I 

115TH CONGRESS 

2D SESSION H. R. 7166 

To provide tax relief for the victims of Hurricane Michael, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 20, 2018 

Mr. DUNN (for himself and Mr. LAWSON of Florida) introduced the following 

bill; which was referred to the Committee on Ways and Means 

A BILL 

To provide tax relief for the victims of Hurricane Michael, 

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. 

4 This Act may be cited as the ‘‘Hurricane Michael Tax 

5 Relief Act’’. 

6 SEC. 2. HURRICANE MICHAEL DISASTER ZONE AND DIS7 ASTER AREA. 

8 (a) HURRICANE MICHAEL DISASTER ZONE.—For 

9 purposes of this Act, the term ‘‘Hurricane Michael dis10 aster zone’’ means that portion of the Hurricane Michael 


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1 disaster area determined by the President to warrant indi2 vidual or individual and public assistance from the Federal 

3 Government under such Act by reason of Hurricane Mi4 chael. 

5 (b) HURRICANE MICHAEL DISASTER AREA.—The 

6 term ‘‘Hurricane Michael disaster area’’ means an area 

7 with respect to which a major disaster has been declared 

8 by the President before October 19, 2018, under section 

9 401 of such Act by reason of Hurricane Michael. 

10 SEC. 3. SPECIAL DISASTER-RELATED RULES FOR USE OF 

11 RETIREMENT FUNDS. 

12 (a) TAX-FAVORED WITHDRAWALS FROM RETIRE13 MENT PLANS.— 

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

15 Revenue Code of 1986 shall not apply to any quali16 fied hurricane distribution. 

17 (2) AGGREGATE DOLLAR LIMITATION.— 

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

19 subsection, the aggregate amount of distribu20 tions received by an individual which may be 

21 treated as qualified hurricane distributions for 

22 any taxable year shall not exceed the excess (if 

23 any) of— 

24 (i) $100,000; over 


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1 (ii) the aggregate amounts treated as 

2 qualified hurricane distributions received 

3 by such individual for all prior taxable 

4 years. 

5 (B) TREATMENT OF PLAN DISTRIBU6 TIONS.—If a distribution to an individual would 

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

8 qualified hurricane distribution, a plan shall not 

9 be treated as violating any requirement of the 

10 Internal Revenue Code of 1986 merely because 

11 the plan treats such distribution as a qualified 

12 hurricane distribution, unless the aggregate 

13 amount of such distributions from all plans 

14 maintained by the employer (and any member 

15 of any controlled group which includes the em16 ployer) to such individual exceeds $100,000. 

17 (C) CONTROLLED GROUP.—For purposes 

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

19 group’’ means any group treated as a single 

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

21 of section 414 of the Internal Revenue Code of 

22 1986. 

23 (3) AMOUNT DISTRIBUTED MAY BE REPAID.— 

24 (A) IN GENERAL.—Any individual who re25 ceives a qualified hurricane distribution may, at 


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1 any time during the 3-year period beginning on 

2 the day after the date on which such distribu3 tion was received, make one or more contribu4 tions in an aggregate amount not to exceed the 

5 amount of such distribution to an eligible retire6 ment plan of which such individual is a bene7 ficiary and to which a rollover contribution of 

8 such distribution could be made under section 

9 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 

10 457(e)(16), of the Internal Revenue Code of 

11 1986, as the case may be. 

12 (B) TREATMENT OF REPAYMENTS OF DIS13 TRIBUTIONS FROM ELIGIBLE RETIREMENT

14 PLANS OTHER THAN IRAS.—For purposes of 

15 the Internal Revenue Code of 1986, if a con16 tribution is made pursuant to subparagraph (A) 

17 with respect to a qualified hurricane distribu18 tion from an eligible retirement plan other than 

19 an individual retirement plan, then the taxpayer 

20 shall, to the extent of the amount of the con21 tribution, be treated as having received the 

22 qualified hurricane distribution in an eligible 

23 rollover distribution (as defined in section 

24 402(c)(4) of such Code) and as having trans25 ferred the amount to the eligible retirement 


