I 

115TH CONGRESS 

1ST SESSION H. R. 4397 

To provide tax relief with respect to California wildfires. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 15, 2017 

Mrs. MIMI WALTERS of California (for herself, Mr. THOMPSON of California, 

Mr. MCCARTHY, Mr. LAMALFA, Mr. ROYCE of California, Mr. DENHAM, 

Mr. CALVERT, Ms. BROWNLEY of California, Mr. BERA, Ms. LOFGREN, 

Mr. HUFFMAN, Mr. COSTA, Ms. MATSUI, Mr. GARAMENDI, Ms. SPEIER, 

Ms. LEE, Mr. DESAULNIER, Ms. ESHOO, and Mr. GOMEZ) introduced the 

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

and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To provide tax relief with respect to California wildfires. 

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 ‘‘California Wildfire 

5 Disaster Tax Relief Act of 2017’’. 

6 SEC. 2. DEFINITIONS. 

7 For purposes of this Act— 


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1 (1) CALIFORNIA WILDFIRE DISASTER ZONE.— 

2 The term ‘‘California wildfire disaster zone’’ means 

3 that portion of the California wildfire disaster area 

4 determined by the President to warrant individual or 

5 individual and public assistance from the Federal 

6 Government under the Robert T. Stafford Disaster 

7 Relief and Emergency Assistance Act by reason of 

8 wildfires in California. 

9 (2) CALIFORNIA WILDFIRE DISASTER AREA.— 

10 The term ‘‘California wildfire disaster area’’ means 

11 an area with respect to which a major disaster has 

12 been declared by the President before November 15, 

13 2017, under section 401 of such Act by reason of 

14 wildfires in California. 

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

16 RETIREMENT FUNDS. 

17 (a) TAX-FAVORED WITHDRAWALS FROM RETIRE18 MENT PLANS.— 

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

20 Revenue Code of 1986 shall not apply to any quali21 fied wildfire distribution. 

22 (2) AGGREGATE DOLLAR LIMITATION.— 

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

24 subsection, the aggregate amount of distribu25 tions received by an individual which may be 


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1 treated as qualified wildfire distributions for 

2 any taxable year shall not exceed the excess (if 

3 any) of— 

4 (i) $100,000, over 

5 (ii) the aggregate amounts treated as 

6 qualified wildfire distributions received by 

7 such individual for all prior taxable years. 

8 (B) TREATMENT OF PLAN DISTRIBU9 TIONS.—If a distribution to an individual would 

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

11 qualified wildfire distribution, a plan shall not 

12 be treated as violating any requirement of the 

13 Internal Revenue Code of 1986 merely because 

14 the plan treats such distribution as a qualified 

15 wildfire distribution, unless the aggregate 

16 amount of such distributions from all plans 

17 maintained by the employer (and any member 

18 of any controlled group which includes the em19 ployer) to such individual exceeds $100,000. 

20 (C) CONTROLLED GROUP.—For purposes 

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

22 group’’ means any group treated as a single 

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

24 of section 414 of the Internal Revenue Code of 

25 1986. 


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1 (3) AMOUNT DISTRIBUTED MAY BE REPAID.— 

2 (A) IN GENERAL.—Any individual who re3 ceives a qualified wildfire distribution may, at 

4 any time during the 3-year period beginning on 

5 the day after the date on which such distribu6 tion was received, make one or more contribu7 tions in an aggregate amount not to exceed the 

8 amount of such distribution to an eligible retire9 ment plan of which such individual is a bene10 ficiary and to which a rollover contribution of 

11 such distribution could be made under section 

12 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 

13 457(e)(16), of the Internal Revenue Code of 

14 1986, as the case may be. 

15 (B) TREATMENT OF REPAYMENTS OF DIS16 TRIBUTIONS FROM ELIGIBLE RETIREMENT

17 PLANS OTHER THAN IRAS.—For purposes of 

18 the Internal Revenue Code of 1986, if a con19 tribution is made pursuant to subparagraph (A) 

20 with respect to a qualified wildfire distribution 

21 from an eligible retirement plan other than an 

22 individual retirement plan, then the taxpayer 

23 shall, to the extent of the amount of the con24 tribution, be treated as having received the 

25 qualified wildfire distribution in an eligible rollVerDate Sep 11 2014 22:29 Nov 20, 2017 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4397.IH H4397

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1 over distribution (as defined in section 

2 402(c)(4) of such Code) and as having trans3 ferred the amount to the eligible retirement 

4 plan in a direct trustee to trustee transfer with5 in 60 days of the distribution. 

