II 

112TH CONGRESS 

2D SESSION S. 3601 

To provide tax relief with respect to the Hurricane Isaac disaster area. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 20, 2012 

Mr. VITTER introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To provide tax relief with respect to the Hurricane Isaac 

disaster area. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Investment Savings 

5 Access After Catastrophes Act of 2012’’. 

6 SEC. 2. HURRICANE ISAAC DISASTER AREA. 

7 For purposes of this Act, the term ‘‘Hurricane Isaac 

8 disaster area’’ means any parish or county of Louisiana 

9 or Mississippi which is (in whole or in part) in the area 

10 with respect to which a major disaster has been declared 

11 by the President before September 10, 2012, under section 


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1 401 of the Robert T. Stafford Disaster Relief and Emer2 gency Assistance Act by reason of Hurricane Isaac. 

3 SEC. 3. SUSPENSION OF PERSONAL CASUALTY LOSS LIMI4 TATIONS. 

5 Paragraphs (1) and (2) of section 165(h) of the In6 ternal Revenue Code of 1986 shall not apply to losses de7 scribed in section 165(c)(3) of such Code which arise in 

8 the Hurricane Isaac disaster area during the 2-year period 

9 beginning on August 26, 2012, and which are attributable 

10 to Hurricane Isaac. In the case of any other losses, section 

11 165(h)(2)(A) of such Code shall be applied without regard 

12 to the losses referred to in the preceding sentence. 

13 SEC. 4. TREATMENT OF NET OPERATING LOSSES ATTRIB14 UTABLE TO HURRICANE ISAAC. 

15 (a) EXTENSION OF CARRYBACK PERIOD.—During 

16 the 2-year period beginning on August 26, 2012, if a por17 tion of any net operating loss of the taxpayer for any tax18 able year is a Hurricane Isaac loss, section 172(b)(1) of 

19 the Internal Revenue Code of 1986 shall be applied with 

20 respect to such portion— 

21 (1) by substituting ‘‘5 taxable years’’ for ‘‘2 

22 taxable years’’ in subparagraph (A)(i) thereof, and 

23 (2) by not taking such portion into account in 

24 determining any eligible loss of the taxpayer under 

25 subparagraph (F) thereof for the taxable year. 


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1 (b) SUSPENSION OF 90 PERCENT AMT LIMITA2 TION.—Section 56(d)(1) of such Code shall be applied by 

3 increasing the amount determined under subparagraph 

4 (A)(ii)(I) thereof by the sum of the carrybacks and 

5 carryovers of any net operating loss attributable to the 

6 portion described in subsection (a). 

7 (c) HURRICANE ISAAC LOSS.—For purposes of this 

8 section— 

9 (1) IN GENERAL.—The term ‘‘Hurricane Isaac 

10 loss’’ means the lesser of— 

11 (A) the excess of— 

12 (i) the net operating loss for such tax13 able year, over 

14 (ii) the specified liability loss for such 

15 taxable year to which a 10-year carryback 

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

17 Code, or 

18 (B) the amount of any deduction for any 

19 qualified Hurricane Isaac casualty loss to the 

20 extent taken into account in computing the net 

21 operating loss for such taxable year. 

22 (2) QUALIFIED HURRICANE ISAAC CASUALTY

23 LOSS.— 

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

25 Hurricane Isaac casualty loss’’ means any unVerDate Mar 15 2010 02:49 Sep 27, 2012 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3601.IS S3601

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1 compensated section 1231 loss (as defined in 

2 section 1231(a)(3)(B) of such Code) of property 

3 located in the Hurricane Isaac disaster area 

4 if— 

5 (i) such loss is allowed as a deduction 

6 under section 165 of such Code for the 

7 taxable year, and 

8 (ii) such loss is by reason of Hurri9 cane Isaac. 

10 (B) APPLICABLE RULES.—For purposes of 

11 subparagraph (A), rules similar to the rules of 

12 subparagraphs (B) and (C) of paragraph (3), 

13 and paragraph (4), of section 1400N(k) of such 

14 Code and shall apply. 

15 SEC. 5. TAX-FAVORED WITHDRAWALS FROM RETIREMENT 

16 PLANS. 

17 (a) IN GENERAL.—A qualified Hurricane Isaac dis18 tribution shall be treated as a qualified hurricane distribu19 tion for purposes of section 1400Q(a) of the Internal Rev20 enue Code of 1986. 

21 (b) QUALIFIED HURRICANE ISAAC DISTRIBUTION.— 

22 For purposes of subsection (a), the term ‘‘qualified Hurri23 cane Isaac distribution’’ means any distribution from an 

24 eligible retirement plan made on or after August 26, 2012, 

25 and before September 11, 2014, to an individual whose 


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1 principal place of abode on August 26, 2012, is located 

2 in the Hurricane Isaac disaster area and who has sus3 tained an economic loss by reason of Hurricane Isaac. 

4 (c) APPLICABLE RULES.—For purposes of this sec5 tion, rules similar to the rules of section 1400Q(a) of such 

6 Code (other than paragraph (4)(A) thereof) shall apply. 

7 SEC. 6. RESCISSION OF UNSPENT AND UNCOMMITTED FED8 ERAL FUNDS. 

9 (a) IN GENERAL.—Notwithstanding any other provi10 sion of law, of all available unobligated Federal funds, an 

11 amount in appropriated discretionary unexpired funds de12 termined by the Director of the Office of Management and 

13 Budget to be equal to the reduction in Federal revenues 

14 by reason of the enactment of this Act is rescinded. 

15 (b) IMPLEMENTATION.—Not later than 60 days after 

16 the date of enactment of this Act, the Director of the Of17 fice of Management and Budget shall— 

18 (1) identify the accounts and amounts rescinded 

19 to implement subsection (a); and 

20 (2) submit a report to the Secretary of the 

21 Treasury and Congress of the accounts and amounts 

22 identified under paragraph (1) for rescission. 


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1 (c) EXCEPTION.—This section shall not apply to the 

2 unobligated Federal funds of the Department of Defense 

3 or the Department of Veterans Affairs. 

Æ 


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