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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5699 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5699

To amend the Internal Revenue Code of 1986 to provide tax benefits for 
    certain areas affected by the discharge of oil by reason of the 
    explosion on, and sinking of, the mobile offshore drilling unit 
               Deepwater Horizon, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              July 1, 2010

     Mr. Miller of Florida (for himself, Mr. Bonner, and Mr. Boyd) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL

 
To amend the Internal Revenue Code of 1986 to provide tax benefits for 
    certain areas affected by the discharge of oil by reason of the 
    explosion on, and sinking of, the mobile offshore drilling unit 
               Deepwater Horizon, and for other purposes.

    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 ``Gulf Oil Spill 
Recovery Act of 2010''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; etc.
Sec. 2. Tax benefits for Gulf Oil Spill Recovery Zone.
Sec. 3. Special extension of bonus depreciation placed in service date 
                            for taxpayers affected by the Gulf Oil 
                            Spill.
Sec. 4. Gulf Coast Recovery Bonds.

SEC. 2. TAX BENEFITS FOR GULF OIL SPILL RECOVERY ZONE.

    (a) In General.--Subchapter Y of chapter 1 is amended by adding at 
the end the following new part:

        ``PART IV--TAX BENEFITS FOR GULF OIL SPILL RECOVERY ZONE

``Sec. 1400V-1. Gulf Oil Spill Recovery Zone.
``Sec. 1400V-2. Tax benefits for Gulf Oil Spill Recovery Zone.
``Sec. 1400V-3. Housing tax benefits.
``Sec. 1400V-4. Special rules for use of retirement funds.
``Sec. 1400V-5. Employee Retention Credit for Employers Affected by 
                            Gulf Oil Spill.
``Sec. 1400V-6. Additional tax relief provisions.
``Sec. 1400V-7. Special rules for mortgage revenue bonds.

``SEC. 1400V-1. GULF OIL SPILL RECOVERY ZONE.

    ``For purposes of this part--
            ``(1) Gulf oil spill recovery zone.--The term `Gulf Oil 
        Spill Recovery Zone' means the following counties and parishes 
        affected by the Gulf Oil Spill:
                    ``(A) Terrebone, LaFourche, Jefferson, Plaquemines, 
                St. Bernard, Orleans, and St. Tammany parishes in the 
                State of Louisiana,
                    ``(B) Mobile and Baldwin counties in the State of 
                Alabama,
                    ``(C) Hancock, Harrison, and Jackson counties in 
                the State of Mississippi, and
                    ``(D) Escambia, Santa Rosa, Okaloosa, Walton, Bay, 
                Holmes, Washington, Gulf, and Franklin counties in the 
                State of Florida.
            ``(2) Gulf oil spill.--The term `Gulf Oil Spill' means the 
        discharge of oil by reason of the explosion on, and sinking of, 
        the mobile offshore drilling unit Deepwater Horizon.

``SEC. 1400V-2. TAX BENEFITS FOR GULF OIL SPILL RECOVERY ZONE.