6 (C) TREATMENT OF REPAYMENTS FOR

7 DISTRIBUTIONS FROM IRAS.—For purposes of 

8 the Internal Revenue Code of 1986, if a con9 tribution is made pursuant to subparagraph (A) 

10 with respect to a qualified wildfire distribution 

11 from an individual retirement plan (as defined 

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

13 the extent of the amount of the contribution, 

14 the qualified wildfire distribution shall be treat15 ed as a distribution described in section 

16 408(d)(3) of such Code and as having been 

17 transferred to the eligible retirement plan in a 

18 direct trustee to trustee transfer within 60 days 

19 of the distribution. 

20 (4) DEFINITIONS.—For purposes of this sub21 section— 

22 (A) QUALIFIED WILDFIRE DISTRIBU23 TION.—Except as provided in paragraph (2), 

24 the term ‘‘qualified wildfire distribution’’ means 

25 any distribution from an eligible retirement 


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1 plan made on or after October 8, 2017, and be2 fore January 1, 2019, to an individual whose 

3 principal place of abode on October 8, 2017, is 

4 located in the California wildfire disaster area 

5 and who has sustained an economic loss by rea6 son of the wildfires to which the declaration of 

7 such area relates. 

8 (B) ELIGIBLE RETIREMENT PLAN.—The 

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

10 meaning given such term by section 

11 402(c)(8)(B) of the Internal Revenue Code of 

12 1986. 

13 (5) INCOME INCLUSION SPREAD OVER 3-YEAR

14 PERIOD.— 

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

16 qualified wildfire distribution, unless the tax17 payer elects not to have this paragraph apply 

18 for any taxable year, any amount required to be 

19 included in gross income for such taxable year 

20 shall be so included ratably over the 3-taxable21 year period beginning with such taxable year. 

22 (B) SPECIAL RULE.—For purposes of sub23 paragraph (A), rules similar to the rules of sub24 paragraph (E) of section 408A(d)(3) of the In25 ternal Revenue Code of 1986 shall apply. 


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1 (6) SPECIAL RULES.— 

2 (A) EXEMPTION OF DISTRIBUTIONS FROM

3 TRUSTEE TO TRUSTEE TRANSFER AND WITH4 HOLDING RULES.—For purposes of sections 

5 401(a)(31), 402(f), and 3405 of the Internal 

6 Revenue Code of 1986, qualified wildfire dis7 tributions shall not be treated as eligible roll8 over distributions. 

9 (B) QUALIFIED WILDFIRE DISTRIBUTIONS

10 TREATED AS MEETING PLAN DISTRIBUTION RE11 QUIREMENTS.—For purposes the Internal Rev12 enue Code of 1986, a qualified wildfire distribu13 tion shall be treated as meeting the require14 ments of sections 401(k)(2)(B)(i), 

15 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) 

16 of such Code. 

17 (b) RECONTRIBUTIONS OF WITHDRAWALS FOR

18 HOME PURCHASES.— 

19 (1) RECONTRIBUTIONS.— 

20 (A) IN GENERAL.—Any individual who re21 ceived a qualified distribution may, during the 

22 period beginning on October 8, 2017, and end23 ing on April 30, 2018, make one or more con24 tributions in an aggregate amount not to exceed 

25 the amount of such qualified distribution to an 


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1 eligible retirement plan (as defined in section 

2 402(c)(8)(B) of the Internal Revenue Code of 

3 1986) of which such individual is a beneficiary 

4 and to which a rollover contribution of such dis5 tribution could be made under section 402(c), 

6 403(a)(4), 403(b)(8), or 408(d)(3), of such 

7 Code, as the case may be. 

8 (B) TREATMENT OF REPAYMENTS.—Rules 

9 similar to the rules of subparagraphs (B) and 

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

11 of this subsection. 

12 (2) QUALIFIED DISTRIBUTION.—For purposes 

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

14 means any distribution— 

15 (A) described in section 

16 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only 

17 to the extent such distribution relates to finan18 cial hardship), 403(b)(11)(B), or 72(t)(2)(F), 

19 of the Internal Revenue Code of 1986, 

20 (B) received after March 31, 2017, and be21 fore November 15, 2017, and 

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

23 construct a principal residence in the California 

24 wildfire disaster area but which was not so pur25 chased or constructed on account of the 


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1 wildfires to which the declaration of such area 

2 relates. 

