II 

115TH CONGRESS 

1ST SESSION S. 1892 

To provide tax relief related to Hurricanes Harvey, Irma, and Maria. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 28, 2017 

Mr. CRUZ (for himself, Mr. CORNYN, and Mr. RUBIO) introduced the following 

bill; which was read twice and referred to the Committee on Finance 

A BILL 

To provide tax relief related to Hurricanes Harvey, Irma, 

and Maria. 

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

3 SECTION 1. DEFINITIONS. 

4 (a) HURRICANE HARVEY DISASTER ZONE AND DIS5 ASTER AREA.—For purposes of this Act— 

6 (1) HURRICANE HARVEY DISASTER ZONE.—The 

7 term ‘‘Hurricane Harvey disaster zone’’ means that 

8 portion of the Hurricane Harvey disaster area deter9 mined by the President to warrant individual or in10 dividual and public assistance from the Federal Gov11 ernment under the Robert T. Stafford Disaster ReVerDate Sep 11 2014 02:19 Oct 03, 2017 Jkt 069200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1892.IS S1892

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1 lief and Emergency Assistance Act by reason of 

2 Hurricane Harvey. 

3 (2) HURRICANE HARVEY DISASTER AREA.—The 

4 term ‘‘Hurricane Harvey disaster area’’ means an 

5 area with respect to which a major disaster has been 

6 declared by the President before September 21, 

7 2017, under section 401 of such Act by reason of 

8 Hurricane Harvey. 

9 (b) HURRICANE IRMA DISASTER ZONE AND DIS10 ASTER AREA.—For purposes of this Act— 

11 (1) HURRICANE IRMA DISASTER ZONE.—The 

12 term ‘‘Hurricane Irma disaster zone’’ means that 

13 portion of the Hurricane Irma disaster area deter14 mined by the President to warrant individual or in15 dividual and public assistance from the Federal Gov16 ernment under such Act by reason of Hurricane 

17 Irma. 

18 (2) HURRICANE IRMA DISASTER AREA.—The 

19 term ‘‘Hurricane Irma disaster area’’ means an area 

20 with respect to which a major disaster has been de21 clared by the President before September 21, 2017, 

22 under section 401 of such Act by reason of Hurri23 cane Irma. 

24 (c) HURRICANE MARIA DISASTER ZONE AND DIS25 ASTER AREA.—For purposes of this Act— 


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1 (1) HURRICANE MARIA DISASTER ZONE.—The 

2 term ‘‘Hurricane Maria disaster zone’’ means that 

3 portion of the Hurricane Maria disaster area deter4 mined by the President to warrant individual or in5 dividual and public assistance from the Federal Gov6 ernment under such Act by reason of Hurricane 

7 Maria. 

8 (2) HURRICANE MARIA DISASTER AREA.—The 

9 term ‘‘Hurricane Maria disaster area’’ means an 

10 area with respect to which a major disaster has been 

11 declared by the President before September 21, 

12 2017, under section 401 of such Act by reason of 

13 Hurricane Maria. 

14 SEC. 2. SPECIAL DISASTER-RELATED RULES FOR USE OF 

15 RETIREMENT FUNDS. 

16 (a) TAX-FAVORED WITHDRAWALS FROM RETIRE17 MENT PLANS.— 

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

19 Revenue Code of 1986 shall not apply to any quali20 fied hurricane distribution. 

21 (2) AGGREGATE DOLLAR LIMITATION.— 

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

23 subsection, the aggregate amount of distribu24 tions received by an individual which may be 

25 treated as qualified hurricane distributions for 


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1 any taxable year shall not exceed the excess (if 

2 any) of— 

3 (i) $100,000, over 

4 (ii) the aggregate amounts treated as 

5 qualified hurricane distributions received 

6 by such individual for all prior taxable 

7 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 hurricane 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 hurricane 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 hurricane 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 hurricane distribu21 tion from an eligible retirement plan other than 

22 an 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 hurricane distribution in an eligible 


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1 rollover 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 hurricane distribu11 tion from an individual retirement plan (as de12 fined by section 7701(a)(37) of such Code), 

13 then, to the extent of the amount of the con14 tribution, the qualified hurricane distribution 

15 shall be treated as a distribution described in 

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

17 been transferred to the eligible retirement plan 

18 in a direct trustee to trustee transfer within 60 

19 days of the distribution. 

