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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6137 Introduced in House (IH)]

<DOC>

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.

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

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``Louisiana Flood 
and Storm Devastation Tax Relief Act of 2016''.
    (b) Table of Contents.--The table of contents for 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

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.

SEC. 2. LOUISIANA STORM AND FLOOD DISASTER AREA.

    For purposes of this Act--
            (1) Louisiana storm and flood disaster area.--The term 
        ``Louisiana storm and flood disaster area'' means an area with 
        respect to which a major disaster has been declared by the 
        President under section 401 of the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act--
                    (A) before September 3, 2016, by reason of severe 
                storms and flooding occurring in Louisiana during 
                August of 2016, and
                    (B) before April 21, 2016, by reason of severe 
                storms and flooding occurring in Louisiana during March 
                and April of 2016.
            (2) Core disaster area.--The term ``core disaster area'' 
        means that portion of the Louisiana storm and flood disaster 
        area determined by the President to warrant individual or 
        individual and public assistance from the Federal Government 
        under such Act.
            (3) Applicable disaster date.--The term ``applicable 
        disaster date'' means, with respect to any Louisiana storm and 
        flood disaster area, the date of the first day of the period 
        during which the severe storms and flooding giving rise to the 
        Presidential declaration described in paragraph (1) occurred.

TITLE I--SPECIAL RULES FOR USE OF RETIREMENT FUNDS FOR RELIEF RELATING 
                 TO 2016 LOUISIANA STORMS AND FLOODING

SEC. 101. TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS FOR RELIEF 
              RELATING TO 2016 LOUISIANA STORMS AND FLOODING.

    (a) In General.--Section 72(t) of the Internal Revenue Code of 1986 
shall not apply to any qualified Louisiana storm and flood 
distribution.
    (b) Aggregate Dollar Limitation.--
            (1) In general.--For purposes of this section, the 
        aggregate amount of distributions received by an individual 
        which may be treated as qualified Louisiana storm and flood 
        distributions for any taxable year shall not exceed the excess 
        (if any) of--
                    (A) $100,000, over
                    (B) the aggregate amounts treated as qualified 
                Louisiana storm and flood distributions received by 
                such individual for all prior taxable years.
            (2) Treatment of plan distributions.--If a distribution to 
        an individual would (without regard to paragraph (1)) be a 
        qualified Louisiana storm and flood distribution, a plan shall 
        not be treated as violating any requirement of the Internal 
        Revenue Code of 1986 merely because the plan treats such 
        distribution as a qualified Louisiana storm and flood 
        distribution, unless the aggregate amount of such distributions 
        from all plans maintained by the employer (and any member of 
        any controlled group which includes the employer) to such 
        individual exceeds $100,000.
            (3) Controlled group.--For purposes of paragraph (2), the 
        term ``controlled group'' means any group treated as a single 
        employer under subsection (b), (c), (m), or (o) of section 414 
        of such Code.
    (c) Amount Distributed May Be Repaid.--
            (1) In general.--Any individual who receives a qualified 
        Louisiana storm and flood distribution may, at any time during 
        the 3-year period beginning on the day after the date on which 
        such distribution was received, make one or more contributions 
        in an aggregate amount not to exceed the amount of such 
        distribution to an eligible retirement plan of which such 
        individual is a beneficiary and to which a rollover 
        contribution of such distribution could be made under section 
        402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) of such 
        Code, as the case may be.
            (2) Treatment of repayments of distributions from eligible 
        retirement plans other than iras.--For purposes of such Code, 
        if a contribution is made pursuant to paragraph (1) with 
        respect to a qualified Louisiana storm and flood distribution 
        from an eligible retirement plan other than an individual 
        retirement plan, then the taxpayer shall, to the extent of the 
        amount of the contribution, be treated as having received the 
        qualified Louisiana storm and flood distribution in an eligible 
        rollover distribution (as defined in section 402(c)(4) of such 
        Code) and as having transferred the amount to the eligible 
        retirement plan in a direct trustee to trustee transfer within 
        60 days of the distribution.
            (3) Treatment of repayments for distributions from iras.--
        For purposes of such Code, if a contribution is made pursuant 
        to paragraph (1) with respect to a qualified Louisiana storm 
        and flood distribution from an individual retirement plan (as 
        defined by section 7701(a)(37) of such Code), then, to the 
        extent of the amount of the contribution, the qualified 
        Louisiana storm and flood distribution shall be treated as a 
        distribution described in section 408(d)(3) of such Code and as 
        having been transferred to the eligible retirement plan in a 
        direct trustee to trustee transfer within 60 days of the 
        distribution.
    (d) Definitions.--For purposes of this section--
            (1) Qualified louisiana storm and flooding distribution.--
        Except as provided in subsection (b), the term ``qualified 
        Louisiana storm and flooding distribution'' means any 
        distribution from an eligible retirement plan made on or after 
        the applicable disaster date, to an individual whose principal 
        residence on or after such date, is located in the Louisiana 
        storm and flood disaster area and who has sustained an economic 
        loss by reason of the severe storms and flooding giving rise to 
        the Presidential declaration described in section 2(1).
            (2) Eligible retirement plan.--The term ``eligible 
        retirement plan'' shall have the meaning given such term by 
        section 402(c)(8)(B) of such Code.
    (e) Income Inclusion Spread Over 3-Year Period for Qualified 
Louisiana Storm and Flooding Distributions.--
            (1) In general.--In the case of any qualified Louisiana 
        storm and flood distribution, unless the taxpayer elects not to 
        have this subsection apply for any taxable year, any amount 
        required to be included in gross income for such taxable year 
        shall be so included ratably over the 3-taxable-year period 
        beginning with such taxable year.
            (2) Special rule.--For purposes of paragraph (1), rules 
        similar to the rules of subparagraph (E) of section 408A(d)(3) 
        of such Code shall apply.
    (f) Special Rules.--
            (1) Exemption of distributions from trustee to trustee 
        transfer and withholding rules.--For purposes of sections 
        401(a)(31), 402(f), and 3405 of such Code, qualified Louisiana 
        storm and flood distributions shall not be treated as eligible 
        rollover distributions.
            (2) Qualified louisiana storm and flooding distributions 
        treated as meeting plan distribution requirements.--For 
        purposes of such Code, a qualified Louisiana storm and flood 
        distribution shall be treated as meeting the requirements of 
        sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 
        457(d)(1)(A) of such Code.

SEC. 102. RECONTRIBUTIONS OF WITHDRAWALS FOR HOME PURCHASES CANCELED 
              DUE TO THE 2016 LOUISIANA STORMS AND FLOODING.