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

3 (C) TREATMENT OF REPAYMENTS FOR

4 DISTRIBUTIONS FROM IRAS.—For purposes of 

5 the Internal Revenue Code of 1986, if a con6 tribution is made pursuant to subparagraph (A) 

7 with respect to a qualified hurricane distribu8 tion from an individual retirement plan (as de9 fined by section 7701(a)(37) of such Code), 

10 then, to the extent of the amount of the con11 tribution, the qualified hurricane distribution 

12 shall be treated as a distribution described in 

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

14 been transferred to the eligible retirement plan 

15 in a direct trustee to trustee transfer within 60 

16 days of the distribution. 

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

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

21 the term ‘‘qualified hurricane distribution’’ 

22 means any distribution from an eligible retire23 ment plan made on or after October 9, 2018, 

24 and before January 1, 2020, to an individual 

25 whose principal place of abode on October 9, 


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1 2018, is located in the Hurricane Michael dis2 aster area and who has sustained an economic 

3 loss by reason of Hurricane Michael. 

4 (B) ELIGIBLE RETIREMENT PLAN.—The 

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

6 meaning given such term by section 

7 402(c)(8)(B) of the Internal Revenue Code of 

8 1986. 

9 (5) INCOME INCLUSION SPREAD OVER 3-YEAR

10 PERIOD.— 

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

12 qualified hurricane distribution, unless the tax13 payer elects not to have this paragraph apply 

14 for any taxable year, any amount required to be 

15 included in gross income for such taxable year 

16 shall be so included ratably over the 3-taxable17 year period beginning with such taxable year. 

18 (B) SPECIAL RULE.—For purposes of sub19 paragraph (A), rules similar to the rules of sub20 paragraph (E) of section 408A(d)(3) of the In21 ternal Revenue Code of 1986 shall apply. 

22 (6) SPECIAL RULES.— 

23 (A) EXEMPTION OF DISTRIBUTIONS FROM

24 TRUSTEE TO TRUSTEE TRANSFER AND WITH25 HOLDING RULES.—For purposes of sections 


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1 401(a)(31), 402(f), and 3405 of the Internal 

2 Revenue Code of 1986, qualified hurricane dis3 tributions shall not be treated as eligible roll4 over distributions. 

5 (B) QUALIFIED HURRICANE DISTRIBU6 TIONS TREATED AS MEETING PLAN DISTRIBU7 TION REQUIREMENTS.—For purposes the Inter8 nal Revenue Code of 1986, a qualified hurri9 cane distribution shall be treated as meeting 

10 the requirements of sections 401(k)(2)(B)(i), 

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

12 of such Code. 

13 (b) RECONTRIBUTIONS OF WITHDRAWALS FOR

14 HOME PURCHASES.— 

15 (1) RECONTRIBUTIONS.— 

16 (A) IN GENERAL.—Any individual who re17 ceived a qualified distribution may, during the 

18 period beginning on October 9, 2018, and end19 ing on March 31, 2019, make one or more con20 tributions in an aggregate amount not to exceed 

21 the amount of such qualified distribution to an 

22 eligible retirement plan (as defined in section 

23 402(c)(8)(B) of the Internal Revenue Code of 

24 1986) of which such individual is a beneficiary 

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1 tribution could be made under section 402(c), 

2 403(a)(4), 403(b)(8), or 408(d)(3), of such 

3 Code, as the case may be. 

4 (B) TREATMENT OF REPAYMENTS.—Rules 

5 similar to the rules of subparagraphs (B) and 

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

7 of this subsection. 

8 (2) QUALIFIED DISTRIBUTION.—For purposes 

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

10 means any distribution— 

11 (A) described in section 

12 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only 

13 to the extent such distribution relates to finan14 cial hardship), 403(b)(11)(B), or 72(t)(2)(F), 

15 of the Internal Revenue Code of 1986; 

16 (B) received after February 28, 2018, and 

17 before October 19, 2018; and 

18 (C) which was to be used to purchase or 

19 construct a principal residence in the Hurricane 

20 Michael disaster area, but which was not so 

21 purchased or constructed on account of Hurri22 cane Michael. 

