I 

116TH CONGRESS 

1ST SESSION H. R. 1148 

To provide for disaster tax relief. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 11, 2019 

Mr. RICE of South Carolina (for himself, Mr. DUNN, and Mr. SABLAN) introduced the following bill; which was referred to the Committee on Ways 

and Means 

A BILL 

To provide for disaster tax relief. 

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; TABLE OF CONTENTS. 

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

5 ‘‘2018 Natural Disasters Tax Relief Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Special disaster-related rules for use of retirement funds. 

Sec. 4. Employee retention credit for employers affected by qualified disasters. 

Sec. 5. Other disaster-related tax relief provisions. 

Sec. 6. Treatment of certain possessions. 

Sec. 7. Automatic extension of filing deadline. 


pamtmann on DSKBFK8HB2PROD with BILLS
2 

•HR 1148 IH

1 SEC. 2. DEFINITIONS. 

2 For purposes of this Act— 

3 (1) GENERAL DEFINITIONS.— 

4 (A) QUALIFIED DISASTER AREA.—The 

5 term ‘‘qualified disaster area’’ means the Hurri6 cane Florence disaster area; the Hurricane Mi7 chael disaster area; the Typhoon Mangkhut dis8 aster area; the Typhoon Yutu disaster area; the 

9 Mendocino wildfire disaster area; the Camp and 

10 Woolsey wildfire disaster area; the Kilauea vol11 canic eruption and earthquakes disaster area; 

12 the Hawaii severe storms, flooding, landslides, 

13 and mudslides disaster area; the Wisconsin se14 vere storms, tornadoes, straight-line winds, 

15 flooding, and landslides disaster area; the Texas 

16 severe storms and flooding disaster area; the 

17 North Carolina tornado and severe storms dis18 aster area; the Indiana severe storms and flood19 ing disaster area; the Alabama severe storms 

20 and tornadoes disaster area; and the Tropical 

21 Storm Gita disaster area. 

22 (B) QUALIFIED DISASTER ZONE.—The 

23 term ‘‘qualified disaster zone’’ means that por24 tion of any qualified disaster area which is de25 termined by the President to warrant individual 

26 or individual and public assistance from the 


pamtmann on DSKBFK8HB2PROD with BILLS
3 

•HR 1148 IH

1 Federal Government under the Robert T. Staf2 ford Disaster Relief and Emergency Assistance 

3 Act by reason of the qualified disaster with re4 spect to such disaster area. 

5 (C) QUALIFIED DISASTER.—The term 

6 ‘‘qualified disaster’’ means, with respect to any 

7 qualified disaster area, the disaster by reason of 

8 which a major disaster was declared with re9 spect to such area. 

10 (2) HURRICANE FLORENCE.— 

11 (A) HURRICANE FLORENCE DISASTER

12 AREA.—The term ‘‘Hurricane Florence disaster 

13 area’’ means an area with respect to which a 

14 major disaster has been declared by the Presi15 dent on or before December 17, 2018, under 

16 section 401 of the Robert T. Stafford Disaster 

17 Relief and Emergency Assistance Act by reason 

18 of Hurricane Florence. 

19 (B) INCIDENT BEGINNING DATE.—The in20 cident beginning date of Hurricane Florence is 

21 September 7, 2018. 

22 (C) INCIDENT PERIOD.—The incident pe23 riod of Hurricane Florence is the period begin24 ning on the incident beginning date of Hurri25 cane Florence and ending on October 8, 2018. 


pamtmann on DSKBFK8HB2PROD with BILLS
4 

•HR 1148 IH

1 (3) HURRICANE MICHAEL.— 

2 (A) HURRICANE MICHAEL DISASTER

3 AREA.—The term ‘‘Hurricane Michael disaster 

4 area’’ means an area with respect to which a 

5 major disaster has been declared by the Presi6 dent on or before December 17, 2018, under 

7 section 401 of the Robert T. Stafford Disaster 

8 Relief and Emergency Assistance Act by reason 

9 of Hurricane Michael. 

10 (B) INCIDENT BEGINNING DATE.—The in11 cident beginning date of Hurricane Michael is 

12 October 7, 2018. 

13 (C) INCIDENT PERIOD.—The incident pe14 riod of Hurricane Michael is the period begin15 ning on the incident beginning date of Hurri16 cane Michael and ending on October 23, 2018. 