    (a) Recontributions.--
            (1) In general.--Any individual who received a qualified 
        distribution may, during the period beginning on the applicable 
        disaster date, and ending on February 28, 2017, make one or 
        more contributions in an aggregate amount not to exceed the 
        amount of such qualified distribution to an eligible retirement 
        plan (as defined in section 402(c)(8)(B) of the Internal 
        Revenue Code of 1986) of which such individual is a beneficiary 
        and to which a rollover contribution of such distribution could 
        be made under section 402(c), 403(a)(4), 403(b)(8), or 
        408(d)(3) of such Code, as the case may be.
            (2) Treatment of repayments.--Rules similar to the rules of 
        paragraphs (2) and (3) of section 101(c) of this Act shall 
        apply for purposes of this section.
    (b) Qualified Distribution Defined.--For purposes of this section, 
the term ``qualified distribution'' means any distribution--
            (1) described in section 401(k)(2)(B)(i)(IV), 
        403(b)(7)(A)(ii) (but only to the extent such distribution 
        relates to financial hardship), 403(b)(11)(B), or 72(t)(2)(F) 
        of such Code,
            (2) received after February 10, 2016, and before August 11, 
        2016, and
            (3) which was to be used to purchase or construct a 
        principal residence in the Louisiana storm and flood disaster 
        area, but which was not so purchased or constructed on account 
        of the severe storms and flooding giving rise to the 
        Presidential declaration described in section 2(1).

SEC. 103. LOANS FROM QUALIFIED PLANS FOR RELIEF RELATING TO 2016 
              LOUISIANA STORMS AND FLOODING.

    (a) Increase in Limit on Loans Not Treated as Distributions.--In 
the case of any loan from a qualified employer plan (as defined under 
section 72(p)(4) of the Internal Revenue Code of 1986) to a qualified 
individual made after the date of enactment of this Act and before 
January 1, 2018--
            (1) clause (i) of section 72(p)(2)(A) of such Code shall be 
        applied by substituting ``$100,000'' for ``$50,000'', and
            (2) clause (ii) of such section shall be applied by 
        substituting ``the present value of the nonforfeitable accrued 
        benefit of the employee under the plan'' for ``one-half of the 
        present value of the nonforfeitable accrued benefit of the 
        employee under the plan''.
    (b) Delay of Repayment.--In the case of a qualified individual with 
an outstanding loan on or after the date that is 5 days before the 
applicable disaster date, from a qualified employer plan (as defined in 
section 72(p)(4) of such Code)--
            (1) if the due date pursuant to subparagraph (B) or (C) of 
        section 72(p)(2) of such Code for any repayment with respect to 
        such loan occurs during the period beginning on the date that 
        is 5 days before the applicable disaster date, and ending on 
        December 31, 2017, such due date shall be delayed for 1 year,
            (2) any subsequent repayments with respect to any such loan 
        shall be appropriately adjusted to reflect the delay in the due 
        date under paragraph (1) and any interest accruing during such 
        delay, and
            (3) in determining the 5-year period and the term of a loan 
        under subparagraph (B) or (C) of section 72(p)(2) of such Code, 
        the period described in paragraph (1) shall be disregarded.
    (c) Qualified Individual.--For purposes of this section, the term 
``qualified individual'' means an individual whose principal place of 
abode on the date that is 5 days before the applicable disaster date, 
is located in the Louisiana storm and flood disaster area and who has 
sustained an economic loss by reason of the severe storms and flooding 
giving rise to the Presidential declaration described in section 2(1).

SEC. 104. PROVISIONS RELATING TO PLAN AMENDMENTS.

    (a) In General.--If this section applies to any amendment to any 
plan or annuity contract, such plan or contract shall be treated as 
being operated in accordance with the terms of the plan during the 
period described in subsection (b)(2)(A).
    (b) Amendments to Which Section Applies.--
            (1) In general.--This section shall apply to any amendment 
        to any plan or annuity contract which is made--
                    (A) pursuant to any amendment made by this title, 
                or pursuant to any regulation issued by the Secretary 
                of the Treasury or the Secretary of Labor under this 
                title, and
                    (B) on or before the last day of the first plan 
                year beginning on or after January 1, 2018, or such 
                later date as the Secretary of the Treasury may 
                prescribe.
        In the case of a governmental plan (as defined in section 
        414(d) of the Internal Revenue Code of 1986), subparagraph (B) 
        shall be applied by substituting the date which is 2 years 
        after the date otherwise applied under subparagraph (B).
            (2) Conditions.--This section shall not apply to any 
        amendment unless--
                    (A) during the period--
                            (i) beginning on the date the legislative 
                        or regulatory amendment described in paragraph 
                        (1)(A) takes effect (or in the case of a plan 
                        or contract amendment not required by such 
                        legislative or regulatory amendment, the 
                        effective date specified by the plan), and
                            (ii) ending on the date described in 
                        paragraph (1)(B) (or, if earlier, the date the 
                        plan or contract amendment is adopted),
                the plan or contract is operated as if such plan or 
                contract amendment were in effect, and
                    (B) such plan or contract amendment applies 
                retroactively for such period.

                      TITLE II--EMPLOYMENT RELIEF

SEC. 201. WORK OPPORTUNITY TAX CREDIT FOR LOUISIANA STORM AND FLOOD 
              EMPLOYEES.

    (a) In General.--For purposes of section 51 of the Internal Revenue 
Code of 1986, a Louisiana storm and flood employee shall be treated as 
a member of a targeted group.
    (b) Louisiana Storm and Flood Employee.--For purposes of this 
section, the term ``Louisiana storm and flood employee'' means--
            (1) any individual who on the applicable disaster date, had 
        a principal place of abode in the core disaster area and who is 
        hired during the 2-year period beginning on such date for a 
        position the principal place of employment of which is located 
        in the core disaster area, and
            (2) any individual who on such date had a principal place 
        of abode in the core disaster area, who is displaced from such 
        abode by reason of the severe storms and flooding giving rise 
        to the Presidential declaration described in section 2(1), and 
        who is hired during the period beginning on such date and 
        ending on December 31, 2016.
    (c) Reasonable Identification Acceptable.--In lieu of the 
certification requirement under section 51(d)(12)(A) of such Code, an 
individual may provide to the employer reasonable evidence that the 
individual is a Louisiana storm and flood employee, and subparagraph 
(B) of such section shall be applied as if such evidence were a 
certification described in such subparagraph.
    (d) Special Rules for Determining Credit.--For purposes of applying 
subpart F of part IV of subchapter A of chapter 1 of such Code to wages 
paid or incurred to any Louisiana storm and flood employee--
            (1) section 51(c)(4) of such Code shall not apply, and
            (2) section 51(i)(2) of such Code shall not apply with 
        respect to the first hire of such employee as a Louisiana storm 
        and flood employee, unless such employee was an employee of the 
        employer on the applicable disaster date.

SEC. 202. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY 2016 
              LOUISIANA STORMS AND FLOODING.