    ``(a) Tax-Exempt Bond Financing.--
            ``(1) In general.--For purposes of this title--
                    ``(A) any qualified Gulf Oil Spill Recovery Zone 
                Bond described in paragraph (2)(A)(i) shall be treated 
                as an exempt facility bond, and
                    ``(B) any qualified Gulf Oil Spill Recovery Zone 
                Bond described in paragraph (2)(A)(ii) shall be treated 
                as a qualified mortgage bond.
            ``(2) Qualified gulf oil spill recovery zone bond.--For 
        purposes of this subsection, the term `qualified Gulf Oil Spill 
        Recovery Zone Bond' means any bond issued as part of an issue 
        if--
                    ``(A)(i) 95 percent or more of the net proceeds (as 
                defined in section 150(a)(3)) of such issue are to be 
                used for qualified project costs, or
                    ``(ii) such issue meets the requirements of a 
                qualified mortgage issue, except as otherwise provided 
                in this subsection,
                    ``(B) such bond is issued by the State of Florida, 
                Alabama, Louisiana, or Mississippi, or any political 
                subdivision thereof,
                    ``(C) such bond is designated for purposes of this 
                section by--
                            ``(i) in the case of a bond which is 
                        required under State law to be approved by the 
                        bond commission of such State, such bond 
                        commission, and
                            ``(ii) in the case of any other bond, the 
                        Governor of such State,
                    ``(D) such bond is issued after the date of the 
                enactment of this section and before January 1, 2016, 
                and
                    ``(E) no portion of the proceeds of such issue is 
                to be used to provide any property described in section 
                144(c)(6)(B).
            ``(3) Limitations on bonds.--
                    ``(A) 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 State population which is in the Gulf 
                Oil Spill Recovery Zone (as determined on the basis of 
                the most recent census estimate of resident population 
                released by the Bureau of Census before April 20, 
                2010).
                    ``(B) Movable property.--No bonds shall be issued 
                which are to be used for movable fixtures and 
                equipment.
            ``(4) Qualified project costs.--For purposes of this 
        subsection, the term `qualified project costs' means--
                    ``(A) the cost of any qualified residential rental 
                project (as defined in section 142(d)) located in the 
                Gulf Oil Spill Recovery Zone, and
                    ``(B) the cost of acquisition, construction, 
                reconstruction, and renovation of--
                            ``(i) nonresidential real property 
                        (including fixed improvements associated with 
                        such property) located in the Gulf Oil Spill 
                        Recovery Zone, and
                            ``(ii) public utility property (as defined 
                        in section 168(i)(10)) located in the Gulf Oil 
                        Spill Recovery Zone.
            ``(5) Special rules.--In applying this title to any 
        qualified Gulf Oil Spill Recovery Zone Bond, the following 
        modifications shall apply:
                    ``(A) Section 142(d)(1) (defining qualified 
                residential rental project) shall be applied--
                            ``(i) by substituting `60 percent' for `50 
                        percent' in subparagraph (A) thereof, and
                            ``(ii) by substituting `70 percent' for `60 
                        percent' in subparagraph (B) thereof.
                    ``(B) Section 143 (relating to mortgage revenue 
                bonds: qualified mortgage bond and qualified veterans' 
                mortgage bond) shall be applied--
                            ``(i) only with respect to owner-occupied 
                        residences in the Gulf Oil Spill Recovery Zone,
                            ``(ii) by treating any such residence in 
                        the Gulf Oil Spill Recovery Zone as a targeted 
                        area residence,
                            ``(iii) by applying subsection (f)(3) 
                        thereof without regard to subparagraph (A) 
                        thereof, and
                            ``(iv) by substituting `$150,000' for 
                        `$15,000' in subsection (k)(4) thereof.
                    ``(C) Except as provided in section 143, repayments 
                of principal on financing provided by the issue of 
                which such bond is a part may not be used to provide 
                financing.
                    ``(D) Section 146 (relating to volume cap) shall 
                not apply.
                    ``(E) Section 147(d)(2) (relating to acquisition of 
                existing property not permitted) shall be applied by 
                substituting `50 percent' for `15 percent' each place 
                it appears.
                    ``(F) Section 148(f)(4)(C) (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 paragraph (2)(A)(i).
                    ``(G) Section 57(a)(5) (relating to tax-exempt 
                interest) shall not apply.
            ``(6) Separate issue treatment of portions of an issue.--
        This subsection shall not apply to the portion of an issue 
        which (if issued as a separate issue) would be treated as a 
        qualified bond or as a bond that is not a private activity bond 
        (determined without regard to paragraph (1)), if the issuer 
        elects to so treat such portion.
    ``(b) Advance Refundings of Certain Tax-Exempt Bonds.--
            ``(1) In general.--With respect to a bond described in 
        paragraph (3), one additional advance refunding after the date 
        of the enactment of this section and before January 1, 2016, 
        shall be allowed under the applicable rules of section 149(d) 
        if--
                    ``(A) the Governor of the State designates the 
                advance refunding bond for purposes of this subsection, 
                and
                    ``(B) the requirements of paragraph (5) are met.
            ``(2) Certain private activity bonds.--With respect to a 
        bond described in paragraph (3) which is an exempt facility 
        bond described in paragraph (1) or (2) of section 142(a), one 
        advance refunding after the date of the enactment of this 
        section and before January 1, 2016, shall be allowed under the 
        applicable rules of section 149(d) (notwithstanding paragraph 
        (2) thereof) if the requirements of subparagraphs (A) and (B) 
        of paragraph (1) are met.
            ``(3) Bonds described.--A bond is described in this 
        paragraph if such bond was outstanding on April 20, 2010, and 
        is issued by the State of Florida, Alabama, Louisiana, or 
        Mississippi, or a political subdivision thereof.
            ``(4) Aggregate limit.--The maximum aggregate face amount 
        of bonds which may be designated under this subsection by the 
        Governor of a State shall not exceed--
                    ``(A) $4,500,000,000 in the case of the State of 
                Florida,
                    ``(B) $4,500,000,000 in the case of the State of 
                Louisiana,
                    ``(C) $4,500,000,000 in the case of the State of 
                Mississippi, and
                    ``(D) $4,500,000,000 in the case of the State of 
                Alabama.
            ``(5) Additional requirements.--The requirements of this 
        paragraph are met with respect to any advance refunding of a 
        bond described in paragraph (3) if--
                    ``(A) no advance refundings of such bond would be 
                allowed under this title on or after April 20, 2010,
                    ``(B) the advance refunding bond is the only other 
                outstanding bond with respect to the refunded bond, and
                    ``(C) the requirements of section 148 are met with 
                respect to all bonds issued under this subsection.
            ``(6) Use of proceeds requirement.--This subsection shall 
        not apply to any advance refunding of a bond which is issued as 
        part of an issue if any portion of the proceeds of such issue 
        (or any prior issue) was (or is to be) used to provide any 
        property described in section 144(c)(6)(B).
    ``(c) Low-Income Housing Credit.--
            ``(1) Additional housing credit dollar amount for gulf oil 
        spill recovery zone.--
                    ``(A) In general.--For purposes of section 42, in 
                the case of calendar years 2010, 2011, and 2012, the 
                State housing credit ceiling of each State, any portion 
                of which is located in the Gulf Oil Spill Recovery 
                Zone, shall be increased by the lesser of--
                            ``(i) the aggregate housing credit dollar 
                        amount allocated by the State housing credit 
                        agency of such State to buildings located in 
                        the Gulf Oil Spill Recovery Zone for such 
                        calendar year, or
                            ``(ii) the Gulf Oil Spill Recovery housing 
                        amount for such State for such calendar year.
                    ``(B) Gulf opportunity housing amount.--For 
                purposes of subparagraph (A), the term `Gulf Oil Spill 
                Recovery housing amount' means, for any calendar year, 
                the amount equal to the product of $18.00 multiplied by 
                the portion of the State population which is in the 
                Gulf Oil Spill Recovery Zone (as determined on the 
                basis of the most recent census estimate of resident 
                population released by the Bureau of Census before 
                April 20, 2010).
                    ``(C) 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) for any calendar year, any increase in the 
                State housing credit ceiling under subparagraph (A) 
                shall be treated as an amount described in clause (ii) 