23 (c) LOANS FROM QUALIFIED PLANS.— 

24 (1) INCREASE IN LIMIT ON LOANS NOT TREAT25 ED AS DISTRIBUTIONS.—In the case of any loan 


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1 from a qualified employer plan (as defined under 

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

3 1986) to a qualified individual made during the pe4 riod beginning on the date of the enactment of this 

5 Act and ending on December 31, 2019— 

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

7 such Code shall be applied by substituting 

8 ‘‘$100,000’’ for ‘‘$50,000’’; and 

9 (B) clause (ii) of such section shall be ap10 plied by substituting ‘‘the present value of the 

11 nonforfeitable accrued benefit of the employee 

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

13 value of the nonforfeitable accrued benefit of 

14 the employee under the plan’’. 

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

16 qualified individual with an outstanding loan on or 

17 after October 9, 2018, from a qualified employer 

18 plan (as defined in section 72(p)(4) of the Internal 

19 Revenue Code of 1986)— 

20 (A) if the due date pursuant to subpara21 graph (B) or (C) of section 72(p)(2) of such 

22 Code for any repayment with respect to such 

23 loan occurs during the period beginning on Oc24 tober 9, 2018, and ending on December 31, 

25 2019, such due date shall be delayed for 1 year; 


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1 (B) any subsequent repayments with re2 spect to any such loan shall be appropriately 

3 adjusted to reflect the delay in the due date 

4 under paragraph (1) and any interest accruing 

5 during such delay; and 

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

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

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

9 described in subparagraph (A) shall be dis10 regarded. 

11 (3) QUALIFIED HURRICANE MICHAEL INDI12 VIDUAL.—For purposes of this subsection, the term 

13 ‘‘qualified Hurricane Michael individual’’ means an 

14 individual whose principal place of abode on October 

15 9, 2018, is located in the Hurricane Michael disaster 

16 area and who has sustained an economic loss by rea17 son of Hurricane Michael. 

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). 


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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 


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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 

10 plan or contract amendment were in effect; 

11 and 

12 (ii) such plan or contract amendment 

13 applies retroactively for such period. 

14 SEC. 4. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS 

15 AFFECTED BY HURRICANE MICHAEL. 

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

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

18 employer, the Hurricane Michael employee retention credit 

19 shall be treated as a credit listed in subsection (b) of such 

20 section. For purposes of this section, the Hurricane Mi21 chael employee retention credit for any taxable year is an 

22 amount equal to 40 percent of the qualified wages with 

23 respect to each eligible employee of such employer for such 

24 taxable year. For purposes of the preceding sentence, the 

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1 count with respect to any individual shall not exceed 

2 $6,000. 

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

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

5 employer’’ means any employer— 

6 (A) which conducted an active trade or 

7 business on October 9, 2018, in the Hurricane 

8 Michael disaster zone; and 

9 (B) with respect to whom the trade or 

10 business described in subparagraph (A) is inop11 erable on any day after October 9, 2018, and 

12 before January 1, 2019, as a result of damage 

13 sustained by reason of Hurricane Michael. 

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

15 employee’’ means with respect to an eligible em16 ployer an employee whose principal place of employ17 ment on October 9, 2018, with such eligible em18 ployer was in the Hurricane Michael disaster zone. 

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

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

21 of the Internal Revenue Code of 1986, but without 

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

23 or incurred by an eligible employer with respect to 

24 an eligible employee on any day after October 9, 


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1 2018, and before February 1, 2019, which occurs 

2 during the period— 

3 (A) beginning on the date on which the 

4 trade or business described in paragraph (1) 

5 first became inoperable at the principal place of 

6 employment of the employee immediately before 

7 Hurricane Michael; and 

8 (B) ending on the date on which such 

9 trade or business has resumed significant oper10 ations at such principal place of employment. 

