I 

116TH CONGRESS 

1ST SESSION H. R. 2284 

To provide disaster tax relief for certain disasters occurring in 2019. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 10, 2019 

Mr. SMITH of Nebraska (for himself, Mr. BACON, Mr. FORTENBERRY, Mrs. 

AXNE, Mr. LOEBSACK, Mr. KING of Iowa, and Ms. FINKENAUER) introduced the following bill; which was referred to the Committee on Ways 

and Means 

A BILL 

To provide disaster tax relief for certain disasters occurring 

in 2019. 

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 after 


pamtmann on DSKBFK8HB2PROD with BILLS
2 

•HR 2284 IH

1 December 31, 2018, and before April 15, 2019, by 

2 the President under section 401 of the Robert T. 

3 Stafford Disaster Relief and Emergency Assistance 

4 Act if the incident period of the disaster with respect 

5 to which such declaration is made begins after De6 cember 31, 2018. 

7 (2) QUALIFIED DISASTER ZONE.—The term 

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

9 qualified disaster area which was determined by the 

10 President after December 31, 2018, and before April 

11 15, 2019, 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 (except that for purposes of this 


pamtmann on DSKBFK8HB2PROD with BILLS
3 

•HR 2284 IH

1 Act such period shall not be treated as beginning be2 fore January 1, 2019, or ending after April 15, 

3 2019). 

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

5 RETIREMENT FUNDS. 

6 (a) TAX-FAVORED WITHDRAWALS FROM RETIRE7 MENT PLANS.— 

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

9 Revenue Code of 1986 shall not apply to any quali10 fied disaster distribution. 

11 (2) AGGREGATE DOLLAR LIMITATION.— 

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

13 subsection, the aggregate amount of distribu14 tions received by an individual which may be 

15 treated as qualified disaster distributions for 

16 any taxable year shall not exceed the excess (if 

17 any) of— 

18 (i) $100,000, over 

19 (ii) the aggregate amounts treated as 

20 qualified disaster distributions received by 

21 such individual for all prior taxable years. 

22 (B) TREATMENT OF PLAN DISTRIBU23 TIONS.—If a distribution to an individual would 

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

25 qualified disaster distribution, a plan shall not 


pamtmann on DSKBFK8HB2PROD with BILLS
4 

•HR 2284 IH

1 be treated as violating any requirement of the 

2 Internal Revenue Code of 1986 merely because 

3 the plan treats such distribution as a qualified 

4 disaster distribution, unless the aggregate 

5 amount of such distributions from all plans 

6 maintained by the employer (and any member 

7 of any controlled group which includes the em8 ployer) to such individual exceeds $100,000. 

9 (C) CONTROLLED GROUP.—For purposes 

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

11 group’’ means any group treated as a single 

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

13 of section 414 of the Internal Revenue Code of 

14 1986. 

15 (D) SPECIAL RULE FOR INDIVIDUALS AF16 FECTED BY MORE THAN ONE DISASTER.—The 

17 limitation of subparagraph (A) shall be applied 

18 separately with respect to distributions made 

19 with respect to each qualified disaster. 

20 (3) AMOUNT DISTRIBUTED MAY BE REPAID.— 

21 (A) IN GENERAL.—Any individual who re22 ceives a qualified disaster distribution may, at 

23 any time during the 3-year period beginning on 

24 the day after the date on which such distribu25 tion was received, make 1 or more contributions 


pamtmann on DSKBFK8HB2PROD with BILLS
5 

•HR 2284 IH

1 in an aggregate amount not to exceed the 

2 amount of such distribution to an eligible retire3 ment plan of which such individual is a bene4 ficiary and to which a rollover contribution of 

5 such distribution could be made under section 

6 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 

7 457(e)(16), of the Internal Revenue Code of 

8 1986, as the case may be. 

