmental 

18 purposes of the issue within the 2-year period 

19 beginning on the date the bonds are issued, 

20 ‘‘(B) 60 percent of such proceeds are spent 

21 for such purposes within the 3-year period be22 ginning on such date, 

23 ‘‘(C) 80 percent of such proceeds are spent 

24 for such purposes within the 4-year period be25 ginning on such date, and 


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1 ‘‘(D) 100 percent of such proceeds are 

2 spent for such purposes within the 5-year pe3 riod beginning on such date. 

4 ‘‘(3) Repayments of principal on financing pro5 vided by the issue— 

6 ‘‘(A) may not be used to provide financing, 

7 and 

8 ‘‘(B) must be used not later than the close 

9 of the 1st semiannual period beginning after 

10 the date of the repayment to redeem bonds 

11 which are part of such issue. 

12 The requirement of subparagraph (B) shall be treat13 ed as met with respect to amounts received within 

14 5 years after the date of issuance of the issue (or, 

15 in the case of a refunding bond, the date of issuance 

16 of the original bond) if such amounts are used by 

17 the close of such 5 years to redeem bonds which are 

18 part of such issue. 

19 ‘‘(4) Section 57(a)(5) shall not apply. 

20 ‘‘(f) SEPARATE ISSUE TREATMENT OF PORTIONS OF

21 AN ISSUE.—This section shall not apply to the portion of 

22 an issue which (if issued as a separate issue) would be 

23 treated as a qualified bond or as a bond that is not a 

24 private activity bond (determined without regard to para25 graph (1)), if the issuer elects to so treat such portion. 


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1 ‘‘(g) HURRICANE SANDY FEDERALLY DECLARED

2 DISASTER AND DISASTER AREA.—The terms ‘Hurricane 

3 Sandy federally declared disaster’ and ‘Hurricane Sandy 

4 disaster area’ have the meanings given such terms by sec5 tion 165(h)(3)(D).’’. 

6 (b) CLERICAL AMENDMENT.—The table of sections 

7 for subpart A of part IV of subchapter B of chapter 1 

8 is amended by inserting after the item relating to section 

9 146 the following new item: 

‘‘Sec. 146A. Hurricane Sandy Bonds.’’. 

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

11 this section shall apply to obligations issued after the date 

12 of the enactment of this Act. 

13 SEC. 14. ADDITIONAL LOW-INCOME HOUSING CREDIT MAY 

14 BE ALLOCATED IN STATES DAMAGED BY 

15 HURRICANE SANDY. 

16 (a) IN GENERAL.—Paragraph (3) of section 42(h) 

17 (relating to limitation on aggregate credit allowable with 

18 respect to projects located in a State) is amended by add19 ing at the end the following new subparagraph: 

20 ‘‘(J) INCREASE IN STATE HOUSING CREDIT

21 FOR STATES DAMAGED BY HURRICANE

22 SANDY.— 

23 ‘‘(i) IN GENERAL.—In the case of cal24 endar year 2013, the State housing credit 

25 ceiling of each State any portion of which 


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1 includes any portion of the Hurricane 

2 Sandy disaster area shall be increased by 

3 so much of the aggregate housing credit 

4 dollar amount as does not exceed the appli5 cable limitation allocated by the State 

6 housing credit agency of such State for 

7 such calendar year to buildings located in 

8 such disaster area. 

9 ‘‘(ii) APPLICABLE LIMITATION.—For 

10 purposes of clause (i), the applicable limi11 tation is the greater of— 

12 ‘‘(I) $8 multiplied by the popu13 lation of the area described in clause 

14 (vii)(I), or 

15 ‘‘(II) 50 percent of the State 

16 housing credit ceiling (determined 

17 without regard to this subparagraph) 

18 for 2013. 

19 ‘‘(iii) APPLICABLE PERCENTAGE.— 

20 For purposes of this section, the applicable 

21 percentage with respect to any building to 

22 which amounts allocated under clause (i) 

23 shall be determined under subsection 

24 (b)(2), except that subparagraph (A) 

25 thereof shall be applied by substituting 


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1 ‘December 31, 2015’ for ‘December 31, 

2 2013’. 

