II 

110TH CONGRESS 

2D SESSION S. 3322 

To provide tax relief for the victims of severe storms, tornados, and flooding 

in the Midwest, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 23, 2008 

Mr. GRASSLEY (for himself, Mr. HARKIN, Mr. ROBERTS, Mr. DURBIN, Mr. 

COLEMAN, Mr. BOND, Mr. BROWNBACK, Mr. BAYH, Mrs. MCCASKILL, 

Ms. KLOBUCHAR, Mr. OBAMA, and Mr. LUGAR) introduced the following 

bill; which was read twice and referred to the Committee on Finance 

A BILL 

To provide tax relief for the victims of severe storms, tornados, and flooding in the Midwest, and for other purposes. 

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 ‘‘Midwestern Disaster 

5 Tax Relief Act of 2008’’. 


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1 SEC. 2. TEMPORARY TAX RELIEF FOR AREAS DAMAGED BY 

2 2008 MIDWESTERN SEVERE STORMS, TOR3 NADOS, AND FLOODING. 

4 (a) IN GENERAL.—Subject to the modifications de5 scribed in this section, the following provisions of or relat6 ing to the Internal Revenue Code of 1986 shall apply to 

7 any Midwestern disaster area in addition to the areas to 

8 which such provisions otherwise apply: 

9 (1) GO ZONE BENEFITS.— 

10 (A) Section 1400N (relating to tax bene11 fits) other than subsections (b), (i), (j), (m), 

12 and (o) thereof. 

13 (B) Section 1400O (relating to education 

14 tax benefits). 

15 (C) Section 1400P (relating to housing tax 

16 benefits). 

17 (D) Section 1400Q (relating to special 

18 rules for use of retirement funds). 

19 (E) Section 1400R(a) (relating to em20 ployee retention credit for employers). 

21 (F) Section 1400S (relating to additional 

22 tax relief) other than subsection (d) thereof. 

23 (G) Section 1400T (relating to special 

24 rules for mortgage revenue bonds). 

25 (2) OTHER BENEFITS INCLUDED IN KATRINA

26 EMERGENCY TAX RELIEF ACT OF 2005.—Sections 


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1 302, 303, 304, 401, and 405 of the Katrina Emer2 gency Tax Relief Act of 2005. 

3 (b) USE OF AMENDED INCOME TAX RETURNS TO

4 TAKE INTO ACCOUNT RECEIPT OF CERTAIN CASUALTY

5 LOSS GRANTS BY DISALLOWING PREVIOUSLY TAKEN

6 CASUALTY LOSS DEDUCTIONS.— 

7 (1) IN GENERAL.—Notwithstanding any other 

8 provision of the Internal Revenue Code of 1986, if 

9 a taxpayer claims a deduction for any taxable year 

10 with respect to a casualty loss to a principal resi11 dence (within the meaning of section 121 of such 

12 Code) resulting from the severe storms, tornados, or 

13 flooding giving rise to any Presidential declaration 

14 described in subsection (c)(1)(A) and in a subse15 quent taxable year receives a grant under any Fed16 eral or State program as reimbursement for such 

17 loss, such taxpayer may elect to file an amended in18 come tax return for the taxable year in which such 

19 deduction was allowed (and for any taxable year to 

20 which such deduction is carried) and reduce (but not 

21 below zero) the amount of such deduction by the 

22 amount of such reimbursement. 

23 (2) TIME OF FILING AMENDED RETURN.— 

24 Paragraph (1) shall apply with respect to any grant 


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1 only if any amended income tax returns with respect 

2 to such grant are filed not later than the later of— 

3 (A) the due date for filing the tax return 

4 for the taxable year in which the taxpayer re5 ceives such grant, or 

6 (B) the date which is 1 year after the date 

7 of the enactment of this Act. 

8 (3) WAIVER OF PENALTIES AND INTEREST.— 

9 Any underpayment of tax resulting from the reduc10 tion under paragraph (1) of the amount otherwise 

11 allowable as a deduction shall not be subject to any 

12 penalty or interest under such Code if such tax is 

13 paid not later than 1 year after the filing of the 

14 amended return to which such reduction relates. 

