I 

114TH CONGRESS 

2D SESSION H. R. 6137 

To provide emergency tax relief for persons affected by severe storms and 

flooding occurring in Louisiana. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 22, 2016 

Mr. BOUSTANY introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To provide emergency tax relief for persons affected by 

severe storms and flooding occurring in Louisiana. 

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, ETC. 

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

5 ‘‘Louisiana Flood and Storm Devastation Tax Relief Act 

6 of 2016’’. 

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

8 this Act is as follows: 

Sec. 1. Short title, etc. 

Sec. 2. Louisiana storm and flood disaster area. 

TITLE I—SPECIAL RULES FOR USE OF RETIREMENT FUNDS FOR 

RELIEF RELATING TO 2016 LOUISIANA STORMS AND FLOODING 


emcdonald on DSK9F6TC42PROD with BILLS
2 

•HR 6137 IH

Sec. 101. Tax-favored withdrawals from retirement plans for relief relating to 

2016 Louisiana storms and flooding. 

Sec. 102. Recontributions of withdrawals for home purchases canceled due to 

the 2016 Louisiana storms and flooding. 

Sec. 103. Loans from qualified plans for relief relating to 2016 Louisiana 

storms and flooding. 

Sec. 104. Provisions relating to plan amendments. 

TITLE II—EMPLOYMENT RELIEF 

Sec. 201. Work opportunity tax credit for Louisiana storm and flood employees. 

Sec. 202. Employee retention credit for employers affected by 2016 Louisiana 

storms and flooding. 

TITLE III—CHARITABLE GIVING INCENTIVES 

Sec. 301. Temporary suspension of limitations on charitable contributions. 

Sec. 302. Additional exemption for housing Louisiana storm and flood displaced 

individuals. 

Sec. 303. Increase in standard mileage rate for charitable use of vehicles. 

Sec. 304. Mileage reimbursements to charitable volunteers excluded from gross 

income. 

Sec. 305. Charitable deduction for contributions of book inventories to public 

schools. 

TITLE IV—ADDITIONAL TAX RELIEF PROVISIONS 

Sec. 401. Exclusions of certain cancellations of indebtedness by reason of 2016 

Louisiana storms and flooding. 

Sec. 402. Suspension of certain limitations on personal casualty losses. 

Sec. 403. Required exercise of authority under section 7508A for tax relief relating to 2016 Louisiana storms and flooding. 

Sec. 404. Special rules for mortgage revenue bonds relating to 2016 Louisiana 

storms and flooding. 

Sec. 405. Extension of replacement period for nonrecognition of gain for property located in Louisiana storm and flood disaster area. 

Sec. 406. Special rule for determining earned income. 

Sec. 407. Secretarial authority to make adjustments regarding taxpayer and dependency status. 

Sec. 408. Low-income housing credit. 

Sec. 409. Application of new markets tax credit to investments in community 

development entities serving Louisiana storm and flood disaster 

area. 

Sec. 410. Tax-exempt bond financing. 

Sec. 411. Expensing for certain demolition and clean-up costs. 

Sec. 412. Extension of expensing for environmental remediation costs. 

Sec. 413. Treatment of net operating losses attributable to Louisiana storm 

and flood disaster area losses. 

Sec. 414. Increased expensing for qualified timber property. 

Sec. 415. Disaster loss carryback. 

Sec. 416. Housing relief for individuals affected by Hurricane Katrina. 

1 SEC. 2. LOUISIANA STORM AND FLOOD DISASTER AREA. 

2 For purposes of this Act— 


emcdonald on DSK9F6TC42PROD with BILLS
3 

•HR 6137 IH

1 (1) LOUISIANA STORM AND FLOOD DISASTER

2 AREA.—The term ‘‘Louisiana storm and flood dis3 aster area’’ means an area with respect to which a 

4 major disaster has been declared by the President 

5 under section 401 of the Robert T. Stafford Disaster 

6 Relief and Emergency Assistance Act— 

7 (A) before September 3, 2016, by reason 

8 of severe storms and flooding occurring in Lou9 isiana during August of 2016, and 

10 (B) before April 21, 2016, by reason of se11 vere storms and flooding occurring in Louisiana 

12 during March and April of 2016. 

13 (2) CORE DISASTER AREA.—The term ‘‘core 

14 disaster area’’ means that portion of the Louisiana 

15 storm and flood disaster area determined by the 

16 President to warrant individual or individual and 

17 public assistance from the Federal Government 

18 under such Act. 

19 (3) APPLICABLE DISASTER DATE.—The term 

20 ‘‘applicable disaster date’’ means, with respect to 

21 any Louisiana storm and flood disaster area, the 

22 date of the first day of the period during which the 

23 severe storms and flooding giving rise to the Presi24 dential declaration described in paragraph (1) oc25 curred. 


emcdonald on DSK9F6TC42PROD with BILLS
4 

•HR 6137 IH

1 TITLE I—SPECIAL RULES FOR 

2 USE OF RETIREMENT FUNDS 

3 FOR RELIEF RELATING TO 

4 2016 LOUISIANA STORMS AND 

5 FLOODING 

6 SEC. 101. TAX-FAVORED WITHDRAWALS FROM RETIRE7 MENT PLANS FOR RELIEF RELATING TO 2016 

8 LOUISIANA STORMS AND FLOODING. 

9 (a) IN GENERAL.—Section 72(t) of the Internal Rev10 enue Code of 1986 shall not apply to any qualified Lou11 isiana storm and flood distribution. 

12 (b) AGGREGATE DOLLAR LIMITATION.— 

13 (1) IN GENERAL.—For purposes of this section, 

14 the aggregate amount of distributions received by an 

15 individual which may be treated as qualified Lou16 isiana storm and flood distributions for any taxable 

17 year shall not exceed the excess (if any) of— 

18 (A) $100,000, over 

19 (B) the aggregate amounts treated as 

20 qualified Louisiana storm and flood distribu21 tions received by such individual for all prior 

22 taxable years. 

23 (2) TREATMENT OF PLAN DISTRIBUTIONS.—If 

24 a distribution to an individual would (without regard 

25 to paragraph (1)) be a qualified Louisiana storm 


emcdonald on DSK9F6TC42PROD with BILLS
5 

•HR 6137 IH

1 and flood distribution, a plan shall not be treated as 

2 violating any requirement of the Internal Revenue 

3 Code of 1986 merely because the plan treats such 

4 distribution as a qualified Louisiana storm and flood 

5 distribution, unless the aggregate amount of such 

6 distributions from all plans maintained by the em7 ployer (and any member of any controlled group 

8 which includes the employer) to such individual ex9 ceeds $100,000. 

10 (3) CONTROLLED GROUP.—For purposes of 

11 paragraph (2), the term ‘‘controlled group’’ means 

12 any group treated as a single employer under sub13 section (b), (c), (m), or (o) of section 414 of such 

14 Code. 

15 (c) AMOUNT DISTRIBUTED MAY BE REPAID.— 

16 (1) IN GENERAL.—Any individual who receives 

17 a qualified Louisiana storm and flood distribution 

18 may, at any time during the 3-year period beginning 

19 on the day after the date on which such distribution 

20 was received, make one or more contributions in an 

21 aggregate amount not to exceed the amount of such 

22 distribution to an eligible retirement plan of which 

23 such individual is a beneficiary and to which a roll24 over contribution of such distribution could be made 

25 under section 402(c), 403(a)(4), 403(b)(8), 


emcdonald on DSK9F6TC42PROD with BILLS
6 

•HR 6137 IH

1 408(d)(3), or 457(e)(16) of such Code, as the case 

2 may be. 

3 (2) TREATMENT OF REPAYMENTS OF DISTRIBU4 TIONS FROM ELIGIBLE RETIREMENT PLANS OTHER

5 THAN IRAS.—For purposes of such Code, if a con6 tribution is made pursuant to paragraph (1) with re7 spect to a qualified Louisiana storm and flood dis8 tribution from an eligible retirement plan other than 

9 an individual retirement plan, then the taxpayer 

10 shall, to the extent of the amount of the contribu11 tion, be treated as having received the qualified Lou12 isiana storm and flood distribution in an eligible roll13 over distribution (as defined in section 402(c)(4) of 

14 such Code) and as having transferred the amount to 

15 the eligible retirement plan in a direct trustee to 

16 trustee transfer within 60 days of the distribution. 

17 (3) TREATMENT OF REPAYMENTS FOR DIS18 TRIBUTIONS FROM IRAS.—For purposes of such 

19 Code, if a contribution is made pursuant to para20 graph (1) with respect to a qualified Louisiana 

21 storm and flood distribution from an individual re22 tirement plan (as defined by section 7701(a)(37) of 

23 such Code), then, to the extent of the amount of the 

24 contribution, the qualified Louisiana storm and flood 

25 distribution shall be treated as a distribution deVerDate Sep 11 2014 00:39 Sep 28, 2016 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H6137.IH H6137

emcdonald on DSK9F6TC42PROD with BILLS
7 

•HR 6137 IH

1 scribed in section 408(d)(3) of such Code and as 

2 having been transferred to the eligible retirement 

3 plan in a direct trustee to trustee transfer within 60 

4 days of the distribution. 

