II 

116TH CONGRESS 

2D SESSION S. 4621 

To provide tax relief for persons affected by certain 2020 disasters. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 17, 2020 

Mr. WYDEN (for himself, Mr. MERKLEY, Mrs. FEINSTEIN, Mrs. MURRAY, and 

Ms. HARRIS) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To provide tax relief for persons affected by certain 2020 

disasters. 

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 ‘‘2020 Disasters Tax 

5 Relief Act’’. 

6 SEC. 2. DEFINITIONS. 

7 For purposes of this Act— 

8 (1) QUALIFIED DISASTER AREA.—The term 

9 ‘‘qualified disaster area’’ means any area with re10 spect to which a major disaster was declared, during 


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1 the period beginning on January 1, 2020, and end2 ing on the date which is 60 days after the date of 

3 the enactment of this Act, by the President under 

4 section 401 of the Robert T. Stafford Disaster Relief 

5 and Emergency Assistance Act if the incident period 

6 of the disaster with respect to which such declara7 tion is made begins after the date of the enactment 

8 of the Taxpayer Certainty and Disaster Tax Relief 

9 Act of 2019 and on or before the date of the enact10 ment of this Act. 

11 (2) QUALIFIED DISASTER ZONE.—The term 

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

13 qualified disaster area which was determined by the 

14 President, during the period beginning on January 

15 1, 2020, and ending on the date which is 60 days 

16 after the date of the enactment of this Act, to war17 rant individual or individual and public assistance 

18 from the Federal Government under the Robert T. 

19 Stafford Disaster Relief and Emergency Assistance 

20 Act by reason of the qualified disaster with respect 

21 to such disaster area. 

22 (3) QUALIFIED DISASTER.— 

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

24 disaster’’ means, with respect to any qualified 

25 disaster area, the disaster by reason of which a 


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1 major disaster was declared with respect to 

2 such area. 

3 (B) EXCEPTION.—Such term shall not in4 clude any major disaster declared as a result of 

5 the Coronavirus Disease 2019 (COVID–19) 

6 pandemic. 

7 (4) INCIDENT PERIOD.—The term ‘‘incident pe8 riod’’ means, with respect to any qualified disaster, 

9 the period specified by the Federal Emergency Man10 agement Agency as the period during which such 

11 disaster occurred (except that for purposes of this 

12 Act such period shall not be treated as beginning be13 fore January 1, 2020, or ending after the date which 

14 is 30 days after the date of the enactment of this 

15 Act). 

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

17 RETIREMENT FUNDS. 

18 (a) TAX-FAVORED WITHDRAWALS FROM RETIRE19 MENT PLANS.— 

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

21 Revenue Code of 1986 shall not apply to any quali22 fied disaster distribution. 

23 (2) AGGREGATE DOLLAR LIMITATION.— 

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

25 subsection, the aggregate amount of distribuVerDate Sep 11 2014 02:29 Sep 29, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4621.IS S4621

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1 tions received by an individual which may be 

2 treated as qualified disaster distributions for 

3 any taxable year shall not exceed the excess (if 

4 any) of— 

5 (i) $100,000, over 

6 (ii) the aggregate amounts treated as 

7 qualified disaster distributions received by 

8 such individual for all prior taxable years. 

9 (B) TREATMENT OF PLAN DISTRIBU10 TIONS.—If a distribution to an individual would 

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

12 qualified disaster distribution, a plan shall not 

13 be treated as violating any requirement of the 

14 Internal Revenue Code of 1986 merely because 

15 the plan treats such distribution as a qualified 

16 disaster distribution, unless the aggregate 

17 amount of such distributions from all plans 

18 maintained by the employer (and any member 

19 of any controlled group which includes the em20 ployer) to such individual exceeds $100,000. 

21 (C) CONTROLLED GROUP.—For purposes 

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

23 group’’ means any group treated as a single 

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


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1 of section 414 of the Internal Revenue Code of 

2 1986. 

3 (D) SPECIAL RULE FOR INDIVIDUALS AF4 FECTED BY MORE THAN ONE DISASTER.—The 

5 limitation of subparagraph (A) shall be applied 

6 separately with respect to distributions made 

7 with respect to each qualified disaster. 