15 (c) MIDWESTERN DISASTER AREA.— 

16 (1) IN GENERAL.—For purposes of this section 

17 and for applying the substitutions described in sub18 sections (e) and (f), the term ‘‘Midwestern disaster 

19 area’’ means an area— 

20 (A) with respect to which a major disaster 

21 has been declared by the President on or after 

22 May 20, 2008, and before August 1, 2008, 

23 under section 401 of the Robert T. Stafford 

24 Disaster Relief and Emergency Assistance Act 

25 by reason of severe storms, tornados, or floodVerDate Aug 31 2005 05:07 Jul 24, 2008 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3322.IS S3322

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1 ing occurring in any of the States of Arkansas, 

2 Illinois, Indiana, Iowa, Kansas, Michigan, Min3 nesota, Missouri, Nebraska, and Wisconsin, and 

4 (B) determined by the President to war5 rant individual or individual and public assist6 ance from the Federal Government under such 

7 Act with respect to damages attributable to 

8 such severe storms, tornados, or flooding. 

9 (2) CERTAIN BENEFITS AVAILABLE TO AREAS

10 ELIGIBLE ONLY FOR PUBLIC ASSISTANCE.—For pur11 poses of applying this section to benefits under the 

12 following provisions, paragraph (1) shall be applied 

13 without regard to subparagraph (B): 

14 (A) Sections 1400Q, 1400S(b), and 

15 1400S(d) of the Internal Revenue Code of 

16 1986. 

17 (B) Sections 302, 401, and 405 of the 

18 Katrina Emergency Tax Relief Act of 2005. 

19 (d) REFERENCES.— 

20 (1) AREA.—Any reference in such provisions to 

21 the Hurricane Katrina disaster area or the Gulf Op22 portunity Zone shall be treated as a reference to any 

23 Midwestern disaster area and any reference to the 

24 Hurricane Katrina disaster area or the Gulf Oppor25 tunity Zone within a State shall be treated as a refVerDate Aug 31 2005 05:07 Jul 24, 2008 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3322.IS S3322

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1 erence to all Midwestern disaster areas within the 

2 State. 

3 (2) ITEMS ATTRIBUTABLE TO DISASTER.—Any 

4 reference in such provisions to any loss, damage, or 

5 other item attributable to Hurricane Katrina shall 

6 be treated as a reference to any loss, damage, or 

7 other item attributable to the severe storms, tor8 nados, or flooding giving rise to any Presidential 

9 declaration described in subsection (c)(1)(A). 

10 (3) APPLICABLE DISASTER DATE.—For pur11 poses of applying the substitutions described in sub12 sections (e) and (f), the term ‘‘applicable disaster 

13 date’’ means, with respect to any Midwestern dis14 aster area, the date on which the severe storms, tor15 nados, or flooding giving rise to the Presidential dec16 laration described in subsection (c)(1)(A) occurred. 

17 (e) MODIFICATIONS TO 1986 CODE.—The following 

18 provisions of the Internal Revenue Code of 1986 shall be 

19 applied with the following modifications: 

20 (1) TAX-EXEMPT BOND FINANCING.—Section 

21 1400N(a)— 

22 (A) by substituting ‘‘qualified Midwestern 

23 disaster area bond’’ for ‘‘qualified Gulf Oppor24 tunity Zone Bond’’ each place it appears, except 


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1 that in determining whether a bond is a quali2 fied Midwestern disaster area bond— 

3 (i) paragraph (2)(A)(i) shall be ap4 plied by only treating costs as qualified 

5 project costs if— 

6 (I) in the case of a project involv7 ing a private business use (as defined 

8 in section 141(b)(6)), either the per9 son using the property suffered a loss 

10 in a trade or business attributable to 

11 the severe storms, tornados, or flood12 ing giving rise to any Presidential dec13 laration described in subsection 