    (a) In General.--In the case of an eligible employer, there shall 
be allowed as a credit against the tax imposed by chapter 1 of the 
Internal Revenue Code of 1986 for the taxable year an amount equal to 
40 percent of the qualified wages with respect to each eligible 
employee of such employer for such taxable year. For purposes of the 
preceding sentence, the amount of qualified wages which may be taken 
into account with respect to any individual shall not exceed $6,000.
    (b) Definitions.--For purposes of this section--
            (1) Eligible employer.--The term ``eligible employer'' 
        means any employer--
                    (A) which conducted an active trade or business on 
                the applicable disaster date, in a core disaster area, 
                and
                    (B) with respect to whom the trade or business 
                described in subparagraph (A) is inoperable on or after 
                the applicable disaster date, and before January 1, 
                2017, as a result of damage sustained by reason of the 
                severe storms and flooding giving rise to the 
                Presidential declaration described in section 2(1).
            (2) Eligible employee.--The term ``eligible employee'' 
        means with respect to an eligible employer an employee whose 
        principal place of employment on the applicable disaster date, 
        with such eligible employer was in a core disaster area.
            (3) Qualified wages.--The term ``qualified wages'' means 
        wages (as defined in section 51(c)(1) of such Code, but without 
        regard to section 3306(b)(2)(B) of such Code) paid or incurred 
        by an eligible employer with respect to an eligible employee on 
        or after the applicable disaster date, and before January 1, 
        2017, which occurs during the period--
                    (A) beginning on the date on which the trade or 
                business described in paragraph (1) first became 
                inoperable at the principal place of employment of the 
                employee immediately before the severe storms and 
                flooding giving rise to the Presidential declaration 
                described in section 2(1), and
                    (B) ending on the date on which such trade or 
                business has resumed significant operations at such 
                principal place of employment.
        Such term shall include wages paid without regard to whether 
        the employee performs no services, performs services at a 
        different place of employment than such principal place of 
        employment, or performs services at such principal place of 
        employment before significant operations have resumed.
    (c) Credit Not Allowed for Large Businesses.--The term ``eligible 
employer'' shall not include any trade or business for any taxable year 
if such trade or business employed an average of more than 200 
employees on business days during the taxable year.
    (d) Certain Rules To Apply.--For purposes of this section, rules 
similar to the rules of sections 51(i)(1), 52, and 280C(a) of such Code 
shall apply.
    (e) Employee Not Taken Into Account More Than Once.--An employee 
shall not be treated as an eligible employee for purposes of this 
section for any period with respect to any employer if such employer is 
allowed a credit under section 51 of such Code with respect to such 
employee for such period.
    (f) Credit To Be Part of General Business Credit.--The credit 
allowed under this section shall be added to the current year business 
credit under section 38(b) of such Code and shall be treated as a 
credit allowed under subpart D of part IV of subchapter A of chapter 1 
of such Code.

                TITLE III--CHARITABLE GIVING INCENTIVES

SEC. 301. TEMPORARY SUSPENSION OF LIMITATIONS ON CHARITABLE 
              CONTRIBUTIONS.

    (a) In General.--Except as otherwise provided in subsection (b), 
section 170(b) of the Internal Revenue Code of 1986 shall not apply to 
qualified contributions and such contributions shall not be taken into 
account for purposes of applying subsections (b) and (d) of section 170 
of such Code to other contributions.
    (b) Treatment of Excess Contributions.--For purposes of section 170 
of such Code--
            (1) Individuals.--In the case of an individual--
                    (A) Limitation.--Any qualified contribution shall 
                be allowed only to the extent that the aggregate of 
                such contributions does not exceed the excess of the 
                taxpayer's contribution base (as defined in 
                subparagraph (F) of section 170(b)(1) of such Code) 
                over the amount of all other charitable contributions 
                allowed under such section 170(b)(1).
                    (B) Carryover.--If the aggregate amount of 
                qualified contributions made in the contribution year 
                (within the meaning of section 170(d)(1) of such Code) 
                exceeds the limitation of subparagraph (A), such excess 
                shall be added to the excess described in the portion 
                of subparagraph (A) of such section which precedes 
                clause (i) thereof for purposes of applying such 
                section.
            (2) Corporations.--In the case of a corporation--
                    (A) Limitation.--Any qualified contribution shall 
                be allowed only to the extent that the aggregate of 
                such contributions does not exceed the excess of the 
                taxpayer's taxable income (as determined under 
                paragraph (2) of section 170(b) of such Code) over the 
                amount of all other charitable contributions allowed 
                under such paragraph.
                    (B) Carryover.--Rules similar to the rules of 
                paragraph (1)(B) shall apply for purposes of this 
                paragraph.
    (c) Exception to Overall Limitation on Itemized Deductions.--So 
much of any deduction allowed under section 170 of such Code as does 
not exceed the qualified contributions paid during the taxable year 
shall not be treated as an itemized deduction for purposes of section 
68 of such Code.
    (d) Qualified Contributions.--
            (1) In general.--For purposes of this section, the term 
        ``qualified contribution'' means any charitable contribution 
        (as defined in section 170(c) of such Code)--
                    (A) paid during the period beginning on the 
                applicable disaster date, and ending on December 31, 
                2016, in cash to an organization described in section 
                170(b)(1)(A) of such Code (other than an organization 
                described in section 509(a)(3) of such Code),
                    (B) in the case of a contribution paid by a 
                corporation, such contribution is for relief efforts 
                related to the severe storms and flooding giving rise 
                to the Presidential declaration described in section 
                2(1), and
                    (C) with respect to which the taxpayer has elected 
                the application of this section.
            (2) Exception.--Such term shall not include a contribution 
        if the contribution is for establishment of a new, or 
        maintenance in an existing, segregated fund or account with 
        respect to which the donor (or any person appointed or 
        designated by such donor) has, or reasonably expects to have, 
        advisory privileges with respect to distributions or 
        investments by reason of the donor's status as a donor.
            (3) Application of election to partnerships and s 
        corporations.--In the case of a partnership or S corporation, 
        the election under paragraph (1)(C) shall be made separately by 
        each partner or shareholder.

SEC. 302. ADDITIONAL EXEMPTION FOR HOUSING LOUISIANA STORM AND FLOOD 
              DISPLACED INDIVIDUALS.

    (a) In General.--In the case of taxable years of a natural person 
beginning in 2016 or 2017, for purposes of the Internal Revenue Code of 
1986, taxable income shall be reduced by $600 for each Louisiana storm 
and flood displaced individual of the taxpayer for the taxable year.
    (b) Limitations.--
            (1) Dollar limitation.--The reduction under subsection (a) 
        shall not exceed $2,500, reduced by the amount of the reduction 
        under this section for all prior taxable years.
            (2) Individuals taken into account only once.--An 
        individual shall not be taken into account under subsection (a) 
        if such individual was taken into account under such subsection 
        by the taxpayer for any prior taxable year.
            (3) Identifying information required.--An individual shall 
        not be taken into account under subsection (a) for a taxable 
        year unless the taxpayer identification number of such 
        individual is included on the return of the taxpayer for such 
        taxable year.
    (c) Louisiana Storm and Flood Displaced Individual.--For purposes 
of this section, the term ``Louisiana storm and flood displaced 
individual'' means, with respect to any taxpayer for any taxable year, 
any natural person if--
            (1) such person's principal place of abode on the 
        applicable disaster date, was in the Louisiana storm and flood 
        disaster area,
            (2)(A) in the case of such an abode located in the core 
        disaster area, such person is displaced from such abode, or
            (B) in the case of such an abode located outside of the 
        core disaster area, such person is displaced from such abode, 
        and--
                    (i) such abode was damaged by the severe storms and 
                flooding giving rise to the Presidential declaration 
                described in section 2(1), or
                    (ii) such person was evacuated from such abode by 
                reason of such storms and flooding, and
            (3) such person is provided housing free of charge by the 
        taxpayer in the principal residence of the taxpayer for a 
        period of 60 consecutive days which ends in such taxable year.
Such term shall not include the spouse or any dependent of the 
taxpayer.
    (d) Compensation for Housing.--No deduction shall be allowed under 
this section if the taxpayer receives any rent or other amount (from 
any source) in connection with the providing of such housing.

SEC. 303. INCREASE IN STANDARD MILEAGE RATE FOR CHARITABLE USE OF 
              VEHICLES.

    Notwithstanding section 170(i) of the Internal Revenue Code of 
1986, for purposes of computing the deduction under section 170 of such 
Code for use of a vehicle described in subsection (f)(12)(E)(i) of such 
section for provision of relief during the period beginning on the 
applicable disaster date, and ending on December 31, 2017, and related 
to the severe storms and flooding giving rise to the Presidential 
declaration described in section 2(1), the standard mileage rate shall 
be 70 percent of the standard mileage rate in effect under section 
162(a) of such Code at the time of such use. Any increase under this 
section shall be rounded to the next highest cent.

SEC. 304. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS EXCLUDED FROM 
              GROSS INCOME.

    (a) In General.--For purposes of the Internal Revenue Code of 1986, 
gross income of an individual for taxable years ending on or after the 
applicable disaster date, does not include amounts received, from an 
organization described in section 170(c) of such Code, as reimbursement 
of operating expenses with respect to use of a passenger automobile for 
the benefit of such organization in connection with providing relief 
during the period beginning on the applicable disaster date, and ending 
on December 31, 2017, and relating to the severe storms and flooding 
giving rise to the Presidential declaration described in section 2(1). 
The preceding sentence shall apply only to the extent that the expenses 
which are reimbursed would be deductible under chapter 1 of such Code 
if section 274(d) of such Code were applied--
            (1) by using the standard business mileage rate in effect 
        under section 162(a) at the time of such use, and
            (2) as if the individual were an employee of an 
        organization not described in section 170(c) of such Code.
    (b) Application To Volunteer Services Only.--Subsection (a) shall 
not apply with respect to any expenses relating to the performance of 
services for compensation.
    (c) No Double Benefit.--No deduction or credit shall be allowed 
under any other provision of such Code with respect to the expenses 
excludable from gross income under subsection (a).

SEC. 305. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK INVENTORIES TO 
              PUBLIC SCHOOLS.

    (a) In General.--Section 170(e)(3)(D)(iv) of the Internal Revenue 
Code of 1986 is amended to read as follows:
                            ``(i) Termination.--This subparagraph shall 
                        not apply to contributions made--
                                    ``(I) after December 31, 2016, and 
                                before the applicable disaster date (as 
                                defined in section 2(3) of the 
                                Louisiana Flood and Storm Devastation 
                                Tax Relief Act of 2016), or
                                    ``(II) after December 31, 2016.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to contributions made on or after the applicable disaster date, 
in taxable years ending after such date.

               TITLE IV--ADDITIONAL TAX RELIEF PROVISIONS

SEC. 401. EXCLUSIONS OF CERTAIN CANCELLATIONS OF INDEBTEDNESS BY REASON 
              OF 2016 LOUISIANA STORMS AND FLOODING.

    (a) In General.--For purposes of the Internal Revenue Code of 1986, 
gross income shall not include any amount which (but for this section) 
would be includible in gross income by reason of the discharge (in 
whole or in part) of indebtedness of a natural person described in 
subsection (b) by an applicable entity (as defined in section 
6050P(c)(1) of such Code).
    (b) Persons Described.--A natural person is described in this 
subsection if the principal place of abode of such person on the 
applicable disaster date, was located--
            (1) in the core disaster area, or
            (2) in the Louisiana storm and flood disaster area (but 
        outside the core disaster area) and such person suffered 
        economic loss by reason of the severe storms and flooding 
        giving rise to the Presidential declaration described in 
        section 2(1).
    (c) Exceptions.--
            (1) Business indebtedness.--Subsection (a) shall not apply 
        to any indebtedness incurred in connection with a trade or 
        business.
            (2) Real property outside core disaster area.--Subsection 
        (a) shall not apply to any discharge of indebtedness to the 
        extent that real property constituting security for such 
        indebtedness is located outside of the Louisiana storm and 
        flood disaster area.
    (d) Denial of Double Benefit.--For purposes of the Internal Revenue 
Code of 1986, the amount excluded from gross income under subsection 
(a) shall be treated in the same manner as an amount excluded under 
section 108(a) of such Code.
    (e) Effective Date.--This section shall apply to discharges made on 
or after the applicable disaster date, and before January 1, 2018.

SEC. 402. SUSPENSION OF CERTAIN LIMITATIONS ON PERSONAL CASUALTY 
              LOSSES.

    Paragraphs (1) and (2)(A) of section 165(h) of the Internal Revenue 
Code of 1986 shall not apply to losses described in section 165(c)(3) 
of such Code which arise in the Louisiana storm and flood disaster area 
on or after the applicable disaster date, and which are attributable to 
the severe storms and flooding giving rise to the Presidential 
declaration described in section 2(1). In the case of any other losses, 
section 165(h)(2)(A) of such Code shall be applied without regard to 
the losses referred to in the preceding sentence.

SEC. 403. REQUIRED EXERCISE OF AUTHORITY UNDER SECTION 7508A FOR TAX 
              RELIEF RELATING TO 2016 LOUISIANA STORMS AND FLOODING.

    (a) In General.--In the case of any taxpayer determined by the 
Secretary of the Treasury to be affected by the Presidentially declared 
disaster relating to the severe storms and flooding giving rise to the 
Presidential declaration described in section 2(1), any relief provided 
by the Secretary of the Treasury under section 7508A of the Internal 
Revenue Code of 1986 shall be for a period ending not earlier than 
February 10, 2017, and shall be treated as applying to the filing of 
returns relating to, and the payment of, employment and excise taxes.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply for any period for performing an act which has not expired before 
the applicable disaster date.

SEC. 404. SPECIAL RULES FOR MORTGAGE REVENUE BONDS RELATING TO 2016 
              LOUISIANA STORMS AND FLOODING.