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

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

24 the term ‘‘qualified hurricane distribution’’ 

25 means— 


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1 (i) any distribution from an eligible 

2 retirement plan made on or after August 

3 23, 2017, and before January 1, 2019, to 

4 an individual whose principal place of 

5 abode on August 23, 2017, is located in 

6 the Hurricane Harvey disaster area and 

7 who has sustained an economic loss by rea8 son of Hurricane Harvey, 

9 (ii) any distribution (which is not de10 scribed in clause (i)) from an eligible re11 tirement plan made on or after September 

12 4, 2017, and before January 1, 2019, to 

13 an individual whose principal place of 

14 abode on September 4, 2017, is located in 

15 the Hurricane Irma disaster area and who 

16 has sustained an economic loss by reason 

17 of Hurricane Irma, and 

18 (iii) any distribution (which is not de19 scribed in clause (i) or (ii)) from an eligi20 ble retirement plan made on or after Sep21 tember 16, 2017, and before January 1, 

22 2019, to an individual whose principal 

23 place of abode on September 16, 2017, is 

24 located in the Hurricane Maria disaster 


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1 area and who has sustained an economic 

2 loss by reason of Hurricane Maria. 

3 (B) ELIGIBLE RETIREMENT PLAN.—The 

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

5 meaning given such term by section 

6 402(c)(8)(B) of the Internal Revenue Code of 

7 1986. 

8 (5) INCOME INCLUSION SPREAD OVER 3-YEAR

9 PERIOD.— 

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

11 qualified hurricane distribution, unless the tax12 payer elects not to have this paragraph apply 

13 for any taxable year, any amount required to be 

14 included in gross income for such taxable year 

15 shall be so included ratably over the 3-taxable16 year period beginning with such taxable year. 

17 (B) SPECIAL RULE.—For purposes of sub18 paragraph (A), rules similar to the rules of sub19 paragraph (E) of section 408A(d)(3) of the In20 ternal Revenue Code of 1986 shall apply. 

21 (6) SPECIAL RULES.— 

22 (A) EXEMPTION OF DISTRIBUTIONS FROM

23 TRUSTEE TO TRUSTEE TRANSFER AND WITH24 HOLDING RULES.—For purposes of sections 

25 401(a)(31), 402(f), and 3405 of the Internal 


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1 Revenue Code of 1986, qualified hurricane dis2 tributions shall not be treated as eligible roll3 over distributions. 

4 (B) QUALIFIED HURRICANE DISTRIBU5 TIONS TREATED AS MEETING PLAN DISTRIBU6 TION REQUIREMENTS.—For purposes the Inter7 nal Revenue Code of 1986, a qualified hurri8 cane distribution shall be treated as meeting 

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

10 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) 

11 of such Code. 

12 (b) RECONTRIBUTIONS OF WITHDRAWALS FOR

13 HOME PURCHASES.— 

14 (1) RECONTRIBUTIONS.— 

15 (A) IN GENERAL.—Any individual who re16 ceived a qualified distribution may, during the 

17 period beginning on August 23, 2017, and end18 ing on February 28, 2018, make one or more 

19 contributions in an aggregate amount not to ex20 ceed the amount of such qualified distribution 

21 to an eligible retirement plan (as defined in sec22 tion 402(c)(8)(B) of the Internal Revenue Code 

23 of 1986) of which such individual is a bene24 ficiary and to which a rollover contribution of 

25 such distribution could be made under section 


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1 402(c), 403(a)(4), 403(b)(8), or 408(d)(3), of 

2 such Code, as the case may be. 

3 (B) TREATMENT OF REPAYMENTS.—Rules 

4 similar to the rules of subparagraphs (B) and 

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

6 of this subsection. 

7 (2) QUALIFIED DISTRIBUTION.—For purposes 

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

9 means any distribution— 

10 (A) described in section 

11 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only 

12 to the extent such distribution relates to finan13 cial hardship), 403(b)(11)(B), or 72(t)(2)(F), 

14 of the Internal Revenue Code of 1986, 

15 (B) received after February 28, 2017, and 

16 before September 21, 2017, and 

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

18 construct a principal residence in the Hurricane 

19 Harvey disaster area, the Hurricane Irma dis20 aster area, or the Hurricane Maria disaster 

21 area, but which was not so purchased or con22 structed on account of Hurricane Harvey, Hur23 ricane Irma, or Hurricane Maria. 

24 (c) LOANS FROM QUALIFIED PLANS.— 


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1 (1) INCREASE IN LIMIT ON LOANS NOT TREAT2 ED AS DISTRIBUTIONS.—In the case of any loan 

3 from a qualified employer plan (as defined under 

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

5 1986) to a qualified individual made during the pe6 riod beginning on the date of the enactment of this 

7 Act and ending on December 31, 2018— 

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

9 such Code shall be applied by substituting 

10 ‘‘$100,000’’ for ‘‘$50,000’’, and 

11 (B) clause (ii) of such section shall be ap12 plied by substituting ‘‘the present value of the 

13 nonforfeitable accrued benefit of the employee 

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

15 value of the nonforfeitable accrued benefit of 

16 the employee under the plan’’. 