9 (B) TREATMENT OF REPAYMENTS OF DIS10 TRIBUTIONS FROM ELIGIBLE RETIREMENT

11 PLANS OTHER THAN IRAS.—For purposes of 

12 the Internal Revenue Code of 1986, if a con13 tribution is made pursuant to subparagraph (A) 

14 with respect to a qualified disaster distribution 

15 from an eligible retirement plan other than an 

16 individual retirement plan, then the taxpayer 

17 shall, to the extent of the amount of the con18 tribution, be treated as having received the 

19 qualified disaster distribution in an eligible roll20 over distribution (as defined in section 

21 402(c)(4) of such Code), and as having trans22 ferred the amount to the eligible retirement 

23 plan in a direct trustee to trustee transfer with24 in 60 days of the distribution. 


pamtmann on DSKBFK8HB2PROD with BILLS
6 

•HR 2284 IH

1 (C) TREATMENT OF REPAYMENTS OF DIS2 TRIBUTIONS FROM IRAS.—For purposes of the 

3 Internal Revenue Code of 1986, if a contribu4 tion is made pursuant to subparagraph (A) 

5 with respect to a qualified disaster distribution 

6 from an individual retirement plan (as defined 

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

8 the extent of the amount of the contribution, 

9 the qualified disaster distribution shall be treat10 ed as a distribution described in section 

11 408(d)(3) of such Code and as having been 

12 transferred to the eligible retirement plan in a 

13 direct trustee to trustee transfer within 60 days 

14 of the distribution. 

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

17 (A) QUALIFIED DISASTER DISTRIBU18 TION.—Except as provided in paragraph (2), 

19 the term ‘‘qualified disaster distribution’’ means 

20 any distribution from an eligible retirement 

21 plan made— 

22 (i) on or after the first day of the in23 cident period of a qualified disaster and 

24 before the date which is 180 days after the 

25 date of the enactment of this Act, and 


pamtmann on DSKBFK8HB2PROD with BILLS
7 

•HR 2284 IH

1 (ii) to an individual whose principal 

2 place of abode at any time during the inci3 dent period of such qualified disaster is lo4 cated in the qualified disaster area with re5 spect to such qualified disaster and who 

6 has sustained an economic loss by reason 

7 of such qualified disaster. 

8 (B) ELIGIBLE RETIREMENT PLAN.—The 

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

10 meaning given such term by section 

11 402(c)(8)(B) of the Internal Revenue Code of 

12 1986. 

13 (5) INCOME INCLUSION SPREAD OVER 3-YEAR

14 PERIOD.— 

15 (A) IN GENERAL.—In the case of any 

16 qualified disaster distribution, unless the tax17 payer elects not to have this paragraph apply 

18 for any taxable year, any amount required to be 

19 included in gross income for such taxable year 

20 shall be so included ratably over the 3-taxable21 year period beginning with such taxable year. 

22 (B) SPECIAL RULE.—For purposes of sub23 paragraph (A), rules similar to the rules of sub24 paragraph (E) of section 408A(d)(3) of the In25 ternal Revenue Code of 1986 shall apply. 


pamtmann on DSKBFK8HB2PROD with BILLS
8 

•HR 2284 IH

1 (6) SPECIAL RULES.— 

2 (A) EXEMPTION OF DISTRIBUTIONS FROM

3 TRUSTEE TO TRUSTEE TRANSFER AND WITH4 HOLDING RULES.—For purposes of sections 

5 401(a)(31), 402(f), and 3405 of the Internal 

6 Revenue Code of 1986, qualified disaster dis7 tributions shall not be treated as eligible roll8 over distributions. 

9 (B) QUALIFIED DISASTER DISTRIBUTIONS

10 TREATED AS MEETING PLAN DISTRIBUTION RE11 QUIREMENTS.—For purposes the Internal Rev12 enue Code of 1986, a qualified disaster dis13 tribution shall be treated as meeting the re14 quirements of sections 401(k)(2)(B)(i), 

15 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) 

16 of such Code. 

17 (b) RECONTRIBUTIONS OF WITHDRAWALS FOR

18 HOME PURCHASES.— 

19 (1) RECONTRIBUTIONS.— 

20 (A) IN GENERAL.—Any individual who re21 ceived a qualified distribution may, during the 

22 applicable period, make 1 or more contributions 

23 in an aggregate amount not to exceed the 

24 amount of such qualified distribution to an eli25 gible retirement plan (as defined in section 


pamtmann on DSKBFK8HB2PROD with BILLS
9 

•HR 2284 IH

1 402(c)(8)(B) of the Internal Revenue Code of 

2 1986) of which such individual is a beneficiary 

3 and to which a rollover contribution of such dis4 tribution could be made under section 402(c), 

5 403(a)(4), 403(b)(8), or 408(d)(3), of such 

6 Code, as the case may be. 

7 (B) TREATMENT OF REPAYMENTS.—Rules 

8 similar to the rules of subparagraphs (B) and 

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

10 of this subsection. 

