I 

111TH CONGRESS 

2D SESSION H. R. 5398 

To amend the Internal Revenue Code of 1986 to allow the first-time homebuyer credit for the purchase of a principal residence to replace a 

principal residence damaged or destroyed in a federally declared disaster, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 25, 2010 

Mr. PAUL 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 allow the 

first-time homebuyer credit for the purchase of a principal residence to replace a principal residence damaged 

or destroyed in a federally declared disaster, 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 ‘‘Help Disaster Victims 

5 Buy a New Home Act of 2010’’. 


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1 SEC. 2. ALLOWANCE OF FIRST-TIME HOMEBUYER CREDIT 

2 FOR REPLACING PRINCIPAL RESIDENCE 

3 DAMAGED OR DESTROYED IN FEDERALLY 

4 DECLARED DISASTER. 

5 (a) IN GENERAL.—Section 36 of the Internal Rev6 enue Code of 1986 is amended by redesignating subsection 

7 (h) as subsection (i) and by inserting after subsection (g) 

8 the following new subsection: 

9 ‘‘(h) SPECIAL RULES RELATING TO FEDERALLY DE10 CLARED DISASTERS.— 

11 ‘‘(1) IN GENERAL.—In the case of an individual 

12 (and, if married, such individual’s spouse) who pur13 chases a principal residence to replace the principal 

14 residence of such individual (and spouse) damaged 

15 or destroyed by a federally declared disaster, such 

16 individual (and spouse) shall be treated as a first17 time homebuyer for purposes of this section with re18 spect to the purchase of such subsequent residence. 

19 ‘‘(2) FEDERALLY DECLARED DISASTER.—For 

20 purposes of this subsection, the term ‘federally de21 clared disaster’ has the meaning given such term by 

22 section 165(h)(3).’’. 

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

24 this section shall apply to purchases after the date of the 

25 enactment of this Act. 


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1 SEC. 3. MODIFICATION OF CASUALTY LOSS RULES. 

2 (a) DEDUCTION ALLOWED IN COMPUTING AD3 JUSTED GROSS INCOME.—Subsection (a) of section 62 of 

4 the Internal Revenue Code of 1986 is amended by insert5 ing before the last sentence the following new paragraph: 

6 ‘‘(22) CASUALTY LOSS DUE TO FEDERALLY DE7 CLARED DISASTER.—The deduction allowed by sec8 tion 165 by reason of subsection (h)(3) thereof.’’. 

9 (b) ELECTION TO TAKE LOSS IN SUBSEQUENT

10 YEAR.—Paragraph (1) of section 165(i) of such Code is 

11 amended— 

12 (1) in the text by inserting ‘‘one of the suc13 ceeding 5 taxable years immediately following the 

14 taxable year in which the disaster occurred’’ before 

15 the period, and 

16 (2) in the heading by striking ‘‘FOR PRE17 CEDING’’ and inserting ‘‘IN A DIFFERENT’’. 

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

19 this section shall apply to disasters declared in taxable 

20 years beginning after the date of the enactment of this 

21 Act. 

22 SEC. 4. EXCLUSION OF DISASTER-RELATED UNEMPLOY23 MENT ASSISTANCE FROM GROSS INCOME. 

24 (a) IN GENERAL.—Section 85 of the Internal Rev25 enue Code of 1986 is amended by adding at the end the 

26 following: 


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1 ‘‘(d) EXCEPTION RELATING TO DISASTERS.—Sub2 section (a) shall not apply to assistance provided under 

3 section 410 of the Robert T. Stafford Disaster Relief and 

4 Emergency Assistance Act (42 U.S.C. 5177).’’. 

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

6 subsection (a) shall apply to amounts received after the 

7 date of the enactment of this Act. 

Æ 


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