17 (4) TYPHOON MANGKHUT.— 

18 (A) TYPHOON MANGKHUT DISASTER

19 AREA.—The term ‘‘Typhoon Mangkhut disaster 

20 area’’ means an area with respect to which a 

21 major disaster has been declared by the Presi22 dent on or before December 17, 2018, under 

23 section 401 of the Robert T. Stafford Disaster 

24 Relief and Emergency Assistance Act by reason 

25 of Typhoon Mangkhut. 


pamtmann on DSKBFK8HB2PROD with BILLS
5 

•HR 1148 IH

1 (B) INCIDENT BEGINNING DATE.—The in2 cident beginning date of Typhoon Mangkhut is 

3 September 10, 2018. 

4 (C) INCIDENT PERIOD.—The incident pe5 riod of Typhoon Mangkhut is the period begin6 ning on the incident beginning date of Typhoon 

7 Mangkhut and ending on September 11, 2018. 

8 (5) TYPHOON YUTU.— 

9 (A) TYPHOON YUTU DISASTER AREA.—The 

10 term ‘‘Typhoon Yutu disaster area’’ means an 

11 area with respect to which a major disaster has 

12 been declared by the President on or before De13 cember 17, 2018, under section 401 of the Rob14 ert T. Stafford Disaster Relief and Emergency 

15 Assistance Act by reason of Typhoon Yutu. 

16 (B) INCIDENT BEGINNING DATE.—The in17 cident beginning date of Typhoon Yutu is Octo18 ber 24, 2018. 

19 (C) INCIDENT PERIOD.—The incident pe20 riod of Typhoon Yutu is the period beginning 

21 on the incident beginning date of Typhoon Yutu 

22 and ending on October 26, 2018. 

23 (6) MENDOCINO WILDFIRE.— 

24 (A) MENDOCINO WILDFIRE DISASTER

25 AREA.—The term ‘‘Mendocino wildfire disaster 


pamtmann on DSKBFK8HB2PROD with BILLS
6 

•HR 1148 IH

1 area’’ means an area with respect to which, 

2 during the period beginning on August 4, 2018, 

3 and ending on December 17, 2018, a major dis4 aster has been declared by the President under 

5 section 401 of the Robert T. Stafford Disaster 

6 Relief and Emergency Assistance Act by reason 

7 of the wildfire in California commonly known as 

8 the Mendocino wildfire of 2018 (including the 

9 Carr wildfire of 2018). 

10 (B) INCIDENT BEGINNING DATE.—The in11 cident beginning date of the wildfires referred 

12 to in subparagraph (A) is July 23, 2018. 

13 (C) INCIDENT PERIOD.—The incident pe14 riod of the wildfires referred to in subparagraph 

15 (A) is the period beginning on the incident be16 ginning date of such wildfires and ending on 

17 September 19, 2018. 

18 (7) CAMP AND WOOLSEY WILDFIRES.— 

19 (A) CAMP AND WOOLSEY WILDFIRE DIS20 ASTER AREA.—The term ‘‘Camp and Woolsey 

21 wildfire disaster area’’ means an area with re22 spect to which, during the period beginning on 

23 November 12, 2018, and ending on December 

24 17, 2018, a major disaster has been declared by 

25 the President under section 401 of the Robert 


pamtmann on DSKBFK8HB2PROD with BILLS
7 

•HR 1148 IH

1 T. Stafford Disaster Relief and Emergency As2 sistance Act by reason of the wildfires in Cali3 fornia commonly known as the Camp and Wool4 sey wildfires of 2018 (including the Hill wildfire 

5 of 2018). 

6 (B) INCIDENT BEGINNING DATE.—The in7 cident beginning date of the wildfires referred 

8 to in subparagraph (A) is November 8, 2018. 

9 (C) INCIDENT PERIOD.—The incident pe10 riod of the wildfires referred to in subparagraph 

11 (A) is the period beginning on the incident be12 ginning date of such wildfires and ending on 

13 November 25, 2018. 

14 (8) KILAUEA VOLCANIC ERUPTION AND EARTH15 QUAKES.— 

16 (A) KILAUEA VOLCANIC ERUPTION AND

17 EARTHQUAKES DISASTER AREA.—The term 

18 ‘‘Kilauea volcanic eruption and earthquakes dis19 aster area’’ means an area with respect to 

20 which, during the period beginning on May 11, 

21 2018, and ending on December 17, 2018, a 

22 major disaster has been declared by the Presi23 dent under section 401 of the Robert T. Staf24 ford Disaster Relief and Emergency Assistance 

25 Act by reason of the Kilauea volcanic eruption 


pamtmann on DSKBFK8HB2PROD with BILLS
8 

•HR 1148 IH

1 and earthquakes occurring in Hawaii during the 

2 period beginning on May 3, 2018, and ending 

3 on August 17, 2018. 

4 (B) INCIDENT BEGINNING DATE.—The in5 cident beginning date of the volcanic eruption 

6 and earthquakes referred to in subparagraph 

7 (A) is May 3, 2018. 

8 (C) INCIDENT PERIOD.—The incident pe9 riod of the volcanic eruption and earthquakes 

10 referred to in subparagraph (A) is the period 

11 beginning on the incident beginning date with 

12 respect to such eruption and earthquakes and 

13 ending on August 17, 2018. 

14 (9) HAWAII SEVERE STORMS, FLOODING, LAND15 SLIDES, AND MUDSLIDES.— 

16 (A) HAWAII SEVERE STORMS, FLOODING, 

17 LANDSLIDES, AND MUDSLIDES DISASTER

18 AREA.—The term ‘‘Hawaii severe storms, flood19 ing, landslides, and mudslides disaster area’’ 

20 means an area with respect to which, during 

21 the period beginning on May 8, 2018, and end22 ing on December 17, 2018, a major disaster 

23 has been declared by the President under sec24 tion 401 of the Robert T. Stafford Disaster Re25 lief and Emergency Assistance Act by reason of 


pamtmann on DSKBFK8HB2PROD with BILLS
9 

•HR 1148 IH

1 the severe storms, flooding, landslides, and 

2 mudslides occurring in Hawaii during the pe3 riod beginning on April 13, 2018, and ending 

4 on April 16, 2018. 

5 (B) INCIDENT BEGINNING DATE.—The in6 cident beginning date of the severe storms, 

7 flooding, landslides, and mudslides referred to 

8 in subparagraph (A) is April 13, 2018. 

9 (C) INCIDENT PERIOD.—The incident pe10 riod of the severe storms, flooding, landslides, 

11 and mudslides referred to in subparagraph (A) 

12 is the period beginning on the incident begin13 ning date with respect to such severe storms, 

14 flooding, landslides, and mudslides and ending 

15 on April 16, 2018. 

16 (10) WISCONSIN SEVERE STORMS, TORNADOES, 

17 STRAIGHT-LINE WINDS, FLOODING, AND LAND18 SLIDES.— 

19 (A) WISCONSIN SEVERE STORMS, TORNA20 DOES, STRAIGHT-LINE WINDS, FLOODING, AND

21 LANDSLIDES DISASTER AREA.—The term ‘‘Wis22 consin severe storms, tornadoes, straight-line 

23 winds, flooding, and landslides disaster area’’ 

24 means an area with respect to which, during 

25 the period beginning on October 18, 2018, and 


pamtmann on DSKBFK8HB2PROD with BILLS
10 

•HR 1148 IH

1 ending on December 17, 2018, a major disaster 

2 has been declared by the President under sec3 tion 401 of the Robert T. Stafford Disaster Re4 lief and Emergency Assistance Act by reason of 

5 the severe storms, tornadoes, straight-line 

6 winds, flooding, and landslides occurring in 

7 Wisconsin during the period beginning on Au8 gust 17, 2018, and ending on September 14, 

9 2018. 

10 (B) INCIDENT BEGINNING DATE.—The in11 cident beginning date of the severe storms, tor12 nadoes, straight-line winds, flooding, and land13 slides referred to in subparagraph (A) is Au14 gust 17, 2018. 

15 (C) INCIDENT PERIOD.—The incident pe16 riod of the severe storms, tornadoes, straight17 line winds, flooding, and landslides referred to 

18 in subparagraph (A) is the period beginning on 

19 the incident beginning date with respect to such 

20 severe storms, tornadoes, straight-line winds, 

21 flooding, and landslides and ending on Sep22 tember 14, 2018. 

23 (11) TEXAS SEVERE STORMS AND FLOODING.— 

24 (A) TEXAS SEVERE STORMS AND FLOOD25 ING DISASTER AREA.—The term ‘‘Texas severe 


pamtmann on DSKBFK8HB2PROD with BILLS
11 

•HR 1148 IH

1 storms and flooding disaster area’’ means an 

2 area with respect to which, during the period 

3 beginning on July 6, 2018, and ending on De4 cember 17, 2018, a major disaster has been de5 clared by the President under section 401 of 

6 the Robert T. Stafford Disaster Relief and 

7 Emergency Assistance Act by reason of the se8 vere storms and flooding occurring in Texas 

9 during the period beginning on June 19, 2018, 

10 and ending on July 13, 2018. 

11 (B) INCIDENT BEGINNING DATE.—The in12 cident beginning date of the severe storms and 

13 flooding referred to in subparagraph (A) is 

14 June 19, 2018. 

15 (C) INCIDENT PERIOD.—The incident pe16 riod of the severe storms and flooding referred 

17 to in subparagraph (A) is the period beginning 

18 on the incident beginning date with respect to 

19 such severe storms and flooding and ending on 

20 July 13, 2018. 

21 (12) NORTH CAROLINA TORNADO AND SEVERE

22 STORMS.— 

23 (A) NORTH CAROLINA TORNADO AND SE24 VERE STORMS DISASTER AREA.—The term 

25 ‘‘North Carolina tornado and severe storms disVerDate Sep 11 2014 01:57 Feb 22, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1148.IH H1148

pamtmann on DSKBFK8HB2PROD with BILLS
12 

•HR 1148 IH

1 aster area’’ means an area with respect to 

2 which, during the period beginning on May 8, 

3 2018, and ending on December 17, 2018, a 

4 major disaster has been declared by the Presi5 dent under section 401 of the Robert T. Staf6 ford Disaster Relief and Emergency Assistance 

7 Act by reason of the tornado and severe storms 

8 occurring in North Carolina on April 15, 2018. 

9 (B) INCIDENT BEGINNING DATE; INCIDENT

10 PERIOD.—The incident beginning date, and the 

11 incident period, of the tornado and severe 

12 storms referred to in subparagraph (A) is April 

13 15, 2018. 

14 (13) INDIANA SEVERE STORMS AND FLOOD15 ING.— 

16 (A) INDIANA SEVERE STORMS AND FLOOD17 ING DISASTER AREA.—The term ‘‘Indiana se18 vere storms and flooding disaster area’’ means 

19 an area with respect to which, during the period 

20 beginning on May 4, 2018, and ending on De21 cember 17, 2018, a major disaster has been de22 clared by the President under section 401 of 

23 the Robert T. Stafford Disaster Relief and 

24 Emergency Assistance Act by reason of the se25 vere storms and flooding occurring in Indiana 


pamtmann on DSKBFK8HB2PROD with BILLS
13 

•HR 1148 IH

1 during the period beginning on February 14, 

2 2018, and ending on March 4, 2018. 

3 (B) INCIDENT BEGINNING DATE.—The in4 cident beginning date of the severe storms and 

5 flooding referred to in subparagraph (A) is 

6 February 14, 2018. 

7 (C) INCIDENT PERIOD.—The incident pe8 riod of the severe storms and flooding referred 

9 to in subparagraph (A) is the period beginning 

10 on the incident beginning date with respect to 

11 such severe storms and flooding and ending on 

12 March 4, 2018. 

13 (14) ALABAMA SEVERE STORMS AND TORNA14 DOES.— 

15 (A) ALABAMA SEVERE STORMS AND TOR16 NADOES DISASTER AREA.—The term ‘‘Alabama 

17 severe storms and tornadoes disaster area’’ 

18 means an area with respect to which, during 

19 the period beginning on April 26, 2018, and 

20 ending on December 17, 2018, a major disaster 

21 has been declared by the President under sec22 tion 401 of the Robert T. Stafford Disaster Re23 lief and Emergency Assistance Act by reason of 

24 the severe storms and tornadoes occurring in 


pamtmann on DSKBFK8HB2PROD with BILLS
14 

•HR 1148 IH

1 Alabama during the period beginning on March 

2 19, 2018, and ending on March 20, 2018. 

3 (B) INCIDENT BEGINNING DATE.—The in4 cident beginning date of the severe storms and 

5 tornadoes referred to in subparagraph (A) is 

6 March 19, 2018. 

7 (C) INCIDENT PERIOD.—The incident pe8 riod of the severe storms and tornadoes referred 

9 to in subparagraph (A) is the period beginning 

10 on the incident beginning date with respect to 

11 such severe storms and tornadoes and ending 

12 on March 20, 2018. 

13 (15) TROPICAL STORM GITA.— 

14 (A) TROPICAL STORM GITA DISASTER

15 AREA.—The term ‘‘Tropical Storm Gita dis16 aster area’’ means an area with respect to 

17 which a major disaster has been declared by the 

18 President on or before December 17, 2018, 

19 under section 401 of the Robert T. Stafford 

20 Disaster Relief and Emergency Assistance Act 

21 by reason of Tropical Storm Gita. 

22 (B) INCIDENT BEGINNING DATE.—The in23 cident beginning date of Tropical Storm Gita is 

24 February 7, 2018. 


pamtmann on DSKBFK8HB2PROD with BILLS
15 

•HR 1148 IH

1 (C) INCIDENT PERIOD.—The incident pe2 riod of Tropical Storm Gita is the period begin3 ning on the incident beginning date of Tropical 

4 Storm Gita and ending on February 12, 2018. 

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

6 RETIREMENT FUNDS. 

7 (a) TAX-FAVORED WITHDRAWALS FROM RETIRE8 MENT PLANS.— 

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

10 Revenue Code of 1986 shall not apply to any quali11 fied disaster distribution. 

12 (2) AGGREGATE DOLLAR LIMITATION.— 

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

14 subsection, the aggregate amount of distribu15 tions received by an individual which may be 

16 treated as qualified disaster distributions for 

17 any taxable year shall not exceed the excess (if 

18 any) of— 

19 (i) $100,000, over 

20 (ii) the aggregate amounts treated as 

21 qualified disaster distributions received by 

22 such individual for all prior taxable years. 

23 (B) TREATMENT OF PLAN DISTRIBU24 TIONS.—If a distribution to an individual would 

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


pamtmann on DSKBFK8HB2PROD with BILLS
16 

•HR 1148 IH

1 qualified disaster distribution, a plan shall not 

2 be treated as violating any requirement of the 

3 Internal Revenue Code of 1986 merely because 

4 the plan treats such distribution as a qualified 

5 disaster distribution, unless the aggregate 

6 amount of such distributions from all plans 

7 maintained by the employer (and any member 

8 of any controlled group which includes the em9 ployer) to such individual exceeds $100,000. 

10 (C) CONTROLLED GROUP.—For purposes 

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

12 group’’ means any group treated as a single 

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

14 of section 414 of the Internal Revenue Code of 

15 1986. 

16 (D) SPECIAL RULE FOR INDIVIDUALS AF17 FECTED BY MORE THAN ONE DISASTER.—The 

18 limitation of subparagraph (A) shall be applied 

19 separately with respect to distributions made 

20 with respect to each qualified disaster which is 

21 described in a separate paragraph of section 2. 

22 (3) AMOUNT DISTRIBUTED MAY BE REPAID.— 

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

25 any time during the 3-year period beginning on 


pamtmann on DSKBFK8HB2PROD with BILLS
17 

•HR 1148 IH

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

3 in an aggregate amount not to exceed the 

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

7 such distribution could be made under section 

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

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

10 1986, as the case may be. 

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

13 PLANS OTHER THAN IRAS.—For purposes of 

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

16 with respect to a qualified disaster distribution 

17 from an eligible retirement plan other than an 

18 individual retirement plan, then the taxpayer 

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

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

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


pamtmann on DSKBFK8HB2PROD with BILLS
18 

•HR 1148 IH

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

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

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

7 with respect to a qualified disaster distribution 

8 from an individual retirement plan (as defined 

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

10 the extent of the amount of the contribution, 

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

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

14 transferred to the eligible retirement plan in a 

15 direct trustee to trustee transfer within 60 days 

16 of the distribution. 

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

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

21 the term ‘‘qualified disaster distribution’’ means 

22 any distribution from an eligible retirement 

23 plan made on or after the incident beginning 

24 date of a qualified disaster and before January 

25 1, 2020, to an individual whose principal place 


pamtmann on DSKBFK8HB2PROD with BILLS
19 

•HR 1148 IH

1 of abode at any time during the incident period 

2 of such qualified disaster is located in the quali3 fied disaster area with respect to such qualified 

4 disaster and who has sustained an economic 

5 loss by reason of such qualified disaster. 

6 (B) ELIGIBLE RETIREMENT PLAN.—The 

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

8 meaning given such term by section 

9 402(c)(8)(B) of the Internal Revenue Code of 

10 1986. 

11 (5) INCOME INCLUSION SPREAD OVER 3-YEAR

12 PERIOD.— 

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

14 qualified disaster distribution, unless the tax15 payer elects not to have this paragraph apply 

16 for any taxable year, any amount required to be 

17 included in gross income for such taxable year 

18 shall be so included ratably over the 3-taxable19 year period beginning with such taxable year. 

20 (B) SPECIAL RULE.—For purposes of sub21 paragraph (A), rules similar to the rules of sub22 paragraph (E) of section 408A(d)(3) of the In23 ternal Revenue Code of 1986 shall apply. 

24 (6) SPECIAL RULES.— 


pamtmann on DSKBFK8HB2PROD with BILLS
20 

•HR 1148 IH

1 (A) EXEMPTION OF DISTRIBUTIONS FROM

2 TRUSTEE TO TRUSTEE TRANSFER AND WITH3 HOLDING RULES.—For purposes of sections 

4 401(a)(31), 402(f), and 3405 of the Internal 

5 Revenue Code of 1986, qualified disaster dis6 tributions shall not be treated as eligible roll7 over distributions. 

8 (B) QUALIFIED DISASTER DISTRIBUTIONS

9 TREATED AS MEETING PLAN DISTRIBUTION RE10 QUIREMENTS.—For purposes of the Internal 

11 Revenue Code of 1986, a qualified disaster dis12 tribution shall be treated as meeting the re13 quirements of sections 401(k)(2)(B)(I), 

14 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) 

15 of such Code. 

16 (b) RECONTRIBUTIONS OF WITHDRAWALS FOR

17 HOME PURCHASES.— 

18 (1) RECONTRIBUTIONS.— 

19 (A) IN GENERAL.—Any individual who re20 ceived a qualified distribution may, during the 

21 applicable period, make 1 or more contributions 

22 in an aggregate amount not to exceed the 

23 amount of such qualified distribution to an eli24 gible retirement plan (as defined in section 

25 402(c)(8)(B) of the Internal Revenue Code of 


pamtmann on DSKBFK8HB2PROD with BILLS
21 

•HR 1148 IH

1 1986) of which such individual is a beneficiary 

2 and to which a rollover contribution of such dis3 tribution could be made under section 402(c), 

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

5 Code, as the case may be. 

6 (B) TREATMENT OF REPAYMENTS.—Rules 

7 similar to the rules of subparagraphs (B) and 

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

9 of this subsection. 

10 (2) QUALIFIED DISTRIBUTION.—For purposes 

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

12 means any distribution— 

13 (A) described in section 

14 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only 

15 to the extent such distribution relates to finan16 cial hardship), 403(b)(11)(B), or 72(t)(2)(F), 

17 of the Internal Revenue Code of 1986, 

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

19 construct a principal residence in a qualified 

20 disaster area, but which was not so used on ac21 count of the qualified disaster with respect to 

22 such area, and 

23 (C) which was received on or after January 

24 1, 2018, and before the date which is 30 days 


pamtmann on DSKBFK8HB2PROD with BILLS
22 

•HR 1148 IH

1 after the last day of the incident period of such 

2 qualified disaster. 

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

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

5 the case of a principal residence in a qualified dis6 aster area with respect to any qualified disaster, the 

7 period beginning on the incident beginning date of 

8 such qualified disaster and ending on February 28, 

9 2019. 

10 (c) LOANS FROM QUALIFIED PLANS.— 

11 (1) INCREASE IN LIMIT ON LOANS NOT TREAT12 ED AS DISTRIBUTIONS.—In the case of any loan 

13 from a qualified employer plan (as defined under 

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

15 1986) to a qualified individual made during the pe16 riod beginning on the date of the enactment of this 

17 Act and ending on December 31, 2019— 

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

19 such Code shall be applied by substituting 

20 ‘‘$100,000’’ for ‘‘$50,000’’, and 

21 (B) clause (ii) of such section shall be ap22 plied by substituting ‘‘the present value of the 

23 nonforfeitable accrued benefit of the employee 

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


pamtmann on DSKBFK8HB2PROD with BILLS
23 

•HR 1148 IH

1 value of the nonforfeitable accrued benefit of 

2 the employee under the plan’’. 

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

4 qualified individual (with respect to any qualified 

5 disaster) with an outstanding loan on or after the 

6 incident beginning date (of such qualified disaster) 

7 from a qualified employer plan (as defined in section 

8 72(p)(4) of the Internal Revenue Code of 1986)— 

9 (A) if the due date pursuant to subpara10 graph (B) or (C) of section 72(p)(2) of such 

11 Code for any repayment with respect to such 

12 loan occurs during the period beginning on the 

13 incident beginning date of such qualified dis14 aster and ending on December 31, 2019, such 

15 due date shall be delayed for 1 year, 

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 paragraph (1) and any interest accruing 

20 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. 


pamtmann on DSKBFK8HB2PROD with BILLS
24 

•HR 1148 IH

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 


pamtmann on DSKBFK8HB2PROD with BILLS
25 

•HR 1148 IH

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, 2020, 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), 


pamtmann on DSKBFK8HB2PROD with BILLS
26 

•HR 1148 IH

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 2018 qualified disaster employee retention 

10 credit shall be treated as a credit listed in subsection (b) 

11 of such section. For purposes of this subsection, the 2018 

12 qualified disaster employee retention credit for any taxable 

13 year is an amount equal to 40 percent of the qualified 

14 wages with respect to each eligible employee of such em15 ployer for such taxable year. For purposes of the pre16 ceding sentence, the amount of qualified wages which may 

17 be taken into account with respect to any individual shall 

18 not exceed $6,000. 

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

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

21 employer’’ means any employer— 

22 (A) which conducted an active trade or 

23 business in a qualified disaster zone at any time 

24 during the incident period of the qualified disVerDate Sep 11 2014 01:57 Feb 22, 2019 Jkt 089200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H1148.IH H1148

pamtmann on DSKBFK8HB2PROD with BILLS
27 

•HR 1148 IH

1 aster with respect to such qualified disaster 

2 zone, and 

3 (B) with respect to whom the trade or 

4 business described in subparagraph (A) is inop5 erable at any time after the incident beginning 

6 date of such qualified disaster, and before Jan7 uary 1, 2019, as a result of damage sustained 

8 by reason of such qualified disaster. 

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

10 employee’’ means with respect to an eligible em11 ployer an employee whose principal place of employ12 ment at any time during the incident period of the 

13 qualified disaster referred to in paragraph (1) with 

14 such eligible employer was in the qualified disaster 

15 zone referred to in such paragraph. 

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

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

18 of the Internal Revenue Code of 1986, but without 

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

20 or incurred by an eligible employer with respect to 

21 an eligible employee at any time after the incident 

22 beginning date of the qualified disaster referred to 

23 in paragraph (1), and before January 1, 2019, 

24 which occurs during the period— 


pamtmann on DSKBFK8HB2PROD with BILLS
28 

•HR 1148 IH

1 (A) beginning on the date on which the 

2 trade or business described in paragraph (1) 

3 first became inoperable at the principal place of 

4 employment of the employee immediately before 

5 the qualified disaster referred to in such para6 graph, and 

7 (B) ending on the date on which such 

8 trade or business has resumed significant oper9 ations at such principal place of employment. 

10 Such term shall include wages paid without regard 

11 to whether the employee performs no services, per12 forms services at a different place of employment 

13 than such principal place of employment, or per14 forms services at such principal place of employment 

15 before significant operations have resumed. 

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

17 this subsection, rules similar to the rules of sections 

18 51(i)(1), 52, and 280C(a), of the Internal Revenue Code 

19 of 1986, shall apply. 

20 (d) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE

21 THAN ONCE.—An employee shall not be treated as an eli22 gible employee for purposes of this subsection for any pe23 riod with respect to any employer if such employer is al24 lowed a credit under section 51 of the Internal Revenue 


pamtmann on DSKBFK8HB2PROD with BILLS
29 

•HR 1148 IH

1 Code of 1986 with respect to such employee for such pe2 riod. 

3 SEC. 5. OTHER DISASTER-RELATED TAX RELIEF PROVI4 SIONS. 

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 


pamtmann on DSKBFK8HB2PROD with BILLS
30 

•HR 1148 IH

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. 


pamtmann on DSKBFK8HB2PROD with BILLS
31 

•HR 1148 IH

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 February 7, 2018, and 

10 ending on December 31, 2018, in cash 

11 to an organization described in section 

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

13 (II) is made for relief efforts in 

14 one or more qualified disaster areas, 

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. 


pamtmann on DSKBFK8HB2PROD with BILLS
32 

•HR 1148 IH

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 

25 in the matter preceding clause (i) of secVerDate Sep 11 2014 01:57 Feb 22, 2019 Jkt 089200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H1148.IH H1148

pamtmann on DSKBFK8HB2PROD with BILLS
33 

•HR 1148 IH

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 


pamtmann on DSKBFK8HB2PROD with BILLS
34 

•HR 1148 IH

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

2 which arise in a qualified disaster area on or after 

3 the incident beginning date of the qualified disaster 

4 to which such area relates, and which are attrib5 utable to such qualified disaster. 

6 (c) SPECIAL RULE FOR DETERMINING EARNED IN7 COME.— 

8 (1) IN GENERAL.—In the case of a qualified in9 dividual, if the earned income of the taxpayer for the 

10 applicable taxable year is less than the earned in11 come of the taxpayer for the preceding taxable year, 

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

13 the Internal Revenue Code of 1986 may, at the elec14 tion of the taxpayer, be determined by sub15 stituting— 

16 (A) such earned income for the preceding 

17 taxable year, for 

18 (B) such earned income for the applicable 

19 taxable year. 

20 (2) QUALIFIED INDIVIDUAL.—For purposes of 

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

22 means any individual whose principal place of abode 

23 at any time during the incident period of any quali24 fied disaster was located— 


pamtmann on DSKBFK8HB2PROD with BILLS
35 

•HR 1148 IH

1 (A) in the qualified disaster zone with re2 spect to such qualified disaster, or 

3 (B) in the qualified disaster area with re4 spect to such qualified disaster (but outside the 

5 qualified disaster zone with respect to such 

6 qualified disaster) and such individual was dis7 placed from such principal place of abode by 

8 reason of such qualified disaster. 