11 Such term shall include wages paid without regard 

12 to whether the employee performs no services, per13 forms services at a different place of employment 

14 than such principal place of employment, or per15 forms services at such principal place of employment 

16 before significant operations have resumed. 

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

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

19 52, and 280C(a), of the Internal Revenue Code of 1986, 

20 shall apply. 

21 (d) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE

22 THAN ONCE.—An employee shall not be treated as an eli23 gible employee for purposes of this section for any period 

24 with respect to any employer if such employer is allowed 


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1 a credit under section 51 of the Internal Revenue Code 

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

3 SEC. 5. ADDITIONAL DISASTER-RELATED TAX RELIEF PRO4 VISIONS. 

5 (a) TEMPORARY SUSPENSION OF LIMITATIONS ON

6 CHARITABLE CONTRIBUTIONS.— 

7 (1) IN GENERAL.—Except as otherwise pro8 vided in paragraph (2), subsection (b) of section 170 

9 of the Internal Revenue Code of 1986 shall not 

10 apply to qualified contributions and such contribu11 tions shall not be taken into account for purposes of 

12 applying subsections (b) and (d) of such section to 

13 other contributions. 

14 (2) TREATMENT OF EXCESS CONTRIBUTIONS.— 

15 For purposes of section 170 of the Internal Revenue 

16 Code of 1986— 

17 (A) INDIVIDUALS.—In the case of an indi18 vidual— 

19 (i) LIMITATION.—Any qualified con20 tribution shall be allowed only to the ex21 tent that the aggregate of such contribu22 tions does not exceed the excess of the tax23 payer’s contribution base (as defined in 

24 subparagraph (H) of section 170(b)(1) of 

25 such Code) over the amount of all other 


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1 charitable contributions allowed under sec2 tion 170(b)(1) of such Code. 

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)(1) of such Code) exceeds 

7 the limitation of clause (i), such excess 

8 shall be added to the excess described in 

9 the portion of subparagraph (A) of such 

10 section which precedes clause (i) thereof 

11 for purposes of applying such section. 

12 (B) CORPORATIONS.—In the case of a cor13 poration— 

14 (i) LIMITATION.—Any qualified con15 tribution shall be allowed only to the ex16 tent that the aggregate of such contribu17 tions does not exceed the excess of the tax18 payer’s taxable income (as determined 

19 under paragraph (2) of section 170(b) of 

20 such Code) over the amount of all other 

21 charitable contributions allowed under such 

22 paragraph. 

23 (ii) CARRYOVER.—Rules similar to the 

24 rules of subparagraph (A)(ii) shall apply 

25 for purposes of this subparagraph. 


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1 (3) QUALIFIED CONTRIBUTIONS.— 

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

3 subsection, the term ‘‘qualified contribution’’ 

4 means any charitable contribution (as defined 

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

6 of 1986) if— 

7 (i) such contribution— 

8 (I) is paid during the period be9 ginning on October 9, 2018, and end10 ing on December 31, 2018, in cash to 

11 an organization described in section 

12 170(b)(1)(A) of such Code; and 

13 (II) is made for relief efforts in 

14 the Hurricane Michael disaster area; 

15 (ii) the taxpayer obtains from such or16 ganization contemporaneous written ac17 knowledgment (within the meaning of sec18 tion 170(f)(8) of such Code) that such con19 tribution was used (or is to be used) for 

20 relief efforts described in clause (i)(II); 

21 and 

22 (iii) the taxpayer has elected the ap23 plication of this subsection with respect to 

24 such contribution. 


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1 (B) EXCEPTION.—Such term shall not in2 clude a contribution by a donor if the contribu3 tion is— 

4 (i) to an organization described in sec5 tion 509(a)(3) of the Internal Revenue 

6 Code of 1986; or 

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

8 maintenance of an existing, donor advised 

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

10 such Code). 

11 (C) APPLICATION OF ELECTION TO PART12 NERSHIPS AND S CORPORATIONS.—In the case 

13 of a partnership or S corporation, the election 

14 under subparagraph (A)(iii) shall be made sepa15 rately by each partner or shareholder. 