8 (3) AMOUNT DISTRIBUTED MAY BE REPAID.— 

9 (A) IN GENERAL.—Any individual who re10 ceives a qualified disaster distribution may, at 

11 any time during the 3-year period beginning on 

12 the day after the date on which such distribu13 tion was received, make 1 or more contributions 

14 in an aggregate amount not to exceed the 

15 amount of such distribution to an eligible retire16 ment plan of which such individual is a bene17 ficiary and to which a rollover contribution of 

18 such distribution could be made under section 

19 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 

20 457(e)(16), of the Internal Revenue Code of 

21 1986, as the case may be. 

22 (B) TREATMENT OF REPAYMENTS OF DIS23 TRIBUTIONS FROM ELIGIBLE RETIREMENT

24 PLANS OTHER THAN IRAS.—For purposes of 

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1 tribution is made pursuant to subparagraph (A) 

2 with respect to a qualified disaster distribution 

3 from an eligible retirement plan other than an 

4 individual retirement plan, then the taxpayer 

5 shall, to the extent of the amount of the con6 tribution, be treated as having received the 

7 qualified disaster distribution in an eligible roll8 over distribution (as defined in section 

9 402(c)(4) of such Code) and as having trans10 ferred the amount to the eligible retirement 

11 plan in a direct trustee to trustee transfer with12 in 60 days of the distribution. 

13 (C) TREATMENT OF REPAYMENTS OF DIS14 TRIBUTIONS FROM IRAS.—For purposes of the 

15 Internal Revenue Code of 1986, if a contribu16 tion is made pursuant to subparagraph (A) 

17 with respect to a qualified disaster distribution 

18 from an individual retirement plan (as defined 

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

20 the extent of the amount of the contribution, 

21 the qualified disaster distribution shall be treat22 ed as a distribution described in section 

23 408(d)(3) of such Code and as having been 

24 transferred to the eligible retirement plan in a 


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1 direct trustee to trustee transfer within 60 days 

2 of the distribution. 

3 (4) DEFINITIONS.—For purposes of this sub4 section— 

5 (A) QUALIFIED DISASTER DISTRIBU6 TION.—Except as provided in paragraph (2), 

7 the term ‘‘qualified disaster distribution’’ means 

8 any distribution from an eligible retirement 

9 plan made— 

10 (i) on or after the first day of the in11 cident period of a qualified disaster and 

12 before the date which is 180 days after the 

13 date of the enactment of this Act, and 

14 (ii) to an individual whose principal 

15 place of abode at any time during the inci16 dent period of such qualified disaster is lo17 cated in the qualified disaster area with re18 spect to such qualified disaster and who 

19 has sustained an economic loss by reason 

20 of such qualified disaster. 

21 (B) ELIGIBLE RETIREMENT PLAN.—The 

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

23 meaning given such term by section 

24 402(c)(8)(B) of the Internal Revenue Code of 

25 1986. 


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1 (5) INCOME INCLUSION SPREAD OVER 3-YEAR

2 PERIOD.— 

3 (A) IN GENERAL.—In the case of any 

4 qualified disaster distribution, unless the tax5 payer elects not to have this paragraph apply 

6 for any taxable year, any amount required to be 

7 included in gross income for such taxable year 

8 shall be so included ratably over the 3-taxable9 year period beginning with such taxable year. 

10 (B) SPECIAL RULE.—For purposes of sub11 paragraph (A), rules similar to the rules of sub12 paragraph (E) of section 408A(d)(3) of the In13 ternal Revenue Code of 1986 shall apply. 

14 (6) SPECIAL RULES.— 

15 (A) EXEMPTION OF DISTRIBUTIONS FROM

16 TRUSTEE TO TRUSTEE TRANSFER AND WITH17 HOLDING RULES.—For purposes of sections 

18 401(a)(31), 402(f), and 3405 of the Internal 

19 Revenue Code of 1986, qualified disaster dis20 tributions shall not be treated as eligible roll21 over distributions. 

22 (B) QUALIFIED DISASTER DISTRIBUTIONS

23 TREATED AS MEETING PLAN DISTRIBUTION RE24 QUIREMENTS.—For purposes the Internal Rev25 enue Code of 1986, a qualified disaster disVerDate Sep 11 2014 02:29 Sep 29, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4621.IS S4621

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1 tribution shall be treated as meeting the re2 quirements of sections 401(k)(2)(B)(i), 

3 403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A) 

4 of such Code and section 8433(h)(1) of title 5, 

5 United States Code, and, in the case of a 

6 money purchase pension plan, a qualified dis7 aster distribution which is an in-service with8 drawal shall be treated as meeting the distribu9 tion rules of section 401(a) of such Code. 

