I 

116TH CONGRESS 

1ST SESSION H. R. 2145 

To provide disaster relief. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 9, 2019 

Mr. RICE of South Carolina (for himself, Mr. AUSTIN SCOTT of Georgia, Mr. 

DUNN, and Mr. ROUZER) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To provide disaster relief. 

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 ‘‘Disaster Tax Relief 

5 Act of 2019’’. 

6 SEC. 2. DEFINITIONS. 

7 For purposes of this Act— 

8 (1) QUALIFIED DISASTER AREA.—The term 

9 ‘‘qualified disaster area’’ means any area with re10 spect to which a major disaster was declared, during 

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1 ing on the date of the enactment of this Act, by the 

2 President under section 401 of the Robert T. Staf3 ford Disaster Relief and Emergency Assistance Act 

4 if the incident period of the disaster with respect to 

5 which such declaration is made begins after January 

6 1, 2018, and before the date of the enactment of 

7 this Act. 

8 (2) QUALIFIED DISASTER ZONE.—The term 

9 ‘‘qualified disaster zone’’ means that portion of any 

10 qualified disaster area which is determined by the 

11 President to warrant individual or individual and 

12 public assistance from the Federal Government 

13 under the Robert T. Stafford Disaster Relief and 

14 Emergency Assistance Act by reason of the qualified 

15 disaster with respect to such disaster area. 

16 (3) QUALIFIED DISASTER.—The term ‘‘quali17 fied disaster’’ means, with respect to any qualified 

18 disaster area, the disaster by reason of which a 

19 major disaster was declared with respect to such 

20 area. 

21 (4) INCIDENT PERIOD.—The term ‘‘incident pe22 riod’’ means, with respect to any qualified disaster, 

23 the period specified by the Federal Emergency Man24 agement Agency as the period during which such 

25 disaster occurred. 


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1 SEC. 3. SPECIAL DISASTER-RELATED RULES FOR USE OF 

2 RETIREMENT FUNDS. 

3 (a) TAX-FAVORED WITHDRAWALS FROM RETIRE4 MENT PLANS.— 

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

6 Revenue Code of 1986 shall not apply to any quali7 fied disaster distribution. 

8 (2) AGGREGATE DOLLAR LIMITATION.— 

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

10 subsection, the aggregate amount of distribu11 tions received by an individual which may be 

12 treated as qualified disaster distributions for 

13 any taxable year shall not exceed the excess (if 

14 any) of— 

15 (i) $100,000, over 

16 (ii) the aggregate amounts treated as 

17 qualified disaster distributions received by 

18 such individual for all prior taxable years. 

19 (B) TREATMENT OF PLAN DISTRIBU20 TIONS.—If a distribution to an individual would 

21 (without regard to subparagraph (A)) be a 

22 qualified disaster distribution, a plan shall not 

23 be treated as violating any requirement of the 

24 Internal Revenue Code of 1986 merely because 

25 the plan treats such distribution as a qualified 

26 disaster distribution, unless the aggregate 


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1 amount of such distributions from all plans 

2 maintained by the employer (and any member 

3 of any controlled group which includes the em4 ployer) to such individual exceeds $100,000. 

5 (C) CONTROLLED GROUP.—For purposes 

6 of subparagraph (B), the term ‘‘controlled 

7 group’’ means any group treated as a single 

8 employer under subsection (b), (c), (m), or (o) 

9 of section 414 of the Internal Revenue Code of 

10 1986. 

11 (D) SPECIAL RULE FOR INDIVIDUALS AF12 FECTED BY MORE THAN ONE DISASTER.—The 

13 limitation of subparagraph (A) shall be applied 

14 separately with respect to distributions made 

15 with respect to each qualified disaster. 