14 (c)(1)(A) or is a person designated for 

15 purposes of this section by the Gov16 ernor of the State in which the project 

17 is located as a person carrying on a 

18 trade or business replacing a trade or 

19 business with respect to which another 

20 person suffered such a loss, and 

21 (II) in the case of a project relat22 ing to public utility property, the 

23 project involves repair or reconstruc24 tion of public utility property damVerDate Aug 31 2005 05:07 Jul 24, 2008 Jkt 069200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3322.IS S3322

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1 aged by such severe storms, tornados, 

2 or flooding, and 

3 (ii) paragraph (2)(A)(ii) shall be ap4 plied by treating an issue as a qualified 

5 mortgage issue only if 95 percent or more 

6 of the net proceeds (as defined in section 

7 150(a)(3)) of the issue are to be used to 

8 provide financing for mortgagors who suf9 fered damages to their principal residences 

10 attributable to such severe storms, tor11 nados, or flooding. 

12 (B) by substituting ‘‘any State in which a 

13 Midwestern disaster area is located’’ for ‘‘the 

14 State of Alabama, Louisiana, or Mississippi’’ in 

15 paragraph (2)(B), 

16 (C) by substituting ‘‘designated for pur17 poses of this section (on the basis of providing 

18 assistance to areas in the order in which such 

19 assistance is most needed)’’ for ‘‘designated for 

20 purposes of this section’’ in paragraph (2)(C), 

21 (D) by substituting ‘‘January 1, 2013’’ for 

22 ‘‘January 1, 2011’’ in paragraph (2)(D), 

23 (E) in paragraph (3)(A)— 

24 (i) by substituting ‘‘$1,000’’ for 

25 ‘‘$2,500’’, and 


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1 (ii) by substituting ‘‘before the ear2 liest applicable disaster date for Mid3 western disaster areas within the State’’ 

4 for ‘‘before August 28, 2005’’, 

5 (F) by substituting ‘‘qualified Midwestern 

6 disaster area repair or construction’’ for ‘‘quali7 fied GO Zone repair or construction’’ each place 

8 it appears, and 

9 (G) by substituting ‘‘after the date of the 

10 enactment of the Housing and Economic Recov11 ery Act of 2008 and before January 1, 2013’’ 

12 for ‘‘after the date of the enactment of this 

13 paragraph and before January 1, 2011’’ in 

14 paragraph (7)(C). 

15 (2) LOW-INCOME HOUSING CREDIT.—Section 

16 1400N(c)— 

17 (A) only with respect to calendar years 

18 2009, 2010, and 2011, 

19 (B) by substituting ‘‘Disaster Recovery As20 sistance housing amount’’ for ‘‘Gulf Oppor21 tunity housing amount’’, 

22 (C) in paragraph (1)(B)— 

23 (i) by substituting ‘‘$4.00’’ for 

24 ‘‘$18.00’’, and 


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1 (ii) by substituting ‘‘before the ear2 liest applicable disaster date for Mid3 western disaster areas within the State’’ 

4 for ‘‘before August 28, 2005’’ , and 

5 (D) determined without regard to para6 graphs (2), (3), (4), (5), and (6) thereof. 

7 (3) SPECIAL ALLOWANCE FOR CERTAIN PROP8 ERTY ACQUIRED ON OR AFTER THE APPLICABLE

9 DISASTER DATE.—Section 1400N(d)— 

10 (A) by substituting ‘‘qualified Disaster Re11 covery Assistance property’’ for ‘‘qualified Gulf 

12 Opportunity Zone property’’ each place it ap13 pears, except that a taxpayer shall be allowed 

14 additional bonus depreciation and expensing 

15 under such subsection or section 1400N(e) with 

16 respect to such property only if— 

17 (i) the taxpayer suffered an economic 

18 loss attributable to the severe storms, tor19 nados, or flooding giving rise to any Presi20 dential declaration described in subsection 

21 (c)(1)(A), and 

22 (ii) such property— 

23 (I) rehabilitates property dam24 aged, or replaces property destroyed 

25 or condemned, as a result of such seVerDate Aug 31 2005 05:07 Jul 24, 2008 Jkt 069200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3322.IS S3322

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1 vere storms, tornados, or flooding, ex2 cept that, for purposes of this clause, 