    (a) In General.--In the case of financing provided with respect to 
a qualified Louisiana storm and flood recovery residence, section 
143(d) of the Internal Revenue Code of 1986 shall be applied as if such 
residence were a targeted area residence.
    (b) Qualified Louisiana Storms and Flooding Recovery Residence.--
For purposes of this section, the term ``qualified Louisiana storm and 
flood recovery residence'' means--
            (1) any residence in the core disaster area, and
            (2) any other residence if--
                    (A) such other residence is located in the same 
                State as the principal residence referred to in 
                subparagraph (B), and
                    (B) the mortgagor with respect to such other 
                residence owned a principal residence on the applicable 
                disaster date, which--
                            (i) was located in the Louisiana storm and 
                        flood disaster area, and
                            (ii) was rendered uninhabitable by reason 
                        of the severe storms and flooding giving rise 
                        to the Presidential declaration described in 
                        section 2(1).
    (c) Special Rule for Home Improvement Loans.--In the case of any 
loan with respect to a residence in the Louisiana storm and flood 
disaster area, section 143(k)(4) of such Code shall be applied by 
substituting $150,000 for the dollar amount contained therein to the 
extent such loan is for the repair of damage by reason of the severe 
storms and flooding giving rise to the Presidential declaration 
described in section 2(1).
    (d) Application.--Subsection (a) shall not apply to financing 
provided after December 31, 2018.

SEC. 405. EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNITION OF GAIN 
              FOR PROPERTY LOCATED IN LOUISIANA STORM AND FLOOD 
              DISASTER AREA.

    Section 1033(a)(2)(B)(i) of the Internal Revenue Code of 1986 shall 
be applied by substituting ``5 years'' for ``2 years'' with respect to 
property in the Louisiana storm and flood disaster area which is 
compulsorily or involuntarily converted on or after the applicable 
disaster date, by reason of the severe storms and flooding giving rise 
to the Presidential declaration described in section 2(1), but only if 
substantially all of the use of the replacement property is in such 
area.

SEC. 406. SPECIAL RULE FOR DETERMINING EARNED INCOME.

    (a) In General.--In the case of a qualified individual, if the 
earned income of the taxpayer for the taxable year which includes the 
applicable disaster date, is less than the earned income of the 
taxpayer for the preceding taxable year, the credits allowed under 
sections 24(d) and 32 of the Internal Revenue Code of 1986 may, at the 
election of the taxpayer, be determined by substituting--
            (1) such earned income for the preceding taxable year, for
            (2) such earned income for the taxable year which includes 
        the applicable disaster date.
    (b) Qualified Individual.--For purposes of this section, the term 
``qualified individual'' means any individual whose principal place of 
abode on the applicable disaster date, was located--
            (1) in the core disaster area, or
            (2) in the Louisiana storm and flood disaster area (but 
        outside the core disaster area) and such individual was 
        displaced from such principal place of abode by reason of the 
        severe storms and flooding giving rise to the Presidential 
        declaration described in section 2(1).
    (c) Earned Income.--For purposes of this section, the term ``earned 
income'' has the meaning given such term under section 32(c) of such 
Code.
    (d) Special Rules.--
            (1) Application to joint returns.--For purposes of 
        subsection (a), in the case of a joint return for a taxable 
        year which includes the applicable disaster date--
                    (A) such subsection shall apply if either spouse is 
                a qualified individual, and
                    (B) the earned income of the taxpayer for the 
                preceding taxable year shall be the sum of the earned 
                income of each spouse for such preceding taxable year.
            (2) Uniform application of election.--Any election made 
        under subsection (a) shall apply with respect to both section 
        24(d) and section 32 of such Code.
            (3) Errors treated as mathematical error.--For purposes of 
        section 6213 of such Code, an incorrect use on a return of 
        earned income pursuant to subsection (a) shall be treated as a 
        mathematical or clerical error.
            (4) No effect on determination of gross income, etc.--
        Except as otherwise provided in this section, the Internal 
        Revenue Code of 1986 shall be applied without regard to any 
        substitution under subsection (a).

SEC. 407. SECRETARIAL AUTHORITY TO MAKE ADJUSTMENTS REGARDING TAXPAYER 
              AND DEPENDENCY STATUS.

    With respect to taxable years beginning in 2016 or 2017, the 
Secretary of the Treasury or the Secretary's delegate may make such 
adjustments in the application of the internal revenue laws as may be 
necessary to ensure that taxpayers do not lose any deduction or credit 
or experience a change of filing status by reason of temporary 
relocations by reason of the severe storms and flooding giving rise to 
the Presidential declaration described in section 2(1). Any adjustments 
made under the preceding sentence shall ensure that an individual is 
not taken into account by more than one taxpayer with respect to the 
same tax benefit.

SEC. 408. LOW-INCOME HOUSING CREDIT.

    (a) Additional Housing Credit Dollar Amount.--
            (1) In general.--For purposes of section 42 of the Internal 
        Revenue Code of 1986, in the case of calendar years 2017, 2018, 
        and 2019, the State housing credit ceiling of Louisiana shall 
        be increased by the lesser of--
                    (A) the aggregate housing credit dollar amount 
                allocated by the State housing credit agency of 
                Louisiana to buildings located in the Louisiana storm 
                and flood disaster area for such calendar year, or
                    (B) the Louisiana storm and flood housing amount 
                for such State for such calendar year.
            (2) Louisiana storm and flood housing amount.--For purposes 
        of paragraph (1), the term ``Louisiana storm and flood housing 
        amount'' means, for any calendar year, the amount equal to the 
        product of $18.00 multiplied by the portion of the Louisiana 
        population which is in the Louisiana storm and flood disaster 
        area (as determined on the basis of the most recent census 
        estimate of resident population released by the Bureau of the 
        Census before August 28, 2016).
            (3) Allocations treated as made first from additional 
        allocation amount for purposes of determining carryover.--For 
        purposes of determining the unused State housing credit ceiling 
        under section 42(h)(3)(C) of such Code for any calendar year, 
        any increase in the State housing credit ceiling under 
        paragraph (1) shall be treated as an amount described in clause 
        (ii) of such section.
    (b) Additional Housing Credit Dollar Amount for Louisiana.--For 
purposes of section 42 of such Code, in the case of calendar year 2017, 
the State housing credit ceiling of Louisiana shall each be increased 
by $3,500,000.
    (c) Difficult Development Area.--
            (1) In general.--For purposes of section 42 of such Code, 
        in the case of property placed in service during the period 
        beginning on January 1, 2017, and ending on December 31, 2021, 
        the Louisiana storm and flood disaster area--
                    (A) shall be treated as difficult development areas 
                designated under subclause (I) of section 
                42(d)(5)(B)(iii) of such Code, and
                    (B) shall not be taken into account for purposes of 
                applying the limitation under subclause (II) of such 
                section.
            (2) Application.--Paragraph (1) shall apply only to--
                    (A) housing credit dollar amounts allocated during 
                the period beginning on January 1, 2017, and ending on 
                December 31, 2019, and
                    (B) buildings placed in service during the period 
                described in paragraph (1) to the extent that paragraph 
                (1) of section 42(h) does not apply to any building by 
                reason of paragraph (4) thereof, but only with respect 
                to bonds issued after December 31, 2016.
    (d) Special Rule for Applying Income Tests.--In the case of 
property placed in service--
            (1) during 2017, 2018, or 2019,
            (2) in the Louisiana storm and flood disaster area, and
            (3) in a nonmetropolitan area (as defined in section 
        42(d)(5)(B)(iv)(IV)),
section 42 of such Code shall be applied by substituting ``national 
nonmetropolitan median gross income (determined under rules similar to 
the rules of section 142(d)(2)(B))'' for ``area median gross income'' 
in subparagraphs (A) and (B) of section 42(g)(1) of such Code.
    (e) Definitions.--Any term used in this section which is also used 
in section 42 shall have the same meaning as when used in such section.