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

18 qualified individual with an outstanding loan on or 

19 after the qualified beginning date from a qualified 

20 employer plan (as defined in section 72(p)(4) of the 

21 Internal Revenue Code of 1986)— 

22 (A) if the due date pursuant to subpara23 graph (B) or (C) of section 72(p)(2) of such 

24 Code for any repayment with respect to such 

25 loan occurs during the period beginning on the 


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1 qualified beginning date and ending on Decem2 ber 31, 2018, such due date shall be delayed for 

3 1 year, 

4 (B) any subsequent repayments with re5 spect to any such loan shall be appropriately 

6 adjusted to reflect the delay in the due date 

7 under paragraph (1) and any interest accruing 

8 during such delay, and 

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

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

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

12 described in subparagraph (A) shall be dis13 regarded. 

14 (3) QUALIFIED INDIVIDUAL.—For purposes of 

15 this subsection— 

16 (A) IN GENERAL.—The term ‘‘qualified in17 dividual’’ means any qualified Hurricane Har18 vey individual, any qualified Hurricane Irma in19 dividual, and any qualified Hurricane Maria in20 dividual. 

21 (B) QUALIFIED HURRICANE HARVEY INDI22 VIDUAL.—The term ‘‘qualified Hurricane Har23 vey individual’’ means an individual whose prin24 cipal place of abode on August 23, 2017, is lo25 cated in the Hurricane Harvey disaster area 


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1 and who has sustained an economic loss by rea2 son of Hurricane Harvey. 

3 (C) QUALIFIED HURRICANE IRMA INDI4 VIDUAL.—The term ‘‘qualified Hurricane Irma 

5 individual’’ means an individual (other than a 

6 qualified Hurricane Harvey individual) whose 

7 principal place of abode on September 4, 2017, 

8 is located in the Hurricane Irma disaster area 

9 and who has sustained an economic loss by rea10 son of Hurricane Irma. 

11 (D) QUALIFIED HURRICANE MARIA INDI12 VIDUAL.—The term ‘‘qualified Hurricane Maria 

13 individual’’ means an individual (other than a 

14 qualified Hurricane Harvey individual or a 

15 qualified Hurricane Irma individual) whose 

16 principal place of abode on September 16, 

17 2017, is located in the Hurricane Maria dis18 aster area and who has sustained an economic 

19 loss by reason of Hurricane Maria. 

20 (4) QUALIFIED BEGINNING DATE.—For pur21 poses of this subsection, the qualified beginning date 

22 is— 

23 (A) in the case of any qualified Hurricane 

24 Harvey individual, August 23, 2017, 


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1 (B) in the case of any qualified Hurricane 

2 Irma individual, September 4, 2017, and 

3 (C) in the case of any qualified Hurricane 

4 Maria individual, September 16, 2017. 

5 (d) PROVISIONS RELATING TO PLAN AMEND6 MENTS.— 

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

8 any amendment to any plan or annuity contract, 

9 such plan or contract shall be treated as being oper10 ated in accordance with the terms of the plan during 

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

12 (2) AMENDMENTS TO WHICH SUBSECTION AP13 PLIES.— 

14 (A) IN GENERAL.—This subsection shall 

15 apply to any amendment to any plan or annuity 

16 contract which is made— 

17 (i) pursuant to any provision of this 

18 section, or pursuant to any regulation 

19 issued by the Secretary or the Secretary of 

20 Labor under any provision of this section, 

21 and 

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

23 first plan year beginning on or after Janu24 ary 1, 2019, or such later date as the Sec25 retary may prescribe. 


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1 In the case of a governmental plan (as defined 

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

3 of 1986), clause (ii) shall be applied by sub4 stituting the date which is 2 years after the 

5 date otherwise applied under clause (ii). 

6 (B) CONDITIONS.—This subsection shall 

7 not apply to any amendment unless— 

8 (i) during the period— 

9 (I) beginning on the date that 

10 this section or the regulation de11 scribed in subparagraph (A)(i) takes 

12 effect (or in the case of a plan or con13 tract amendment not required by this 

14 section or such regulation, the effec15 tive date specified by the plan), and 

16 (II) ending on the date described 

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

18 the date the plan or contract amend19 ment is adopted), 

20 the plan or contract is operated as if such plan 

21 or contract amendment were in effect; and 

22 (ii) such plan or contract amendment 

23 applies retroactively for such period. 