16 (b) SPECIAL RULES FOR QUALIFIED DISASTER-RE17 LATED PERSONAL CASUALTY LOSSES.— 

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

19 disaster loss for any taxable year— 

20 (A) the amount determined under section 

21 165(h)(2)(A)(ii) of the Internal Revenue Code 

22 of 1986 shall be equal to the sum of— 

23 (i) such net disaster loss; and 

24 (ii) so much of the excess referred to 

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1 tion 165(h)(2)(A) of such Code (reduced 

2 by the amount in clause (i) of this sub3 paragraph) as exceeds 10 percent of the 

4 adjusted gross income of the individual; 

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

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

7 ($100 for taxable years beginning after Decem8 ber 31, 2009)’’; 

9 (C) the standard deduction determined 

10 under section 63(c) of such Code shall be in11 creased by the net disaster loss; and 

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

13 not apply to so much of the standard deduction 

14 as is attributable to the increase under sub15 paragraph (C) of this paragraph. 

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

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

18 excess of qualified disaster-related personal casualty 

19 losses over personal casualty gains (as defined in 

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

21 of 1986). 

22 (3) QUALIFIED DISASTER-RELATED PERSONAL

23 CASUALTY LOSSES.—For purposes of this sub24 section, the term ‘‘qualified disaster-related personal 

25 casualty losses’’ means losses described in section 


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1 165(c)(3) of the Internal Revenue Code of 1986 

2 which arise in the Hurricane Michael disaster area 

3 on or after October 9, 2018, and which are attrib4 utable to Hurricane Michael. 

5 (c) SPECIAL RULE FOR DETERMINING EARNED IN6 COME.— 

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

8 Hurricane Michael individual, if the earned income 

9 of the taxpayer for the taxable year which includes 

10 October 9, 2018, is less than the earned income of 

11 the taxpayer for the preceding taxable year, the 

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

13 Internal Revenue Code of 1986 may, at the election 

14 of the taxpayer, be determined by substituting— 

15 (A) such earned income for the preceding 

16 taxable year; for 

17 (B) such earned income for the taxable 

18 year which includes October 9, 2018. 

19 (2) QUALIFIED HURRICANE MICHAEL INDI20 VIDUAL.—For purposes of this subsection, the term 

21 ‘‘qualified Hurricane Michael individual’’ means any 

22 individual whose principal place of abode on October 

23 9, 2018, was located— 

24 (A) in the Hurricane Michael disaster 

25 zone; or 


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1 (B) in the Hurricane Michael disaster area 

2 (but outside the Hurricane Michael disaster 

3 zone) and such individual was displaced from 

4 such principal place of abode by reason of Hur5 ricane Michael. 

6 (3) EARNED INCOME.—For purposes of this 

7 subsection, the term ‘‘earned income’’ has the mean8 ing given such term under section 32(c) of the Inter9 nal Revenue Code of 1986. 

10 (4) SPECIAL RULES.— 

11 (A) APPLICATION TO JOINT RETURNS.— 

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

13 a joint return for a taxable year which includes 

14 October 9, 2018— 

15 (i) such paragraph shall apply if ei16 ther spouse is a qualified individual; and 

17 (ii) the earned income of the taxpayer 

18 for the preceding taxable year shall be the 

19 sum of the earned income of each spouse 

20 for such preceding taxable year. 

21 (B) UNIFORM APPLICATION OF ELEC22 TION.—Any election made under paragraph (1) 

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

24 and 32, of the Internal Revenue Code of 1986. 


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1 (C) ERRORS TREATED AS MATHEMATICAL

2 ERROR.—For purposes of section 6213 of the 

3 Internal Revenue Code of 1986, an incorrect 

4 use on a return of earned income pursuant to 

5 paragraph (1) shall be treated as a mathe6 matical or clerical error. 

7 (D) NO EFFECT ON DETERMINATION OF

8 GROSS INCOME, ETC.—Except as otherwise pro9 vided in this subsection, the Internal Revenue 

10 Code of 1986 shall be applied without regard to 

11 any substitution under paragraph (1). 

Æ 


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