SEC. 409. APPLICATION OF NEW MARKETS TAX CREDIT TO INVESTMENTS IN 
              COMMUNITY DEVELOPMENT ENTITIES SERVING LOUISIANA STORM 
              AND FLOOD DISASTER AREA.

    For purposes of section 45D of the Internal Revenue Code of 1986--
            (1) a qualified community development entity shall be 
        eligible for an allocation under subsection (f)(2) thereof of 
        the increase in the new markets tax credit limitation described 
        in paragraph (2) only if a significant mission of such entity 
        is the recovery and redevelopment of the Louisiana storm and 
        flood disaster area,
            (2) the new markets tax credit limitation otherwise 
        determined under subsection (f)(1) thereof shall be increased 
        by an amount equal to--
                    (A) $300,000,000 for 2016 and 2017, to be allocated 
                among qualified community development entities to make 
                qualified low-income community investments within the 
                Louisiana storm and flood disaster area, and
                    (B) $400,000,000 for 2018, to be so allocated, and
            (3) subsection (f)(3) thereof shall be applied separately 
        with respect to the amount of the increase under paragraph (2).

SEC. 410. TAX-EXEMPT BOND FINANCING.

    (a) In General.--For purposes of the Internal Revenue Code of 
1986--
            (1) any qualified Louisiana storm and flood disaster area 
        bond described in paragraph (2)(A)(i) shall be treated as an 
        exempt facility bond, and
            (2) any qualified Louisiana storm and flood disaster area 
        bond described in paragraph (2)(A)(ii) shall be treated as a 
        qualified mortgage bond.
    (b) Qualified Louisiana Storm and Flood Disaster Area Bond.--For 
purposes of this subsection, the term ``qualified Louisiana storm and 
flood disaster area bond'' means any bond issued as part of an issue 
if--
            (1)(A) 95 percent or more of the net proceeds (as defined 
        in section 150(a)(3) of such Code) of such issue are to be used 
        for qualified project costs, or
            (B) such issue meets the requirements of a qualified 
        mortgage issue, except as otherwise provided in this 
        subsection,
            (2) such bond is issued by Louisiana, or any political 
        subdivision thereof,
            (3) such bond is designated for purposes of this section 
        by--
                    (A) in the case of a bond which is required under 
                State law to be approved by the bond commission of 
                Louisiana, such bond commission, and
                    (B) in the case of any other bond, the Governor of 
                Louisiana,
            (4) such bond is issued after the date of the enactment of 
        this section and before January 1, 2023, and
            (5) no portion of the proceeds of such issue is to be used 
        to provide any property described in section 144(c)(6)(B) of 
        such Code.
    (c) Limitation on Bonds.--
            (1) Aggregate amount designated.--The maximum aggregate 
        face amount of bonds which may be designated under this 
        subsection with respect to any State shall not exceed the 
        product of $2,500 multiplied by the portion of the Louisiana 
        population which is in the Louisiana storm and flood disaster 
        area (as determined on the basis of the most recent census 
        estimate of resident population released by the Bureau of the 
        Census before August 28, 2016).
            (2) Movable property.--No bonds shall be issued which are 
        to be used for movable fixtures and equipment.
    (d) Qualified Project Costs.--For purposes of this subsection, the 
term ``qualified project costs'' means--
            (1) the cost of any qualified residential rental project 
        (as defined in section 142(d) of such Code) located in the 
        Louisiana storm and flood disaster area, and
            (2) the cost of acquisition, construction, reconstruction, 
        and renovation of--
                    (A) nonresidential real property (including fixed 
                improvements associated with such property) located in 
                the Louisiana storm and flood disaster area, and
                    (B) public utility property (as defined in section 
                168(i)(10) of such Code) located in the Louisiana storm 
                and flood disaster area.
    (e) Special Rules.--In applying this title to any qualified 
Louisiana storm and flood disaster area bond, the following 
modifications shall apply:
            (1) Section 142(d)(1) of such Code (defining qualified 
        residential rental project) shall be applied--
                    (A) by substituting ``60 percent'' for ``50 
                percent'' in subparagraph (A) thereof, and
                    (B) by substituting ``70 percent'' for ``60 
                percent'' in subparagraph (B) thereof.
            (2) Section 143 of such Code (relating to mortgage revenue 
        bonds: qualified mortgage bond and qualified veterans' mortgage 
        bond) shall be applied--
                    (A) only with respect to owner-occupied residences 
                in the Louisiana storm and flood disaster area,
                    (B) by treating any such residence in the Louisiana 
                storm and flood disaster area as a targeted area 
                residence,
                    (C) by applying subsection (f)(3) thereof without 
                regard to subparagraph (A) thereof, and
                    (D) by substituting ``$150,000'' for ``$15,000'' in 
                subsection (k)(4) thereof.
            (3) Except as provided in section 143 of such Code, 
        repayments of principal on financing provided by the issue of 
        which such bond is a part may not be used to provide financing.
            (4) Section 146 of such Code (relating to volume cap) shall 
        not apply.
            (5) Section 147(d)(2) of such Code (relating to acquisition 
        of existing property not permitted) shall be applied by 
        substituting ``50 percent'' for ``15 percent'' each place it 
        appears.
            (6) Section 148(f)(4)(C) of such Code (relating to 
        exception from rebate for certain proceeds to be used to 
        finance construction expenditures) shall apply to the available 
        construction proceeds of bonds which are part of an issue 
        described in subsection (b)(1)(A).
            (7) Section 57(a)(5) of such Code (relating to tax-exempt 
        interest) shall not apply.
    (f) Special Rule for Repairs and Reconstructions.--
            (1) In general.--For purposes of section 143 of the 
        Internal Revenue Code of 1986 and this section, any qualified 
        Louisiana storm and flood disaster area repair or 
        reconstruction shall be treated as a qualified rehabilitation.
            (2) Qualified louisiana storm and flood disaster area 
        repair or reconstruction.--For purposes of subparagraph (A), 
        the term ``qualified Louisiana storm and flood disaster area 
        repair or reconstruction'' means any repair of damage caused by 
        the severe storms and flooding giving rise to the Presidential 
        declaration described in section 2(1) (or reconstruction of 
        such building in the case of damage constituting destruction) 
        if the expenditures for such repair or reconstruction are 25 
        percent or more of the mortgagor's adjusted basis in the 
        residence. For purposes of the preceding sentence, the 
        mortgagor's adjusted basis shall be determined as of the 
        completion of the repair or reconstruction or, if later, the 
        date on which the mortgagor acquires the residence.
            (3) Termination.--This paragraph shall apply only to owner-
        financing provided after the date of the enactment of this 
        subsection and before January 1, 2023.