5 (d) DEFINITIONS.—For purposes of this section— 

6 (1) QUALIFIED LOUISIANA STORM AND FLOOD7 ING DISTRIBUTION.—Except as provided in sub8 section (b), the term ‘‘qualified Louisiana storm and 

9 flooding distribution’’ means any distribution from 

10 an eligible retirement plan made on or after the ap11 plicable disaster date, to an individual whose prin12 cipal residence on or after such date, is located in 

13 the Louisiana storm and flood disaster area and who 

14 has sustained an economic loss by reason of the se15 vere storms and flooding giving rise to the Presi16 dential declaration described in section 2(1). 

17 (2) ELIGIBLE RETIREMENT PLAN.—The term 

18 ‘‘eligible retirement plan’’ shall have the meaning 

19 given such term by section 402(c)(8)(B) of such 

20 Code. 

21 (e) INCOME INCLUSION SPREAD OVER 3-YEAR PE22 RIOD FOR QUALIFIED LOUISIANA STORM AND FLOODING

23 DISTRIBUTIONS.— 

24 (1) IN GENERAL.—In the case of any qualified 

25 Louisiana storm and flood distribution, unless the 


emcdonald on DSK9F6TC42PROD with BILLS
8 

•HR 6137 IH

1 taxpayer elects not to have this subsection apply for 

2 any taxable year, any amount required to be in3 cluded in gross income for such taxable year shall be 

4 so included ratably over the 3-taxable-year period 

5 beginning with such taxable year. 

6 (2) SPECIAL RULE.—For purposes of para7 graph (1), rules similar to the rules of subparagraph 

8 (E) of section 408A(d)(3) of such Code shall apply. 

9 (f) SPECIAL RULES.— 

10 (1) EXEMPTION OF DISTRIBUTIONS FROM

11 TRUSTEE TO TRUSTEE TRANSFER AND WITH12 HOLDING RULES.—For purposes of sections 

13 401(a)(31), 402(f), and 3405 of such Code, qualified 

14 Louisiana storm and flood distributions shall not be 

15 treated as eligible rollover distributions. 

16 (2) QUALIFIED LOUISIANA STORM AND FLOOD17 ING DISTRIBUTIONS TREATED AS MEETING PLAN

18 DISTRIBUTION REQUIREMENTS.—For purposes of 

19 such Code, a qualified Louisiana storm and flood 

20 distribution shall be treated as meeting the require21 ments of sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 

22 403(b)(11), and 457(d)(1)(A) of such Code. 


emcdonald on DSK9F6TC42PROD with BILLS
9 

•HR 6137 IH

1 SEC. 102. RECONTRIBUTIONS OF WITHDRAWALS FOR HOME 

2 PURCHASES CANCELED DUE TO THE 2016 

3 LOUISIANA STORMS AND FLOODING. 

4 (a) RECONTRIBUTIONS.— 

5 (1) IN GENERAL.—Any individual who received 

6 a qualified distribution may, during the period be7 ginning on the applicable disaster date, and ending 

8 on February 28, 2017, make one or more contribu9 tions in an aggregate amount not to exceed the 

10 amount of such qualified distribution to an eligible 

11 retirement plan (as defined in section 402(c)(8)(B) 

12 of the Internal Revenue Code of 1986) of which such 

13 individual is a beneficiary and to which a rollover 

14 contribution of such distribution could be made 

15 under section 402(c), 403(a)(4), 403(b)(8), or 

16 408(d)(3) of such Code, as the case may be. 

17 (2) TREATMENT OF REPAYMENTS.—Rules simi18 lar to the rules of paragraphs (2) and (3) of section 

19 101(c) of this Act shall apply for purposes of this 

20 section. 

21 (b) QUALIFIED DISTRIBUTION DEFINED.—For pur22 poses of this section, the term ‘‘qualified distribution’’ 

23 means any distribution— 

24 (1) described in section 401(k)(2)(B)(i)(IV), 

25 403(b)(7)(A)(ii) (but only to the extent such disVerDate Sep 11 2014 00:39 Sep 28, 2016 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H6137.IH H6137

emcdonald on DSK9F6TC42PROD with BILLS
10 

•HR 6137 IH

1 tribution relates to financial hardship), 

2 403(b)(11)(B), or 72(t)(2)(F) of such Code, 

3 (2) received after February 10, 2016, and be4 fore August 11, 2016, and 

5 (3) which was to be used to purchase or con6 struct a principal residence in the Louisiana storm 

7 and flood disaster area, but which was not so pur8 chased or constructed on account of the severe 

9 storms and flooding giving rise to the Presidential 

10 declaration described in section 2(1). 

11 SEC. 103. LOANS FROM QUALIFIED PLANS FOR RELIEF RE12 LATING TO 2016 LOUISIANA STORMS AND 

13 FLOODING. 

14 (a) INCREASE IN LIMIT ON LOANS NOT TREATED AS

15 DISTRIBUTIONS.—In the case of any loan from a qualified 

16 employer plan (as defined under section 72(p)(4) of the 

17 Internal Revenue Code of 1986) to a qualified individual 

18 made after the date of enactment of this Act and before 

19 January 1, 2018— 

20 (1) clause (i) of section 72(p)(2)(A) of such 

21 Code shall be applied by substituting ‘‘$100,000’’ 

22 for ‘‘$50,000’’, and 

23 (2) clause (ii) of such section shall be applied 

24 by substituting ‘‘the present value of the nonforfeit25 able accrued benefit of the employee under the plan’’ 


emcdonald on DSK9F6TC42PROD with BILLS
11 

•HR 6137 IH

1 for ‘‘one-half of the present value of the nonforfeit2 able accrued benefit of the employee under the 

3 plan’’. 

4 (b) DELAY OF REPAYMENT.—In the case of a quali5 fied individual with an outstanding loan on or after the 

6 date that is 5 days before the applicable disaster date, 

7 from a qualified employer plan (as defined in section 

8 72(p)(4) of such Code)— 

9 (1) if the due date pursuant to subparagraph 

10 (B) or (C) of section 72(p)(2) of such Code for any 

11 repayment with respect to such loan occurs during 

12 the period beginning on the date that is 5 days be13 fore the applicable disaster date, and ending on De14 cember 31, 2017, such due date shall be delayed for 

15 1 year, 

16 (2) any subsequent repayments with respect to 

17 any such loan shall be appropriately adjusted to re18 flect the delay in the due date under paragraph (1) 

19 and any interest accruing during such delay, and 

20 (3) in determining the 5-year period and the 

21 term of a loan under subparagraph (B) or (C) of 

22 section 72(p)(2) of such Code, the period described 

23 in paragraph (1) shall be disregarded. 

24 (c) QUALIFIED INDIVIDUAL.—For purposes of this 

25 section, the term ‘‘qualified individual’’ means an indiVerDate Sep 11 2014 00:39 Sep 28, 2016 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H6137.IH H6137

emcdonald on DSK9F6TC42PROD with BILLS
12 

•HR 6137 IH

1 vidual whose principal place of abode on the date that is 

2 5 days before the applicable disaster date, is located in 

3 the Louisiana storm and flood disaster area and who has 

4 sustained an economic loss by reason of the severe storms 

5 and flooding giving rise to the Presidential declaration de6 scribed in section 2(1). 

7 SEC. 104. PROVISIONS RELATING TO PLAN AMENDMENTS. 

8 (a) IN GENERAL.—If this section applies to any 

9 amendment to any plan or annuity contract, such plan or 

10 contract shall be treated as being operated in accordance 

11 with the terms of the plan during the period described in 

12 subsection (b)(2)(A). 

13 (b) AMENDMENTS TO WHICH SECTION APPLIES.— 

14 (1) IN GENERAL.—This section shall apply to 

15 any amendment to any plan or annuity contract 

16 which is made— 

17 (A) pursuant to any amendment made by 

18 this title, or pursuant to any regulation issued 

19 by the Secretary of the Treasury or the Sec20 retary of Labor under this title, and 

21 (B) on or before the last day of the first 

22 plan year beginning on or after January 1, 

23 2018, or such later date as the Secretary of the 

24 Treasury may prescribe. 


emcdonald on DSK9F6TC42PROD with BILLS
13 

•HR 6137 IH

1 In the case of a governmental plan (as defined in 

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

3 1986), subparagraph (B) shall be applied by sub4 stituting the date which is 2 years after the date 

5 otherwise applied under subparagraph (B). 

6 (2) CONDITIONS.—This section shall not apply 

7 to any amendment unless— 

8 (A) during the period— 

9 (i) beginning on the date the legisla10 tive or regulatory amendment described in 

11 paragraph (1)(A) takes effect (or in the 

12 case of a plan or contract amendment not 

13 required by such legislative or regulatory 

14 amendment, the effective date specified by 

15 the plan), and 

16 (ii) ending on the date described in 

17 paragraph (1)(B) (or, if earlier, the date 

18 the plan or contract amendment is adopt19 ed), 

20 the plan or contract is operated as if such plan 

21 or contract amendment were in effect, and 

22 (B) such plan or contract amendment ap23 plies retroactively for such period. 


emcdonald on DSK9F6TC42PROD with BILLS
14 

•HR 6137 IH

1 TITLE II—EMPLOYMENT RELIEF 

2 SEC. 201. WORK OPPORTUNITY TAX CREDIT FOR LOU3 ISIANA STORM AND FLOOD EMPLOYEES. 

4 (a) IN GENERAL.—For purposes of section 51 of the 

5 Internal Revenue Code of 1986, a Louisiana storm and 

6 flood employee shall be treated as a member of a targeted 

7 group. 

