II 

109TH CONGRESS 

1ST SESSION S. 1705 

To allow a credit against income tax for providing housing to victims of 

Hurricane Katrina and to amend the Internal Revenue Code of 1986 

to waive the limitation on charitable donations by individuals for donations for the relief of the victims of Hurricane Katrina. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 14, 2005 

Mr. SALAZAR introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To allow a credit against income tax for providing housing 

to victims of Hurricane Katrina and to amend the Internal Revenue Code of 1986 to waive the limitation on 

charitable donations by individuals for donations for the 

relief of the victims of Hurricane Katrina. 

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

3 SECTION 1. CREDIT FOR EXPENSES INCURRED FOR HOUS4 ING VICTIMS OF HURRICANE KATRINA. 

5 (a) IN GENERAL.—In the case of an individual, there 

6 shall be allowed as a credit against the tax imposed by 

7 chapter 1 of the Internal Revenue Code of 1986 for the 
2 

•S 1705 IS

1 taxable year an amount equal to $20 for each day the tax2 payer houses a Hurricane Katrina evacuee in the tax3 payer’s principal place of abode during the period begin4 ning on August 26, 2005, and ending on December 31, 

5 2005. 

6 (b) LIMITATIONS.— 

7 (1) DOLLAR LIMITATION.—The credit allowed 

8 under subsection (a) shall not exceed— 

9 (A) $900 with respect to any Hurricane 

10 Katrina evacuee, and 

11 (B) $2,000 with respect to any taxpayer. 

12 (2) MINIMUM LENGTH OF STAY.—No credit 

13 shall be allowed under subsection (a) with respect to 

14 any Hurricane Katrina evacuee unless such evacuee 

15 is housed at the taxpayer’s principal residence for at 

16 least 7 consecutive days. 

17 (c) HURRICANE KATRINA EVACUEE.—For purposes 

18 of this section, the term ‘‘Hurricane Katrina evacuee’’ 

19 means any individual— 

20 (1) whose principal place of abode is within an 

21 area— 

22 (A) with respect to which a major disaster 

23 has been declared by the President before Sep24 tember 14, 2005, under section 401 of the Rob25 ert T. Stafford Disaster Relief and Emergency 
3 

•S 1705 IS

1 Assistance Act in connection with Hurricane 

2 Katrina, and 

3 (B) which is determined by the President 

4 before such date to warrant individual assist5 ance, or individual and public assistance, from 

6 the Federal Government under such Act, and 

7 (2) who is not able to inhabit such principal 

8 place of abode due to damage sustained from Hurri9 cane Katrina. 

10 (d) TREATMENT OF CREDIT.—Except as provided in 

11 subsection (e), for purposes of the Internal Revenue Code 

12 of 1986, the credit allowed under subsection (a) shall be 

13 treated as a credit allowed under subpart A of part IV 

14 of subchapter A of chapter 1 of such Code. 

15 (e) PORTION OF CREDIT REFUNDABLE.—The aggre16 gate credits allowed to a taxpayer under subpart C of the 

17 Internal Revenue Code of 1986 shall be increased by the 

18 lesser of— 

19 (1) the amount of the credit which would be al20 lowed under this section without regard to this sub21 section and the limitation under section 26(a) of 

22 such Code, or 

23 (2) $500. 

24 The amount of the credit allowed under this subsection 

25 shall reduce the amount of the credit otherwise allowable 
4 

•S 1705 IS

1 under subsection (a) without regard to section 26(a) of 

2 such Code. 

3 SEC. 2. WAIVER OF LIMIT ON CHARITABLE DONATIONS FOR 

4 RELIEF OF VICTIMS OF HURRICANE 

5 KATRINA. 

6 (a) IN GENERAL.—Paragraph (1) of section 170(b) 

7 of the Internal Revenue Code of 1986 is amended by add8 ing at the end the following new subparagraph: 

9 ‘‘(G) WAIVER OF LIMITATION FOR HURRI10 CANE KATRINA CONTRIBUTIONS.— 

11 ‘‘(i) IN GENERAL.—This paragraph 

12 shall be disregarded with respect to the ag13 gregate of contributions for any taxable 

14 year which are described in clause (ii). 

15 ‘‘(ii) CONTRIBUTION DESCRIBED.—A 

16 contribution is described in this clause if 

17 such contribution is a cash contribution 

18 made before January 1, 2010, for the re19 lief of victims in areas affected by Hurri20 cane Katrina.’’. 

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

22 subsection (a) shall apply to contributions made after Au23 gust 28, 2005. 

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