11 (2) QUALIFIED DISTRIBUTION.—For purposes 

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

13 means any distribution— 

14 (A) described in section 

15 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only 

16 to the extent such distribution relates to finan17 cial hardship), 403(b)(11)(B), or 72(t)(2)(F), 

18 of the Internal Revenue Code of 1986, 

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

20 construct a principal residence in a qualified 

21 disaster area, but which was not so used on ac22 count of the qualified disaster with respect to 

23 such area, and 

24 (C) which was received during the period 

25 beginning on the date which is 180 days before 


pamtmann on DSKBFK8HB2PROD with BILLS
10 

•HR 2284 IH

1 the first day of the incident period of such 

2 qualified disaster and ending on the date which 

3 is 30 days after the last day of such incident 

4 period. 

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

6 subsection, the term ‘‘applicable period’’ means, in 

7 the case of a principal residence in a qualified dis8 aster area with respect to any qualified disaster, the 

9 period beginning on the first day of the incident pe10 riod of such qualified disaster and ending on the 

11 date which is 180 days after the date of the enact12 ment of this Act. 

13 (c) LOANS FROM QUALIFIED PLANS.— 

14 (1) INCREASE IN LIMIT ON LOANS NOT TREAT15 ED AS DISTRIBUTIONS.—In the case of any loan 

16 from a qualified employer plan (as defined under 

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

18 1986) to a qualified individual made during the 180- 

19 day period beginning on the date of the enactment 

20 of this Act— 

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

22 such Code shall be applied by substituting 

23 ‘‘$100,000’’ for ‘‘$50,000’’, and 

24 (B) clause (ii) of such section shall be ap25 plied by substituting ‘‘the present value of the 


pamtmann on DSKBFK8HB2PROD with BILLS
11 

•HR 2284 IH

1 nonforfeitable accrued benefit of the employee 

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

3 value of the nonforfeitable accrued benefit of 

4 the employee under the plan’’. 

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

6 qualified individual (with respect to any qualified 

7 disaster) with an outstanding loan (on or after the 

8 first day of the incident period of such qualified dis9 aster) from a qualified employer plan (as defined in 

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

11 1986)— 

12 (A) if the due date pursuant to subpara13 graph (B) or (C) of section 72(p)(2) of such 

14 Code for any repayment with respect to such 

15 loan occurs during the period beginning on the 

16 first day of the incident period of such qualified 

17 disaster and ending on the date which is 180 

18 days after the last day of such incident period, 

19 such due date shall be delayed for 1 year (or, 

20 if later, until the date which is 180 days after 

21 the date of the enactment of this Act), 

22 (B) any subsequent repayments with re23 spect to any such loan shall be appropriately 

24 adjusted to reflect the delay in the due date 


pamtmann on DSKBFK8HB2PROD with BILLS
12 

•HR 2284 IH

1 under subparagraph (A) and any interest accru2 ing during such delay, and 

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

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

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

6 described in subparagraph (A) of this para7 graph shall be disregarded. 

8 (3) QUALIFIED INDIVIDUAL.—For purposes of 

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

10 means any individual— 

11 (A) whose principal place of abode at any 

12 time during the incident period of any qualified 

13 disaster is located in the qualified disaster area 

14 with respect to such qualified disaster, and 

15 (B) who has sustained an economic loss by 

16 reason of such qualified disaster. 

17 (d) PROVISIONS RELATING TO PLAN AMEND18 MENTS.— 

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

20 any amendment to any plan or annuity contract, 

21 such plan or contract shall be treated as being oper22 ated in accordance with the terms of the plan during 

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

24 (2) AMENDMENTS TO WHICH SUBSECTION AP25 PLIES.— 


pamtmann on DSKBFK8HB2PROD with BILLS
13 

•HR 2284 IH

1 (A) IN GENERAL.—This subsection shall 

2 apply to any amendment to any plan or annuity 

3 contract which is made— 

4 (i) pursuant to any provision of this 

5 section, or pursuant to any regulation 

6 issued by the Secretary or the Secretary of 

7 Labor under any provision of this section, 

8 and 

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

10 first plan year beginning on or after Janu11 ary 1, 2020, or such later date as the Sec12 retary may prescribe. 