8 (b) LOUISIANA STORM AND FLOOD EMPLOYEE.— 

9 For purposes of this section, the term ‘‘Louisiana storm 

10 and flood employee’’ means— 

11 (1) any individual who on the applicable dis12 aster date, had a principal place of abode in the core 

13 disaster area and who is hired during the 2-year pe14 riod beginning on such date for a position the prin15 cipal place of employment of which is located in the 

16 core disaster area, and 

17 (2) any individual who on such date had a prin18 cipal place of abode in the core disaster area, who 

19 is displaced from such abode by reason of the severe 

20 storms and flooding giving rise to the Presidential 

21 declaration described in section 2(1), and who is 

22 hired during the period beginning on such date and 

23 ending on December 31, 2016. 

24 (c) REASONABLE IDENTIFICATION ACCEPTABLE.—In 

25 lieu of the certification requirement under section 


emcdonald on DSK9F6TC42PROD with BILLS
15 

•HR 6137 IH

1 51(d)(12)(A) of such Code, an individual may provide to 

2 the employer reasonable evidence that the individual is a 

3 Louisiana storm and flood employee, and subparagraph 

4 (B) of such section shall be applied as if such evidence 

5 were a certification described in such subparagraph. 

6 (d) SPECIAL RULES FOR DETERMINING CREDIT.— 

7 For purposes of applying subpart F of part IV of sub8 chapter A of chapter 1 of such Code to wages paid or in9 curred to any Louisiana storm and flood employee— 

10 (1) section 51(c)(4) of such Code shall not 

11 apply, and 

12 (2) section 51(i)(2) of such Code shall not 

13 apply with respect to the first hire of such employee 

14 as a Louisiana storm and flood employee, unless 

15 such employee was an employee of the employer on 

16 the applicable disaster date. 

17 SEC. 202. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS 

18 AFFECTED BY 2016 LOUISIANA STORMS AND 

19 FLOODING. 

20 (a) IN GENERAL.—In the case of an eligible em21 ployer, there shall be allowed as a credit against the tax 

22 imposed by chapter 1 of the Internal Revenue Code of 

23 1986 for the taxable year an amount equal to 40 percent 

24 of the qualified wages with respect to each eligible em25 ployee of such employer for such taxable year. For purVerDate Sep 11 2014 00:39 Sep 28, 2016 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H6137.IH H6137

emcdonald on DSK9F6TC42PROD with BILLS
16 

•HR 6137 IH

1 poses of the preceding sentence, the amount of qualified 

2 wages which may be taken into account with respect to 

3 any individual shall not exceed $6,000. 

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

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

6 employer’’ means any employer— 

7 (A) which conducted an active trade or 

8 business on the applicable disaster date, in a 

9 core disaster area, and 

10 (B) with respect to whom the trade or 

11 business described in subparagraph (A) is inop12 erable on or after the applicable disaster date, 

13 and before January 1, 2017, as a result of 

14 damage sustained by reason of the severe 

15 storms and flooding giving rise to the Presi16 dential declaration described in section 2(1). 

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

18 employee’’ means with respect to an eligible em19 ployer an employee whose principal place of employ20 ment on the applicable disaster date, with such eligi21 ble employer was in a core disaster area. 

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

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

24 of such Code, but without regard to section 

25 3306(b)(2)(B) of such Code) paid or incurred by an 


emcdonald on DSK9F6TC42PROD with BILLS
17 

•HR 6137 IH

1 eligible employer with respect to an eligible employee 

2 on or after the applicable disaster date, and before 

3 January 1, 2017, which occurs during the period— 

4 (A) beginning on the date on which the 

5 trade or business described in paragraph (1) 

6 first became inoperable at the principal place of 

7 employment of the employee immediately before 

8 the severe storms and flooding giving rise to the 

9 Presidential declaration described in section 

10 2(1), and 

11 (B) ending on the date on which such 

12 trade or business has resumed significant oper13 ations at such principal place of employment. 

14 Such term shall include wages paid without regard 

15 to whether the employee performs no services, per16 forms services at a different place of employment 

17 than such principal place of employment, or per18 forms services at such principal place of employment 

19 before significant operations have resumed. 

20 (c) CREDIT NOT ALLOWED FOR LARGE BUSI21 NESSES.—The term ‘‘eligible employer’’ shall not include 

22 any trade or business for any taxable year if such trade 

23 or business employed an average of more than 200 em24 ployees on business days during the taxable year. 


emcdonald on DSK9F6TC42PROD with BILLS
18 

•HR 6137 IH

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

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

3 52, and 280C(a) of such Code shall apply. 

4 (e) 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 such Code with respect to 

9 such employee for such period. 

10 (f) CREDIT TO BE PART OF GENERAL BUSINESS

11 CREDIT.—The credit allowed under this section shall be 

12 added to the current year business credit under section 

13 38(b) of such Code and shall be treated as a credit allowed 

14 under subpart D of part IV of subchapter A of chapter 

15 1 of such Code. 

16 TITLE III—CHARITABLE GIVING 

17 INCENTIVES 

18 SEC. 301. TEMPORARY SUSPENSION OF LIMITATIONS ON 

19 CHARITABLE CONTRIBUTIONS. 

20 (a) IN GENERAL.—Except as otherwise provided in 

21 subsection (b), section 170(b) of the Internal Revenue 

22 Code of 1986 shall not apply to qualified contributions and 

23 such contributions shall not be taken into account for pur24 poses of applying subsections (b) and (d) of section 170 

25 of such Code to other contributions. 


emcdonald on DSK9F6TC42PROD with BILLS
19 

•HR 6137 IH

1 (b) TREATMENT OF EXCESS CONTRIBUTIONS.—For 

2 purposes of section 170 of such Code— 

3 (1) INDIVIDUALS.—In the case of an indi4 vidual— 

5 (A) LIMITATION.—Any qualified contribu6 tion shall be allowed only to the extent that the 

7 aggregate of such contributions does not exceed 

8 the excess of the taxpayer’s contribution base 

9 (as defined in subparagraph (F) of section 

10 170(b)(1) of such Code) over the amount of all 

11 other charitable contributions allowed under 

12 such section 170(b)(1). 

13 (B) CARRYOVER.—If the aggregate 

14 amount of qualified contributions made in the 

15 contribution year (within the meaning of section 

16 170(d)(1) of such Code) exceeds the limitation 

17 of subparagraph (A), such excess shall be added 

18 to the excess described in the portion of sub19 paragraph (A) of such section which precedes 

20 clause (i) thereof for purposes of applying such 

21 section. 

22 (2) CORPORATIONS.—In the case of a corpora23 tion— 

24 (A) LIMITATION.—Any qualified contribu25 tion shall be allowed only to the extent that the 


emcdonald on DSK9F6TC42PROD with BILLS
20 

•HR 6137 IH

1 aggregate of such contributions does not exceed 

2 the excess of the taxpayer’s taxable income (as 

3 determined under paragraph (2) of section 

4 170(b) of such Code) over the amount of all 

5 other charitable contributions allowed under 

6 such paragraph. 

7 (B) CARRYOVER.—Rules similar to the 

8 rules of paragraph (1)(B) shall apply for pur9 poses of this paragraph. 

10 (c) EXCEPTION TO OVERALL LIMITATION ON

11 ITEMIZED DEDUCTIONS.—So much of any deduction al12 lowed under section 170 of such Code as does not exceed 

13 the qualified contributions paid during the taxable year 

14 shall not be treated as an itemized deduction for purposes 

15 of section 68 of such Code. 

16 (d) QUALIFIED CONTRIBUTIONS.— 

17 (1) IN GENERAL.—For purposes of this section, 

18 the term ‘‘qualified contribution’’ means any chari19 table contribution (as defined in section 170(c) of 

20 such Code)— 

21 (A) paid during the period beginning on 

22 the applicable disaster date, and ending on De23 cember 31, 2016, in cash to an organization de24 scribed in section 170(b)(1)(A) of such Code 


emcdonald on DSK9F6TC42PROD with BILLS
21 

•HR 6137 IH

1 (other than an organization described in section 

2 509(a)(3) of such Code), 

3 (B) in the case of a contribution paid by 

4 a corporation, such contribution is for relief ef5 forts related to the severe storms and flooding 

6 giving rise to the Presidential declaration de7 scribed in section 2(1), and 

8 (C) with respect to which the taxpayer has 

9 elected the application of this section. 

10 (2) EXCEPTION.—Such term shall not include a 

11 contribution if the contribution is for establishment 

12 of a new, or maintenance in an existing, segregated 

13 fund or account with respect to which the donor (or 

14 any person appointed or designated by such donor) 

15 has, or reasonably expects to have, advisory privi16 leges with respect to distributions or investments by 

17 reason of the donor’s status as a donor. 