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1 SEC. 3. DISASTER-RELATED EMPLOYMENT RELIEF. 

2 (a) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS

3 AFFECTED BY HURRICANE HARVEY.— 

4 (1) IN GENERAL.—For purposes of section 38 

5 of the Internal Revenue Code of 1986, in the case 

6 of an eligible employer, the Hurricane Harvey em7 ployee retention credit shall be treated as a credit 

8 listed in subsection (b) of such section. For purposes 

9 of this subsection, the Hurricane Harvey employee 

10 retention credit for any taxable year is an amount 

11 equal to 40 percent of the qualified wages with re12 spect to each eligible employee of such employer for 

13 such taxable year. For purposes of the preceding 

14 sentence, the amount of qualified wages which may 

15 be taken into account with respect to any individual 

16 shall not exceed $6,000. 

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

19 (A) ELIGIBLE EMPLOYER.—The term ‘‘eli20 gible employer’’ means any employer— 

21 (i) which conducted an active trade or 

22 business on August 23, 2017, in the Hur23 ricane Harvey disaster zone, and 

24 (ii) with respect to whom the trade or 

25 business described in clause (i) is inoper26 able on any day after August 23, 2017, 


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1 and before January 1, 2018, as a result of 

2 damage sustained by reason of Hurricane 

3 Harvey. 

4 (B) ELIGIBLE EMPLOYEE.—The term ‘‘eli5 gible employee’’ means with respect to an eligi6 ble employer an employee whose principal place 

7 of employment on August 23, 2017, with such 

8 eligible employer was in the Hurricane Harvey 

9 disaster zone. 

10 (C) QUALIFIED WAGES.—The term ‘‘quali11 fied wages’’ means wages (as defined in section 

12 51(c)(1) of the Internal Revenue Code of 1986, 

13 but without regard to section 3306(b)(2)(B) of 

14 such Code) paid or incurred by an eligible em15 ployer with respect to an eligible employee on 

16 any day after August 23, 2017, and before Jan17 uary 1, 2018, which occurs during the period— 

18 (i) beginning on the date on which the 

19 trade or business described in subpara20 graph (A) first became inoperable at the 

21 principal place of employment of the em22 ployee immediately before Hurricane Har23 vey, and 

24 (ii) ending on the date on which such 

25 trade or business has resumed significant 


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1 operations at such principal place of em2 ployment. 

3 Such term shall include wages paid without re4 gard to whether the employee performs no serv5 ices, performs services at a different place of 

6 employment than such principal place of em7 ployment, or performs services at such principal 

8 place of employment before significant oper9 ations have resumed. 

10 (3) CERTAIN RULES TO APPLY.—For purposes 

11 of this subsection, rules similar to the rules of sec12 tions 51(i)(1) and 52, of the Internal Revenue Code 

13 of 1986, shall apply. 

14 (4) EMPLOYEE NOT TAKEN INTO ACCOUNT

15 MORE THAN ONCE.—An employee shall not be treat16 ed as an eligible employee for purposes of this sub17 section for any period with respect to any employer 

18 if such employer is allowed a credit under section 51 

19 of the Internal Revenue Code of 1986 with respect 

20 to such employee for such period. 

21 (b) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS

22 AFFECTED BY HURRICANE IRMA.— 

23 (1) IN GENERAL.—For purposes of section 38 

24 of the Internal Revenue Code of 1986, in the case 

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1 ployee retention credit shall be treated as a credit 

2 listed in subsection (b) of such section. For purposes 

3 of this subsection, the Hurricane Irma employee re4 tention credit for any taxable year is an amount 

5 equal to 40 percent of the qualified wages with re6 spect to each eligible employee of such employer for 

7 such taxable year. For purposes of the preceding 

8 sentence, the amount of qualified wages which may 

9 be taken into account with respect to any individual 

10 shall not exceed $6,000. 

11 (2) DEFINITIONS.—For purposes of this sub12 section— 

13 (A) ELIGIBLE EMPLOYER.—The term ‘‘eli14 gible employer’’ means any employer— 

15 (i) which conducted an active trade or 

16 business on September 4, 2017, in the 

17 Hurricane Irma disaster zone, and 

18 (ii) with respect to whom the trade or 

19 business described in clause (i) is inoper20 able on any day after September 4, 2017, 

21 and before January 1, 2018, as a result of 

22 damage sustained by reason of Hurricane 

23 Irma. 

24 (B) ELIGIBLE EMPLOYEE.—The term ‘‘eli25 gible employee’’ means with respect to an eligiVerDate Sep 11 2014 02:19 Oct 03, 2017 Jkt 069200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S1892.IS S1892