13 In the case of a governmental plan (as defined 

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

15 of 1986), clause (ii) shall be applied by sub16 stituting the date which is 2 years after the 

17 date otherwise applied under clause (ii). 

18 (B) CONDITIONS.—This subsection shall 

19 not apply to any amendment unless— 

20 (i) during the period— 

21 (I) beginning on the date that 

22 this section or the regulation de23 scribed in subparagraph (A)(i) takes 

24 effect (or in the case of a plan or con25 tract amendment not required by this 


pamtmann on DSKBFK8HB2PROD with BILLS
14 

•HR 2284 IH

1 section or such regulation, the effec2 tive date specified by the plan), and 

3 (II) ending on the date described 

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

5 the date the plan or contract amend6 ment is adopted), 

7 the plan or contract is operated as if such plan 

8 or contract amendment were in effect, and 

9 (ii) such plan or contract amendment 

10 applies retroactively for such period. 

11 SEC. 4. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS 

12 AFFECTED BY QUALIFIED DISASTERS. 

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

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

15 employer, the 2019 qualified disaster employee retention 

16 credit shall be treated as a credit listed at the end of sub17 section (b) of such section. For purposes of this section, 

18 the 2019 qualified disaster employee retention credit for 

19 any taxable year is an amount equal to 40 percent of the 

20 qualified wages with respect to each eligible employee of 

21 such employer for such taxable year. The amount of quali22 fied wages with respect to any employee which may be 

23 taken into account under this section by the employer for 

24 any taxable year shall not exceed $6,000 (reduced by the 

25 amount of qualified wages with respect to such employee 


pamtmann on DSKBFK8HB2PROD with BILLS
15 

•HR 2284 IH

1 which may be so taken into account for any prior taxable 

2 year). 

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

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

5 employer’’ means any employer— 

6 (A) which conducted an active trade or 

7 business in a qualified disaster zone at any time 

8 during the incident period of the qualified dis9 aster with respect to such qualified disaster 

10 zone, and 

11 (B) with respect to whom the trade or 

12 business described in subparagraph (A) is inop13 erable at any time on or after the first day of 

14 the incident period of such qualified disaster, 

15 and before April 15, 2019, as a result of dam16 age sustained by reason of such qualified dis17 aster. 

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

19 employee’’ means with respect to an eligible em20 ployer an employee whose principal place of employ21 ment with such eligible employer (determined imme22 diately before the qualified disaster referred to in 

23 paragraph (1)) was in the qualified disaster zone re24 ferred to in such paragraph. 


pamtmann on DSKBFK8HB2PROD with BILLS
16 

•HR 2284 IH

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

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

3 of the Internal Revenue Code of 1986, but without 

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

5 or incurred by an eligible employer with respect to 

6 an eligible employee at any time on or after the date 

7 on which the trade or business described in para8 graph (1) first became inoperable at the principal 

9 place of employment of the employee (determined 

10 immediately before the qualified disaster referred to 

11 in such paragraph) and before the earlier of— 

12 (A) the date on which such trade or busi13 ness has resumed significant operations at such 

14 principal place of employment, or 

15 (B) the date which is 150 days after the 

16 last day of the incident period of the qualified 

17 disaster referred to in paragraph (1). 

18 Such term shall include wages paid without regard 

19 to whether the employee performs no services, per20 forms services at a different place of employment 

21 than such principal place of employment, or per22 forms services at such principal place of employment 

23 before significant operations have resumed. 

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

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


pamtmann on DSKBFK8HB2PROD with BILLS
17 

•HR 2284 IH

1 52, and 280C(a), of the Internal Revenue Code of 1986, 

2 shall apply. 

3 (d) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE

4 THAN ONCE.—An employee shall not be treated as an eli5 gible employee for purposes of this section for any period 

6 with respect to any employer if such employer is allowed 

7 a credit under section 51 of the Internal Revenue Code 

8 of 1986 with respect to such employee for such period. 