18 (3) APPLICATION OF ELECTION TO PARTNER19 SHIPS AND S CORPORATIONS.—In the case of a part20 nership or S corporation, the election under para21 graph (1)(C) shall be made separately by each part22 ner or shareholder. 


emcdonald on DSK9F6TC42PROD with BILLS
22 

•HR 6137 IH

1 SEC. 302. ADDITIONAL EXEMPTION FOR HOUSING LOU2 ISIANA STORM AND FLOOD DISPLACED INDI3 VIDUALS. 

4 (a) IN GENERAL.—In the case of taxable years of a 

5 natural person beginning in 2016 or 2017, for purposes 

6 of the Internal Revenue Code of 1986, taxable income 

7 shall be reduced by $600 for each Louisiana storm and 

8 flood displaced individual of the taxpayer for the taxable 

9 year. 

10 (b) LIMITATIONS.— 

11 (1) DOLLAR LIMITATION.—The reduction under 

12 subsection (a) shall not exceed $2,500, reduced by 

13 the amount of the reduction under this section for 

14 all prior taxable years. 

15 (2) INDIVIDUALS TAKEN INTO ACCOUNT ONLY

16 ONCE.—An individual shall not be taken into ac17 count under subsection (a) if such individual was 

18 taken into account under such subsection by the tax19 payer for any prior taxable year. 

20 (3) IDENTIFYING INFORMATION REQUIRED.— 

21 An individual shall not be taken into account under 

22 subsection (a) for a taxable year unless the taxpayer 

23 identification number of such individual is included 

24 on the return of the taxpayer for such taxable year. 

25 (c) LOUISIANA STORM AND FLOOD DISPLACED INDI26 VIDUAL.—For purposes of this section, the term ‘‘LouVerDate Sep 11 2014 00:39 Sep 28, 2016 Jkt 059200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H6137.IH H6137

emcdonald on DSK9F6TC42PROD with BILLS
23 

•HR 6137 IH

1 isiana storm and flood displaced individual’’ means, with 

2 respect to any taxpayer for any taxable year, any natural 

3 person if— 

4 (1) such person’s principal place of abode on 

5 the applicable disaster date, was in the Louisiana 

6 storm and flood disaster area, 

7 (2)(A) in the case of such an abode located in 

8 the core disaster area, such person is displaced from 

9 such abode, or 

10 (B) in the case of such an abode located outside 

11 of the core disaster area, such person is displaced 

12 from such abode, and— 

13 (i) such abode was damaged by the severe 

14 storms and flooding giving rise to the Presi15 dential declaration described in section 2(1), or 

16 (ii) such person was evacuated from such 

17 abode by reason of such storms and flooding, 

18 and 

19 (3) such person is provided housing free of 

20 charge by the taxpayer in the principal residence of 

21 the taxpayer for a period of 60 consecutive days 

22 which ends in such taxable year. 

23 Such term shall not include the spouse or any dependent 

24 of the taxpayer. 


emcdonald on DSK9F6TC42PROD with BILLS
24 

•HR 6137 IH

1 (d) COMPENSATION FOR HOUSING.—No deduction 

2 shall be allowed under this section if the taxpayer receives 

3 any rent or other amount (from any source) in connection 

4 with the providing of such housing. 

5 SEC. 303. INCREASE IN STANDARD MILEAGE RATE FOR 

6 CHARITABLE USE OF VEHICLES. 

7 Notwithstanding section 170(i) of the Internal Rev8 enue Code of 1986, for purposes of computing the deduc9 tion under section 170 of such Code for use of a vehicle 

10 described in subsection (f)(12)(E)(i) of such section for 

11 provision of relief during the period beginning on the ap12 plicable disaster date, and ending on December 31, 2017, 

13 and related to the severe storms and flooding giving rise 

14 to the Presidential declaration described in section 2(1), 

15 the standard mileage rate shall be 70 percent of the stand16 ard mileage rate in effect under section 162(a) of such 

17 Code at the time of such use. Any increase under this sec18 tion shall be rounded to the next highest cent. 

19 SEC. 304. MILEAGE REIMBURSEMENTS TO CHARITABLE 

20 VOLUNTEERS EXCLUDED FROM GROSS IN21 COME. 

22 (a) IN GENERAL.—For purposes of the Internal Rev23 enue Code of 1986, gross income of an individual for tax24 able years ending on or after the applicable disaster date, 

25 does not include amounts received, from an organization 


emcdonald on DSK9F6TC42PROD with BILLS
25 

•HR 6137 IH

1 described in section 170(c) of such Code, as reimburse2 ment of operating expenses with respect to use of a pas3 senger automobile for the benefit of such organization in 

4 connection with providing relief during the period begin5 ning on the applicable disaster date, and ending on De6 cember 31, 2017, and relating to the severe storms and 

7 flooding giving rise to the Presidential declaration de8 scribed in section 2(1). The preceding sentence shall apply 

9 only to the extent that the expenses which are reimbursed 

10 would be deductible under chapter 1 of such Code if sec11 tion 274(d) of such Code were applied— 

12 (1) by using the standard business mileage rate 

13 in effect under section 162(a) at the time of such 

14 use, and 

15 (2) as if the individual were an employee of an 

16 organization not described in section 170(c) of such 

17 Code. 

18 (b) APPLICATION TO VOLUNTEER SERVICES

19 ONLY.—Subsection (a) shall not apply with respect to any 

20 expenses relating to the performance of services for com21 pensation. 

22 (c) NO DOUBLE BENEFIT.—No deduction or credit 

23 shall be allowed under any other provision of such Code 

24 with respect to the expenses excludable from gross income 

25 under subsection (a). 


emcdonald on DSK9F6TC42PROD with BILLS
26 

•HR 6137 IH

1 SEC. 305. CHARITABLE DEDUCTION FOR CONTRIBUTIONS 

2 OF BOOK INVENTORIES TO PUBLIC SCHOOLS. 

3 (a) IN GENERAL.—Section 170(e)(3)(D)(iv) of the 

4 Internal Revenue Code of 1986 is amended to read as fol5 lows: 

6 ‘‘(i) TERMINATION.—This subpara7 graph shall not apply to contributions 

8 made— 

9 ‘‘(I) after December 31, 2016, 

10 and before the applicable disaster date 

11 (as defined in section 2(3) of the Lou12 isiana Flood and Storm Devastation 

13 Tax Relief Act of 2016), or 

14 ‘‘(II) after December 31, 2016.’’. 

15 (b) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to contributions made on or after 

17 the applicable disaster date, in taxable years ending after 

18 such date. 

19 TITLE IV—ADDITIONAL TAX 

20 RELIEF PROVISIONS 

21 SEC. 401. EXCLUSIONS OF CERTAIN CANCELLATIONS OF IN22 DEBTEDNESS BY REASON OF 2016 LOUISIANA 

23 STORMS AND FLOODING. 

24 (a) IN GENERAL.—For purposes of the Internal Rev25 enue Code of 1986, gross income shall not include any 

26 amount which (but for this section) would be includible 


emcdonald on DSK9F6TC42PROD with BILLS
27 

•HR 6137 IH

1 in gross income by reason of the discharge (in whole or 

2 in part) of indebtedness of a natural person described in 

3 subsection (b) by an applicable entity (as defined in sec4 tion 6050P(c)(1) of such Code). 

5 (b) PERSONS DESCRIBED.—A natural person is de6 scribed in this subsection if the principal place of abode 

7 of such person on the applicable disaster date, was lo8 cated— 

9 (1) in the core disaster area, or 

10 (2) in the Louisiana storm and flood disaster 

11 area (but outside the core disaster area) and such 

12 person suffered economic loss by reason of the se13 vere storms and flooding giving rise to the Presi14 dential declaration described in section 2(1). 

15 (c) EXCEPTIONS.— 

16 (1) BUSINESS INDEBTEDNESS.—Subsection (a) 

17 shall not apply to any indebtedness incurred in con18 nection with a trade or business. 

19 (2) REAL PROPERTY OUTSIDE CORE DISASTER

20 AREA.—Subsection (a) shall not apply to any dis21 charge of indebtedness to the extent that real prop22 erty constituting security for such indebtedness is lo23 cated outside of the Louisiana storm and flood dis24 aster area. 


emcdonald on DSK9F6TC42PROD with BILLS
28 

•HR 6137 IH

1 (d) DENIAL OF DOUBLE BENEFIT.—For purposes of 

2 the Internal Revenue Code of 1986, the amount excluded 

3 from gross income under subsection (a) shall be treated 

4 in the same manner as an amount excluded under section 

5 108(a) of such Code. 

6 (e) EFFECTIVE DATE.—This section shall apply to 

7 discharges made on or after the applicable disaster date, 

8 and before January 1, 2018. 

9 SEC. 402. SUSPENSION OF CERTAIN LIMITATIONS ON PER10 SONAL CASUALTY LOSSES. 

11 Paragraphs (1) and (2)(A) of section 165(h) of the 

12 Internal Revenue Code of 1986 shall not apply to losses 

13 described in section 165(c)(3) of such Code which arise 

14 in the Louisiana storm and flood disaster area on or after 

15 the applicable disaster date, and which are attributable to 

16 the severe storms and flooding giving rise to the Presi17 dential declaration described in section 2(1). In the case 

18 of any other losses, section 165(h)(2)(A) of such Code 

19 shall be applied without regard to the losses referred to 

20 in the preceding sentence. 