3 (c) LOANS FROM QUALIFIED PLANS.— 

4 (1) INCREASE IN LIMIT ON LOANS NOT TREAT5 ED AS DISTRIBUTIONS.—In the case of any loan 

6 from a qualified employer plan (as defined under 

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

8 1986) to a qualified individual made during the pe9 riod beginning on the date of the enactment of this 

10 Act and ending on December 31, 2018— 

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

12 such Code shall be applied by substituting 

13 ‘‘$100,000’’ for ‘‘$50,000’’, and 

14 (B) clause (ii) of such section shall be ap15 plied by substituting ‘‘the present value of the 

16 nonforfeitable accrued benefit of the employee 

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

18 value of the nonforfeitable accrued benefit of 

19 the employee under the plan’’. 

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

21 qualified individual with an outstanding loan on or 

22 after October 8, 2017, from a qualified employer 

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

24 Revenue Code of 1986)— 


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1 (A) if the due date pursuant to subpara2 graph (B) or (C) of section 72(p)(2) of such 

3 Code for any repayment with respect to such 

4 loan occurs during the period beginning on Oc5 tober 8, 2017, and ending on December 31, 

6 2018, such due date shall be delayed for 1 year, 

7 (B) any subsequent repayments with re8 spect to any such loan shall be appropriately 

9 adjusted to reflect the delay in the due date 

10 under paragraph (1) and any interest accruing 

11 during such delay, and 

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

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

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

15 described in subparagraph (A) shall be dis16 regarded. 

17 (3) QUALIFIED INDIVIDUAL.—For purposes of 

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

19 means any individual whose principal place of abode 

20 on October 8, 2017, is located in the California wild21 fire disaster area and who has sustained an eco22 nomic loss by reason of wildfires to which the dec23 laration of such area relates. 

24 (d) PROVISIONS RELATING TO PLAN AMEND25 MENTS.— 


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

2 any amendment to any plan or annuity contract, 

3 such plan or contract shall be treated as being oper4 ated in accordance with the terms of the plan during 

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

6 (2) AMENDMENTS TO WHICH SUBSECTION AP7 PLIES.— 

8 (A) IN GENERAL.—This subsection shall 

9 apply to any amendment to any plan or annuity 

10 contract which is made— 

11 (i) pursuant to any provision of this 

12 section, or pursuant to any regulation 

13 issued by the Secretary or the Secretary of 

14 Labor under any provision of this section, 

15 and 

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

17 first plan year beginning on or after Janu18 ary 1, 2019, or such later date as the Sec19 retary may prescribe. 

20 In the case of a governmental plan (as defined 

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

22 of 1986), clause (ii) shall be applied by sub23 stituting the date which is 2 years after the 

24 date otherwise applied under clause (ii). 


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1 (B) CONDITIONS.—This subsection shall 

2 not apply to any amendment unless— 

3 (i) during the period— 

4 (I) beginning on the date that 

5 this section or the regulation de6 scribed in subparagraph (A)(i) takes 

7 effect (or in the case of a plan or con8 tract amendment not required by this 

9 section or such regulation, the effec10 tive date specified by the plan), and 

11 (II) ending on the date described 

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

13 the date the plan or contract amend14 ment is adopted), 

15 the plan or contract is operated as if such plan 

16 or contract amendment were in effect, and 

17 (ii) such plan or contract amendment 

18 applies retroactively for such period. 

19 SEC. 4. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS 

20 AFFECTED BY CALIFORNIA WILDFIRES. 

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

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

23 employer, the California wildfire employee retention credit 

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

25 section. For purposes of this subsection, the California 


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1 wildfire employee retention credit for any taxable year is 

2 an amount equal to 40 percent of the qualified wages with 

3 respect to each eligible employee of such employer for such 

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

5 amount of qualified wages which may be taken into ac6 count with respect to any individual shall not exceed 

7 $6,000. 

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

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

10 employer’’ means any employer— 

11 (A) which conducted an active trade or 

12 business on October 8, 2017, in the California 

13 wildfire disaster zone, and 

14 (B) with respect to whom the trade or 

15 business described in subparagraph (A) is inop16 erable on any day after October 8, 2017, and 

17 before January 1, 2018, as a result of damage 

18 sustained by reason of the wildfires to which 

19 such declaration of such area relates. 

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

21 employee’’ means with respect to an eligible em22 ployer an employee whose principal place of employ23 ment on October 8, 2017, with such eligible em24 ployer was in the California wildfire disaster zone. 


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

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

3 of the Internal Revenue Code of 1986, but without 

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

5 or incurred by an eligible employer with respect to 

6 an eligible employee on any day after October 8, 

7 2017, and before January 1, 2018, which occurs 

8 during the period— 

9 (A) beginning on the date on which the 

10 trade or business described in paragraph (1) 

11 first became inoperable at the principal place of 

12 employment of the employee immediately before 

13 the wildfires to which the declaration of the 

14 California wildfire disaster area relates, and 

15 (B) ending on the date on which such 

16 trade or business has resumed significant oper17 ations at such principal place of employment. 