SEC. 411. EXPENSING FOR CERTAIN DEMOLITION AND CLEAN-UP COSTS.

    (a) In General.--A taxpayer may elect to treat 50 percent of any 
qualified Louisiana storm and flood disaster area clean-up cost as an 
expense which is not chargeable to capital account. Any cost so treated 
shall be allowed as a deduction for the taxable year in which such cost 
is paid or incurred.
    (b) Qualified Louisiana Storm and Flood Disaster Area Clean-Up 
Cost.--For purposes of this subsection, the term ``qualified Louisiana 
storm and flood disaster area clean-up cost'' means any amount paid or 
incurred during the period beginning on the applicable disaster date, 
and ending on December 31, 2018, for the removal of debris from, or the 
demolition of structures on, real property which is located in the 
Louisiana storm and flood disaster area and which is--
            (1) held by the taxpayer for use in a trade or business or 
        for the production of income, or
            (2) property described in section 1221(a)(1) in the hands 
        of the taxpayer.
For purposes of the preceding sentence, amounts paid or incurred shall 
be taken into account only to the extent that such amount would (but 
for subsection (a)) be chargeable to capital account.

SEC. 412. EXTENSION OF EXPENSING FOR ENVIRONMENTAL REMEDIATION COSTS.

    With respect to any qualified environmental remediation expenditure 
(as defined in section 198(b)) paid or incurred on or after the 
applicable disaster date, in connection with a qualified contaminated 
site located in the Louisiana storm and flood disaster area, section 
198 (relating to expensing of environmental remediation costs) shall be 
applied--
            (1) in the case of expenditures paid or incurred on or 
        after the applicable disaster date, and before January 1, 2019, 
        by substituting ``December 31, 2018'' for the date contained in 
        section 198(h), and
            (2) except as provided in section 198(d)(2), by treating 
        petroleum products (as defined in section 4612(a)(3)) as a 
        hazardous substance.

SEC. 413. TREATMENT OF NET OPERATING LOSSES ATTRIBUTABLE TO LOUISIANA 
              STORM AND FLOOD DISASTER AREA LOSSES.

    (a) In General.--If a portion of any net operating loss of the 
taxpayer for any taxable year is a qualified Louisiana storm and flood 
disaster area loss, the following rules shall apply:
            (1) Extension of carryback period.--Section 172(b)(1) of 
        the Internal Revenue Code of 1986 shall be applied with respect 
        to such portion--
                    (A) by substituting ``5 taxable years'' for ``2 
                taxable years'' in subparagraph (A)(i) thereof, and
                    (B) by not taking such portion into account in 
                determining any eligible loss of the taxpayer under 
                subparagraph (F) thereof for the taxable year.
            (2) Suspension of 90 percent amt limitation.--Section 
        56(d)(1) of such Code shall be applied by increasing the amount 
        determined under subparagraph (A)(ii)(I) thereof by the sum of 
        the carrybacks and carryovers of any net operating loss 
        attributable to such portion.
    (b) Qualified Louisiana Storm and Flood Disaster Area Loss.--
            (1) In general.--For purposes of subsection (a), the term 
        ``qualified Louisiana storm and flood disaster area loss'' 
        means the lesser of--
                    (A) the excess of--
                            (i) the net operating loss for such taxable 
                        year, over
                            (ii) the specified liability loss for such 
                        taxable year to which a 10-year carryback 
                        applies under section 172(b)(1)(C) of such 
                        Code, or
                    (B) the aggregate amount of the following 
                deductions to the extent taken into account in 
                computing the net operating loss for such taxable year:
                            (i) Any deduction for any qualified 
                        Louisiana storm and flood disaster area 
                        casualty loss.
                            (ii) Any deduction for moving expenses paid 
                        or incurred after the applicable disaster date, 
                        and before January 1, 2019, and allowable under 
                        this chapter to any taxpayer in connection with 
                        the employment of any individual--
                                    (I) whose principal place of abode 
                                was located in the Louisiana storm and 
                                flood disaster area before the 
                                applicable disaster date,
                                    (II) who was unable to remain in 
                                such abode as the result of the severe 
                                storms and flooding giving rise to the 
                                Presidential declaration described in 
                                section 2(1), and
                                    (III) whose principal place of 
                                employment with the taxpayer after such 
                                expense is located in the Louisiana 
                                storm and flood disaster area.
                        For purposes of this subparagraph, the term 
                        ``moving expenses'' has the meaning given such 
                        term by section 217(b) of such Code, except 
                        that the taxpayer's former residence and new 
                        residence may be the same residence if the 
                        initial vacating of the residence was as the 
                        result of the severe storms and flooding giving 
                        rise to the Presidential declaration described 
                        in section 2(1).
                            (iii) Any deduction allowable under this 
                        chapter for expenses paid or incurred on or 
                        after the applicable disaster date, and before 
                        January 1, 2019, to temporarily house any 
                        employee of the taxpayer whose principal place 
                        of employment is in the Louisiana storm and 
                        flood disaster area.
                            (iv) Any deduction for depreciation (or 
                        amortization in lieu of depreciation) allowable 
                        under this chapter with respect to any 
                        qualified Louisiana storm and flood disaster 
                        area property for the taxable year such 
                        property is placed in service.
                            (v) Any deduction allowable under this 
                        chapter for repair expenses (including expenses 
                        for removal of debris) paid or incurred on or 
                        after the applicable disaster date, and before 
                        January 1, 2019, with respect to any damage 
                        attributable to the severe storms and flooding 
                        giving rise to the Presidential declaration 
                        described in section 2(1) and in connection 
                        with property which is located in the Louisiana 
                        storm and flood disaster area.
            (2) Qualified louisiana storm and flood disaster area 
        property.--For purposes of this subsection--
                    (A) In general.--The term ``qualified Louisiana 
                storm and flood disaster area property'' means 
                property--
                            (i)(I) which is described in section 
                        168(k)(2)(A)(i) of the Internal Revenue Code of 
                        1986, or
                            (II) which is nonresidential real property 
                        or residential rental property,
                            (ii) substantially all of the use of which 
                        is in the Louisiana storm and flood disaster 
                        area and is in the active conduct of a trade or 
                        business by the taxpayer in such area,
                            (iii) the original use of which in the 
                        Louisiana storm and flood disaster area 
                        commences with the taxpayer on or after the 
                        applicable disaster date,
                            (iv) which is acquired by the taxpayer by 
                        purchase (as defined in section 179(d) of such 
                        Code) on or after the applicable disaster date, 
                        but only if no written binding contract for the 
                        acquisition was in effect before the applicable 
                        disaster date, and
                            (v) which is placed in service by the 
                        taxpayer on or before December 31, 2018 
                        (December 31, 2019, in the case of 
                        nonresidential real property and residential 
                        rental property).
                    (B) Exceptions.--
                            (i) Alternative depreciation property.--
                        Such term shall not include any property 
                        described in section 168(k)(2)(D) of such Code.
                            (ii) Tax-exempt bond-financed property.--
                        Such term shall not include any property any 
                        portion of which is financed with the proceeds 
                        of any obligation the interest on which is 
                        exempt from tax under section 103 of such Code.
                            (iii) Qualified revitalization buildings.--
                        Such term shall not include any qualified 
                        revitalization building with respect to which 
                        the taxpayer has elected the application of 
                        paragraph (1) or (2) of section 1400I(a) of 
                        such Code.
    (c) Qualified Louisiana Storm and Flood Area Casualty Loss.--
            (1) In general.--For purposes of paragraph (1)(B)(i), the 
        term ``qualified Louisiana storm and flood area casualty loss'' 
        means any uncompensated section 1231 loss (as defined in 
        section 1231(a)(3)(B) of such Code) of property located in the 
        Louisiana storm and flood disaster area, if--
                    (A) such loss is allowed as a deduction under 
                section 165 of such Code for the taxable year, and
                    (B) such loss is by reason of the storms and 
                flooding giving rise to the Presidential declaration 
                described in section 2(1).
            (2) Reduction for gains from involuntary conversion.--The 
        amount of qualified Louisiana storm and flood area casualty 
        loss which would (but for this paragraph) be taken into account 
        under paragraph (1) for any taxable year shall be reduced by 
        the amount of any gain recognized by the taxpayer for such year 
        from the involuntary conversion by reason of the storms and 
        flooding giving rise to the Presidential declaration described 
        in section 2(1) of property located in the Louisiana storm and 
        flood disaster area.
            (3) Coordination with general disaster loss rules.--Section 
        165(i) of such Code shall not apply to any qualified Louisiana 
        storm and flood disaster area casualty loss to the extent such 
        loss is taken into account under this subsection.
            (4) Special rules.--For purposes of paragraph (1), rules 
        similar to the rules of paragraphs (2) and (3) of section 
        172(i) of such Code shall apply with respect to such portion.