21 SEC. 403. REQUIRED EXERCISE OF AUTHORITY UNDER SEC22 TION 7508A FOR TAX RELIEF RELATING TO 

23 2016 LOUISIANA STORMS AND FLOODING. 

24 (a) IN GENERAL.—In the case of any taxpayer deter25 mined by the Secretary of the Treasury to be affected by 


emcdonald on DSK9F6TC42PROD with BILLS
29 

•HR 6137 IH

1 the Presidentially declared disaster relating to the severe 

2 storms and flooding giving rise to the Presidential declara3 tion described in section 2(1), any relief provided by the 

4 Secretary of the Treasury under section 7508A of the In5 ternal Revenue Code of 1986 shall be for a period ending 

6 not earlier than February 10, 2017, and shall be treated 

7 as applying to the filing of returns relating to, and the 

8 payment of, employment and excise taxes. 

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

10 subsection (a) shall apply for any period for performing 

11 an act which has not expired before the applicable disaster 

12 date. 

13 SEC. 404. SPECIAL RULES FOR MORTGAGE REVENUE 

14 BONDS RELATING TO 2016 LOUISIANA 

15 STORMS AND FLOODING. 

16 (a) IN GENERAL.—In the case of financing provided 

17 with respect to a qualified Louisiana storm and flood re18 covery residence, section 143(d) of the Internal Revenue 

19 Code of 1986 shall be applied as if such residence were 

20 a targeted area residence. 

21 (b) QUALIFIED LOUISIANA STORMS AND FLOODING

22 RECOVERY RESIDENCE.—For purposes of this section, the 

23 term ‘‘qualified Louisiana storm and flood recovery resi24 dence’’ means— 

25 (1) any residence in the core disaster area, and 


emcdonald on DSK9F6TC42PROD with BILLS
30 

•HR 6137 IH

1 (2) any other residence if— 

2 (A) such other residence is located in the 

3 same State as the principal residence referred 

4 to in subparagraph (B), and 

5 (B) the mortgagor with respect to such 

6 other residence owned a principal residence on 

7 the applicable disaster date, which— 

8 (i) was located in the Louisiana storm 

9 and flood disaster area, and 

10 (ii) was rendered uninhabitable by 

11 reason of the severe storms and flooding 

12 giving rise to the Presidential declaration 

13 described in section 2(1). 

14 (c) SPECIAL RULE FOR HOME IMPROVEMENT

15 LOANS.—In the case of any loan with respect to a resi16 dence in the Louisiana storm and flood disaster area, sec17 tion 143(k)(4) of such Code shall be applied by sub18 stituting $150,000 for the dollar amount contained there19 in to the extent such loan is for the repair of damage by 

20 reason of the severe storms and flooding giving rise to the 

21 Presidential declaration described in section 2(1). 

22 (d) APPLICATION.—Subsection (a) shall not apply to 

23 financing provided after December 31, 2018. 


emcdonald on DSK9F6TC42PROD with BILLS
31 

•HR 6137 IH

1 SEC. 405. EXTENSION OF REPLACEMENT PERIOD FOR NON2 RECOGNITION OF GAIN FOR PROPERTY LO3 CATED IN LOUISIANA STORM AND FLOOD 

4 DISASTER AREA. 

5 Section 1033(a)(2)(B)(i) of the Internal Revenue 

6 Code of 1986 shall be applied by substituting ‘‘5 years’’ 

7 for ‘‘2 years’’ with respect to property in the Louisiana 

8 storm and flood disaster area which is compulsorily or in9 voluntarily converted on or after the applicable disaster 

10 date, by reason of the severe storms and flooding giving 

11 rise to the Presidential declaration described in section 

12 2(1), but only if substantially all of the use of the replace13 ment property is in such area. 

14 SEC. 406. SPECIAL RULE FOR DETERMINING EARNED IN15 COME. 

16 (a) IN GENERAL.—In the case of a qualified indi17 vidual, if the earned income of the taxpayer for the taxable 

18 year which includes the applicable disaster date, is less 

19 than the earned income of the taxpayer for the preceding 

20 taxable year, the credits allowed under sections 24(d) and 

21 32 of the Internal Revenue Code of 1986 may, at the elec22 tion of the taxpayer, be determined by substituting— 

23 (1) such earned income for the preceding tax24 able year, for 

25 (2) such earned income for the taxable year 

26 which includes the applicable disaster date. 


emcdonald on DSK9F6TC42PROD with BILLS
32 

•HR 6137 IH

1 (b) QUALIFIED INDIVIDUAL.—For purposes of this 

2 section, the term ‘‘qualified individual’’ means any indi3 vidual whose principal place of abode on the applicable dis4 aster date, was located— 

5 (1) in the core disaster area, or 

6 (2) in the Louisiana storm and flood disaster 

7 area (but outside the core disaster area) and such 

8 individual was displaced from such principal place of 

9 abode by reason of the severe storms and flooding 

10 giving rise to the Presidential declaration described 

11 in section 2(1). 

12 (c) EARNED INCOME.—For purposes of this section, 

13 the term ‘‘earned income’’ has the meaning given such 

14 term under section 32(c) of such Code. 

15 (d) SPECIAL RULES.— 

16 (1) APPLICATION TO JOINT RETURNS.—For 

17 purposes of subsection (a), in the case of a joint re18 turn for a taxable year which includes the applicable 

19 disaster date— 

20 (A) such subsection shall apply if either 

21 spouse is a qualified individual, and 

22 (B) the earned income of the taxpayer for 

23 the preceding taxable year shall be the sum of 

24 the earned income of each spouse for such pre25 ceding taxable year. 


emcdonald on DSK9F6TC42PROD with BILLS
33 

•HR 6137 IH

1 (2) UNIFORM APPLICATION OF ELECTION.— 

2 Any election made under subsection (a) shall apply 

3 with respect to both section 24(d) and section 32 of 

4 such Code. 

5 (3) ERRORS TREATED AS MATHEMATICAL

6 ERROR.—For purposes of section 6213 of such 

7 Code, an incorrect use on a return of earned income 

8 pursuant to subsection (a) shall be treated as a 

9 mathematical or clerical error. 

10 (4) NO EFFECT ON DETERMINATION OF GROSS

11 INCOME, ETC.—Except as otherwise provided in this 

12 section, the Internal Revenue Code of 1986 shall be 

13 applied without regard to any substitution under 

14 subsection (a). 

15 SEC. 407. SECRETARIAL AUTHORITY TO MAKE ADJUST16 MENTS REGARDING TAXPAYER AND DEPEND17 ENCY STATUS. 

18 With respect to taxable years beginning in 2016 or 

19 2017, the Secretary of the Treasury or the Secretary’s del20 egate may make such adjustments in the application of 

21 the internal revenue laws as may be necessary to ensure 

22 that taxpayers do not lose any deduction or credit or expe23 rience a change of filing status by reason of temporary 

24 relocations by reason of the severe storms and flooding 

25 giving rise to the Presidential declaration described in secVerDate Sep 11 2014 00:39 Sep 28, 2016 Jkt 059200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H6137.IH H6137

emcdonald on DSK9F6TC42PROD with BILLS
34 

•HR 6137 IH

1 tion 2(1). Any adjustments made under the preceding sen2 tence shall ensure that an individual is not taken into ac3 count by more than one taxpayer with respect to the same 

4 tax benefit. 

5 SEC. 408. LOW-INCOME HOUSING CREDIT. 

6 (a) ADDITIONAL HOUSING CREDIT DOLLAR

7 AMOUNT.— 

8 (1) IN GENERAL.—For purposes of section 42 

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

10 of calendar years 2017, 2018, and 2019, the State 

11 housing credit ceiling of Louisiana shall be increased 

12 by the lesser of— 

13 (A) the aggregate housing credit dollar 

14 amount allocated by the State housing credit 

15 agency of Louisiana to buildings located in the 

16 Louisiana storm and flood disaster area for 

17 such calendar year, or 

18 (B) the Louisiana storm and flood housing 

19 amount for such State for such calendar year. 

20 (2) LOUISIANA STORM AND FLOOD HOUSING

21 AMOUNT.—For purposes of paragraph (1), the term 

22 ‘‘Louisiana storm and flood housing amount’’ 

23 means, for any calendar year, the amount equal to 

24 the product of $18.00 multiplied by the portion of 

25 the Louisiana population which is in the Louisiana 


emcdonald on DSK9F6TC42PROD with BILLS
35 

•HR 6137 IH

1 storm and flood disaster area (as determined on the 

2 basis of the most recent census estimate of resident 

3 population released by the Bureau of the Census be4 fore August 28, 2016). 

5 (3) ALLOCATIONS TREATED AS MADE FIRST

6 FROM ADDITIONAL ALLOCATION AMOUNT FOR PUR7 POSES OF DETERMINING CARRYOVER.—For pur8 poses of determining the unused State housing cred9 it ceiling under section 42(h)(3)(C) of such Code for 

10 any calendar year, any increase in the State housing 

11 credit ceiling under paragraph (1) shall be treated 

12 as an amount described in clause (ii) of such section. 

13 (b) ADDITIONAL HOUSING CREDIT DOLLAR AMOUNT

14 FOR LOUISIANA.—For purposes of section 42 of such 

15 Code, in the case of calendar year 2017, the State housing 

16 credit ceiling of Louisiana shall each be increased by 

17 $3,500,000. 

18 (c) DIFFICULT DEVELOPMENT AREA.— 

19 (1) IN GENERAL.—For purposes of section 42 

20 of such Code, in the case of property placed in serv21 ice during the period beginning on January 1, 2017, 

22 and ending on December 31, 2021, the Louisiana 

23 storm and flood disaster area— 


emcdonald on DSK9F6TC42PROD with BILLS
36 

•HR 6137 IH

1 (A) shall be treated as difficult develop2 ment areas designated under subclause (I) of 

3 section 42(d)(5)(B)(iii) of such Code, and 

4 (B) shall not be taken into account for 

5 purposes of applying the limitation under sub6 clause (II) of such section. 

7 (2) APPLICATION.—Paragraph (1) shall apply 

8 only to— 

9 (A) housing credit dollar amounts allocated 

10 during the period beginning on January 1, 

11 2017, and ending on December 31, 2019, and 

12 (B) buildings placed in service during the 

13 period described in paragraph (1) to the extent 

14 that paragraph (1) of section 42(h) does not 

15 apply to any building by reason of paragraph 

16 (4) thereof, but only with respect to bonds 

17 issued after December 31, 2016. 

18 (d) SPECIAL RULE FOR APPLYING INCOME TESTS.— 

19 In the case of property placed in service— 

20 (1) during 2017, 2018, or 2019, 

21 (2) in the Louisiana storm and flood disaster 

22 area, and 

23 (3) in a nonmetropolitan area (as defined in 

24 section 42(d)(5)(B)(iv)(IV)), 


emcdonald on DSK9F6TC42PROD with BILLS
37 

•HR 6137 IH

1 section 42 of such Code shall be applied by substituting 

2 ‘‘national nonmetropolitan median gross income (deter3 mined under rules similar to the rules of section 

4 142(d)(2)(B))’’ for ‘‘area median gross income’’ in sub5 paragraphs (A) and (B) of section 42(g)(1) of such Code. 

6 (e) DEFINITIONS.—Any term used in this section 

7 which is also used in section 42 shall have the same mean8 ing as when used in such section. 

9 SEC. 409. APPLICATION OF NEW MARKETS TAX CREDIT TO 

10 INVESTMENTS IN COMMUNITY DEVELOP11 MENT ENTITIES SERVING LOUISIANA STORM 

12 AND FLOOD DISASTER AREA. 

13 For purposes of section 45D of the Internal Revenue 

14 Code of 1986— 

15 (1) a qualified community development entity 

16 shall be eligible for an allocation under subsection 

17 (f)(2) thereof of the increase in the new markets tax 

18 credit limitation described in paragraph (2) only if 

19 a significant mission of such entity is the recovery 

20 and redevelopment of the Louisiana storm and flood 

21 disaster area, 

22 (2) the new markets tax credit limitation other23 wise determined under subsection (f)(1) thereof shall 

24 be increased by an amount equal to— 


emcdonald on DSK9F6TC42PROD with BILLS
38 

•HR 6137 IH

1 (A) $300,000,000 for 2016 and 2017, to 

2 be allocated among qualified community devel3 opment entities to make qualified low-income 

4 community investments within the Louisiana 

5 storm and flood disaster area, and 

6 (B) $400,000,000 for 2018, to be so allo7 cated, and 

8 (3) subsection (f)(3) thereof shall be applied 

9 separately with respect to the amount of the increase 

10 under paragraph (2). 

11 SEC. 410. TAX-EXEMPT BOND FINANCING. 

12 (a) IN GENERAL.—For purposes of the Internal Rev13 enue Code of 1986— 

14 (1) any qualified Louisiana storm and flood dis15 aster area bond described in paragraph (2)(A)(i) 

16 shall be treated as an exempt facility bond, and 

17 (2) any qualified Louisiana storm and flood dis18 aster area bond described in paragraph (2)(A)(ii) 

19 shall be treated as a qualified mortgage bond. 

20 (b) QUALIFIED LOUISIANA STORM AND FLOOD DIS21 ASTER AREA BOND.—For purposes of this subsection, the 

22 term ‘‘qualified Louisiana storm and flood disaster area 

23 bond’’ means any bond issued as part of an issue if— 

24 (1)(A) 95 percent or more of the net proceeds 

25 (as defined in section 150(a)(3) of such Code) of 


emcdonald on DSK9F6TC42PROD with BILLS
39 

•HR 6137 IH

1 such issue are to be used for qualified project costs, 

2 or 

3 (B) such issue meets the requirements of a 

4 qualified mortgage issue, except as otherwise pro5 vided in this subsection, 

6 (2) such bond is issued by Louisiana, or any 

7 political subdivision thereof, 

8 (3) such bond is designated for purposes of this 

9 section by— 

10 (A) in the case of a bond which is required 

11 under State law to be approved by the bond 

12 commission of Louisiana, such bond commis13 sion, and 

14 (B) in the case of any other bond, the Gov15 ernor of Louisiana, 

16 (4) such bond is issued after the date of the en17 actment of this section and before January 1, 2023, 

18 and 

19 (5) no portion of the proceeds of such issue is 

20 to be used to provide any property described in sec21 tion 144(c)(6)(B) of such Code. 

22 (c) LIMITATION ON BONDS.— 

23 (1) AGGREGATE AMOUNT DESIGNATED.—The 

24 maximum aggregate face amount of bonds which 

25 may be designated under this subsection with reVerDate Sep 11 2014 00:39 Sep 28, 2016 Jkt 059200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H6137.IH H6137

emcdonald on DSK9F6TC42PROD with BILLS
40 

•HR 6137 IH

1 spect to any State shall not exceed the product of 

2 $2,500 multiplied by the portion of the Louisiana 

3 population which is in the Louisiana storm and flood 

4 disaster area (as determined on the basis of the 

5 most recent census estimate of resident population 

6 released by the Bureau of the Census before August 

7 28, 2016). 

8 (2) MOVABLE PROPERTY.—No bonds shall be 

9 issued which are to be used for movable fixtures and 

10 equipment. 

11 (d) QUALIFIED PROJECT COSTS.—For purposes of 

12 this subsection, the term ‘‘qualified project costs’’ 

13 means— 

14 (1) the cost of any qualified residential rental 

15 project (as defined in section 142(d) of such Code) 

16 located in the Louisiana storm and flood disaster 

17 area, and 

18 (2) the cost of acquisition, construction, recon19 struction, and renovation of— 

20 (A) nonresidential real property (including 

21 fixed improvements associated with such prop22 erty) located in the Louisiana storm and flood 

23 disaster area, and 


emcdonald on DSK9F6TC42PROD with BILLS
41 

•HR 6137 IH

1 (B) public utility property (as defined in 

2 section 168(i)(10) of such Code) located in the 

3 Louisiana storm and flood disaster area. 

4 (e) SPECIAL RULES.—In applying this title to any 

5 qualified Louisiana storm and flood disaster area bond, 

6 the following modifications shall apply: 

7 (1) Section 142(d)(1) of such Code (defining 

8 qualified residential rental project) shall be ap9 plied— 

10 (A) by substituting ‘‘60 percent’’ for ‘‘50 

11 percent’’ in subparagraph (A) thereof, and 

12 (B) by substituting ‘‘70 percent’’ for ‘‘60 

13 percent’’ in subparagraph (B) thereof. 

14 (2) Section 143 of such Code (relating to mort15 gage revenue bonds: qualified mortgage bond and 

16 qualified veterans’ mortgage bond) shall be ap17 plied— 

18 (A) only with respect to owner-occupied 

19 residences in the Louisiana storm and flood dis20 aster area, 

21 (B) by treating any such residence in the 

22 Louisiana storm and flood disaster area as a 

23 targeted area residence, 


emcdonald on DSK9F6TC42PROD with BILLS
42 

•HR 6137 IH

1 (C) by applying subsection (f)(3) thereof 

2 without regard to subparagraph (A) thereof, 

3 and 

4 (D) by substituting ‘‘$150,000’’ for 

5 ‘‘$15,000’’ in subsection (k)(4) thereof. 

6 (3) Except as provided in section 143 of such 

7 Code, repayments of principal on financing provided 

8 by the issue of which such bond is a part may not 

9 be used to provide financing. 

10 (4) Section 146 of such Code (relating to vol11 ume cap) shall not apply. 

12 (5) Section 147(d)(2) of such Code (relating to 

13 acquisition of existing property not permitted) shall 

14 be applied by substituting ‘‘50 percent’’ for ‘‘15 per15 cent’’ each place it appears. 

16 (6) Section 148(f)(4)(C) of such Code (relating 

17 to exception from rebate for certain proceeds to be 

18 used to finance construction expenditures) shall 

19 apply to the available construction proceeds of bonds 

20 which are part of an issue described in subsection 

21 (b)(1)(A). 