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1 ble employer an employee whose principal place 

2 of employment on September 4, 2017, with 

3 such eligible employer was in the Hurricane 

4 Irma disaster zone. 

5 (C) QUALIFIED WAGES.—The term ‘‘quali6 fied wages’’ means wages (as defined in section 

7 51(c)(1) of the Internal Revenue Code of 1986, 

8 but without regard to section 3306(b)(2)(B) of 

9 such Code) paid or incurred by an eligible em10 ployer with respect to an eligible employee on 

11 any day after September 4, 2017, and before 

12 January 1, 2018, which occurs during the pe13 riod— 

14 (i) beginning on the date on which the 

15 trade or business described in subpara16 graph (A) first became inoperable at the 

17 principal place of employment of the em18 ployee immediately before Hurricane Irma, 

19 and 

20 (ii) ending on the date on which such 

21 trade or business has resumed significant 

22 operations at such principal place of em23 ployment. 

24 Such term shall include wages paid without re25 gard to whether the employee performs no servVerDate Sep 11 2014 02:19 Oct 03, 2017 Jkt 069200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S1892.IS S1892

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1 ices, performs services at a different place of 

2 employment than such principal place of em3 ployment, or performs services at such principal 

4 place of employment before significant oper5 ations have resumed. 

6 (3) CERTAIN RULES TO APPLY.—For purposes 

7 of this subsection, rules similar to the rules of sec8 tions 51(i)(1) and 52, of the Internal Revenue Code 

9 of 1986, shall apply. 

10 (4) EMPLOYEE NOT TAKEN INTO ACCOUNT

11 MORE THAN ONCE.—An employee shall not be treat12 ed as an eligible employee for purposes of this sub13 section for any period with respect to any employer 

14 if such employer is allowed a credit under subsection 

15 (a), or section 51 of the Internal Revenue Code of 

16 1986, with respect to such employee for such period. 

17 (c) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS

18 AFFECTED BY HURRICANE MARIA.— 

19 (1) IN GENERAL.—For purposes of section 38 

20 of the Internal Revenue Code of 1986, in the case 

21 of an eligible employer, the Hurricane Maria em22 ployee retention credit shall be treated as a credit 

23 listed in subsection (b) of such section. For purposes 

24 of this subsection, the Hurricane Maria employee re25 tention credit for any taxable year is an amount 


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1 equal to 40 percent of the qualified wages with re2 spect to each eligible employee of such employer for 

3 such taxable year. For purposes of the preceding 

4 sentence, the amount of qualified wages which may 

5 be taken into account with respect to any individual 

6 shall not exceed $6,000. 

7 (2) DEFINITIONS.—For purposes of this sub8 section— 

9 (A) ELIGIBLE EMPLOYER.—The term ‘‘eli10 gible employer’’ means any employer— 

11 (i) which conducted an active trade or 

12 business on September 16, 2017, in the 

13 Hurricane Maria disaster zone, and 

14 (ii) with respect to whom the trade or 

15 business described in clause (i) is inoper16 able on any day after September 16, 2017, 

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

18 damage sustained by reason of Hurricane 

19 Maria. 

20 (B) ELIGIBLE EMPLOYEE.—The term ‘‘eli21 gible employee’’ means with respect to an eligi22 ble employer an employee whose principal place 

23 of employment on September 16, 2017, with 

24 such eligible employer was in the Hurricane 

25 Maria disaster zone. 


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1 (C) QUALIFIED WAGES.—The term ‘‘quali2 fied wages’’ means wages (as defined in section 

3 51(c)(1) of the Internal Revenue Code of 1986, 

4 but without regard to section 3306(b)(2)(B) of 

5 such Code) paid or incurred by an eligible em6 ployer with respect to an eligible employee on 

7 any day after September 16, 2017, and before 

8 January 1, 2018, which occurs during the pe9 riod— 

10 (i) beginning on the date on which the 

11 trade or business described in subpara12 graph (A) first became inoperable at the 

13 principal place of employment of the em14 ployee immediately before Hurricane 

15 Maria, and 

16 (ii) ending on the date on which such 

17 trade or business has resumed significant 

18 operations at such principal place of em19 ployment. 

20 Such term shall include wages paid without re21 gard to whether the employee performs no serv22 ices, performs services at a different place of 

23 employment than such principal place of em24 ployment, or performs services at such principal 


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1 place of employment before significant oper2 ations have resumed. 

3 (3) CERTAIN RULES TO APPLY.—For purposes 

4 of this subsection, rules similar to the rules of sec5 tions 51(i)(1) and 52, of the Internal Revenue Code 

6 of 1986, shall apply. 