9 SEC. 5. OTHER DISASTER-RELATED TAX RELIEF PROVI10 SIONS. 

11 (a) TEMPORARY INCREASE IN LIMITATION ON

12 QUALIFIED CONTRIBUTIONS.— 

13 (1) SUSPENSION OF CURRENT LIMITATION.— 

14 Except as otherwise provided in paragraph (2), 

15 qualified contributions shall be disregarded in apply16 ing subsections (b) and (d) of section 170 of the In17 ternal Revenue Code of 1986. 

18 (2) APPLICATION OF INCREASED LIMITATION.— 

19 For purposes of section 170 of the Internal Revenue 

20 Code of 1986— 

21 (A) INDIVIDUALS.—In the case of an indi22 vidual— 

23 (i) LIMITATION.—Any qualified con24 tribution shall be allowed as a deduction 

25 only to the extent that the aggregate of 


pamtmann on DSKBFK8HB2PROD with BILLS
18 

•HR 2284 IH

1 such contributions does not exceed the ex2 cess of the taxpayer’s contribution base (as 

3 defined in subparagraph (H) of section 

4 170(b)(1) of such Code) over the amount 

5 of all other charitable contributions allowed 

6 under section 170(b)(1) of such Code. 

7 (ii) CARRYOVER.—If the aggregate 

8 amount of qualified contributions made in 

9 the contribution year (within the meaning 

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

11 the limitation of clause (i), such excess 

12 shall be added to the excess described in 

13 section 170(b)(1)(G)(ii). 

14 (B) CORPORATIONS.—In the case of a cor15 poration— 

16 (i) LIMITATION.—Any qualified con17 tribution shall be allowed as a deduction 

18 only to the extent that the aggregate of 

19 such contributions does not exceed the ex20 cess of the taxpayer’s taxable income (as 

21 determined under paragraph (2) of section 

22 170(b) of such Code) over the amount of 

23 all other charitable contributions allowed 

24 under such paragraph. 


pamtmann on DSKBFK8HB2PROD with BILLS
19 

•HR 2284 IH

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)(2) of such Code) exceeds 

5 the limitation of clause (i), such excess 

6 shall be appropriately taken into account 

7 under section 170(d)(2) subject to the limi8 tations thereof. 

9 (3) QUALIFIED CONTRIBUTIONS.— 

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

11 subsection, the term ‘‘qualified contribution’’ 

12 means any charitable contribution (as defined 

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

14 of 1986) if— 

15 (i) such contribution— 

16 (I) is paid during 2019 in cash to 

17 an organization described in section 

18 170(b)(1)(A) of such Code, and 

19 (II) is made for relief efforts in 

20 one or more qualified disaster areas, 

21 (ii) the taxpayer obtains from such or22 ganization contemporaneous written ac23 knowledgment (within the meaning of sec24 tion 170(f)(8) of such Code) that such con25 tribution was used (or is to be used) for 


pamtmann on DSKBFK8HB2PROD with BILLS
20 

•HR 2284 IH

1 relief efforts described in clause (i)(II), 

2 and 

3 (iii) the taxpayer has elected the ap4 plication of this subsection with respect to 

5 such contribution. 

6 (B) EXCEPTION.—Such term shall not in7 clude a contribution by a donor if the contribu8 tion is— 

9 (i) to an organization described in sec10 tion 509(a)(3) of the Internal Revenue 

11 Code of 1986, or 

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

13 maintenance of an existing, donor-advised 

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

15 such Code). 

16 (C) APPLICATION OF ELECTION TO PART17 NERSHIPS AND S CORPORATIONS.—In the case 

18 of a partnership or S corporation, the election 

19 under subparagraph (A)(iii) shall be made sepa20 rately by each partner or shareholder. 

21 (b) SPECIAL RULES FOR QUALIFIED DISASTER-RE22 LATED PERSONAL CASUALTY LOSSES.— 

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

24 disaster loss for any taxable year— 


pamtmann on DSKBFK8HB2PROD with BILLS
21 

•HR 2284 IH

1 (A) the amount determined under section 

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

3 of 1986 shall be equal to the sum of— 

4 (i) such net disaster loss, and 

5 (ii) so much of the excess referred to 

6 in the matter preceding clause (i) of sec7 tion 165(h)(2)(A) of such Code (reduced 

8 by the amount in clause (i) of this sub9 paragraph) as exceeds 10 percent of the 

10 adjusted gross income of the individual, 

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

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

13 ($100 for taxable years beginning after Decem14 ber 31, 2009)’’, 

15 (C) the standard deduction determined 

16 under section 63(c) of such Code shall be in17 creased by the net disaster loss, and 

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

19 not apply to so much of the standard deduction 

20 as is attributable to the increase under sub21 paragraph (C) of this paragraph. 

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

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

24 excess of qualified disaster-related personal casualty 

25 losses over personal casualty gains (as defined in 


pamtmann on DSKBFK8HB2PROD with BILLS
22 

•HR 2284 IH

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

2 of 1986). 

3 (3) QUALIFIED DISASTER-RELATED PERSONAL

4 CASUALTY LOSSES.—For purposes of this sub5 section, the term ‘‘qualified disaster-related personal 

6 casualty losses’’ means losses described in section 

7 165(c)(3) of the Internal Revenue Code of 1986 

8 which arise in a qualified disaster area on or after 

9 the first day of the incident period of the qualified 

10 disaster to which such area relates, and which are 

11 attributable to such qualified disaster. 

12 (c) SPECIAL RULE FOR DETERMINING EARNED IN13 COME.— 

14 (1) IN GENERAL.—In the case of a qualified in15 dividual, if the earned income of the taxpayer for the 

16 applicable taxable year is less than the earned in17 come of the taxpayer for the preceding taxable year, 

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

19 the Internal Revenue Code of 1986 may, at the elec20 tion of the taxpayer, be determined by sub21 stituting— 

22 (A) such earned income for the preceding 

23 taxable year, for 

24 (B) such earned income for the applicable 

25 taxable year. 


pamtmann on DSKBFK8HB2PROD with BILLS
23 

•HR 2284 IH

1 (2) QUALIFIED INDIVIDUAL.—For purposes of 

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

3 means any individual whose principal place of abode 

4 at any time during the incident period of any quali5 fied disaster was located— 

6 (A) in the qualified disaster zone with re7 spect to such qualified disaster, or 

8 (B) in the qualified disaster area with re9 spect to such qualified disaster (but outside the 

10 qualified disaster zone with respect to such 

11 qualified disaster) and such individual was dis12 placed from such principal place of abode by 

13 reason of such qualified disaster. 

14 (3) APPLICABLE TAXABLE YEAR.—The term 

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

16 qualified individual, any taxable year which includes 

17 any portion of the incident period of the qualified 

18 disaster to which the qualified disaster area referred 

19 to in paragraph (2) relates. 

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

21 subsection, the term ‘‘earned income’’ has the mean22 ing given such term under section 32(c) of the Inter23 nal Revenue Code of 1986. 

24 (5) SPECIAL RULES.— 


pamtmann on DSKBFK8HB2PROD with BILLS
24 

•HR 2284 IH

1 (A) APPLICATION TO JOINT RETURNS.— 

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

3 a joint return for an applicable taxable year— 

4 (i) such paragraph shall apply if ei5 ther spouse is a qualified individual, and 

6 (ii) the earned income of the taxpayer 

7 for the preceding taxable year shall be the 

8 sum of the earned income of each spouse 

9 for such preceding taxable year. 

10 (B) UNIFORM APPLICATION OF ELEC11 TION.—Any election made under paragraph (1) 

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

13 and 32 of the Internal Revenue Code of 1986. 

14 (C) ERRORS TREATED AS MATHEMATICAL

15 ERROR.—For purposes of section 6213 of the 

16 Internal Revenue Code of 1986, an incorrect 

17 use on a return of earned income pursuant to 

18 paragraph (1) shall be treated as a mathe19 matical or clerical error. 

20 (D) NO EFFECT ON DETERMINATION OF

21 GROSS INCOME, ETC.—Except as otherwise pro22 vided in this subsection, the Internal Revenue 

23 Code of 1986 shall be applied without regard to 

24 any substitution under paragraph (1). 

Æ 


pamtmann on DSKBFK8HB2PROD with BILLS