3 property shall be treated as replacing 

4 property destroyed or condemned if, 

5 as part of an integrated plan, such 

6 property replaces property which is in7 cluded in a continuous area which in8 cludes real property destroyed or con9 demned, and 

10 (II) is similar in nature to, and 

11 located in the same county as, the 

12 property being rehabilitated or re13 placed, 

14 (B) by substituting ‘‘the applicable disaster 

15 date’’ for ‘‘August 28, 2005’’ each place it ap16 pears, 

17 (C) by substituting ‘‘December 31, 2011’’ 

18 for ‘‘December 31, 2007’’ in paragraph 

19 (2)(A)(v), 

20 (D) by substituting ‘‘December 31, 2012’’ 

21 for ‘‘December 31, 2008’’ in paragraph 

22 (2)(A)(v), 

23 (E) by substituting ‘‘the day before the ap24 plicable disaster date’’ for ‘‘August 27, 2005’’ 

25 in paragraph (3)(A), 


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1 (F) determined without regard to para2 graph (6) thereof, and 

3 (G) by not including as qualified Disaster 

4 Recovery Assistance property any property to 

5 which section 168(k) applies. 

6 (4) INCREASE IN EXPENSING UNDER SECTION

7 179.—Section 1400N(e), by substituting ‘‘qualified 

8 section 179 Disaster Recovery Assistance property’’ 

9 for ‘‘qualified section 179 Gulf Opportunity Zone 

10 property’’ each place it appears. 

11 (5) EXPENSING FOR CERTAIN DEMOLITION AND

12 CLEAN-UP COSTS.—Section 1400N(f)— 

13 (A) by substituting ‘‘qualified Disaster Re14 covery Assistance clean-up cost’’ for ‘‘qualified 

15 Gulf Opportunity Zone clean-up cost’’ each 

16 place it appears, 

17 (B) by substituting ‘‘beginning on the ap18 plicable disaster date and ending on December 

19 31, 2010’’ for ‘‘beginning on August 28, 2005, 

20 and ending on December 31, 2007’’ in para21 graph (2), and 

22 (C) by treating costs as qualified Disaster 

23 Recovery Assistance clean-up costs only if the 

24 removal of debris or demolition of any structure 

25 was necessary due to damage attributable to 


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1 the severe storms, tornados, or flooding giving 

2 rise to any Presidential declaration described in 

3 subsection (c)(1)(A). 

4 (6) EXTENSION OF EXPENSING FOR ENVIRON5 MENTAL REMEDIATION COSTS.—Section 1400N(g)— 

6 (A) by substituting ‘‘the applicable disaster 

7 date’’ for ‘‘August 28, 2005’’ each place it ap8 pears, 

9 (B) by substituting ‘‘January 1, 2011’’ for 

10 ‘‘January 1, 2008’’ in paragraph (1), 

11 (C) by substituting ‘‘December 31, 2010’’ 

12 for ‘‘December 31, 2007’’ in paragraph (1), and 

13 (D) by treating a site as a qualified con14 taminated site only if the release (or threat of 

15 release) or disposal of a hazardous substance at 

16 the site was attributable to the severe storms, 

17 tornados, or flooding giving rise to any Presi18 dential declaration described in subsection 

19 (c)(1)(A). 

20 (7) INCREASE IN REHABILITATION CREDIT.— 

21 Section 1400N(h)— 

22 (A) by substituting ‘‘the applicable disaster 

23 date’’ for ‘‘August 28, 2005’’, 

24 (B) by substituting ‘‘January 1, 2011’’ for 

25 ‘‘January 1, 2008’’ in paragraph (1), and 


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1 (C) by only applying such subsection to 

2 qualified rehabilitation expenditures with re3 spect to any building or structure which was 

4 damaged or destroyed as a result of the severe 

5 storms, tornados, or flooding giving rise to any 

6 Presidential declaration described in subsection 

7 (c)(1)(A). 