SEC. 414. INCREASED EXPENSING FOR QUALIFIED TIMBER PROPERTY.

    (a) In General.--In the case of qualified timber property any 
portion of which is located in the Louisiana storm and flood disaster 
area, the limitation under subparagraph (B) of section 194(b)(1) of 
such Code shall be increased by the lesser of--
            (1) the limitation which would (but for this section) apply 
        under such subparagraph, or
            (2) the amount of reforestation expenditures (as defined in 
        section 194(c)(3) of such Code) paid or incurred by the 
        taxpayer with respect to such qualified timber property during 
        the specified portion of the taxable year.
    (b) Definitions.--For purposes of this subsection--
            (1) Specified portion.--The term ``specified portion'' 
        means that portion of the taxable year which is on or after the 
        applicable disaster date, and before January 1, 2019.
            (2) Qualified timber property.--The term ``qualified timber 
        property'' has the meaning given such term in section 194(c)(1) 
        of such Code.

SEC. 415. DISASTER LOSS CARRYBACK.

    (a) In General.--In the case of a loss occurring in the Louisiana 
storm and flood disaster area and attributable to the severe storms and 
flooding giving rise to the Presidential declaration described in 
section 2(1), at the election of the taxpayer, section 165(i)(1) of the 
Internal Revenue Code of 1986 shall be applied by substituting ``any of 
the 3 taxable years preceding'' for ``the taxable year immediately 
preceding''.
    (b) Special Rules.--
            (1) Determined without regard to adjusted gross income.--
        Any loss described in subsection (a) shall be determined for 
        the taxable year without regard to section 165(h)(2)(A) of such 
        Code.
            (2) Treated as sale or exchange.--Notwithstanding section 
        165(h)(2)(B) of such Code, any loss described in subsection (a) 
        shall be treated as a loss from a sale or exchange of a capital 
        asset.

SEC. 416. HOUSING RELIEF FOR INDIVIDUALS AFFECTED BY HURRICANE KATRINA.

    (a) Exclusion of Employer-Provided Housing for Individual Affected 
by Louisiana Storms and Flooding.--
            (1) In general.--Gross income of a qualified employee shall 
        not include the value of any lodging furnished in kind to such 
        employee (and such employee's spouse or any of such employee's 
        dependents) by or on behalf of a qualified employer for any 
        month during the taxable year.
            (2) Limitation.--The amount which may be excluded under 
        paragraph (1) for any month for which lodging is furnished 
        during the taxable year shall not exceed $600.
            (3) Treatment of exclusion.--The exclusion under paragraph 
        (1) shall be treated as an exclusion under section 119 of such 
        Code (other than for purposes of sections 3121(a)(19) and 
        3306(b)(14) of such Code).
    (b) Employer Credit for Housing Employees Affected by Louisiana 
Storms and Flooding.--For purposes of section 38, in the case of a 
qualified employer, the Louisiana storm and flood housing credit for 
any month during the taxable year is an amount equal to 30 percent of 
any amount which is excludable from the gross income of a qualified 
employee of such employer under subsection (a) and not otherwise 
excludable under section 119 of such Code.
    (c) Qualified Employee.--For purposes of this section, the term 
``qualified employee'' means, with respect to any month, an 
individual--
            (1) who had a principal residence (as defined in section 
        121 of such Code) in the Louisiana storm and flood disaster 
        area on the applicable disaster date, and
            (2) who performs substantially all employment services--
                    (A) in the Louisiana storm and flood disaster area, 
                and
                    (B) for the qualified employer which furnishes 
                lodging to such individual.
    (d) Qualified Employer.--For purposes of this section, the term 
``qualified employer'' means any employer with a trade or business 
located in the Louisiana storm and flood disaster area.
    (e) Certain Rules To Apply.--For purposes of this subsection, rules 
similar to the rules of sections 51(i)(1) and 52 of such Code shall 
apply.
    (f) Application of Section.--This section shall apply to lodging 
furnished during the period--
            (1) beginning on the first day of the first month beginning 
        after the date of the enactment of this section, and
            (2) ending on the date which is 6 months after the first 
        day described in paragraph (1).
    (g) Treated as Part of General Business Credit.--The Louisiana 
storm and flood housing credit determined under subsection (b) shall be 
treated as listed in section 38(b) of the Internal Revenue Code of 
1986.
                                 <all>
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