18 Such term shall include wages paid without regard 

19 to whether the employee performs no services, per20 forms services at a different place of employment 

21 than such principal place of employment, or per22 forms services at such principal place of employment 

23 before significant operations have resumed. 


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

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

3 and 52, of the Internal Revenue Code of 1986, shall apply. 

4 (d) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE

5 THAN ONCE.—An employee shall not be treated as an eli6 gible employee for purposes of this section for any period 

7 with respect to any employer if such employer is allowed 

8 a credit under section 51 of the Internal Revenue Code 

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

10 SEC. 5. ADDITIONAL DISASTER-RELATED TAX RELIEF PRO11 VISIONS. 

12 (a) TEMPORARY SUSPENSION OF LIMITATIONS ON

13 CHARITABLE CONTRIBUTIONS.— 

14 (1) IN GENERAL.—Except as otherwise pro15 vided in paragraph (2), subsection (b) of section 170 

16 of the Internal Revenue Code of 1986 shall not 

17 apply to qualified contributions and such contribu18 tions shall not be taken into account for purposes of 

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

20 other contributions. 

21 (2) TREATMENT OF EXCESS CONTRIBUTIONS.— 

22 For purposes of section 170 of the Internal Revenue 

23 Code of 1986— 

24 (A) INDIVIDUALS.—In the case of an indi25 vidual— 


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1 (i) LIMITATION.—Any qualified con2 tribution shall be allowed only to the ex3 tent that the aggregate of such contribu4 tions does not exceed the excess of the tax5 payer’s contribution base (as defined in 

6 subparagraph (G) of section 170(b)(1) of 

7 such Code) over the amount of all other 

8 charitable contributions allowed under sec9 tion 170(b)(1) of such Code. 

10 (ii) CARRYOVER.—If the aggregate 

11 amount of qualified contributions made in 

12 the contribution year (within the meaning 

13 of section 170(d)(1) of such Code) exceeds 

14 the limitation of clause (i), such excess 

15 shall be added to the excess described in 

16 the portion of subparagraph (A) of such 

17 section which precedes clause (i) thereof 

18 for purposes of applying such section. 

19 (B) CORPORATIONS.—In the case of a cor20 poration— 

21 (i) LIMITATION.—Any qualified con22 tribution shall be allowed only to the ex23 tent that the aggregate of such contribu24 tions does not exceed the excess of the tax25 payer’s taxable income (as determined 


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

2 such Code) over the amount of all other 

3 charitable contributions allowed under such 

4 paragraph. 

5 (ii) CARRYOVER.—Rules similar to the 

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

7 for purposes of this subparagraph. 

8 (3) EXCEPTION TO OVERALL LIMITATION ON

9 ITEMIZED DEDUCTIONS.—So much of any deduction 

10 allowed under section 170 of the Internal Revenue 

11 Code of 1986 as does not exceed the qualified con12 tributions paid during the taxable year shall not be 

13 treated as an itemized deduction for purposes of sec14 tion 68 of such Code. 

15 (4) QUALIFIED CONTRIBUTIONS.— 

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

17 subsection, the term ‘‘qualified contribution’’ 

18 means any charitable contribution (as defined 

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

20 of 1986) if— 

21 (i) such contribution— 

22 (I) is paid during the period be23 ginning on October 8, 2017, and end24 ing on December 31, 2017, in cash to 


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1 an organization described in section 

2 170(b)(1)(A) of such Code, and 

3 (II) is made for relief efforts in 

4 the California wildfire disaster area, 

5 (ii) the taxpayer obtains from such or6 ganization contemporaneous written ac7 knowledgment (within the meaning of sec8 tion 170(f)(8) of such Code) that such con9 tribution was used (or is to be used) for 

10 relief efforts described in clause (i)(II), 

11 and 

12 (iii) the taxpayer has elected the ap13 plication of this subsection with respect to 

14 such contribution. 

15 (B) EXCEPTION.—Such term shall not in16 clude a contribution by a donor if the contribu17 tion is— 

18 (i) to an organization described in sec19 tion 509(a)(3) of the Internal Revenue 

20 Code of 1986, or 

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

22 maintenance of an existing, donor advised 

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

24 such Code). 


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1 (C) APPLICATION OF ELECTION TO PART2 NERSHIPS AND S CORPORATIONS.—In the case 

3 of a partnership or S corporation, the election 

4 under subparagraph (A)(iii) shall be made sepa5 rately by each partner or shareholder. 