16 (3) AMOUNT DISTRIBUTED MAY BE REPAID.— 

17 (A) IN GENERAL.—Any individual who re18 ceives a qualified disaster distribution may, at 

19 any time during the 3-year period beginning on 

20 the day after the date on which such distribu21 tion was received, make one or more contribu22 tions in an aggregate amount not to exceed the 

23 amount of such distribution to an eligible retire24 ment plan of which such individual is a bene25 ficiary and to which a rollover contribution of 


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1 such distribution could be made under section 

2 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 

3 457(e)(16), of the Internal Revenue Code of 

4 1986, as the case may be. 

5 (B) TREATMENT OF REPAYMENTS OF DIS6 TRIBUTIONS FROM ELIGIBLE RETIREMENT

7 PLANS OTHER THAN IRAS.—For purposes of 

8 the Internal Revenue Code of 1986, if a con9 tribution is made pursuant to subparagraph (A) 

10 with respect to a qualified disaster distribution 

11 from an eligible retirement plan other than an 

12 individual retirement plan, then the taxpayer 

13 shall, to the extent of the amount of the con14 tribution, be treated as having received the 

15 qualified disaster distribution in an eligible roll16 over distribution (as defined in section 

17 402(c)(4) of such Code) and as having trans18 ferred the amount to the eligible retirement 

19 plan in a direct trustee to trustee transfer with20 in 60 days of the distribution. 

21 (C) TREATMENT OF REPAYMENTS OF DIS22 TRIBUTIONS FROM IRAS.—For purposes of the 

23 Internal Revenue Code of 1986, if a contribu24 tion is made pursuant to subparagraph (A) 

25 with respect to a qualified disaster distribution 


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1 from an individual retirement plan (as defined 

2 by section 7701(a)(37) of such Code), then, to 

3 the extent of the amount of the contribution, 

4 the qualified disaster distribution shall be treat5 ed as a distribution described in section 

6 408(d)(3) of such Code and as having been 

7 transferred to the eligible retirement plan in a 

8 direct trustee to trustee transfer within 60 days 

9 of the distribution. 

10 (4) DEFINITIONS.—For purposes of this sub11 section— 

12 (A) QUALIFIED DISASTER DISTRIBU13 TION.—Except as provided in paragraph (2), 

14 the term ‘‘qualified disaster distribution’’ means 

15 any distribution from an eligible retirement 

16 plan made after the incident beginning date of 

17 a qualified disaster and on or before December 

18 31 of the year after the year in which the inci19 dent period with respect to the disaster begins, 

20 to an individual whose principal place of abode 

21 at any time during the incident period of such 

22 qualified disaster is located in the qualified dis23 aster area with respect to such qualified dis24 aster and who has sustained an economic loss 

25 by reason of such qualified disaster. 


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1 (B) ELIGIBLE RETIREMENT PLAN.—The 

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

3 meaning given such term by section 

4 402(c)(8)(B) of the Internal Revenue Code of 

5 1986. 

6 (5) INCOME INCLUSION SPREAD OVER 3-YEAR

7 PERIOD.— 

8 (A) IN GENERAL.—In the case of any 

9 qualified disaster distribution, unless the tax10 payer elects not to have this paragraph apply 

11 for any taxable year, any amount required to be 

12 included in gross income for such taxable year 

13 shall be so included ratably over the 3-taxable14 year period beginning with such taxable year. 

15 (B) SPECIAL RULE.—For purposes of sub16 paragraph (A), rules similar to the rules of sub17 paragraph (E) of section 408A(d)(3) of the In18 ternal Revenue Code of 1986 shall apply. 

19 (6) SPECIAL RULES.— 

20 (A) EXEMPTION OF DISTRIBUTIONS FROM

21 TRUSTEE TO TRUSTEE TRANSFER AND WITH22 HOLDING RULES.—For purposes of sections 

23 401(a)(31), 402(f), and 3405 of the Internal 

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1 tributions shall not be treated as eligible roll2 over distributions. 