8 (8) TREATMENT OF NET OPERATING LOSSES

9 ATTRIBUTABLE TO DISASTER LOSSES.—Section 

10 1400N(k)— 

11 (A) by substituting ‘‘qualified Disaster Re12 covery Assistance loss’’ for ‘‘qualified Gulf Op13 portunity Zone loss’’ each place it appears, 

14 (B) by substituting ‘‘after the day before 

15 the applicable disaster date, and before January 

16 1, 2011’’ for ‘‘after August 27, 2005, and be17 fore January 1, 2008’’ each place it appears, 

18 (C) by substituting ‘‘the applicable disaster 

19 date’’ for ‘‘August 28, 2005’’ in paragraph 

20 (2)(B)(ii)(I), 

21 (D) by substituting ‘‘qualified Disaster Re22 covery Assistance property’’ for ‘‘qualified Gulf 

23 Opportunity Zone property’’ in paragraph 

24 (2)(B)(iv), and 


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1 (E) by substituting ‘‘qualified Disaster Re2 covery Assistance casualty loss’’ for ‘‘qualified 

3 Gulf Opportunity Zone casualty loss’’ each 

4 place it appears. 

5 (9) CREDIT TO HOLDERS OF TAX CREDIT

6 BONDS.—Section 1400N(l)— 

7 (A) by substituting ‘‘Midwestern tax credit 

8 bond’’ for ‘‘Gulf tax credit bond’’ each place it 

9 appears, 

10 (B) by substituting ‘‘any State in which a 

11 Midwestern disaster area is located’’ for ‘‘the 

12 State of Alabama, Louisiana, or Mississippi’’ in 

13 paragraph (4)(A)(i), 

14 (C) by substituting ‘‘after December 31, 

15 2008 and before January 1, 2010’’ for ‘‘after 

16 December 31, 2005, and before January 1, 

17 2007’’, 

18 (D) by substituting ‘‘shall not exceed 

19 $100,000,000 for any State with an aggregate 

20 population located in all Midwestern disaster 

21 areas within the State of at least 2,000,000, 

22 $50,000,000 for any State with an aggregate 

23 population located in all Midwestern disaster 

24 areas within the State of at least 1,000,000 but 

25 less than 2,000,000, and zero for any other 


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1 State. The population of a State within any 

2 area shall be determined on the basis of the 

3 most recent census estimate of resident popu4 lation released by the Bureau of Census before 

5 the earliest applicable disaster date for Mid6 western disaster areas within the State.’’ for 

7 ‘‘shall not exceed’’ and all that follows in para8 graph (4)(C), and 

9 (E) by substituting ‘‘the earliest applicable 

10 disaster date for Midwestern disaster areas 

11 within the State’’ for ‘‘August 28, 2005’’ in 

12 paragraph (5)(A). 

13 (10) EDUCATION TAX BENEFITS.—Section 

14 1400O, by substituting ‘‘2008 or 2009’’ for ‘‘2005 

15 or 2006’’. 

16 (11) HOUSING TAX BENEFITS.—Section 1400P, 

17 by substituting ‘‘the applicable disaster date’’ for 

18 ‘‘August 28, 2005’’ in subsection (c)(1). 

19 (12) SPECIAL RULES FOR USE OF RETIREMENT

20 FUNDS.—Section 1400Q— 

21 (A) by substituting ‘‘qualified Disaster Re22 covery Assistance distribution’’ for ‘‘qualified 

23 hurricane distribution’’ each place it appears, 

24 (B) by substituting ‘‘on or after the appli25 cable disaster date and before January 1, 


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1 2010’’ for ‘‘on or after August 25, 2005, and 

2 before January 1, 2007’’ in subsection 

3 (a)(4)(A)(i), 

4 (C) by substituting ‘‘the applicable disaster 

5 date’’ for ‘‘August 28, 2005’’ in subsections 

6 (a)(4)(A)(i) and (c)(3)(B), 

7 (D) by disregarding clauses (ii) and (iii) of 

8 subsection (a)(4)(A) thereof, 

9 (E) by substituting ‘‘qualified storm dam10 age distribution’’ for ‘‘qualified Katrina dis11 tribution’’ each place it appears, 