                of such section.
            ``(2) Difficult development area.--
                    ``(A) In general.--For purposes of section 42, in 
                the case of property placed in service during 2011, 
                2012, or 2013, the Gulf Oil Spill Recovery Zone--
                            ``(i) shall be treated as difficult 
                        development areas designated under subclause 
                        (I) of section 42(d)(5)(C)(iii), and
                            ``(ii) shall not be taken into account for 
                        purposes of applying the limitation under 
                        subclause (II) of such section.
                    ``(B) Application.--Subparagraph (A) shall apply 
                only to--
                            ``(i) housing credit dollar amounts 
                        allocated during the period beginning on 
                        January 1, 2011, and ending on December 31, 
                        2013, and
                            ``(ii) buildings placed in service during 
                        such period 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, 
                        2010.
            ``(3) Special rule for applying income tests.--In the case 
        of property placed in service--
                    ``(A) during 2011, 2012, or 2013,
                    ``(B) in the Gulf Oil Spill Recovery Zone, and
                    ``(C) in a nonmetropolitan area (as defined in 
                section 42(d)(5)(C)(iv)(IV)),
        section 42 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).
            ``(4) Definitions.--Any term used in this subsection which 
        is also used in section 42 shall have the same meaning as when 
        used in such section.
    ``(d) Special Allowance for Certain Property Acquired on or After 
April 20, 2010.--
            ``(1) Additional allowance.--In the case of any qualified 
        Gulf Oil Spill Recovery Zone property--
                    ``(A) the depreciation deduction provided by 
                section 167(a) for the taxable year in which such 
                property is placed in service shall include an 
                allowance equal to 50 percent of the adjusted basis of 
                such property, and
                    ``(B) the adjusted basis of the qualified Gulf Oil 
                Spill Recovery Zone property shall be reduced by the 
                amount of such deduction before computing the amount 
                otherwise allowable as a depreciation deduction under 
                this chapter for such taxable year and any subsequent 
                taxable year.
            ``(2) Qualified gulf oil spill recovery zone property.--For 
        purposes of this subsection--
                    ``(A) In general.--The term `qualified Gulf Oil 
                Spill Recovery Zone property' means property--
                            ``(i)(I) which is described in section 
                        168(k)(2)(A)(i), or
                            ``(II) which is nonresidential real 
                        property or residential rental property,
                            ``(ii) substantially all of the use of 
                        which is in the Gulf Oil Spill Recovery Zone 
                        and is in the active conduct of a trade or 
                        business by the taxpayer in such Zone,
                            ``(iii) the original use of which in the 
                        Gulf Oil Spill Recovery Zone commences with the 
                        taxpayer on or after April 20, 2010,
                            ``(iv) which is acquired by the taxpayer by 
                        purchase (as defined in section 179(d)) on or 
                        after April 20, 2010, but only if no written 
                        binding contract for the acquisition was in 
                        effect before April 20, 2010, and
                            ``(v) which is placed in service by the 
                        taxpayer on or before December 31, 2012 
                        (December 31, 2013, 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)(i).
                            ``(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.
                            ``(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).
                            ``(iv) Election out.--If a taxpayer makes 
                        an election under this clause with respect to 
                        any class of property for any taxable year, 
                        this subsection shall not apply to all property 
                        in such class placed in service during such 
                        taxable year.
            ``(3) Special rules.--For purposes of this subsection, 
        rules similar to the rules of subparagraph (E) of section 
        168(k)(2) shall apply, except that such subparagraph shall be 
        applied--
                    ``(A) by substituting `April 20, 2010' for 
                `December 31, 2007' each place it appears therein,
                    ``(B) by substituting `January 1, 2013' for 
                `January 1, 2010' in clause (i) thereof, and
                    ``(C) by substituting `qualified Gulf Oil Spill 
                Recovery Zone property' for `qualified property' in 
                clause (iv) thereof.
            ``(4) Allowance against alternative minimum tax.--For 
        purposes of this subsection, rules similar to the rules of 
        section 168(k)(2)(G) shall apply.
            ``(5) Recapture.--For purposes of this subsection, rules 
        similar to the rules under section 179(d)(10) shall apply with 
        respect to any qualified Gulf Oil Spill Recovery Zone property 
        which ceases to be qualified Gulf Oil Spill Recovery Zone 
        property.
    ``(e) Increase in Expensing Under Section 179.--
            ``(1) In general.--For purposes of section 179--
                    ``(A) the dollar amount in effect under section 
                179(b)(1) for the taxable year shall be increased by 
                the lesser of--
                            ``(i) $100,000, or
                            ``(ii) the cost of qualified section 179 
                        Gulf Oil Spill Recovery Zone property placed in 
                        service during the taxable year, and
                    ``(B) the dollar amount in effect under section 
                179(b)(2) for the taxable year shall be increased by 
                the lesser of--
                            ``(i) $600,000, or
                            ``(ii) the cost of qualified section 179 
                        Gulf Oil Spill Recovery Zone property placed in 
                        service during the taxable year.
            ``(2) Qualified section 179 gulf oil spill recovery zone 
        property.--For purposes of this subsection, the term `qualified 
        section 179 Gulf Oil Spill Recovery Zone property' means 
        section 179 property (as defined in section 179(d)) which is 
        qualified Gulf Oil Spill Recovery Zone property (as defined in 
        subsection (d)(2)).
            ``(3) Coordination with empowerment zones and renewal 
        communities.--For purposes of sections 1397A and 1400J, 
        qualified section 179 Gulf Oil Spill Recovery Zone property 
        shall not be treated as qualified zone property or qualified 
        renewal property, unless the taxpayer elects not to take such 
        qualified section 179 Gulf Oil Spill Recovery Zone property 
        into account for purposes of this subsection.
            ``(4) Recapture.--For purposes of this subsection, rules 
        similar to the rules under section 179(d)(10) shall apply with 
        respect to any qualified section 179 Gulf Oil Spill Recovery 
        Zone property which ceases to be qualified section 179 Gulf Oil 
        Spill Recovery Zone property.
    ``(f) Expensing for Certain Demolition and Clean-Up Costs.--
            ``(1) In general.--A taxpayer may elect to treat 50 percent 
        of any qualified Gulf Oil Spill Recovery Zone 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.
            ``(2) Qualified gulf oil spill recovery zone clean-up 
        cost.--For purposes of this subsection, the term `qualified 
        Gulf Oil Spill Recovery Zone clean-up cost' means any amount 
        paid or incurred during the period beginning on April 20, 2010, 
        and ending on December 31, 2012, for the removal of debris 
        from, or the demolition of structures on, real property which 
        is located in the Gulf Oil Spill Recovery Zone and which is--
                    ``(A) held by the taxpayer for use in a trade or 
                business or for the production of income, or
                    ``(B) 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 paragraph (1)) be chargeable to 
        capital account.
    ``(g) 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 April 20, 2010, 
in connection with a qualified contaminated site located in the Gulf 
Oil Spill Recovery Zone, section 198 (relating to expensing of 
environmental remediation costs) shall be applied--
            ``(1) in the case of expenditures paid or incurred on or 
        after April 20, 2010, and before January 1, 2013, by 
        substituting `December 31, 2012' 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.
    ``(h) Increase in Rehabilitation Credit.--In the case of qualified 
rehabilitation expenditures (as defined in section 47(c)) paid or 
incurred during the period beginning on April 20, 2010, and ending on 
December 31, 2013, with respect to any qualified rehabilitated building 
or certified historic structure (as defined in section 47(c)) located 
in the Gulf Oil Spill Recovery Zone, subsection (a) of section 47 
(relating to rehabilitation credit) shall be applied--
            ``(1) by substituting `13 percent' for `10 percent' in 
        paragraph (1) thereof, and
            ``(2) by substituting `26 percent' for `20 percent' in 
        paragraph (2) thereof.
    ``(i) Treatment of Net Operating Losses Attributable to Gulf Oil 
Spill Recovery Zone Losses.--
            ``(1) In general.--If a portion of any net operating loss 
        of the taxpayer for any taxable year is a qualified Gulf Oil 
        Spill Recovery Zone loss, the following rules shall apply:
                    ``(A) Extension of carryback period.--Section 
                172(b)(1) shall be applied with respect to such 
                portion--
                            ``(i) by substituting `5 taxable years' for 
                        `2 taxable years' in subparagraph (A)(i), and
                            ``(ii) by not taking such portion into 
                        account in determining any eligible loss of the 
                        taxpayer under subparagraph (F) thereof for the 
                        taxable year.
                    ``(B) Suspension of 90 percent amt limitation.--
                Section 56(d)(1) 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.
            ``(2) Qualified gulf oil spill recovery zone loss.--For 
        purposes of paragraph (1), the term `qualified Gulf Oil Spill 
        Recovery Zone 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), 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 Gulf 
                        Oil Spill Recovery Zone casualty loss.
                            ``(ii) Any deduction for moving expenses 
                        paid or incurred after April 19, 2010, and 
                        before January 1, 2014, 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 Gulf Oil Spill 
                                Recovery Zone before April 20, 2010,
                                    ``(II) who was unable to remain in 
                                such abode as the result of the Gulf 
                                Oil Spill, and
                                    ``(III) whose principal place of 
                                employment with the taxpayer after such 
                                expense is located in the Gulf Oil 
                                Spill Recovery Zone.
                        For purposes of this clause, the term `moving 
                        expenses' has the meaning given such term by 
                        section 217(b), except that the taxpayer's 
                        former residence and new residence may be the 
                        same residence if the initial vacating of the 
                        residence was by reason of the Gulf Oil Spill.
                            ``(iii) Any deduction allowable under this 
                        chapter for expenses paid or incurred after 
                        April 19, 2010, and before January 1, 2013, to 
                        temporarily house any employee of the taxpayer 
                        whose principal place of employment is in the 
                        Gulf Oil Spill Recovery Zone.
                            ``(iv) Any deduction for depreciation (or 
                        amortization in lieu of depreciation) allowable 
                        under this chapter with respect to any 
                        qualified Gulf Oil Spill Recovery Zone property 
                        (as defined in subsection (d)(2), but without 
                        regard to subparagraph (B)(iv) thereof)) 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 after 
                        April 19, 2010, and before January 1, 2013, 
                        with respect to any damage attributable to the 
                        Gulf Oil Spill and in connection with property 
                        which is located in the Gulf Oil Spill Recovery 
                        Zone.
            ``(3) Qualified gulf oil spill recovery zone casualty 
        loss.--
                    ``(A) In general.--For purposes of paragraph 
                (2)(B)(i), the term `qualified Gulf Oil Spill Recovery 
                Zone casualty loss' means any uncompensated section 
                1231 loss (as defined in section 1231(a)(3)(B)) of 
                property located in the Gulf Oil Spill Recovery Zone 
                if--
                            ``(i) such loss is allowed as a deduction 
                        under section 165 for the taxable year, and
                            ``(ii) such loss is by reason of the Gulf 
                        Oil Spill.
                    ``(B) Reduction for gains from involuntary 
                conversion.--The amount of qualified Gulf Oil Spill 
                Recovery Zone casualty loss which would (but for this 
                subparagraph) be taken into account under subparagraph 
                (A) 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 Gulf 
                Oil Spill of property located in the Gulf Oil Spill 
                Recovery Zone.
                    ``(C) Coordination with general disaster loss 
                rules.--Subsections (h) and (i) of section 165 shall 
                not apply to any qualified Gulf Oil Spill Recovery Zone 
                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) shall apply with respect to such portion.
    ``(j) Credit to Holders of Gulf Oil Spill Recovery Tax Credit 
Bonds.--
            ``(1) Allowance of credit.--If a taxpayer holds a Gulf Oil 
        Spill Recovery tax credit bond on one or more credit allowance 
        dates of the bond occurring during any taxable year, there 
        shall be allowed as a credit against the tax imposed by this 
        chapter for the taxable year an amount equal to the sum of the 
        credits determined under paragraph (2) with respect to such 
        dates.
            ``(2) Amount of credit.--
                    ``(A) In general.--The amount of the credit 
                determined under this paragraph with respect to any 
                credit allowance date for a Gulf Oil Spill Recovery tax 
                credit bond is 25 percent of the annual credit 
                determined with respect to such bond.
                    ``(B) Annual credit.--The annual credit determined 
                with respect to any Gulf Oil Spill Recovery tax credit 
                bond is the product of--
                            ``(i) the credit rate determined by the 
                        Secretary under subparagraph (C) for the day on 
                        which such bond was sold, multiplied by
                            ``(ii) the outstanding face amount of the 
                        bond.
                    ``(C) Determination.--For purposes of subparagraph 
                (B), with respect to any Gulf Oil Spill Recovery tax 
                credit bond, the Secretary shall determine daily or 
                cause to be determined daily a credit rate which shall 
                apply to the first day on which there is a binding, 
                written contract for the sale or exchange of the bond. 
                The credit rate for any day is the credit rate which 
                the Secretary or the Secretary's designee estimates 
                will permit the issuance of Gulf Oil Spill Recovery tax 
                credit bonds with a specified maturity or redemption 
                date without discount and without interest cost to the 
                issuer.
                    ``(D) Credit allowance date.--For purposes of this 
                subsection, the term `credit allowance date' means 
                March 15, June 15, September 15, and December 15. Such 
                term also includes the last day on which the bond is 
                outstanding.
                    ``(E) Special rule for issuance and redemption.--In 
                the case of a bond which is issued during the 3-month 
                period ending on a credit allowance date, the amount of 
                the credit determined under this paragraph with respect 
                to such credit allowance date shall be a ratable 
                portion of the credit otherwise determined based on the 
                portion of the 3-month period during which the bond is 
                outstanding. A similar rule shall apply when the bond 
                is redeemed or matures.
            ``(3) Limitation based on amount of tax.--The credit 
        allowed under paragraph (1) for any taxable year shall not 
        exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under part 
                IV of subchapter A (other than subpart C and this 
                subsection).
            ``(4) Gulf oil spill recovery tax credit bond.--For 
        purposes of this subsection--
                    ``(A) In general.--The term `Gulf Oil Spill 
                Recovery tax credit bond' means any bond issued as part 
                of an issue if--
                            ``(i) the bond is issued by the State of 
                        Florida, Alabama, Louisiana, or Mississippi,
                            ``(ii) 95 percent or more of the proceeds 
                        of such issue are to be used to--
                                    ``(I) pay principal, interest, or 
                                premiums on qualified bonds issued by 
                                such State or any political subdivision 
                                of such State, or
                                    ``(II) make a loan to any political 
                                subdivision of such State to pay 
                                principal, interest, or premiums on 
                                qualified bonds issued by such 
                                political subdivision,
                            ``(iii) the Governor of such State 
                        designates such bond for purposes of this 
                        subsection,
                            ``(iv) the bond is a general obligation of 
                        such State and is in registered form (within 
                        the meaning of section 149(a)),
                            ``(v) the maturity of such bond does not 
                        exceed 2 years, and
                            ``(vi) the bond is issued after December 
                        31, 2010, and before January 1, 2013.
                    ``(B) State matching requirement.--A bond shall not 
                be treated as a Gulf Oil Spill Recovery tax credit bond 
                unless--
                            ``(i) the issuer of such bond pledges as of 
                        the date of the issuance of the issue an amount 
                        equal to the face amount of such bond to be 
                        used for payments described in subclause (I) of 
                        subparagraph (A)(ii), or loans described in 
                        subclause (II) of such subparagraph, as the 
                        case may be, with respect to the issue of which 
                        such bond is a part, and
                            ``(ii) any such payment or loan is made in 
                        equal amounts from the proceeds of such issue 
                        and from the amount pledged under clause (i).
                The requirement of clause (ii) shall be treated as met 
                with respect to any such payment or loan made during 
                the 1-year period beginning on the date of the issuance 
                (or any successor 1-year period) if such requirement is 
                met when applied with respect to the aggregate amount 
                of such payments and loans made during such period.
                    ``(C) Aggregate limit on bond designations.--The 
                maximum aggregate face amount of bonds which may be 
                designated under this subsection by the Governor of a 
                State shall not exceed--
                            ``(i) $200,000,000 in the case of the State 
                        of Florida,
                            ``(ii) $200,000,000 in the case of the 
                        State of Louisiana,
                            ``(iii) $100,000,000 in the case of the 
                        State of Mississippi, and
                            ``(iv) $50,000,000 in the case of the State 
                        of Alabama.
                    ``(D) Special rules relating to arbitrage.--A bond 
                which is part of an issue shall not be treated as a 
                Gulf Oil Spill Recovery tax credit bond unless, with 
                respect to the issue of which the bond is a part, the 
                issuer satisfies the arbitrage requirements of section 
                148 with respect to proceeds of the issue and any loans 
                made with such proceeds.
            ``(5) Qualified bond.--For purposes of this subsection--
                    ``(A) In general.--The term `qualified bond' means 
                any obligation of a State or political subdivision 
                thereof which was outstanding on April 20, 2010.
                    ``(B) Exception for private activity bonds.--Such 
                term shall not include any private activity bond.
                    ``(C) Exception for advance refundings.--Such term 
                shall not include any bond with respect to which there 
                is any outstanding refunded or refunding bond during 
                the period in which a Gulf Oil Spill Recovery tax 
                credit bond is outstanding with respect to such bond.
                    ``(D) Use of proceeds requirement.--Such term shall 
                not include any bond issued as part of an issue if any 
                portion of the proceeds of such issue was (or is to be) 
                used to provide any property described in section 
                144(c)(6)(B).
            ``(6) Credit included in gross income.--Gross income 
        includes the amount of the credit allowed to the taxpayer under 
        this subsection (determined without regard to paragraph (3)) 
        and the amount so included shall be treated as interest income.
            ``(7) Other definitions and special rules.--For purposes of 
        this subsection--
                    ``(A) Bond.--The term `bond' includes any 
                obligation.
                    ``(B) Partnership; s corporation; and other pass-
                thru entities.--
                            ``(i) In general.--Under regulations 
                        prescribed by the Secretary, in the case of a 
                        partnership, trust, S corporation, or other 
                        pass-thru entity, rules similar to the rules of 
                        section 41(g) shall apply with respect to the 
                        credit allowable under paragraph (1).
                            ``(ii) No basis adjustment.--In the case of 
                        a bond held by a partnership or an S 
                        corporation, rules similar to the rules under 
                        section 1397E(i) shall apply.
                    ``(C) Bonds held by regulated investment 
                companies.--If any Gulf Oil Spill Recovery tax credit 
                bond is held by a regulated investment company, the 
                credit determined under paragraph (1) shall be allowed 
                to shareholders of such company under procedures 
                prescribed by the Secretary.
                    ``(D) Reporting.--Issuers of Gulf Oil Spill 
                Recovery tax credit bonds shall submit reports similar 
                to the reports required under section 149(e).
                    ``(E) Credit treated as nonrefundable bondholder 
                credit.--For purposes of this title, the credit allowed 
                by this subsection shall be treated as a credit 
                allowable under subpart H of part IV of subchapter A of 
                this chapter.
    ``(k) Application of New Markets Tax Credit to Investments in 
Community Development Entities Serving Gulf Oil Spill Recovery Zone.--
For purposes of section 45D--
            ``(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 Gulf Oil Spill 
        Recovery Zone,
            ``(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 2010 and 2011, to be 
                allocated among qualified community development 
                entities to make qualified low-income community 
                investments within the Gulf Oil Spill Recovery Zone, 
                and
                    ``(B) $400,000,000 for 2012, 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).
    ``(l) Treatment of Representations Regarding Income Eligibility for 
Purposes of Qualified Residential Rental Project Requirements.--For 
purposes of determining if any residential rental project meets the 
requirements of section 142(d)(1) and if any certification with respect 
to such project meets the requirements under section 142(d)(7), the 
operator of the project may rely on the representations of any 
individual applying for tenancy in such project that such individual's 
income will not exceed the applicable income limits of section 
142(d)(1) upon commencement of the individual's tenancy if such tenancy 
begins during the 6-month period beginning on and after the date such 
individual was displaced by reason of the Gulf Oil Spill.
    ``(m) Treatment of Public Utility Property Gulf Oil Spill Losses.--
            ``(1) In general.--Upon the election of the taxpayer, in 
        the case of any eligible public utility property loss--
                    ``(A) section 165(i) shall be applied by 
                substituting `the fifth taxable year immediately 
                preceding' for `the taxable year immediately 
                preceding',
                    ``(B) an application for a tentative carryback 
                adjustment of the tax for any prior taxable year 
                affected by the application of subparagraph (A) may be 
                made under section 6411, and
                    ``(C) section 6611 shall not apply to any 
                overpayment attributable to such loss.
            ``(2) Eligible public utility property loss.--For purposes 
        of this subsection--
                    ``(A) In general.--The term `eligible public 
                utility property loss' means any loss with respect to 
                public utility property located in the Gulf Oil Spill 
                Recovery Zone and attributable to the Gulf Oil Spill.
                    ``(B) Public utility property.--The term `public 
                utility property' has the meaning given such term by 
                section 168(i)(10) without regard to the matter 
                following subparagraph (D) thereof.
            ``(3) Waiver of limitations.--If refund or credit of any 
        overpayment of tax resulting from the application of paragraph 
        (1) is prevented at any time before the close of the 1-year 
        period beginning on the date of the enactment of this section 
        by the operation of any law or rule of law (including res 
        judicata), such refund or credit may nevertheless be made or 
        allowed if claim therefor is filed before the close of such 
        period.
    ``(n) Tax Benefits Not Available With Respect to Certain 
Property.--
            ``(1) Qualified gulf oil spill recovery zone property.--For 
        purposes of subsections (d), (e), and (j)(2)(B)(iv), the term 
        `qualified Gulf Oil Spill Recovery Zone property' shall not 
        include any property described in paragraph (3).
            ``(2) Qualified gulf oil spill recovery zone casualty 
        losses.--For purposes of subsection (j)(2)(B)(i), the term 
        `qualified Gulf Oil Spill Recovery Zone casualty loss' shall 
        not include any loss with respect to any property described in 
        paragraph (3).
            ``(3) Property described.--
                    ``(A) In general.--For purposes of this subsection, 
                property is described in this paragraph if such 
                property is--
                            ``(i) any property used in connection with 
                        any private or commercial golf course, country 
                        club, massage parlor, hot tub facility, suntan 
                        facility, or any store the principal business 
                        of which is the sale of alcoholic beverages for 
                        consumption off premises, or
                            ``(ii) any gambling or animal racing 
                        property.
                    ``(B) Gambling or animal racing property.--For 
                purposes of subparagraph (A)(ii)--
                            ``(i) In general.--The term `gambling or 
                        animal racing property' means--
                                    ``(I) any equipment, furniture, 
                                software, or other property used 
                                directly in connection with gambling, 
                                the racing of animals, or the on-site 
                                viewing of such racing, and
                                    ``(II) the portion of any real 
                                property (determined by square footage) 
                                which is dedicated to gambling, the 
                                racing of animals, or the on-site 
                                viewing of such racing.
                            ``(ii) De minimis portion.--Clause (i)(II) 
                        shall not apply to any real property if the 
                        portion so dedicated is less than 100 square 
                        feet.

``SEC. 1400V-3. HOUSING TAX BENEFITS.

    ``(a) Exclusion of Employer Provided Housing for Individual 
Affected by Gulf Oil Spill.--
            ``(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 (other than for purposes of sections 3121(a)(19) and 
        3306(b)(14)).
    ``(b) Employer Credit for Housing Employees Affected by Gulf Oil 
Spill.--For purposes of section 38, in the case of a qualified 
employer, the Gulf Oil Spill 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.
    ``(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) in the Gulf Oil Spill Recovery Zone on April 20, 2010, and
            ``(2) who performs substantially all employment services--
                    ``(A) in the Gulf Oil Spill Recovery Zone, 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 Gulf Oil Spill Recovery Zone.
    ``(e) Certain Rules to Apply.--For purposes of this subsection, 
rules similar to the rules of sections 51(i)(1) and 52 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).

``SEC. 1400V-4. SPECIAL RULES FOR USE OF RETIREMENT FUNDS.

    ``(a) Tax-Favored Withdrawals From Retirement Plans.--
            ``(1) In general.--Section 72(t) shall not apply to any 
        qualified Gulf Oil Spill distribution.
            ``(2) Aggregate dollar limitation.--
                    ``(A) In general.--For purposes of this subsection, 
                the aggregate amount of distributions received by an 
                individual which may be treated as qualified Gulf Oil 
                Spill distributions for any taxable year shall not 
                exceed the excess (if any) of--
                            ``(i) $100,000, over
                            ``(ii) the aggregate amounts treated as 
                        qualified Gulf Oil Spill distributions received 
                        by such individual for all prior taxable years.
                    ``(B) Treatment of plan distributions.--If a 
                distribution to an individual would (without regard to 
                subparagraph (A)) be a qualified Gulf Oil Spill 
                distribution, a plan shall not be treated as violating 
                any requirement of this title merely because the plan 
                treats such distribution as a qualified Gulf Oil Spill 
                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.
                    ``(C) Controlled group.--For purposes of 
                subparagraph (B), the term `controlled group' means any 
                group treated as a single employer under subsection 
                (b), (c), (m), or (o) of section 414.
            ``(3) Amount distributed may be repaid.--
                    ``(A) In general.--Any individual who receives a 
                qualified Gulf Oil Spill 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), as the 
                case may be.
                    ``(B) Treatment of repayments of distributions from 
                eligible retirement plans other than iras.--For 
                purposes of this title, if a contribution is made 
                pursuant to subparagraph (A) with respect to a 
                qualified Gulf Oil Spill 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 Gulf Oil Spill distribution in 
                an eligible rollover distribution (as defined in 
                section 402(c)(4)) and as having transferred the amount 
                to the eligible retirement plan in a direct trustee to 
                trustee transfer within 60 days of the distribution.
                    ``(C) Treatment of repayments for distributions 
                from iras.--For purposes of this title, if a 
                contribution is made pursuant to subparagraph (A) with 
                respect to a qualified Gulf Oil Spill distribution from 
                an individual retirement plan (as defined by section 
                7701(a)(37)), then, to the extent of the amount of the 
                contribution, the qualified Gulf Oil Spill distribution 
                shall be treated as a distribution described in section 
                408(d)(3) and as having been transferred to the 
                eligible retirement plan in a direct trustee to trustee 
                transfer within 60 days of the distribution.
            ``(4) Definitions.--For purposes of this subsection--
                    ``(A) Qualified gulf oil spill distribution.--
                Except as provided in paragraph (2), the term 
                `qualified Gulf Oil Spill distribution' means any 
                distribution from an eligible retirement plan made on 
                or after April 20, 2010, and before January 1, 2012, to 
                an individual whose principal place of abode on April 
                20, 2010, is located in the Gulf Oil Spill Recovery 
                Zone and who has sustained an economic loss by reason 
                of the Gulf Oil Spill.
                    ``(B) Eligible retirement plan.--The term `eligible 
                retirement plan' shall have the meaning given such term 
                by section 402(c)(8)(B).
            ``(5) Income inclusion spread over 3-year period.--
                    ``(A) In general.--In the case of any qualified 
                Gulf Oil Spill distribution, unless the taxpayer elects 
                not to have this paragraph 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.
                    ``(B) Special rule.--For purposes of subparagraph 
                (A), rules similar to the rules of subparagraph (E) of 
                section 408A(d)(3) shall apply.
            ``(6) Special rules.--
                    ``(A) Exemption of distributions from trustee to 
                trustee transfer and withholding rules.--For purposes 
                of sections 401(a)(31), 402(f), and 3405, qualified 
                Gulf Oil Spill distributions shall not be treated as 
                eligible rollover distributions.
                    ``(B) Qualified gulf oil spill distributions 
                treated as meeting plan distribution requirements.--For 
                purposes this title, a qualified Gulf Oil Spill 
                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).
    ``(b) Recontributions of Withdrawals for Home Purchases.--
            ``(1) Recontributions.--
                    ``(A) In general.--Any individual who received a 
                qualified distribution may, during the applicable 
                period, 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 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), as the case may be.
                    ``(B) Treatment of repayments.--Rules similar to 
                the rules of subparagraphs (B) and (C) of subsection 
                (a)(3) shall apply for purposes of this subsection.
            ``(2) Qualified distribution.--For purposes of this 
        subsection, the term `qualified distribution' means any 
        distribution--
                    ``(A) 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),
                    ``(B) received after October 31, 2005, and before 
                April 30, 2010, and
                    ``(C) which was to be used to purchase or construct 
                a principal residence in the Gulf Oil Spill Recovery 
                Zone, but which was not so purchased or constructed on 
                account of the Gulf Oil Spill.
            ``(3) Applicable period.--For purposes of this subsection, 
        the term `applicable period' means the period beginning on 
        April 20, 2010, and ending on October 20, 2010.
    ``(c) Loans From Qualified Plans.--
            ``(1) 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)) to a 
        qualified individual made during the applicable period--
                    ``(A) clause (i) of section 72(p)(2)(A) shall be 
                applied by substituting `$100,000' for `$50,000', and
                    ``(B) 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'.
            ``(2) Delay of repayment.--In the case of a qualified 
        individual with an outstanding loan on or after the qualified 
        beginning date from a qualified employer plan (as defined in 
        section 72(p)(4))--
                    ``(A) if the due date pursuant to subparagraph (B) 
                or (C) of section 72(p)(2) for any repayment with 
                respect to such loan occurs during the period beginning 
                on the qualified beginning date and ending on December 
                31, 2011, such due date shall be delayed for 1 year,
                    ``(B) 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
                    ``(C) in determining the 5-year period and the term 
                of a loan under subparagraph (B) or (C) of section 
                72(p)(2), the period described in subparagraph (A) 
                shall be disregarded.
            ``(3) Qualified individual.--For purposes of this 
        subsection, the term `qualified individual' means an individual 
        whose principal place of abode on April 20, 2010, is located in 
        the Gulf Oil Spill Recovery Zone and who has sustained an 
        economic loss by reason of the Gulf Oil Spill.
            ``(4) Applicable period; qualified beginning date.--For 
        purposes of this subsection--
                    ``(A) the applicable period is the period beginning 
                on April 20, 2010, and ending on December 31, 2011, 
                and--
                    ``(B) the qualified beginning date is April 20, 
                2010.
    ``(d) Provisions Relating to Plan Amendments.--
            ``(1) In general.--If this subsection 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 paragraph 
        (2)(B)(i).
            ``(2) Amendments to which subsection applies.--
                    ``(A) In general.--This subsection shall apply to 
                any amendment to any plan or annuity contract which is 
                made--
                            ``(i) pursuant to any provision of this 
                        section, or pursuant to any regulation issued 
                        by the Secretary or the Secretary of Labor 
                        under any provision of this section, and
                            ``(ii) on or before the last day of the 
                        first plan year beginning on or after January 
                        1, 2012, or such later date as the Secretary 
                        may prescribe.
                In the case of a governmental plan (as defined in 
                section 414(d)), clause (ii) shall be applied by 
                substituting the date which is 2 years after the date 
                otherwise applied under clause (ii).
                    ``(B) Conditions.--This subsection shall not apply 
                to any amendment unless--
                            ``(i) during the period--
                                    ``(I) beginning on the date that 
                                this section or the regulation 
                                described in subparagraph (A)(i) takes 
                                effect (or in the case of a plan or 
                                contract amendment not required by this 
                                section or such regulation, the 
                                effective date specified by the plan), 
                                and
                                    ``(II) ending on the date described 
                                in subparagraph (A)(ii) (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
                            ``(ii) such plan or contract amendment 
                        applies retroactively for such period.

``SEC. 1400V-5. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY 
              GULF OIL SPILL.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible employer, the Gulf Oil Spill employee retention credit for any 
taxable year is 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 subsection--
            ``(1) Eligible employer.--The term `eligible employer' 
        means any employer--
                    ``(A) which conducted an active trade or business 
                on April 20, 2010, in the Gulf Oil Spill Recovery Zone, 
                and
                    ``(B) with respect to whom the trade or business 
                described in subparagraph (A) is inoperable on any day 
                after April 20, 2010, and before January 1, 2011, as a 
                result of damage sustained by reason of the Gulf Oil 
                Spill.
            ``(2) Eligible employee.--The term `eligible employee' 
        means with respect to an eligible employer an employee whose 
        principal place of employment on April 20, 2010, with such 
        eligible employer was in the Gulf Oil Spill Recovery Zone.
            ``(3) Qualified wages.--The term `qualified wages' means 
        wages (as defined in section 51(c)(1)), but without regard to 
        section 3306(b)(2)(B)) paid or incurred by an eligible employer 
        with respect to an eligible employee on any day after April 20, 
        2010, and before January 1, 2011, 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 Gulf Oil Spill, 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 place 
        of employment different than such principal place of 
        employment, or performs services at such principal place of 
        employment before significant operations have resumed.
    ``(c) Certain Rules To Apply.--For purposes of this section, rules 
similar to the rules of sections 51(i)(1) and 52 shall apply.
    ``(d) Employee Not Taken Into Account More Than Once.--An employee 
shall not be treated as an eligible employee for purposes of this 
subsection for any period with respect to any employer if such employer 
is allowed a credit under section 51 with respect to such employee for 
such period.

``SEC. 1400V-6. ADDITIONAL TAX RELIEF PROVISIONS.

    ``(a) Temporary Suspension of Limitations on Charitable 
Contributions.--
            ``(1) In general.--Except as otherwise provided in 
        paragraph (2), section 170(b) 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 to other contributions.
            ``(2) Treatment of excess contributions.--For purposes of 
        section 170--
                    ``(A) Individuals.--In the case of an individual--
                            ``(i) 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)) over the amount of 
                        all other charitable contributions allowed 
                        under section 170(b)(1).
                            ``(ii) Carryover.--If the aggregate amount 
                        of qualified contributions made in the 
                        contribution year (within the meaning of 
                        section 170(d)(1)) exceeds the limitation of 
                        clause (i), 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.
                    ``(B) Corporations.--In the case of a corporation--
                            ``(i) 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)) over the amount of all 
                        other charitable contributions allowed under 
                        such paragraph.
                            ``(ii) Carryover.--Rules similar to the 
                        rules of subparagraph (A)(ii) shall apply for 
                        purposes of this subparagraph.
            ``(3) Exception to overall limitation on itemized 
        deductions.--So much of any deduction allowed under section 170 
        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.
            ``(4) Qualified contributions.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified contribution' means any charitable 
                contribution (as defined in section 170(c)) if--
                            ``(i) such contribution is paid during the 
                        period beginning on April 20, 2010, and ending 
                        on December 31, 2012, in cash to an 
                        organization described in section 170(b)(1)(A) 
                        (other than an organization described in 
                        section 509(a)(3)),
                            ``(ii) in the case of a contribution paid 
                        by a corporation, such contribution is for 
                        relief efforts related to the Gulf Oil Spill, 
                        and
                            ``(iii) the taxpayer has elected the 
                        application of this subsection with respect to 
                        such contribution.
                    ``(B) 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.
                    ``(C) Application of election to partnerships and s 
                corporations.--In the case of a partnership or S 
                corporation, the election under subparagraph (A)(iii) 
                shall be made separately by each partner or 
                shareholder.
    ``(b) Suspension of Certain Limitations on Personal Casualty 
Losses.--Paragraphs (1) and (2)(A) of section 165(h) shall not apply to 
losses described in section 165(c)(3) which arise in the Gulf Oil Spill 
Recovery Zone on or after April 20, 2010, and which are attributable to 
the Gulf Oil Spill. In the case of any other losses, section 
165(h)(2)(A) shall be applied without regard to the losses referred to 
in the preceding sentence.
    ``(c) Required Exercise of Authority Under Section 7508A.--In the 
case of any taxpayer determined by the Secretary to be affected by the 
Gulf Oil Spill, any relief provided by the Secretary under section 
7508A shall be for a period ending not earlier than October 20, 2011.
    ``(d) Special Rule for Determining Earned Income.--
            ``(1) In general.--In the case of a qualified individual, 
        if the earned income of the taxpayer for the taxable year which 
        includes the applicable date is less than the earned income of 
        the taxpayer for the preceding taxable year, the credits 
        allowed under sections 24(d) and 32 may, at the election of the 
        taxpayer, be determined by substituting--
                    ``(A) such earned income for the preceding taxable 
                year, for
                    ``(B) such earned income for the taxable year which 
                includes the applicable date.
            ``(2) Qualified individual.--For purposes of this 
        subsection, the term `qualified individual' means any 
        individual--
                    ``(A) whose principal place of abode on April 20, 
                2010, was located in the Gulf Oil Spill Recovery Zone, 
                and
                    ``(B) who was displaced from such principal place 
                of abode by reason of the Gulf Oil Spill.
            ``(3) Applicable date.--For purposes of this subsection, 
        the term `applicable date' means April 20, 2010.
            ``(4) Earned income.--For purposes of this subsection, the 
        term `earned income' has the meaning given such term under 
        section 32(c).
            ``(5) Special rules.--
                    ``(A) Application to joint returns.--For purposes 
                of paragraph (1), in the case of a joint return for a 
                taxable year which includes the applicable date--
                            ``(i) such paragraph shall apply if either 
                        spouse is a qualified individual, and
                            ``(ii) 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.
                    ``(B) Uniform application of election.--Any 
                election made under paragraph (1) shall apply with 
                respect to both sections 24(d) and section 32.
                    ``(C) Errors treated as mathematical error.--For 
                purposes of section 6213, an incorrect use on a return 
                of earned income pursuant to paragraph (1) shall be 
                treated as a mathematical or clerical error.
                    ``(D) No effect on determination of gross income, 
                etc.--Except as otherwise provided in this subsection, 
                this title shall be applied without regard to any 
                substitution under paragraph (1).
    ``(e) Secretarial Authority To Make Adjustments Regarding Taxpayer 
and Dependency Status.--With respect to taxable years beginning in 2010 
or 2011, the Secretary 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 Gulf Oil 
Spill. 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. 1400V-7. SPECIAL RULES FOR MORTGAGE REVENUE BONDS.

    ``(a) In General.--In the case of financing provided with respect 
to owner-occupied residences in the Gulf Oil Spill Recovery Zone, 
section 143 shall be applied--
            ``(1) by treating any such residence as a targeted area 
        residence,
            ``(2) by applying subsection (f)(3) thereof without regard 
        to subparagraph (A) thereof, and
            ``(3) by substituting `$150,000' for `$15,000' in 
        subsection (k)(4) thereof.
    ``(b) Application.--Subsection (a) shall not apply to financing 
provided after December 31, 2010.''.
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 54(c) is amended by inserting 
        ``section 1400V-2(j),'' after ``1400N(l)''.
            (2) Subparagraph (A) of section 6049(d)(8) is amended--
                    (A) by striking ``or 1400N(l)(6)'' and inserting 
                ``, 1400N(l)(6), or 1400V-2(k)(6)'', and
                    (B) by striking ``or 1400N(l)(2)(D)'' and inserting 
                ``1400N(l)(2)(D), or 1400V-2(j)(2)(D)''.
            (3) Subsection (b) of section 38 is amended by striking 
        ``plus'' at the end of paragraph (35), by striking the period 
        at the end of paragraph (36) and inserting a comma, and by 
        adding at the end the following new paragraphs:
            ``(37) the Gulf Oil Spill housing credit determined under 
        section 1400V-3(b), plus
            ``(38) the Gulf Oil Spill employee retention credit 
        determined under section 1400V-5(a).''.
            (4) Section 280C(a) is amended by striking ``and 1400R'' 
        and inserting ``1400R, 1400V-3(b), and 1400V-5''.
            (5) The table of parts for subchapter Y of chapter 1 is 
        amended by adding at the end the following new item:

      ``Part IV. Tax Benefits for Gulf Oil Spill Recovery Zone.''.

    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        ending on or after April 20, 2010.
            (2) Carrybacks.--Subsections (j) and (n) of section 1400V-2 
        of the Internal Revenue Code of 1986 (as added by this section) 
        shall apply to losses arising in such taxable years.

SEC. 3. SPECIAL EXTENSION OF BONUS DEPRECIATION PLACED IN SERVICE DATE 
              FOR TAXPAYERS AFFECTED BY THE GULF OIL SPILL.

    In applying the rule under section 168(k)(2)(A)(iv) of the Internal 
Revenue Code of 1986 to any property described in subparagraph (B) or 
(C) of section 168(k)(2) of such Code--
            (1) the placement in service of which--
                    (A) is to be located in the Gulf Oil Recovery Zone 
                (as defined in section 1400V-1 of such Code), and
                    (B) is to be made by any taxpayer affected by the 
                Gulf Oil Spill (as defined in section 1400V-1 of such 
                Code), or
            (2) which is manufactured in such Zone by any person 
        affected by the Gulf Oil Spill,
the Secretary of the Treasury may, on a taxpayer by taxpayer basis, 
extend the required date of the placement in service of such property 
under such section by such period of time as is determined necessary by 
the Secretary but not to exceed 1 year. For purposes of the preceding 
sentence, the determination shall be made by only taking into account 
the effect of the Gulf Oil spill on the date of such placement by the 
taxpayer.

SEC. 4. GULF COAST RECOVERY BONDS.

    It is the sense of the Congress that the Secretary of the Treasury, 
or the Secretary's delegate, should designate one or more series of 
bonds or certificates (or any portion thereof) issued under section 
3105 of title 31, United States Code, as ``Gulf Oil Spill Recovery 
Bonds'' in response to the Gulf Oil Spill (as defined in section 1400V-
1 of the Internal Revenue Code of 1986).
                                 <all>
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