3 ‘‘(iv) ALLOCATIONS TREATED AS

4 MADE FIRST FROM ADDITIONAL ALLOCA5 TION AMOUNT FOR PURPOSES OF DETER6 MINING CARRYOVER.—For purposes of de7 termining the unused State housing credit 

8 ceiling under subparagraph (C) for any 

9 calendar year, any increase in the State 

10 housing credit ceiling under clause (i) shall 

11 be treated as an amount described in 

12 clause (ii) of such subparagraph. 

13 ‘‘(v) DIFFICULT DEVELOPMENT

14 AREA.— 

15 ‘‘(I) IN GENERAL.—In the case 

16 of property placed in service during 

17 2013, 2014, or 2015, the Hurricane 

18 Sandy disaster area shall be treated 

19 as a difficult development area des20 ignated under subclause (I) of sub21 section (d)(5)(B)(iii), and shall not be 

22 taken into account for purposes of ap23 plying the limitation under subclause 

24 (II) of such subsection. 


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1 ‘‘(II) APPLICATION OF

2 CLAUSE.—Subclause (I) shall apply 

3 only to— 

4 ‘‘(aa) housing credit dollar 

5 amounts allocated during 2013, 

6 and 

7 ‘‘(bb) to the extent that 

8 paragraph (1) does not apply to 

9 any building by reason of para10 graph (4), only with respect to 

11 bonds issued after December 31, 

12 2012. 

13 ‘‘(vi) HURRICANE SANDY DISASTER

14 AREA AND HURRICANE SANDY FEDERALLY

15 DECLARED DISASTER.—For purposes of 

16 this subparagraph— 

17 ‘‘(I) DISASTER AREA.—The term 

18 ‘Hurricane Sandy disaster area’ 

19 means each county included in the 

20 geographical area covered by the Hur21 ricane Sandy federally declared dis22 aster. 

23 ‘‘(II) HURRICANE SANDY FEDER24 ALLY DECLARED DISASTER AND DIS25 ASTER AREA.—The term ‘Hurricane 


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1 Sandy federally declared disaster’ has 

2 the meaning given such term by sec3 tion 165(h)(3)(D).’’. 

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

5 this section shall take effect on the date of the enactment 

6 of this Act. 

7 SEC. 15. SPECIAL RULES FOR USE OF RETIREMENT FUNDS. 

8 (a) EARLY WITHDRAWAL FROM RETIREMENT

9 PLANS.—Paragraph (2) of section 72(t) is amended by 

10 adding at the end the following new subparagraph: 

11 ‘‘(H) HURRICANE SANDY DISTRIBU12 TIONS.—Distributions to an individual which 

13 are Hurricane Sandy distributions (as defined 

14 in paragraph (11)).’’. 

15 (b) SPECIAL RULES.—Subsection (t) of section 72 is 

16 amended by adding at the end the following: 

17 ‘‘(11) SPECIAL RULES RELATING TO USE OF

18 RETIREMENT FUNDS RELATING TO HURRICANE

19 SANDY.— 

20 ‘‘(A) DISTRIBUTIONS.—For purposes of 

21 this paragraph— 

22 ‘‘(i) IN GENERAL.—The term ‘Hurri23 cane Sandy distribution’ means any dis24 tribution from an eligible retirement plan 

25 (as defined by section 402(c)(8)(B)) made 


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1 on or after October 29, 2012, and before 

2 January 1, 2014, to an individual whose 

3 principal place of abode on October 29, 

4 2012, is located in the Hurricane Sandy 

5 disaster area (as defined in section 

6 165(h)(3)(D)) and who has sustained an 

7 economic loss by reason of Hurricane 

8 Sandy. 

9 ‘‘(ii) AGGREGATE DOLLAR LIMITA10 TION.— 

11 ‘‘(I) IN GENERAL.—For purposes 

12 of this paragraph, the aggregate 

13 amount of distributions received by an 

14 individual which may be treated as 

15 Hurricane Sandy distributions for any 

16 taxable year shall not exceed the ex17 cess (if any) of— 

18 ‘‘(aa) $100,000, over 

19 ‘‘(bb) the aggregate amounts 

20 treated as Hurricane Sandy dis21 tributions received by such indi22 vidual for all prior taxable years. 