12 (F) by substituting ‘‘after the date which 

13 is 6 months before the applicable disaster date 

14 and before the date which is the day after the 

15 applicable disaster date’’ for ‘‘after February 

16 28, 2005, and before August 29, 2005’’ in sub17 section (b)(2)(B)(ii), 

18 (G) by substituting ‘‘the Midwestern dis19 aster area, but not so purchased or constructed 

20 on account of severe storms, tornados, or flood21 ing giving rise to the designation of the area as 

22 a disaster area’’ for ‘‘the Hurricane Katrina 

23 disaster area, but not so purchased or con24 structed on account of Hurricane Katrina’’ in 

25 subsection (b)(2)(B)(iii), 


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1 (H) by substituting ‘‘beginning on the ap2 plicable disaster date and ending on the date 

3 which is 5 months after the date of the enact4 ment of the Housing and Economic Recovery 

5 Act of 2008’’ for ‘‘beginning on August 25, 

6 2005, and ending on February 28, 2006’’ in 

7 subsection (b)(3)(A), 

8 (I) by substituting ‘‘qualified storm dam9 age individual’’ for ‘‘qualified Hurricane 

10 Katrina individual’’ each place it appears, 

11 (J) by substituting ‘‘December 31, 2009’’ 

12 for ‘‘December 31, 2006’’ in subsection 

13 (c)(2)(A), 

14 (K) by substituting ‘‘beginning on the date 

15 of the enactment of the Housing and Economic 

16 Recovery Act of 2008 and ending on December 

17 31, 2009’’ for ‘‘beginning on September 24, 

18 2005, and ending on December 31, 2006’’ in 

19 subsection (c)(4)(A)(i), 

20 (L) by substituting ‘‘the applicable disaster 

21 date’’ for ‘‘August 25, 2005’’ in subsection 

22 (c)(4)(A)(ii), and 

23 (M) by substituting ‘‘January 1, 2010’’ for 

24 ‘‘January 1, 2007’’ in subsection (d)(2)(A)(ii). 


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1 (13) EMPLOYEE RETENTION CREDIT FOR EM2 PLOYERS AFFECTED BY SEVERE STORMS, TOR3 NADOS, AND FLOODING.—Section 1400R(a)— 

4 (A) by substituting ‘‘the applicable disaster 

5 date’’ for ‘‘August 28, 2005’’ each place it ap6 pears, 

7 (B) by substituting ‘‘January 1, 2009’’ for 

8 ‘‘January 1, 2006’’ both places it appears, and 

9 (C) only with respect to eligible employers 

10 who employed an average of not more than 200 

11 employees on business days during the taxable 

12 year before the applicable disaster date. 

13 (14) TEMPORARY SUSPENSION OF LIMITATIONS

14 ON CHARITABLE CONTRIBUTIONS.—Section 

15 1400S(a), by substituting the following paragraph 

16 for paragraph (4) thereof: 

17 ‘‘(4) QUALIFIED CONTRIBUTIONS.— 

18 ‘‘(A) IN GENERAL.—For purposes of this 

19 subsection, the term ‘qualified contribution’ 

20 means any charitable contribution (as defined 

21 in section 170(c)) if— 

22 ‘‘(i) such contribution— 

23 ‘‘(I) is paid during the period be24 ginning on the earliest applicable dis25 aster date for all States and ending 


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1 on December 31, 2008, in cash to an 

2 organization described in section 

3 170(b)(1)(A), and 

4 ‘‘(II) is made for relief efforts in 

5 1 or more Midwestern disaster areas, 

6 ‘‘(ii) the taxpayer obtains from such 

7 organization contemporaneous written ac8 knowledgment (within the meaning of sec9 tion 170(f)(8)) that such contribution was 

10 used (or is to be used) for relief efforts in 

11 1 or more Midwestern disaster areas, and 

12 ‘‘(iii) the taxpayer has elected the ap13 plication of this subsection with respect to 

14 such contribution. 

15 ‘‘(B) EXCEPTION.—Such term shall not in16 clude a contribution by a donor if the contribu17 tion is— 

18 ‘‘(i) to an organization described in 

19 section 509(a)(3), or 

20 ‘‘(ii) for establishment of a new, or 

21 maintenance of an existing, donor advised 

22 fund (as defined in section 4966(d)(2)). 