22 (7) Section 57(a)(5) of such Code (relating to 

23 tax-exempt interest) shall not apply. 

24 (f) SPECIAL RULE FOR REPAIRS AND RECONSTRUC25 TIONS.— 


emcdonald on DSK9F6TC42PROD with BILLS
43 

•HR 6137 IH

1 (1) IN GENERAL.—For purposes of section 143 

2 of the Internal Revenue Code of 1986 and this sec3 tion, any qualified Louisiana storm and flood dis4 aster area repair or reconstruction shall be treated 

5 as a qualified rehabilitation. 

6 (2) QUALIFIED LOUISIANA STORM AND FLOOD

7 DISASTER AREA REPAIR OR RECONSTRUCTION.—For 

8 purposes of subparagraph (A), the term ‘‘qualified 

9 Louisiana storm and flood disaster area repair or re10 construction’’ means any repair of damage caused by 

11 the severe storms and flooding giving rise to the 

12 Presidential declaration described in section 2(1) (or 

13 reconstruction of such building in the case of dam14 age constituting destruction) if the expenditures for 

15 such repair or reconstruction are 25 percent or more 

16 of the mortgagor’s adjusted basis in the residence. 

17 For purposes of the preceding sentence, the mortga18 gor’s adjusted basis shall be determined as of the 

19 completion of the repair or reconstruction or, if 

20 later, the date on which the mortgagor acquires the 

21 residence. 

22 (3) TERMINATION.—This paragraph shall apply 

23 only to owner-financing provided after the date of 

24 the enactment of this subsection and before January 

25 1, 2023. 


emcdonald on DSK9F6TC42PROD with BILLS
44 

•HR 6137 IH

1 SEC. 411. EXPENSING FOR CERTAIN DEMOLITION AND 

2 CLEAN-UP COSTS. 

3 (a) IN GENERAL.—A taxpayer may elect to treat 50 

4 percent of any qualified Louisiana storm and flood dis5 aster area clean-up cost as an expense which is not charge6 able to capital account. Any cost so treated shall be al7 lowed as a deduction for the taxable year in which such 

8 cost is paid or incurred. 

9 (b) QUALIFIED LOUISIANA STORM AND FLOOD DIS10 ASTER AREA CLEAN-UP COST.—For purposes of this sub11 section, the term ‘‘qualified Louisiana storm and flood dis12 aster area clean-up cost’’ means any amount paid or in13 curred during the period beginning on the applicable dis14 aster date, and ending on December 31, 2018, for the re15 moval of debris from, or the demolition of structures on, 

16 real property which is located in the Louisiana storm and 

17 flood disaster area and which is— 

18 (1) held by the taxpayer for use in a trade or 

19 business or for the production of income, or 

20 (2) property described in section 1221(a)(1) in 

21 the hands of the taxpayer. 

22 For purposes of the preceding sentence, amounts paid or 

23 incurred shall be taken into account only to the extent that 

24 such amount would (but for subsection (a)) be chargeable 

25 to capital account. 


emcdonald on DSK9F6TC42PROD with BILLS
45 

•HR 6137 IH

1 SEC. 412. EXTENSION OF EXPENSING FOR ENVIRON2 MENTAL REMEDIATION COSTS. 

3 With respect to any qualified environmental remedi4 ation expenditure (as defined in section 198(b)) paid or 

5 incurred on or after the applicable disaster date, in con6 nection with a qualified contaminated site located in the 

7 Louisiana storm and flood disaster area, section 198 (re8 lating to expensing of environmental remediation costs) 

9 shall be applied— 

10 (1) in the case of expenditures paid or incurred 

11 on or after the applicable disaster date, and before 

12 January 1, 2019, by substituting ‘‘December 31, 

13 2018’’ for the date contained in section 198(h), and 

14 (2) except as provided in section 198(d)(2), by 

15 treating petroleum products (as defined in section 

16 4612(a)(3)) as a hazardous substance. 

17 SEC. 413. TREATMENT OF NET OPERATING LOSSES ATTRIB18 UTABLE TO LOUISIANA STORM AND FLOOD 

19 DISASTER AREA LOSSES. 

20 (a) IN GENERAL.—If a portion of any net operating 

21 loss of the taxpayer for any taxable year is a qualified 

22 Louisiana storm and flood disaster area loss, the following 

23 rules shall apply: 

24 (1) EXTENSION OF CARRYBACK PERIOD.—Sec25 tion 172(b)(1) of the Internal Revenue Code of 1986 

26 shall be applied with respect to such portion— 


emcdonald on DSK9F6TC42PROD with BILLS
46 

•HR 6137 IH

1 (A) by substituting ‘‘5 taxable years’’ for 

2 ‘‘2 taxable years’’ in subparagraph (A)(i) there3 of, and 

4 (B) by not taking such portion into ac5 count in determining any eligible loss of the 

6 taxpayer under subparagraph (F) thereof for 

7 the taxable year. 

8 (2) SUSPENSION OF 90 PERCENT AMT LIMITA9 TION.—Section 56(d)(1) of such Code shall be ap10 plied by increasing the amount determined under 

11 subparagraph (A)(ii)(I) thereof by the sum of the 

12 carrybacks and carryovers of any net operating loss 

13 attributable to such portion. 

14 (b) QUALIFIED LOUISIANA STORM AND FLOOD DIS15 ASTER AREA LOSS.— 

16 (1) IN GENERAL.—For purposes of subsection 

17 (a), the term ‘‘qualified Louisiana storm and flood 

18 disaster area loss’’ means the lesser of— 

19 (A) the excess of— 

20 (i) the net operating loss for such tax21 able year, over 

22 (ii) the specified liability loss for such 

23 taxable year to which a 10-year carryback 

24 applies under section 172(b)(1)(C) of such 

25 Code, or 


emcdonald on DSK9F6TC42PROD with BILLS
47 

•HR 6137 IH

1 (B) the aggregate amount of the following 

2 deductions to the extent taken into account in 

3 computing the net operating loss for such tax4 able year: 

5 (i) Any deduction for any qualified 

6 Louisiana storm and flood disaster area 

7 casualty loss. 

8 (ii) Any deduction for moving ex9 penses paid or incurred after the applicable 

10 disaster date, and before January 1, 2019, 

11 and allowable under this chapter to any 

12 taxpayer in connection with the employ13 ment of any individual— 

14 (I) whose principal place of abode 

15 was located in the Louisiana storm 

16 and flood disaster area before the ap17 plicable disaster date, 

18 (II) who was unable to remain in 

19 such abode as the result of the severe 

20 storms and flooding giving rise to the 

21 Presidential declaration described in 

22 section 2(1), and 

23 (III) whose principal place of em24 ployment with the taxpayer after such 


emcdonald on DSK9F6TC42PROD with BILLS
48 

•HR 6137 IH

1 expense is located in the Louisiana 

2 storm and flood disaster area. 

3 For purposes of this subparagraph, the 

4 term ‘‘moving expenses’’ has the meaning 

5 given such term by section 217(b) of such 

6 Code, except that the taxpayer’s former 

7 residence and new residence may be the 

8 same residence if the initial vacating of the 

9 residence was as the result of the severe 

10 storms and flooding giving rise to the 

11 Presidential declaration described in sec12 tion 2(1). 

13 (iii) Any deduction allowable under 

14 this chapter for expenses paid or incurred 

15 on or after the applicable disaster date, 

16 and before January 1, 2019, to tempo17 rarily house any employee of the taxpayer 

18 whose principal place of employment is in 

19 the Louisiana storm and flood disaster 

20 area. 

21 (iv) Any deduction for depreciation 

22 (or amortization in lieu of depreciation) al23 lowable under this chapter with respect to 

24 any qualified Louisiana storm and flood 


emcdonald on DSK9F6TC42PROD with BILLS
49 

•HR 6137 IH

1 disaster area property for the taxable year 

2 such property is placed in service. 

3 (v) Any deduction allowable under this 

4 chapter for repair expenses (including ex5 penses for removal of debris) paid or in6 curred on or after the applicable disaster 

7 date, and before January 1, 2019, with re8 spect to any damage attributable to the se9 vere storms and flooding giving rise to the 

10 Presidential declaration described in sec11 tion 2(1) and in connection with property 

12 which is located in the Louisiana storm 

13 and flood disaster area. 

14 (2) QUALIFIED LOUISIANA STORM AND FLOOD

15 DISASTER AREA PROPERTY.—For purposes of this 

16 subsection— 

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

18 Louisiana storm and flood disaster area prop19 erty’’ means property— 

20 (i)(I) which is described in section 

21 168(k)(2)(A)(i) of the Internal Revenue 

22 Code of 1986, or 

23 (II) which is nonresidential real prop24 erty or residential rental property, 


emcdonald on DSK9F6TC42PROD with BILLS
50 

•HR 6137 IH

1 (ii) substantially all of the use of 

2 which is in the Louisiana storm and flood 

3 disaster area and is in the active conduct 

4 of a trade or business by the taxpayer in 

5 such area, 

6 (iii) the original use of which in the 

7 Louisiana storm and flood disaster area 

8 commences with the taxpayer on or after 

9 the applicable disaster date, 

10 (iv) which is acquired by the taxpayer 

11 by purchase (as defined in section 179(d) 

12 of such Code) on or after the applicable 

13 disaster date, but only if no written bind14 ing contract for the acquisition was in ef15 fect before the applicable disaster date, 

16 and 

17 (v) which is placed in service by the 

18 taxpayer on or before December 31, 2018 

19 (December 31, 2019, in the case of non20 residential real property and residential 

21 rental property). 