3 (B) QUALIFIED DISASTER DISTRIBUTIONS

4 TREATED AS MEETING PLAN DISTRIBUTION RE5 QUIREMENTS.—For purposes of the Internal 

6 Revenue Code of 1986, a qualified disaster dis7 tribution shall be treated as meeting the re8 quirements of sections 401(k)(2)(B)(I), 

9 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) 

10 of such Code. 

11 (b) RECONTRIBUTIONS OF WITHDRAWALS FOR

12 HOME PURCHASES.— 

13 (1) RECONTRIBUTIONS.— 

14 (A) IN GENERAL.—Any individual who re15 ceived a qualified distribution may, during the 

16 applicable period, make one or more contribu17 tions in an aggregate amount not to exceed the 

18 amount of such qualified distribution to an eli19 gible retirement plan (as defined in section 

20 402(c)(8)(B) of the Internal Revenue Code of 

21 1986) of which such individual is a beneficiary 

22 and to which a rollover contribution of such dis23 tribution could be made under section 402(c), 

24 403(a)(4), 403(b)(8), or 408(d)(3), of such 

25 Code, as the case may be. 


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1 (B) TREATMENT OF REPAYMENTS.—Rules 

2 similar to the rules of subparagraphs (B) and 

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

4 of this subsection. 

5 (2) QUALIFIED DISTRIBUTION.—For purposes 

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

7 means any distribution— 

8 (A) described in section 

9 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only 

10 to the extent such distribution relates to finan11 cial hardship), 403(b)(11)(B), or 72(t)(2)(F), 

12 of the Internal Revenue Code of 1986, 

13 (B) which was to be used to purchase or 

14 construct a principal residence in a qualified 

15 disaster area, but which was not so used on ac16 count of the qualified disaster with respect to 

17 such area, and 

18 (C) which was received on or after the date 

19 that is 270 days before the first day of incident 

20 period of the disaster, and before the date 

21 which is 30 days after the last day of the inci22 dent period of such qualified disaster. 

23 (3) APPLICABLE PERIOD.—For purposes of this 

24 subsection, the term ‘‘applicable period’’ means, with 

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1 ginning on the first day of the incident period of the 

2 disaster and ending on the date that is 180 days 

3 after the last day of such incident period. 

4 (c) LOANS FROM QUALIFIED PLANS.— 

5 (1) INCREASE IN LIMIT ON LOANS NOT TREAT6 ED AS DISTRIBUTIONS.—In the case of any loan 

7 from a qualified employer plan (as defined under 

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

9 1986) to a qualified individual made during the pe10 riod beginning on the date of the enactment of this 

11 Act and ending on December 31 of the year after 

12 the year in which the incident period with respect to 

13 the disaster begins— 

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

15 such Code shall be applied by substituting 

16 ‘‘$100,000’’ for ‘‘$50,000’’, and 

17 (B) clause (ii) of such section shall be ap18 plied by substituting ‘‘the present value of the 

19 nonforfeitable accrued benefit of the employee 

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

21 value of the nonforfeitable accrued benefit of 

22 the employee under the plan’’. 

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

24 qualified individual (with respect to any qualified 

25 disaster) with an outstanding loan on or after the 


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1 incident beginning date (of such qualified disaster) 

2 from a qualified employer plan (as defined in section 

3 72(p)(4) of the Internal Revenue Code of 1986)— 

4 (A) if the due date pursuant to subpara5 graph (B) or (C) of section 72(p)(2) of such 

6 Code for any repayment with respect to such 

7 loan occurs during the period beginning on the 

8 incident beginning date of such qualified dis9 aster and ending on December 31 of the year 

10 after the year in which the incident period with 

11 respect to the disaster begins, such due date 

12 shall be delayed for 1 year, 

13 (B) any subsequent repayments with re14 spect to any such loan shall be appropriately 

15 adjusted to reflect the delay in the due date 

16 under paragraph (1) and any interest accruing 

17 during such delay, and 

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

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

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

21 described in subparagraph (A) of this para22 graph shall be disregarded. 