23 ‘‘(C) APPLICATION OF ELECTION TO PART24 NERSHIPS AND S CORPORATIONS.—In the case 

25 of a partnership or S corporation, the election 


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1 under subparagraph (A)(iii) shall be made sepa2 rately by each partner or shareholder.’’. 

3 (15) SUSPENSION OF CERTAIN LIMITATIONS ON

4 PERSONAL CASUALTY LOSSES.—Section 

5 1400S(b)(1), by substituting ‘‘the applicable disaster 

6 date’’ for ‘‘August 25, 2005’’. 

7 (16) SPECIAL RULE FOR DETERMINING

8 EARNED INCOME.—Section 1400S(d)— 

9 (A) by treating an individual as a qualified 

10 individual if such individual’s principal place of 

11 abode on the applicable disaster date was lo12 cated in a Midwestern disaster area, 

13 (B) by treating the applicable disaster date 

14 with respect to any such individual as the appli15 cable date for purposes of such subsection, and 

16 (C) by treating an area as described in 

17 paragraph (2)(B)(ii) thereof if the area is a 

18 Midwestern disaster area only by reason of sub19 section (b)(2) of this section (relating to areas 

20 eligible only for public assistance). 

21 (17) ADJUSTMENTS REGARDING TAXPAYER AND

22 DEPENDENCY STATUS.—Section 1400S(e), by sub23 stituting ‘‘2008 or 2009’’ for ‘‘2005 or 2006’’. 

24 (f) MODIFICATIONS TO KATRINA EMERGENCY TAX

25 RELIEF ACT OF 2005.—The following provisions of the 


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1 Katrina Emergency Tax Relief Act of 2005 shall be ap2 plied with the following modifications: 

3 (1) ADDITIONAL EXEMPTION FOR HOUSING DIS4 PLACED INDIVIDUAL.—Section 302— 

5 (A) by substituting ‘‘2008 or 2009’’ for 

6 ‘‘2005 or 2006’’ in subsection (a) thereof, 

7 (B) by substituting ‘‘Midwestern displaced 

8 individual’’ for ‘‘Hurricane Katrina displaced 

9 individual’’ each place it appears, and 

10 (C) by treating an area as a core disaster 

11 area for purposes of applying subsection (c) 

12 thereof if the area is a Midwestern disaster area 

13 without regard to subsection (b)(2) of this sec14 tion (relating to areas eligible only for public 

15 assistance). 

16 (2) INCREASE IN STANDARD MILEAGE RATE.— 

17 Section 303, by substituting ‘‘beginning on the ap18 plicable disaster date and ending on December 31, 

19 2008’’ for ‘‘beginning on August 25, 2005, and end20 ing on December 31, 2006’’. 

21 (3) MILEAGE REIMBURSEMENTS FOR CHARI22 TABLE VOLUNTEERS.—Section 304— 

23 (A) by substituting ‘‘beginning on the ap24 plicable disaster date and ending on December 

25 31, 2008’’ for ‘‘beginning on August 25, 2005, 


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1 and ending on December 31, 2006’’ in sub2 section (a), and 

3 (B) by substituting ‘‘the applicable disaster 

4 date’’ for ‘‘August 25, 2005’’ in subsection (a). 

5 (4) EXCLUSION OF CERTAIN CANCELLATION OF

6 INDEBTEDNESS INCOME.—Section 401— 

7 (A) by treating an individual whose prin8 cipal place of abode on the applicable disaster 

9 date was in a Midwestern disaster area (deter10 mined without regard to subsection (b)(2) of 

11 this section) as an individual described in sub12 section (b)(1) thereof, and by treating an indi13 vidual whose principal place of abode on the ap14 plicable disaster date was in a Midwestern dis15 aster area solely by reason of subsection (b)(2) 

16 of this section as an individual described in sub17 section (b)(2) thereof, 

18 (B) by substituting ‘‘the applicable disaster 

19 date’’ for ‘‘August 28, 2005’’ both places it ap20 pears, and 

21 (C) by substituting ‘‘January 1, 2010’’ for 

22 ‘‘January 1, 2007’’ in subsection (e). 