7 (4) EMPLOYEE NOT TAKEN INTO ACCOUNT

8 MORE THAN ONCE.—An employee shall not be treat9 ed as an eligible employee for purposes of this sub10 section for any period with respect to any employer 

11 if such employer is allowed a credit under subsection 

12 (a) or (b), or section 51 of the Internal Revenue 

13 Code of 1986, with respect to such employee for 

14 such period. 

15 SEC. 4. ADDITIONAL DISASTER-RELATED TAX RELIEF PRO16 VISIONS. 

17 (a) TEMPORARY SUSPENSION OF LIMITATIONS ON

18 CHARITABLE CONTRIBUTIONS.— 

19 (1) IN GENERAL.—Except as otherwise pro20 vided in paragraph (2), subsection (b) of section 170 

21 of the Internal Revenue Code of 1986 shall not 

22 apply to qualified contributions and such contribu23 tions shall not be taken into account for purposes of 

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

25 other contributions. 


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1 (2) TREATMENT OF EXCESS CONTRIBUTIONS.— 

2 For purposes of section 170 of the Internal Revenue 

3 Code of 1986— 

4 (A) INDIVIDUALS.—In the case of an indi5 vidual— 

6 (i) LIMITATION.—Any qualified con7 tribution shall be allowed only to the ex8 tent that the aggregate of such contribu9 tions does not exceed the excess of the tax10 payer’s contribution base (as defined in 

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

12 such Code) over the amount of all other 

13 charitable contributions allowed under sec14 tion 170(b)(1) of such Code. 

15 (ii) CARRYOVER.—If the aggregate 

16 amount of qualified contributions made in 

17 the contribution year (within the meaning 

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

19 the limitation of clause (i), such excess 

20 shall be added to the excess described in 

21 the portion of subparagraph (A) of such 

22 section which precedes clause (i) thereof 

23 for purposes of applying such section. 

24 (B) CORPORATIONS.—In the case of a cor25 poration— 


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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 taxable income (as determined 

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

7 such Code) over the amount of all other 

8 charitable contributions allowed under such 

9 paragraph. 

10 (ii) CARRYOVER.—Rules similar to the 

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

12 for purposes of this subparagraph. 

13 (3) EXCEPTION TO OVERALL LIMITATION ON

14 ITEMIZED DEDUCTIONS.—So much of any deduction 

15 allowed under section 170 of the Internal Revenue 

16 Code of 1986 as does not exceed the qualified con17 tributions paid during the taxable year shall not be 

18 treated as an itemized deduction for purposes of sec19 tion 68 of such Code. 

20 (4) QUALIFIED CONTRIBUTIONS.— 

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

22 subsection, the term ‘‘qualified contribution’’ 

23 means any charitable contribution (as defined 

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

25 of 1986) if— 


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1 (i) such contribution— 

2 (I) is paid during the period be3 ginning on August 23, 2017, and end4 ing on December 31, 2017, in cash to 

5 an organization described in section 

6 170(b)(1)(A) of such Code, and 

7 (II) is made for relief efforts in 

8 the Hurricane Harvey disaster area, 

9 the Hurricane Irma disaster area, or 

10 the Hurricane Maria disaster area, 

11 (ii) the taxpayer obtains from such or12 ganization contemporaneous written ac13 knowledgment (within the meaning of sec14 tion 170(f)(8) of such Code) that such con15 tribution was used (or is to be used) for 

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

17 and 

18 (iii) the taxpayer has elected the ap19 plication of this subsection with respect to 

20 such contribution. 

21 (B) EXCEPTION.—Such term shall not in22 clude a contribution by a donor if the contribu23 tion is— 


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1 (i) to an organization described in sec2 tion 509(a)(3) of the Internal Revenue 

3 Code of 1986, or 

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

5 maintenance of an existing, donor advised 

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

7 such Code). 

8 (C) APPLICATION OF ELECTION TO PART9 NERSHIPS AND S CORPORATIONS.—In the case 

10 of a partnership or S corporation, the election 

11 under subparagraph (A)(iii) shall be made sepa12 rately by each partner or shareholder. 