23 (3) QUALIFIED INDIVIDUAL.—For purposes of 

24 this subsection, the term ‘‘qualified individual’’ 

25 means any individual— 


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1 (A) whose principal place of abode at any 

2 time during the incident period of any qualified 

3 disaster is located in the qualified disaster area 

4 with respect to such qualified disaster, and 

5 (B) who has sustained an economic loss by 

6 reason of such qualified disaster. 

7 (d) PROVISIONS RELATING TO PLAN AMEND8 MENTS.— 

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

10 any amendment to any plan or annuity contract, 

11 such plan or contract shall be treated as being oper12 ated in accordance with the terms of the plan during 

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

14 (2) AMENDMENTS TO WHICH SUBSECTION AP15 PLIES.— 

16 (A) IN GENERAL.—This subsection shall 

17 apply to any amendment to any plan or annuity 

18 contract which is made— 

19 (i) pursuant to any provision of this 

20 section, or pursuant to any regulation 

21 issued by the Secretary or the Secretary of 

22 Labor under any provision of this section, 

23 and 

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

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1 ary 1, 2020, or such later date as the Sec2 retary may prescribe. 

3 In the case of a governmental plan (as defined 

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

5 of 1986), clause (ii) shall be applied by sub6 stituting the date which is 2 years after the 

7 date otherwise applied under clause (ii). 

8 (B) CONDITIONS.—This subsection shall 

9 not apply to any amendment unless— 

10 (i) during the period— 

11 (I) beginning on the date that 

12 this section or the regulation de13 scribed in subparagraph (A)(i) takes 

14 effect (or in the case of a plan or con15 tract amendment not required by this 

16 section or such regulation, the effec17 tive date specified by the plan), and 

18 (II) ending on the date described 

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

20 the date the plan or contract amend21 ment is adopted), 

22 the plan or contract is operated as if such 

23 plan or contract amendment were in effect, 

24 and 


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1 (ii) such plan or contract amendment 

2 applies retroactively for such period. 

3 SEC. 4. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS 

4 AFFECTED BY QUALIFIED DISASTERS. 

5 (a) IN GENERAL.—For purposes of section 38 of the 

6 Internal Revenue Code of 1986, in the case of an eligible 

7 employer, the qualified disaster employee retention credit 

8 shall be treated as a credit listed in subsection (b) of such 

9 section. For purposes of this subsection, the qualified dis10 aster employee retention credit for any taxable year is an 

11 amount equal to 40 percent of the qualified wages with 

12 respect to each eligible employee of such employer for such 

13 taxable year. For purposes of the preceding sentence, the 

14 amount of qualified wages which may be taken into ac15 count with respect to any individual shall not exceed 

16 $6,000. 

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

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

19 employer’’ means any employer— 

20 (A) which conducted an active trade or 

21 business in a qualified disaster zone at any time 

22 during the incident period of the qualified dis23 aster with respect to such qualified disaster 

24 zone, and 


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1 (B) with respect to whom the trade or 

2 business described in subparagraph (A) is inop3 erable at any time after the incident beginning 

4 date of such qualified disaster, and before Jan5 uary 1 of the year after the year of such inci6 dent beginning date, as a result of damage sus7 tained by reason of such qualified disaster. 

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

9 employee’’ means with respect to an eligible em10 ployer an employee whose principal place of employ11 ment at any time during the incident period of the 

12 qualified disaster referred to in paragraph (1) with 

13 such eligible employer was in the qualified disaster 

14 zone referred to in such paragraph. 

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

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

17 of the Internal Revenue Code of 1986, but without 

18 regard to section 3306(b)(2)(B) of such Code) paid 

19 or incurred by an eligible employer with respect to 

20 an eligible employee at any time during the period 

21 described in paragraph (1)(B), and which occurs 

22 during the period— 

23 (A) beginning on the date on which the 

24 trade or business described in paragraph (1) 

25 first became inoperable at the principal place of 


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1 employment of the employee immediately before 

2 the qualified disaster referred to in such para3 graph, and 

4 (B) ending on the date on which such 

5 trade or business has resumed significant oper6 ations at such principal place of employment. 

7 Such term shall include wages paid without regard 

8 to whether the employee performs no services, per9 forms services at a different place of employment 

10 than such principal place of employment, or per11 forms services at such principal place of employment 

12 before significant operations have resumed. 

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

14 this subsection, rules similar to the rules of sections 

15 51(i)(1), 52, and 280C(a), of the Internal Revenue Code 

16 of 1986, shall apply. 

17 (d) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE

18 THAN ONCE.—An employee shall not be treated as an eli19 gible employee for purposes of this subsection for any pe20 riod with respect to any employer if such employer is al21 lowed a credit under section 51 of the Internal Revenue 

22 Code of 1986 with respect to such employee for such pe23 riod. 


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1 SEC. 5. OTHER DISASTER-RELATED TAX RELIEF PROVI2 SIONS. 

3 (a) TEMPORARY SUSPENSION OF LIMITATIONS ON

4 CHARITABLE CONTRIBUTIONS.— 

5 (1) IN GENERAL.—Except as otherwise pro6 vided in paragraph (2), subsection (b) of section 170 

7 of the Internal Revenue Code of 1986 shall not 

8 apply to qualified contributions and such contribu9 tions shall not be taken into account for purposes of 

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

11 other contributions. 

12 (2) TREATMENT OF EXCESS CONTRIBUTIONS.— 

13 For purposes of section 170 of the Internal Revenue 

14 Code of 1986— 

15 (A) INDIVIDUALS.—In the case of an indi16 vidual— 

17 (i) LIMITATION.—Any qualified con18 tribution shall be allowed only to the ex19 tent that the aggregate of such contribu20 tions does not exceed the excess of the tax21 payer’s contribution base (as defined in 

22 subparagraph (H) of section 170(b)(1) of 

23 such Code) over the amount of all other 

24 charitable contributions allowed under sec25 tion 170(b)(1) of such Code. 


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1 (ii) CARRYOVER.—If the aggregate 

2 amount of qualified contributions made in 

3 the contribution year (within the meaning 

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

5 the limitation of clause (i), such excess 

6 shall be added to the excess described in 

7 the portion of subparagraph (A) of such 

8 section which precedes clause (i) thereof 

9 for purposes of applying such section. 

10 (B) CORPORATIONS.—In the case of a cor11 poration— 

12 (i) LIMITATION.—Any qualified con13 tribution shall be allowed only to the ex14 tent that the aggregate of such contribu15 tions does not exceed the excess of the tax16 payer’s taxable income (as determined 

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

18 such Code) over the amount of all other 

19 charitable contributions allowed under such 

20 paragraph. 

21 (ii) CARRYOVER.—Rules similar to the 

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

23 for purposes of this subparagraph. 

24 (3) QUALIFIED CONTRIBUTIONS.— 


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

2 subsection, the term ‘‘qualified contribution’’ 

3 means any charitable contribution (as defined 

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

5 of 1986) if— 

6 (i) such contribution— 

7 (I) is made for relief efforts in 

8 one or more qualified disaster areas, 

9 and 

10 (II) is paid during the period be11 ginning on the first day of the inci12 dent period for any such disaster, and 

13 ending on December 31 of the year in 

14 which such incident period begins, in 

15 cash to an organization described in 

16 section 170(b)(1)(A) of such Code, 

17 (ii) the taxpayer obtains from such or18 ganization contemporaneous written ac19 knowledgment (within the meaning of sec20 tion 170(f)(8) of such Code) that such con21 tribution was used (or is to be used) for 

22 relief efforts described in clause (i)(I), and 

23 (iii) the taxpayer has elected the ap24 plication of this subsection with respect to 

25 such contribution. 