10 (b) RECONTRIBUTIONS OF WITHDRAWALS FOR

11 HOME PURCHASES.— 

12 (1) RECONTRIBUTIONS.— 

13 (A) IN GENERAL.—Any individual who re14 ceived a qualified distribution may, during the 

15 applicable period, make 1 or more contributions 

16 in an aggregate amount not to exceed the 

17 amount of such qualified distribution to an eli18 gible retirement plan (as defined in section 

19 402(c)(8)(B) of the Internal Revenue Code of 

20 1986) of which such individual is a beneficiary 

21 and to which a rollover contribution of such dis22 tribution could be made under section 402(c), 

23 403(a)(4), 403(b)(8), or 408(d)(3), of such 

24 Code, as the case may be. 


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1 (B) TREATMENT OF REPAYMENTS.—Rules 

2 similar to the rules of subparagraphs (B) and 

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

4 of this subsection. 

5 (2) QUALIFIED DISTRIBUTION.—For purposes 

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

7 means any distribution— 

8 (A) described in section 

9 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(i) (but only 

10 to the extent such distribution relates to finan11 cial hardship), 403(b)(11)(B), or 72(t)(2)(F), 

12 of the Internal Revenue Code of 1986, 

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

14 construct a principal residence in a qualified 

15 disaster area, but which was not so used on ac16 count of the qualified disaster with respect to 

17 such area, and 

18 (C) which was received during the period 

19 beginning on the date which is 180 days before 

20 the first day of the incident period of such 

21 qualified disaster and ending on the date which 

22 is 30 days after the last day of such incident 

23 period. 

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

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


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1 the case of a principal residence in a qualified dis2 aster area with respect to any qualified disaster, the 

3 period beginning on the first day of the incident pe4 riod of such qualified disaster and ending on the 

5 date which is 180 days after the date of the enact6 ment of this Act. 

7 (c) LOANS FROM QUALIFIED PLANS.— 

8 (1) INCREASE IN LIMIT ON LOANS NOT TREAT9 ED AS DISTRIBUTIONS.—In the case of any loan 

10 from a qualified employer plan (as defined under 

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

12 1986) to a qualified individual made during the 180- 

13 day period beginning on the date of the enactment 

14 of this Act— 

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

16 such Code shall be applied by substituting 

17 ‘‘$100,000’’ for ‘‘$50,000’’, and 

18 (B) clause (ii) of such section shall be ap19 plied by substituting ‘‘the present value of the 

20 nonforfeitable accrued benefit of the employee 

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

22 value of the nonforfeitable accrued benefit of 

23 the employee under the plan’’. 

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

25 qualified individual (with respect to any qualified 


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

2 first day of the incident period of such qualified dis3 aster) from a qualified employer plan (as defined in 

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

5 1986)— 

6 (A) if the due date pursuant to subpara7 graph (B) or (C) of section 72(p)(2) of such 

8 Code for any repayment with respect to such 

9 loan occurs during the period beginning on the 

10 first day of the incident period of such qualified 

11 disaster and ending on the date which is 180 

12 days after the last day of such incident period, 

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

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

15 the date of the enactment of this Act), 

16 (B) any subsequent repayments with re17 spect to any such loan shall be appropriately 

18 adjusted to reflect the delay in the due date 

19 under subparagraph (A) and any interest accru20 ing during such delay, and 

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

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

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

24 described in subparagraph (A) of this para25 graph shall be disregarded. 