6 (b) SPECIAL RULES FOR QUALIFIED DISASTER-RE7 LATED PERSONAL CASUALTY LOSSES.— 

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

9 disaster loss for any taxable year— 

10 (A) the amount determined under section 

11 165(h)(2)(A)(ii) of the Internal Revenue Code 

12 of 1986 shall be equal to the sum of— 

13 (i) such net disaster loss, and 

14 (ii) so much of the excess referred to 

15 in the matter preceding clause (i) of sec16 tion 165(h)(2)(A) of such Code (reduced 

17 by the amount in clause (i) of this sub18 paragraph) as exceeds 10 percent of the 

19 adjusted gross income of the individual, 

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

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

22 ($100 for taxable years beginning after Decem23 ber 31, 2009)’’, 


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1 (C) the standard deduction determined 

2 under section 63(c) of such Code shall be in3 creased by the net disaster loss, and 

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

5 not apply to so much of the standard deduction 

6 as is attributable to the increase under sub7 paragraph (C) of this paragraph. 

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

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

10 excess of qualified disaster-related personal casualty 

11 losses over personal casualty gains (as defined in 

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

13 of 1986). 

14 (3) QUALIFIED DISASTER-RELATED PERSONAL

15 CASUALTY LOSSES.—For purposes of this sub16 section, the term ‘‘qualified disaster-related personal 

17 casualty losses’’ means losses described in section 

18 165(c)(3) of the Internal Revenue Code of 1986 

19 which arise in the California wildfire disaster area 

20 on or after October 8, 2017, and which are attrib21 utable to the wildfires to which the declaration of 

22 such area relates. 

23 (c) SPECIAL RULE FOR DETERMINING EARNED IN24 COME.— 


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1 (1) IN GENERAL.—In the case of a qualified in2 dividual, if the earned income of the taxpayer for the 

3 taxable year which includes the applicable date is 

4 less than the earned income of the taxpayer for the 

5 preceding taxable year, the credits allowed under 

6 sections 24(d) and 32 of the Internal Revenue Code 

7 of 1986 may, at the election of the taxpayer, be de8 termined by substituting— 

9 (A) such earned income for the preceding 

10 taxable year, for 

11 (B) such earned income for the taxable 

12 year which includes October 8, 2017. 

13 (2) QUALIFIED INDIVIDUAL.—For purposes of 

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

15 means any individual whose principal place of abode 

16 on October 8, 2017, was located— 

17 (A) in the California wildfire disaster zone, 

18 or 

19 (B) in the California wildfire disaster area 

20 (but outside the California wildfire disaster 

21 zone) and such individual was displaced from 

22 such principal place of abode by reason of the 

23 wildfires to which the declaration of such area 

24 relates. 


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

2 subsection, the term ‘‘earned income’’ has the mean3 ing given such term under section 32(c) of the Inter4 nal Revenue Code of 1986. 

5 (4) SPECIAL RULES.— 

6 (A) APPLICATION TO JOINT RETURNS.— 

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

8 a joint return for a taxable year which includes 

9 October 8, 2017— 

10 (i) such paragraph shall apply if ei11 ther spouse is a qualified individual, and 

12 (ii) the earned income of the taxpayer 

13 for the preceding taxable year shall be the 

14 sum of the earned income of each spouse 

15 for such preceding taxable year. 

16 (B) UNIFORM APPLICATION OF ELEC17 TION.—Any election made under paragraph (1) 

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

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

20 (C) ERRORS TREATED AS MATHEMATICAL

21 ERROR.—For purposes of section 6213 of the 

22 Internal Revenue Code of 1986, an incorrect 

23 use on a return of earned income pursuant to 

24 paragraph (1) shall be treated as a mathe25 matical or clerical error. 


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1 (D) NO EFFECT ON DETERMINATION OF

2 GROSS INCOME, ETC.—Except as otherwise pro3 vided in this subsection, the Internal Revenue 

4 Code of 1986 shall be applied without regard to 

5 any substitution under paragraph (1). 

6 SEC. 6. BUDGETARY EFFECTS. 

7 (a) EMERGENCY DESIGNATION.—This Act is des8 ignated as an emergency requirement pursuant to section 

9 4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 

10 U.S.C. 933(g)). 

11 (b) DESIGNATION IN SENATE.—In the Senate, this 

12 Act is designated as an emergency requirement pursuant 

13 to section 403(a) of S. Con. Res. 13 (111th Congress), 

14 the concurrent resolution on the budget for fiscal year 

15 2010. 

Æ 


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