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1 (B) EXCEPTION.—Such term shall not in2 clude a contribution by a donor if the contribu3 tion is— 

4 (i) to an organization described in sec5 tion 509(a)(3) of the Internal Revenue 

6 Code of 1986, or 

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

8 maintenance of an existing, donor advised 

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

10 such Code). 

11 (C) APPLICATION OF ELECTION TO PART12 NERSHIPS AND S CORPORATIONS.—In the case 

13 of a partnership or S corporation, the election 

14 under subparagraph (A)(iii) shall be made sepa15 rately by each partner or shareholder. 

16 (b) SPECIAL RULES FOR QUALIFIED DISASTER-RE17 LATED PERSONAL CASUALTY LOSSES.— 

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

19 disaster loss for any taxable year— 

20 (A) the amount determined under section 

21 165(h)(2)(A)(ii) of the Internal Revenue Code 

22 of 1986 shall be equal to the sum of— 

23 (i) such net disaster loss, and 

24 (ii) so much of the excess referred to 

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1 tion 165(h)(2)(A) of such Code (reduced 

2 by the amount in clause (i) of this sub3 paragraph) as exceeds 10 percent of the 

4 adjusted gross income of the individual, 

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

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

7 ($100 for taxable years beginning after Decem8 ber 31, 2009)’’, 

9 (C) the standard deduction determined 

10 under section 63(c) of such Code shall be in11 creased by the net disaster loss, and 

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

13 not apply to so much of the standard deduction 

14 as is attributable to the increase under sub15 paragraph (C) of this paragraph. 

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

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

18 excess of qualified disaster-related personal casualty 

19 losses over personal casualty gains (as defined in 

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

21 of 1986). 

22 (3) QUALIFIED DISASTER-RELATED PERSONAL

23 CASUALTY LOSSES.—For purposes of this sub24 section, the term ‘‘qualified disaster-related personal 

25 casualty losses’’ means losses described in section 


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1 165(c)(3) of the Internal Revenue Code of 1986 

2 which arise in a qualified disaster area on or after 

3 the incident beginning date of the qualified disaster 

4 to which such area relates, and which are attrib5 utable to such qualified disaster. 

6 (c) SPECIAL RULE FOR DETERMINING EARNED IN7 COME.— 

8 (1) IN GENERAL.—In the case of a qualified in9 dividual, if the earned income of the taxpayer for the 

10 applicable taxable year is less than the earned in11 come of the taxpayer for the preceding taxable year, 

12 the credits allowed under sections 24(d) and 32 of 

13 the Internal Revenue Code of 1986 may, at the elec14 tion of the taxpayer, be determined by sub15 stituting— 

16 (A) such earned income for the preceding 

17 taxable year, for 

18 (B) such earned income for the applicable 

19 taxable year. 

20 (2) QUALIFIED INDIVIDUAL.—For purposes of 

21 this subsection, the term ‘‘qualified individual’’ 

22 means any individual whose principal place of abode 

23 at any time during the incident period of any quali24 fied disaster was located— 


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1 (A) in the qualified disaster zone with re2 spect to such qualified disaster, or 

3 (B) in the qualified disaster area with re4 spect to such qualified disaster (but outside the 

5 qualified disaster zone with respect to such 

6 qualified disaster) and such individual was dis7 placed from such principal place of abode by 

8 reason of such qualified disaster. 

9 (3) APPLICABLE TAXABLE YEAR.—The term 

10 ‘‘applicable taxable year’’ means, with respect to any 

11 qualified individual, any taxable year which includes 

12 any day during the incident period of the qualified 

13 disaster to which the qualified disaster area referred 

14 to in paragraph (2) relates. 

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

16 subsection, the term ‘‘earned income’’ has the mean17 ing given such term under section 32(c) of the Inter18 nal Revenue Code of 1986. 

19 (5) SPECIAL RULES.— 

20 (A) APPLICATION TO JOINT RETURNS.— 

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

22 a joint return for an applicable taxable year— 

23 (i) such paragraph shall apply if ei24 ther spouse is a qualified individual, and 


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1 (ii) the earned income of the taxpayer 

2 for the preceding taxable year shall be the 

3 sum of the earned income of each spouse 

4 for such preceding taxable year. 

5 (B) UNIFORM APPLICATION OF ELEC6 TION.—Any election made under paragraph (1) 

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

8 and 32 of the Internal Revenue Code of 1986. 

9 (C) ERRORS TREATED AS MATHEMATICAL

10 ERROR.—For purposes of section 6213 of the 

11 Internal Revenue Code of 1986, an incorrect 

12 use on a return of earned income pursuant to 

13 paragraph (1) shall be treated as a mathe14 matical or clerical error. 

15 (D) NO EFFECT ON DETERMINATION OF

16 GROSS INCOME, ETC.—Except as otherwise pro17 vided in this subsection, the Internal Revenue 

18 Code of 1986 shall be applied without regard to 

19 any substitution under paragraph (1). 

20 SEC. 6. TREATMENT OF CERTAIN POSSESSIONS. 

21 (a) PAYMENTS TO GUAM AND THE COMMONWEALTH

22 OF THE NORTHERN MARIANA ISLANDS.—The Secretary 

23 of the Treasury shall pay to Guam and the Commonwealth 

24 of the Northern Mariana Islands amounts equal to the loss 

25 to that possession by reason of the application of the proVerDate Sep 11 2014 23:10 Apr 17, 2019 Jkt 089200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H2145.IH H2145

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1 visions of this Act. Such amounts shall be determined by 

2 the Secretary of the Treasury based on information pro3 vided by the government of the respective possession. 

4 (b) PAYMENTS TO AMERICAN SAMOA.— 

5 (1) IN GENERAL.—The Secretary of the Treas6 ury shall pay to American Samoa amounts estimated 

7 by the Secretary of the Treasury as being equal to 

8 the aggregate benefits that would have been pro9 vided to residents of American Samoa by reason of 

10 the provisions of this Act if a mirror code tax system 

11 had been in effect in American Samoa. The pre12 ceding sentence shall not apply unless American 

13 Samoa has a plan, which has been approved by the 

14 Secretary of the Treasury, under which American 

15 Samoa will promptly distribute such payments to its 

16 residents. 

17 (2) MIRROR CODE TAX SYSTEM.—For purposes 

18 of this subsection, the term ‘‘mirror code tax sys19 tem’’ means, with respect to any possession of the 

20 United States, the income tax system of such posses21 sion if the income tax liability of the residents of 

22 such possession under such system is determined by 

23 reference to the income tax laws of the United 

24 States as if such possession were the United States. 


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1 (c) TREATMENT OF PAYMENTS.—For purposes of 

2 section 1324 of title 31, United States Code, the payments 

3 under this section shall be treated in the same manner 

4 as a refund due from a credit provision referred to in sub5 section (b)(2) of such section. 

6 SEC. 7. AUTOMATIC EXTENSION OF FILING DEADLINE. 

7 (a) IN GENERAL.—Section 7508A is amended by 

8 adding at the end the following new subsection: 

9 ‘‘(d) MANDATORY 60-DAY EXTENSION.—In the case 

10 of— 

11 ‘‘(1) any individual whose principal place of 

12 abode is in a disaster area (as defined in section 

13 165(i)(5)(B)), and 

14 ‘‘(2) any taxpayer if the taxpayer’s principal 

15 place of business (other than the business of per16 forming services of an employee) is located in a dis17 aster area (as so defined), 

18 the period beginning on the earliest incident date specified 

19 in the declaration to which such area relates and ending 

20 on the date which is 60 days after the latest incident date 

21 so specified shall be disregarded in the same manner as 

22 a period specified under subsection (a).’’. 


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

2 this section shall apply to Federally declared disasters de3 clared after December 31, 2018. 

Æ 


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