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1 (3) QUALIFIED INDIVIDUAL.—For purposes of 

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

3 means any individual— 

4 (A) whose principal place of abode at any 

5 time during the incident period of any qualified 

6 disaster is located in the qualified disaster area 

7 with respect to such qualified disaster, and 

8 (B) who has sustained an economic loss by 

9 reason of such qualified disaster. 

10 (d) PROVISIONS RELATING TO PLAN AMEND11 MENTS.— 

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

13 any amendment to any plan or annuity contract, 

14 such plan or contract shall be treated as being oper15 ated in accordance with the terms of the plan during 

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

17 (2) AMENDMENTS TO WHICH SUBSECTION AP18 PLIES.— 

19 (A) IN GENERAL.—This subsection shall 

20 apply to any amendment to any plan or annuity 

21 contract which is made— 

22 (i) pursuant to any provision of this 

23 section, or pursuant to any regulation 

24 issued by the Secretary or the Secretary of 


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1 Labor under any provision of this section, 

2 and 

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

4 first plan year beginning on or after Janu5 ary 1, 2022, or such later date as the Sec6 retary may prescribe. 

7 In the case of a governmental plan (as defined 

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

9 of 1986), clause (ii) shall be applied by sub10 stituting the date which is 2 years after the 

11 date otherwise applied under clause (ii). 

12 (B) CONDITIONS.—This subsection shall 

13 not apply to any amendment unless— 

14 (i) during the period— 

15 (I) beginning on the date that 

16 this section or the regulation de17 scribed in subparagraph (A)(i) takes 

18 effect (or in the case of a plan or con19 tract amendment not required by this 

20 section or such regulation, the effec21 tive date specified by the plan), and 

22 (II) ending on the date described 

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

24 the date the plan or contract amend25 ment is adopted), 


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1 the plan or contract is operated as if such plan 

2 or contract amendment were in effect, and 

3 (ii) such plan or contract amendment 

4 applies retroactively for such period. 

5 SEC. 4. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS 

6 AFFECTED BY QUALIFIED DISASTERS. 

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

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

9 employer, the 2020 qualified disaster employee retention 

10 credit shall be treated as a credit listed at the end of sub11 section (b) of such section. For purposes of this sub12 section, the 2020 qualified disaster employee retention 

13 credit for any taxable year is an amount equal to 40 per14 cent of the qualified wages with respect to each eligible 

15 employee of such employer for such taxable year. The 

16 amount of qualified wages with respect to any employee 

17 which may be taken into account under this subsection 

18 by the employer for any taxable year shall not exceed 

19 $6,000 (reduced by the amount of qualified wages with 

20 respect to such employee which may be so taken into ac21 count for any prior taxable year). 

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

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

24 employer’’ means any employer— 


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1 (A) which conducted an active trade or 

2 business in a qualified disaster zone at any time 

3 during the incident period of the qualified dis4 aster with respect to such qualified disaster 

5 zone, and 

6 (B) with respect to whom the trade or 

7 business described in subparagraph (A) is inop8 erable at any time during the period beginning 

9 on the first day of the incident period of such 

10 qualified disaster and ending on the date of the 

11 enactment of this Act, as a result of damage 

12 sustained by reason of such qualified disaster. 

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

14 employee’’ means with respect to an eligible em15 ployer an employee whose principal place of employ16 ment with such eligible employer (determined imme17 diately before the qualified disaster referred to in 

18 paragraph (1)) was in the qualified disaster zone re19 ferred to in such paragraph. 

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

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

22 of the Internal Revenue Code of 1986, but without 

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

24 or incurred by an eligible employer with respect to 

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


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1 on which the trade or business described in para2 graph (1) first became inoperable at the principal 

3 place of employment of the employee (determined 

4 immediately before the qualified disaster referred to 

5 in such paragraph) and before the earlier of— 

6 (A) the date on which such trade or busi7 ness has resumed significant operations at such 

8 principal place of employment, or 

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

10 last day of the incident period of the qualified 

11 disaster referred to in paragraph (1). 

12 Such term shall include wages paid without regard 

13 to whether the employee performs no services, per14 forms services at a different place of employment 

15 than such principal place of employment, or per16 forms services at such principal place of employment 

17 before significant operations have resumed. 

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

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

20 52, and 280C(a), of the Internal Revenue Code of 1986, 

21 shall apply. 