23 ‘‘(II) TREATMENT OF PLAN DIS24 TRIBUTIONS.—If a distribution to an 

25 individual would (without regard to 


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1 subclause (I)) be a Hurricane Sandy 

2 distribution, a plan shall not be treat3 ed as violating any requirement of 

4 this title merely because the plan 

5 treats such distribution as a Hurri6 cane Sandy distribution, unless the 

7 aggregate amount of such distribu8 tions from all plans maintained by the 

9 employer (and any member of any 

10 controlled group which includes the 

11 employer) to such individual exceeds 

12 $100,000. 

13 ‘‘(III) CONTROLLED GROUP.— 

14 For purposes of subclause (II), the 

15 term ‘controlled group’ means any 

16 group treated as a single employer 

17 under subsection (b), (c), (m), or (o) 

18 of section 414. 

19 ‘‘(iii) AMOUNT DISTRIBUTED MAY BE

20 REPAID.— 

21 ‘‘(I) IN GENERAL.—Any indi22 vidual who receives a Hurricane 

23 Sandy distribution may, at any time 

24 during the 3-year period beginning on 

25 the day after the date on which such 


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1 distribution was received, make one or 

2 more contributions in an aggregate 

3 amount not to exceed the amount of 

4 such distribution to an eligible retire5 ment plan of which such individual is 

6 a beneficiary and to which a rollover 

7 contribution of such distribution could 

8 be made under section 402(c), 

9 403(a)(4), 403(b)(8), 408(d)(3), or 

10 457(e)(16), as the case may be. 

11 ‘‘(II) TREATMENT OF REPAY12 MENTS OF DISTRIBUTIONS FROM ELI13 GIBLE RETIREMENT PLANS OTHER

14 THAN IRAS.—For purposes of this 

15 title, if a contribution is made pursu16 ant to subclause (I) with respect to a 

17 Hurricane Sandy distribution from an 

18 eligible retirement plan other than an 

19 individual retirement plan, then the 

20 taxpayer shall, to the extent of the 

21 amount of the contribution, be treated 

22 as having received the Hurricane 

23 Sandy distribution in an eligible roll24 over distribution (as defined in section 

25 402(c)(4)) and as having transferred 


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1 the amount to the eligible retirement 

2 plan in a direct trustee to trustee 

3 transfer within 60 days of the dis4 tribution. 

5 ‘‘(III) TREATMENT OF REPAY6 MENTS FOR DISTRIBUTIONS FROM

7 IRAS.—For purposes of this title, if a 

8 contribution is made pursuant to sub9 clause (I) with respect to a Hurricane 

10 Sandy distribution from an individual 

11 retirement plan (as defined by section 

12 7701(a)(37)), then, to the extent of 

13 the amount of the contribution, the 

14 Hurricane Sandy distribution shall be 

15 treated as a distribution described in 

16 section 408(d)(3) and as having been 

17 transferred to the eligible retirement 

18 plan in a direct trustee to trustee 

19 transfer within 60 days of the dis20 tribution. 

21 ‘‘(iv) INCOME INCLUSION SPREAD

22 OVER 3-YEAR PERIOD.— 

23 ‘‘(I) IN GENERAL.—In the case 

24 of any Hurricane Sandy distribution, 

25 unless the taxpayer elects not to have 


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1 this clause apply for any taxable year, 

2 any amount required to be included in 

3 gross income for such taxable year 

4 shall be so included ratably over the 

5 3-taxable year period beginning with 

6 such taxable year. 

7 ‘‘(II) SPECIAL RULE.—For pur8 poses of subclause (I), rules similar to 

9 the rules of subparagraph (E) of sec10 tion 408A(d)(3) shall apply. 

11 ‘‘(v) SPECIAL RULES.— 

12 ‘‘(I) EXEMPTION OF DISTRIBU13 TIONS FROM TRUSTEE TO TRUSTEE

14 TRANSFER AND WITHHOLDING

15 RULES.—For purposes of sections 

16 401(a)(31), 402(f), and 3405, Hurri17 cane Sandy distributions shall not be 

18 treated as eligible rollover distribu19 tions. 

20 ‘‘(II) HURRICANE SANDY DIS21 TRIBUTIONS TREATED AS MEETING

22 PLAN DISTRIBUTION REQUIRE23 MENTS.—For purposes this title, a 

24 Hurricane Sandy distribution shall be 

25 treated as meeting the requirements 


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1 of sections 401(k)(2)(B)(i), 

2 403(b)(7)(A)(ii), 403(b)(11), and 

3 457(d)(1)(A). 

4 ‘‘(B) RECONTRIBUTIONS OF WITH5 DRAWALS FOR HOME PURCHASES.— 

6 ‘‘(i) IN GENERAL.—Any individual 

7 who received a distribution described in 

8 clause (ii) may, during the applicable pe9 riod, make one or more contributions in an 

10 aggregate amount not to exceed the 

11 amount of such distribution to an eligible 

12 retirement plan (as defined in section 

13 402(c)(8)(B)) of which such individual is a 

14 beneficiary and to which a rollover con15 tribution of such distribution could be 

16 made under section 402(c), 403(a)(4), 

17 403(b)(8), or 408(d)(3), as the case may 

18 be. 

19 ‘‘(ii) DISTRIBUTION DESCRIBED.—For 

20 purposes of clause (i), a distribution is de21 scribed in this clause if the distribution— 

22 ‘‘(I) is described in paragraph 

23 (2)(F) or section 401(k)(2)(B)(i)(IV), 

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1 tent such distribution relates to finan2 cial hardship), or 403(b)(11)(B), 

3 ‘‘(II) is received after April 29, 

4 2012, and before October 30, 2012, 

5 and 

6 ‘‘(III) was to be used to purchase 

7 or construct a principal residence in 

8 the Hurricane Sandy disaster area (as 

9 defined in section 165(h)(3)(D)), but 

10 which was not so purchased or con11 structed on account of Hurricane 

12 Sandy. 

13 ‘‘(iii) APPLICABLE PERIOD.—For pur14 poses of this subparagraph, the term ‘ap15 plicable period’ means the period beginning 

16 on October 29, 2012, and ending five 

17 months after the date of enactment of the 

18 Hurricane Sandy Tax Relief Act of 2013. 

19 ‘‘(iv) TREATMENT OF REPAYMENTS.— 

20 Rules similar to the rules of subclauses 

21 (II) and (III) of subparagraph (A)(iii) 

22 shall apply for purposes of this subpara23 graph.’’. 


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1 (c) LOANS FROM QUALIFIED PLANS.—Subsection 

2 (p) of section 72 is amended by adding at the end the 

3 following: 

4 ‘‘(6) SPECIAL RULES RELATING TO HURRICANE

5 SANDY.— 

6 ‘‘(A) INCREASE IN LIMIT ON LOANS NOT

7 TREATED AS DISTRIBUTIONS.—In the case of 

8 any loan from a qualified employer plan to a 

9 qualified individual made during the applicable 

10 period— 

11 ‘‘(i) paragraph (2)(A)(i) shall be ap12 plied by substituting ‘$100,000’ for 

13 ‘$50,000’, and 

14 ‘‘(ii) paragraph (2)(A)(ii) shall be ap15 plied by substituting ‘the present value of 

16 the nonforfeitable accrued benefit of the 

17 employee under the plan’ for ‘one-half of 

18 the present value of the nonforfeitable ac19 crued benefit of the employee under the 

20 plan’. 

21 ‘‘(B) DELAY OF REPAYMENT.—In the case 

22 of a qualified individual with an outstanding 

23 loan on or after the qualified beginning date 

24 from a qualified employer plan— 


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1 ‘‘(i) if the due date pursuant to sub2 paragraph (B) or (C) of paragraph (2) for 

3 any repayment with respect to such loan 

4 occurs during the period beginning on the 

5 qualified beginning date and ending on De6 cember 31, 2013, such due date shall be 

7 delayed for 1 year, 

8 ‘‘(ii) any subsequent repayments with 

9 respect to any such loan shall be appro10 priately adjusted to reflect the delay in the 

11 due date under clause (i) and any interest 

12 accruing during such delay, and 

13 ‘‘(iii) in determining the 5-year period 

14 and the term of a loan under subpara15 graph (B) or (C) of paragraph (2), the pe16 riod described in clause (i) shall be dis17 regarded. 

18 ‘‘(C) QUALIFIED INDIVIDUAL.—For pur19 poses of this paragraph— 

20 ‘‘(i) IN GENERAL.—The term ‘quali21 fied individual’ means any qualified Hurri22 cane Sandy individual. 

23 ‘‘(ii) QUALIFIED HURRICANE SANDY

24 INDIVIDUAL.—The term ‘qualified Hurri25 cane Sandy individual’ means an individual 


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1 whose principal place of abode on October 

2 29, 2012, is located in the Hurricane 

3 Sandy disaster area (as defined in section 

4 165(h)(3)(D)) and who has sustained an 

5 economic loss by reason of Hurricane 

6 Sandy. 

7 ‘‘(D) OTHER DEFINITIONS.—For purposes 

8 of this paragraph— 

9 ‘‘(i) APPLICABLE PERIOD.—The appli10 cable period is the period beginning on the 

11 date of enactment of the Hurricane Sandy 

12 Tax Relief Act of 2013 and ending on De13 cember 31, 2013. 

14 ‘‘(ii) QUALIFIED BEGINNING DATE.— 

15 The qualified beginning date is October 29, 

16 2012.’’. 

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

18 this section shall apply to years ending after October 28, 

19 2012. 

20 (e) PROVISIONS RELATING TO PLAN AMEND21 MENTS.— 

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

23 any amendment to any plan or annuity contract, 

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1 ated in accordance with the terms of the plan during 

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

3 (2) AMENDMENTS TO WHICH SUBSECTION AP4 PLIES.— 

5 (A) IN GENERAL.—This subsection shall 

6 apply to any amendment to any plan or annuity 

7 contract which is made— 

8 (i) pursuant to any provision of, or 

9 amendment made by. this section, or pur10 suant to any regulation issued by the Sec11 retary of the Treasury or the Secretary of 

12 Labor under any provision of, or amend13 ment made by, this section, and 

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

15 first plan year beginning on or after Janu16 ary 1, 2014, or such later date as the Sec17 retary of the Treasury may prescribe. 

18 In the case of a governmental plan (as defined 

19 in section 414(d)), clause (ii) shall be applied 

20 by substituting the date which is 2 years after 

21 the date otherwise applied under clause (ii). 

22 (B) CONDITIONS.—This subsection shall 

23 not apply to any amendment unless— 

24 (i) during the period— 


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49 

•HR 2137 IH

1 (I) beginning on the date that 

2 this section or the regulation de3 scribed in subparagraph (A)(i) takes 

4 effect (or in the case of a plan or con5 tract amendment not required by this 

6 section or such regulation, the effec7 tive date specified by the plan), and 

8 (II) ending on the date described 

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

10 the date the plan or contract amend11 ment is adopted), the plan or contract 

12 is operated as if such plan or contract 

13 amendment were in effect; and 

14 (ii) such plan or contract amendment 

15 applies retroactively for such period. 

Æ 


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