13 (b) SPECIAL RULES FOR QUALIFIED DISASTER-RE14 LATED PERSONAL CASUALTY LOSSES.— 

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

16 disaster loss for any taxable year— 

17 (A) the amount determined under section 

18 165(h)(2)(A)(ii) of the Internal Revenue Code 

19 of 1986 shall be equal to the sum of— 

20 (i) such net disaster loss, and 

21 (ii) so much of the excess referred to 

22 in the matter preceding clause (i) of sec23 tion 165(h)(2)(A) of such Code (reduced 

24 by the amount in clause (i) of this subVerDate Sep 11 2014 02:19 Oct 03, 2017 Jkt 069200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S1892.IS S1892

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1 paragraph) as exceeds 10 percent of the 

2 adjusted gross income of the individual, 

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

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

5 ($100 for taxable years beginning after Decem6 ber 31, 2009)’’, 

7 (C) the standard deduction determined 

8 under section 63(c) of such Code shall be in9 creased by the net disaster loss, and 

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

11 not apply to so much of the standard deduction 

12 as is attributable to the increase under sub13 paragraph (C) of this paragraph. 

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

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

16 excess of qualified disaster-related personal casualty 

17 losses over personal casualty gains (as defined in 

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

19 of 1986). 

20 (3) QUALIFIED DISASTER-RELATED PERSONAL

21 CASUALTY LOSSES.—For purposes of this sub22 section, the term ‘‘qualified disaster-related personal 

23 casualty losses’’ means losses described in section 

24 165(c)(3) of the Internal Revenue Code of 1986— 


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1 (A) which arise in the Hurricane Harvey 

2 disaster area on or after August 23, 2017, and 

3 which are attributable to Hurricane Harvey, 

4 (B) which arise in the Hurricane Irma dis5 aster area on or after September 4, 2017, and 

6 which are attributable to Hurricane Irma, or 

7 (C) which arise in the Hurricane Maria 

8 disaster area on or after September 16, 2017, 

9 and which are attributable to Hurricane Maria. 

10 (c) SPECIAL RULE FOR DETERMINING EARNED IN11 COME.— 

12 (1) IN GENERAL.—In the case of a qualified in13 dividual, if the earned income of the taxpayer for the 

14 taxable year which includes the applicable date is 

15 less than the earned income of the taxpayer for the 

16 preceding taxable year, the credits allowed under 

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

18 of 1986 may, at the election of the taxpayer, be de19 termined by substituting— 

20 (A) such earned income for the preceding 

21 taxable year, for 

22 (B) such earned income for the taxable 

23 year which includes the applicable date. 

24 In the case of a resident of Puerto Rico determining 

25 the credit allowed under section 24(d)(1)(B)(ii) of 


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•S 1892 IS

1 such Code, the preceding sentence shall be applied 

2 by substituting ‘‘social security taxes (as defined in 

3 section 24(d)(2)(A) of the Internal Revenue Code of 

4 1986)’’ for ‘‘earned income’’ each place it appears. 

5 (2) QUALIFIED INDIVIDUAL.—For purposes of 

6 this subsection— 

7 (A) IN GENERAL.—The term ‘‘qualified in8 dividual’’ means any qualified Hurricane Har9 vey individual, any qualified Hurricane Irma in10 dividual, and any qualified Hurricane Maria in11 dividual. 

12 (B) QUALIFIED HURRICANE HARVEY INDI13 VIDUAL.—The term ‘‘qualified Hurricane Har14 vey individual’’ means any individual whose 

15 principal place of abode on August 23, 2017, 

16 was located— 

17 (i) in the Hurricane Harvey disaster 

18 zone, or 

19 (ii) in the Hurricane Harvey disaster 

20 area (but outside the Hurricane Harvey 

21 disaster zone) and such individual was dis22 placed from such principal place of abode 

23 by reason of Hurricane Harvey. 

24 (C) QUALIFIED HURRICANE IRMA INDI25 VIDUAL.—The term ‘‘qualified Hurricane Irma 


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1 individual’’ means any individual (other than a 

2 qualified Hurricane Harvey individual) whose 

3 principal place of abode on September 4, 2017, 

4 was located— 

5 (i) in the Hurricane Irma disaster 

6 zone, or 

7 (ii) in the Hurricane Irma disaster 

8 area (but outside the Hurricane Irma dis9 aster zone) and such individual was dis10 placed from such principal place of abode 

11 by reason of Hurricane Irma. 

12 (D) QUALIFIED HURRICANE MARIA INDI13 VIDUAL.—The term ‘‘qualified Hurricane Maria 

14 individual’’ means any individual (other than a 

15 qualified Hurricane Harvey individual or a 

16 qualified Hurricane Irma individual) whose 

17 principal place of abode on September 16, 

18 2017, was located— 

19 (i) in the Hurricane Maria disaster 

20 zone, or 

21 (ii) in the Hurricane Maria disaster 

22 area (but outside the Hurricane Maria dis23 aster zone) and such individual was dis24 placed from such principal place of abode 

25 by reason of Hurricane Maria. 