22 (d) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE

23 THAN ONCE.—An employee shall not be treated as an eli24 gible employee for purposes of this section for any period 

25 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. OTHER DISASTER-RELATED TAX RELIEF PROVI4 SIONS. 

5 (a) SPECIAL RULES FOR QUALIFIED DISASTER-RE6 LATED PERSONAL CASUALTY LOSSES.— 

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

8 disaster loss for any taxable year— 

9 (A) the amount determined under section 

10 165(h)(2)(A)(ii) of the Internal Revenue Code 

11 of 1986 shall be equal to the sum of— 

12 (i) such net disaster loss, and 

13 (ii) so much of the excess referred to 

14 in the matter preceding clause (i) of sec15 tion 165(h)(2)(A) of such Code (reduced 

16 by the amount in clause (i) of this sub17 paragraph) as exceeds 10 percent of the 

18 adjusted gross income of the individual, 

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

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

21 ($100 for taxable years beginning after Decem22 ber 31, 2009)’’, 

23 (C) the standard deduction determined 

24 under section 63(c) of such Code shall be in25 creased by the net disaster loss, and 


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

2 not apply to so much of the standard deduction 

3 as is attributable to the increase under sub4 paragraph (C) of this paragraph. 

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

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

7 excess of qualified disaster-related personal casualty 

8 losses over personal casualty gains (as defined in 

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

10 of 1986). 

11 (3) QUALIFIED DISASTER-RELATED PERSONAL

12 CASUALTY LOSSES.—For purposes of this sub13 section, the term ‘‘qualified disaster-related personal 

14 casualty losses’’ means losses described in section 

15 165(c)(3) of the Internal Revenue Code of 1986 

16 which arise in a qualified disaster area on or after 

17 the first day of the incident period of the qualified 

18 disaster to which such area relates, and which are 

19 attributable to such qualified disaster. 

20 (b) SPECIAL RULE FOR DETERMINING EARNED IN21 COME.— 

22 (1) IN GENERAL.—In the case of a qualified in23 dividual, if the earned income of the taxpayer for the 

24 applicable taxable year is less than the earned in25 come of the taxpayer for the preceding taxable year, 


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

2 the Internal Revenue Code of 1986 may, at the elec3 tion of the taxpayer, be determined by sub4 stituting— 

5 (A) such earned income for the preceding 

6 taxable year, for 

7 (B) such earned income for the applicable 

8 taxable year. 

9 (2) QUALIFIED INDIVIDUAL.—For purposes of 

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

11 means any individual whose principal place of abode 

12 at any time during the incident period of any quali13 fied disaster was located— 

14 (A) in the qualified disaster zone with re15 spect to such qualified disaster, or 

16 (B) in the qualified disaster area with re17 spect to such qualified disaster (but outside the 

18 qualified disaster zone with respect to such 

19 qualified disaster) and such individual was dis20 placed from such principal place of abode by 

21 reason of such qualified disaster. 

22 (3) APPLICABLE TAXABLE YEAR.—For pur23 poses of this subsection, the term ‘‘applicable taxable 

24 year’’ means— 


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1 (A) in the case of a qualified individual 

2 other than an individual described in subpara3 graph (B), any taxable year which includes any 

4 portion of the incident period of the qualified 

5 disaster to which the qualified disaster area re6 ferred to in paragraph (2)(A) relates, or 

7 (B) in the case of a qualified individual de8 scribed in subparagraph (B) of paragraph (2), 

9 any taxable year which includes any portion of 

10 the period described in such subparagraph. 

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

12 subsection, the term ‘‘earned income’’ has the mean13 ing given such term under section 32(c) of the Inter14 nal Revenue Code of 1986. 

15 (5) SPECIAL RULES.— 

16 (A) APPLICATION TO JOINT RETURNS.— 

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

18 a joint return for an applicable taxable year— 

19 (i) such paragraph shall apply if ei20 ther spouse is a qualified individual, and 

21 (ii) the earned income of the taxpayer 

22 for the preceding taxable year shall be the 

23 sum of the earned income of each spouse 

24 for such preceding taxable year. 