23 (5) EXTENSION OF REPLACEMENT PERIOD FOR

24 NONRECOGNITION OF GAIN.—Section 405, by subVerDate Aug 31 2005 05:07 Jul 24, 2008 Jkt 069200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S3322.IS S3322

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1 stituting ‘‘on or after the applicable disaster date’’ 

2 for ‘‘on or after August 25, 2005’’. 

3 SEC. 3. ENHANCED CHARITABLE DEDUCTIONS FOR CON4 TRIBUTIONS OF FOOD INVENTORY. 

5 (a) INCREASED AMOUNT OF DEDUCTION.— 

6 (1) IN GENERAL.—Clause (iv) of section 

7 170(e)(3)(C) (relating to termination) of the Inter8 nal Revenue Code of 1986 is amended by striking 

9 ‘‘December 31, 2007’’ and inserting ‘‘December 31, 

10 2009’’. 

11 (2) EFFECTIVE DATE.—The amendment made 

12 by this subsection shall apply to contributions made 

13 after December 31, 2007. 

14 (b) TEMPORARY SUSPENSION OF LIMITATIONS ON

15 CHARITABLE CONTRIBUTIONS.— 

16 (1) IN GENERAL.—Section 170(b) of such Code 

17 is amended by adding at the end the following new 

18 paragraph: 

19 ‘‘(3) TEMPORARY SUSPENSION OF LIMITATIONS

20 ON CHARITABLE CONTRIBUTIONS.—In the case of a 

21 qualified farmer or rancher (as defined in paragraph 

22 (1)(E)(v)), any charitable contribution of food— 

23 ‘‘(A) to which subsection (e)(3)(C) applies 

24 (without regard to clause (ii) thereof), and 


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•S 3322 IS

1 ‘‘(B) which is made during the period be2 ginning on the date of the enactment of this 

3 paragraph and before January 1, 2009, 

4 shall be treated for purposes of paragraph (1)(E) or 

5 (2)(B), whichever is applicable, as if it were a quali6 fied conservation contribution which is made by a 

7 qualified farmer or rancher and which otherwise 

8 meets the requirements of such paragraph.’’. 

9 (2) EFFECTIVE DATE.—The amendment made 

10 by this subsection shall apply to taxable years end11 ing after the date of the enactment of this Act. 

12 SEC. 4. EXTENSION OF ENHANCED CHARITABLE DEDUC13 TION FOR CONTRIBUTIONS OF BOOK INVEN14 TORY. 

15 (a) EXTENSION.—Clause (iv) of section 170(e)(3)(D) 

16 of the Internal Revenue Code of 1986 (relating to termi17 nation) of the Internal Revenue Code of 1986 is amended 

18 by striking ‘‘December 31, 2007’’ and inserting ‘‘Decem19 ber 31, 2009’’. 

20 (b) CLERICAL AMENDMENT.—Clause (iii) of section 

21 170(e)(3)(D) of such Code (relating to certification by 

22 donee) is amended by inserting ‘‘of books’’ after ‘‘to any 

23 contribution’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to contributions made after De3 cember 31, 2007. 

4 SEC. 5. REPORTING REQUIREMENTS RELATING TO DIS5 ASTER RELIEF CONTRIBUTIONS. 

6 (a) IN GENERAL.—Section 6033(b) of the Internal 

7 Revenue Code of 1986 (relating to returns of certain orga8 nizations described in section 501(c)(3)) is amended by 

9 striking ‘‘and’’ at the end of paragraph (13), by redesig10 nating paragraph (14) as paragraph (15), and by adding 

11 after paragraph (13) the following new paragraph: 

12 ‘‘(14) such information as the Secretary may 

13 require with respect to disaster relief activities, in14 cluding the amount and use of qualified contribu15 tions to which section 1400S(a) applies, and’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to returns the due date for which 

18 (determined without regard to any extension) occurs after 

19 December 31, 2008. 

Æ 


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