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1 (3) APPLICABLE DATE.—For purposes of this 

2 subsection, the term ‘‘applicable date’’ means— 

3 (A) in the case of a qualified Hurricane 

4 Harvey individual, August 23, 2017, 

5 (B) in the case of a qualified Hurricane 

6 Irma individual, September 4, 2017, and 

7 (C) in the case of a qualified Hurricane 

8 Maria individual, September 16, 2017. 

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

10 subsection, the term ‘‘earned income’’ has the mean11 ing given such term under section 32(c) of the Inter12 nal Revenue Code of 1986. 

13 (5) SPECIAL RULES.— 

14 (A) APPLICATION TO JOINT RETURNS.— 

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

16 a joint return for a taxable year which includes 

17 the applicable date— 

18 (i) such paragraph shall apply if ei19 ther spouse is a qualified individual, and 

20 (ii) the earned income of the taxpayer 

21 for the preceding taxable year shall be the 

22 sum of the earned income of each spouse 

23 for such preceding taxable year. 

24 (B) UNIFORM APPLICATION OF ELEC25 TION.—Any election made under paragraph (1) 


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

2 and section 32, of the Internal Revenue Code of 

3 1986. 

4 (C) ERRORS TREATED AS MATHEMATICAL

5 ERROR.—For purposes of section 6213 of the 

6 Internal Revenue Code of 1986, an incorrect 

7 use on a return of earned income pursuant to 

8 paragraph (1) shall be treated as a mathe9 matical or clerical error. 

10 (D) NO EFFECT ON DETERMINATION OF

11 GROSS INCOME, ETC.—Except as otherwise pro12 vided in this subsection, the Internal Revenue 

13 Code of 1986 shall be applied without regard to 

14 any substitution under paragraph (1). 

15 (d) APPLICATION OF DISASTER-RELATED TAX RE16 LIEF TO POSSESSIONS OF THE UNITED STATES.— 

17 (1) PAYMENTS TO UNITED STATES VIRGIN IS18 LANDS AND PUERTO RICO.— 

19 (A) UNITED STATES VIRGIN ISLANDS.— 

20 The Secretary of the Treasury shall pay to the 

21 United States Virgin Islands amounts equal to 

22 the loss in revenues to the United States Virgin 

23 Islands by reason of the provisions of this Act. 

24 Such amounts shall be determined by the Sec25 retary of the Treasury based on information 


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•S 1892 IS

1 provided by the government of the United 

2 States Virgin Islands. 

3 (B) PUERTO RICO.—The Secretary of the 

4 Treasury shall pay to Puerto Rico amounts es5 timated by the Secretary of the Treasury as 

6 being equal to the aggregate benefits that would 

7 have been provided to residents of Puerto Rico 

8 by reason of the provisions of this Act if a mir9 ror code tax system had been in effect in Puer10 to Rico. The preceding sentence shall not apply 

11 with respect to Puerto Rico unless Puerto Rico 

12 has a plan, which has been approved by the 

13 Secretary of the Treasury, under which Puerto 

14 Rico will promptly distribute such payments to 

15 its residents. 

16 (2) DEFINITION AND SPECIAL RULES.— 

17 (A) MIRROR CODE TAX SYSTEM.—For pur18 poses of this subsection, the term ‘‘mirror code 

19 tax system’’ means, with respect to any posses20 sion of the United States, the income tax sys21 tem of such possession if the income tax liabil22 ity of the residents of such possession under 

23 such system is determined by reference to the 

24 income tax laws of the United States as if such 

25 possession were the United States. 


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1 (B) TREATMENT OF PAYMENTS.—For pur2 poses of section 1324 of title 31, United States 

3 Code, the payments under this subsection shall 

4 be treated in the same manner as a refund due 

5 from a credit provision referred to in subsection 

6 (b)(2) of such section. 

7 (C) COORDINATION WITH UNITED STATES

8 INCOME TAXES.—In the case of any person 

9 with respect to whom a tax benefit is taken into 

10 account with respect to the taxes imposed by 

11 any possession of the United States by reason 

12 of this Act, the Internal Revenue Code of 1986 

13 shall be applied with respect to such person 

14 without regard to the provisions of this Act 

15 which provide such benefit. 

16 SEC. 5. BUDGETARY EFFECTS. 

17 (a) EMERGENCY DESIGNATION.—This Act is des18 ignated as an emergency requirement pursuant to section 

19 4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 

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

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

22 Act is designated as an emergency requirement pursuant 

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


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•S 1892 IS

1 the concurrent resolution on the budget for fiscal year 

2 2010. 

Æ 


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