22 (B) EXCEPTIONS.— 

23 (i) ALTERNATIVE DEPRECIATION

24 PROPERTY.—Such term shall not include 


emcdonald on DSK9F6TC42PROD with BILLS
51 

•HR 6137 IH

1 any property described in section 

2 168(k)(2)(D) of such Code. 

3 (ii) TAX-EXEMPT BOND-FINANCED

4 PROPERTY.—Such term shall not include 

5 any property any portion of which is fi6 nanced with the proceeds of any obligation 

7 the interest on which is exempt from tax 

8 under section 103 of such Code. 

9 (iii) QUALIFIED REVITALIZATION

10 BUILDINGS.—Such term shall not include 

11 any qualified revitalization building with 

12 respect to which the taxpayer has elected 

13 the application of paragraph (1) or (2) of 

14 section 1400I(a) of such Code. 

15 (c) QUALIFIED LOUISIANA STORM AND FLOOD AREA

16 CASUALTY LOSS.— 

17 (1) IN GENERAL.—For purposes of paragraph 

18 (1)(B)(i), the term ‘‘qualified Louisiana storm and 

19 flood area casualty loss’’ means any uncompensated 

20 section 1231 loss (as defined in section 

21 1231(a)(3)(B) of such Code) of property located in 

22 the Louisiana storm and flood disaster area, if— 

23 (A) such loss is allowed as a deduction 

24 under section 165 of such Code for the taxable 

25 year, and 


emcdonald on DSK9F6TC42PROD with BILLS
52 

•HR 6137 IH

1 (B) such loss is by reason of the storms 

2 and flooding giving rise to the Presidential dec3 laration described in section 2(1). 

4 (2) REDUCTION FOR GAINS FROM INVOLUN5 TARY CONVERSION.—The amount of qualified Lou6 isiana storm and flood area casualty loss which 

7 would (but for this paragraph) be taken into account 

8 under paragraph (1) for any taxable year shall be 

9 reduced by the amount of any gain recognized by the 

10 taxpayer for such year from the involuntary conver11 sion by reason of the storms and flooding giving rise 

12 to the Presidential declaration described in section 

13 2(1) of property located in the Louisiana storm and 

14 flood disaster area. 

15 (3) COORDINATION WITH GENERAL DISASTER

16 LOSS RULES.—Section 165(i) of such Code shall not 

17 apply to any qualified Louisiana storm and flood 

18 disaster area casualty loss to the extent such loss is 

19 taken into account under this subsection. 

20 (4) SPECIAL RULES.—For purposes of para21 graph (1), rules similar to the rules of paragraphs 

22 (2) and (3) of section 172(i) of such Code shall 

23 apply with respect to such portion. 


emcdonald on DSK9F6TC42PROD with BILLS
53 

•HR 6137 IH

1 SEC. 414. INCREASED EXPENSING FOR QUALIFIED TIMBER 

2 PROPERTY. 

3 (a) IN GENERAL.—In the case of qualified timber 

4 property any portion of which is located in the Louisiana 

5 storm and flood disaster area, the limitation under sub6 paragraph (B) of section 194(b)(1) of such Code shall be 

7 increased by the lesser of— 

8 (1) the limitation which would (but for this sec9 tion) apply under such subparagraph, or 

10 (2) the amount of reforestation expenditures 

11 (as defined in section 194(c)(3) of such Code) paid 

12 or incurred by the taxpayer with respect to such 

13 qualified timber property during the specified por14 tion of the taxable year. 

15 (b) DEFINITIONS.—For purposes of this sub16 section— 

17 (1) SPECIFIED PORTION.—The term ‘‘specified 

18 portion’’ means that portion of the taxable year 

19 which is on or after the applicable disaster date, and 

20 before January 1, 2019. 

21 (2) QUALIFIED TIMBER PROPERTY.—The term 

22 ‘‘qualified timber property’’ has the meaning given 

23 such term in section 194(c)(1) of such Code. 

24 SEC. 415. DISASTER LOSS CARRYBACK. 

25 (a) IN GENERAL.—In the case of a loss occurring in 

26 the Louisiana storm and flood disaster area and attribVerDate Sep 11 2014 00:39 Sep 28, 2016 Jkt 059200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\H6137.IH H6137

emcdonald on DSK9F6TC42PROD with BILLS
54 

•HR 6137 IH

1 utable to the severe storms and flooding giving rise to the 

2 Presidential declaration described in section 2(1), at the 

3 election of the taxpayer, section 165(i)(1) of the Internal 

4 Revenue Code of 1986 shall be applied by substituting 

5 ‘‘any of the 3 taxable years preceding’’ for ‘‘the taxable 

6 year immediately preceding’’. 

7 (b) SPECIAL RULES.— 

8 (1) DETERMINED WITHOUT REGARD TO AD9 JUSTED GROSS INCOME.—Any loss described in sub10 section (a) shall be determined for the taxable year 

11 without regard to section 165(h)(2)(A) of such Code. 

12 (2) TREATED AS SALE OR EXCHANGE.—Not13 withstanding section 165(h)(2)(B) of such Code, any 

14 loss described in subsection (a) shall be treated as 

15 a loss from a sale or exchange of a capital asset. 

16 SEC. 416. HOUSING RELIEF FOR INDIVIDUALS AFFECTED 

17 BY HURRICANE KATRINA. 

18 (a) EXCLUSION OF EMPLOYER-PROVIDED HOUSING

19 FOR INDIVIDUAL AFFECTED BY LOUISIANA STORMS AND

20 FLOODING.— 

21 (1) IN GENERAL.—Gross income of a qualified 

22 employee shall not include the value of any lodging 

23 furnished in kind to such employee (and such em24 ployee’s spouse or any of such employee’s dependVerDate Sep 11 2014 00:39 Sep 28, 2016 Jkt 059200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H6137.IH H6137

emcdonald on DSK9F6TC42PROD with BILLS
55 

•HR 6137 IH

1 ents) by or on behalf of a qualified employer for any 

2 month during the taxable year. 

3 (2) LIMITATION.—The amount which may be 

4 excluded under paragraph (1) for any month for 

5 which lodging is furnished during the taxable year 

6 shall not exceed $600. 

7 (3) TREATMENT OF EXCLUSION.—The exclu8 sion under paragraph (1) shall be treated as an ex9 clusion under section 119 of such Code (other than 

10 for purposes of sections 3121(a)(19) and 

11 3306(b)(14) of such Code). 

12 (b) EMPLOYER CREDIT FOR HOUSING EMPLOYEES

13 AFFECTED BY LOUISIANA STORMS AND FLOODING.—For 

14 purposes of section 38, in the case of a qualified employer, 

15 the Louisiana storm and flood housing credit for any 

16 month during the taxable year is an amount equal to 30 

17 percent of any amount which is excludable from the gross 

18 income of a qualified employee of such employer under 

19 subsection (a) and not otherwise excludable under section 

20 119 of such Code. 

21 (c) QUALIFIED EMPLOYEE.—For purposes of this 

22 section, the term ‘‘qualified employee’’ means, with respect 

23 to any month, an individual— 

24 (1) who had a principal residence (as defined in 

25 section 121 of such Code) in the Louisiana storm 


emcdonald on DSK9F6TC42PROD with BILLS
56 

•HR 6137 IH

1 and flood disaster area on the applicable disaster 

2 date, and 

3 (2) who performs substantially all employment 

4 services— 

5 (A) in the Louisiana storm and flood dis6 aster area, and 

7 (B) for the qualified employer which fur8 nishes lodging to such individual. 

9 (d) QUALIFIED EMPLOYER.—For purposes of this 

10 section, the term ‘‘qualified employer’’ means any em11 ployer with a trade or business located in the Louisiana 

12 storm and flood disaster area. 

13 (e) CERTAIN RULES TO APPLY.—For purposes of 

14 this subsection, rules similar to the rules of sections 

15 51(i)(1) and 52 of such Code shall apply. 

16 (f) APPLICATION OF SECTION.—This section shall 

17 apply to lodging furnished during the period— 

18 (1) beginning on the first day of the first 

19 month beginning after the date of the enactment of 

20 this section, and 

21 (2) ending on the date which is 6 months after 

22 the first day described in paragraph (1). 

23 (g) TREATED AS PART OF GENERAL BUSINESS

24 CREDIT.—The Louisiana storm and flood housing credit 


emcdonald on DSK9F6TC42PROD with BILLS
57 

•HR 6137 IH

1 determined under subsection (b) shall be treated as listed 

2 in section 38(b) of the Internal Revenue Code of 1986. 

Æ 


emcdonald on DSK9F6TC42PROD with BILLS