9 (3) APPLICABLE TAXABLE YEAR.—The term 

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

11 qualified individual, any taxable year which includes 

12 any day during the incident period of the qualified 

13 disaster to which the qualified disaster area referred 

14 to in paragraph (2) relates. 

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

16 subsection, the term ‘‘earned income’’ has the mean17 ing given such term under section 32(c) of the Inter18 nal Revenue Code of 1986. 

19 (5) SPECIAL RULES.— 

20 (A) APPLICATION TO JOINT RETURNS.— 

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

22 a joint return for an applicable taxable year— 

23 (i) such paragraph shall apply if ei24 ther spouse is a qualified individual, and 


pamtmann on DSKBFK8HB2PROD with BILLS
36 

•HR 1148 IH

1 (ii) the earned income of the taxpayer 

2 for the preceding taxable year shall be the 

3 sum of the earned income of each spouse 

4 for such preceding taxable year. 

5 (B) UNIFORM APPLICATION OF ELEC6 TION.—Any election made under paragraph (1) 

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

8 and 32 of the Internal Revenue Code of 1986. 

9 (C) ERRORS TREATED AS MATHEMATICAL

10 ERROR.—For purposes of section 6213 of the 

11 Internal Revenue Code of 1986, an incorrect 

12 use on a return of earned income pursuant to 

13 paragraph (1) shall be treated as a mathe14 matical or clerical error. 

15 (D) NO EFFECT ON DETERMINATION OF

16 GROSS INCOME, ETC.—Except as otherwise pro17 vided in this subsection, the Internal Revenue 

18 Code of 1986 shall be applied without regard to 

19 any substitution under paragraph (1). 

20 SEC. 6. TREATMENT OF CERTAIN POSSESSIONS. 

21 (a) PAYMENTS TO GUAM AND THE COMMONWEALTH

22 OF THE NORTHERN MARIANA ISLANDS.—The Secretary 

23 of the Treasury shall pay to Guam and the Commonwealth 

24 of the Northern Mariana Islands amounts equal to the loss 

25 to that possession by reason of the application of the proVerDate Sep 11 2014 01:57 Feb 22, 2019 Jkt 089200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H1148.IH H1148

pamtmann on DSKBFK8HB2PROD with BILLS
37 

•HR 1148 IH

1 visions of this Act. Such amounts shall be determined by 

2 the Secretary of the Treasury based on information pro3 vided by the government of the respective possession. 

4 (b) PAYMENTS TO AMERICAN SAMOA.— 

5 (1) IN GENERAL.—The Secretary of the Treas6 ury shall pay to American Samoa amounts estimated 

7 by the Secretary of the Treasury as being equal to 

8 the aggregate benefits that would have been pro9 vided to residents of American Samoa by reason of 

10 the provisions of this Act if a mirror code tax system 

11 had been in effect in American Samoa. The pre12 ceding sentence shall not apply unless American 

13 Samoa has a plan, which has been approved by the 

14 Secretary of the Treasury, under which American 

15 Samoa will promptly distribute such payments to its 

16 residents. 

17 (2) MIRROR CODE TAX SYSTEM.—For purposes 

18 of this subsection, the term ‘‘mirror code tax sys19 tem’’ means, with respect to any possession of the 

20 United States, the income tax system of such posses21 sion if the income tax liability of the residents of 

22 such possession under such system is determined by 

23 reference to the income tax laws of the United 

24 States as if such possession were the United States. 


pamtmann on DSKBFK8HB2PROD with BILLS
38 

•HR 1148 IH

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

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

3 under this section shall be treated in the same manner 

4 as a refund due from a credit provision referred to in sub5 section (b)(2) of such section. 

6 SEC. 7. AUTOMATIC EXTENSION OF FILING DEADLINE. 

7 (a) IN GENERAL.—Section 7508A is amended by 

8 adding at the end the following new subsection: 

9 ‘‘(d) MANDATORY 60-DAY EXTENSION.—In the case 

10 of— 

11 ‘‘(1) any individual whose principal place of 

12 abode is in a disaster area (as defined in section 

13 165(i)(5)(B)), and 

14 ‘‘(2) any taxpayer if the taxpayer’s principal 

15 place of business (other than the business of per16 forming services of an employee) is located in a dis17 aster area (as so defined), 

18 the period beginning on the earliest incident date specified 

19 in the declaration to which such area relates and ending 

20 on the date which is 60 days after the latest incident date 

21 so specified shall be disregarded in the same manner as 

22 a period specified under subsection (a).’’. 


pamtmann on DSKBFK8HB2PROD with BILLS
39 

•HR 1148 IH

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

2 this section shall apply to federally declared disasters de3 clared after December 31, 2018. 

Æ 


pamtmann on DSKBFK8HB2PROD with BILLS