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1 (B) UNIFORM APPLICATION OF ELEC2 TION.—Any election made under paragraph (1) 

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

4 and 32 of the Internal Revenue Code of 1986. 

5 (C) ERRORS TREATED AS MATHEMATICAL

6 ERROR.—For purposes of section 6213 of the 

7 Internal Revenue Code of 1986, an incorrect 

8 use on a return of earned income pursuant to 

9 paragraph (1) shall be treated as a mathe10 matical or clerical error. 

11 (D) NO EFFECT ON DETERMINATION OF

12 GROSS INCOME, ETC.—Except as otherwise pro13 vided in this subsection, the Internal Revenue 

14 Code of 1986 shall be applied without regard to 

15 any substitution under paragraph (1). 

16 SEC. 6. ADDITIONAL LOW-INCOME HOUSING CREDIT ALLO17 CATIONS. 

18 (a) IN GENERAL.—For purposes of section 42 of the 

19 Internal Revenue Code of 1986, the State housing credit 

20 ceiling for any qualified State for calendar year 2021 shall 

21 be increased by the lesser of— 

22 (1) the aggregate housing credit dollar amount 

23 allocated by the State housing credit agencies of 

24 such qualified State for such calendar year to buildVerDate Sep 11 2014 02:29 Sep 29, 2020 Jkt 099200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S4621.IS S4621

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1 ings located in qualified disaster zones in such quali2 fied State, or 

3 (2) 50 percent of the sum of the State housing 

4 credit ceilings for such qualified State for calendar 

5 year 2020. 

6 (b) ALLOCATIONS TREATED AS MADE FIRST FROM

7 ADDITIONAL ALLOCATION FOR PURPOSES OF DETER8 MINING CARRYOVER.—For purposes of determining the 

9 unused State housing credit ceiling for any calendar year 

10 under section 42(h)(3)(C) of the Internal Revenue Code 

11 of 1986, any increase in the State housing credit ceiling 

12 under subsection (a) shall be treated as an amount de13 scribed in clause (ii) of such section. 

14 (c) DEFINITIONS.—For purposes of this section— 

15 (1) QUALIFIED STATE.—The term ‘‘qualified 

16 State’’ means any State in which there is a qualified 

17 disaster zone. 

18 (2) OTHER DEFINITIONS.—Terms used in this 

19 section which are also used in section 42 of the In20 ternal Revenue Code of 1986 shall have the same 

21 meaning in this section as in such section 42. 

22 SEC. 7. TREATMENT OF CERTAIN POSSESSIONS. 

23 (a) PAYMENTS TO POSSESSIONS WITH MIRROR

24 CODE TAX SYSTEMS.—The Secretary of the Treasury 

25 shall pay to each possession of the United States which 


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1 has a mirror code tax system amounts equal to the loss 

2 (if any) to that possession by reason of the application 

3 of the provisions of this Act. Such amounts shall be deter4 mined by the Secretary of the Treasury based on informa5 tion provided by the government of the respective posses6 sion. 

7 (b) PAYMENTS TO OTHER POSSESSIONS.—The Sec8 retary of the Treasury shall pay to each possession of the 

9 United States which does not have a mirror code tax sys10 tem amounts estimated by the Secretary of the Treasury 

11 as being equal to the aggregate benefits (if any) that 

12 would have been provided to residents of such possession 

13 by reason of the provisions of this Act if a mirror code 

14 tax system had been in effect in such possession. The pre15 ceding sentence shall not apply unless the respective pos16 session has a plan, which has been approved by the Sec17 retary of the Treasury, under which such possession will 

18 promptly distribute such payments to its residents. 

19 (c) MIRROR CODE TAX SYSTEM.—For purposes of 

20 this section, the term ‘‘mirror code tax system’’ means, 

21 with respect to any possession of the United States, the 

22 income tax system of such possession if the income tax 

23 liability of the residents of such possession under such sys24 tem is determined by reference to the income tax laws of 


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25 

•S 4621 IS

1 the United States as if such possession were the United 

2 States. 

3 (d) TREATMENT OF PAYMENTS.—For purposes of 

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

5 under this section shall be treated in the same manner 

6 as a refund due from a credit provision referred to in sub7 section (b)(2) of such section. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS