Tax Extender and Disaster Relief Act of 2019

To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, to provide disaster tax relief, and for other purposes. 1. Short title, etc (a) Short title This Act may be cited as the Tax Extender and Disaster Relief Act of 2019 (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. TITLE I—Extension of expiring provisions Subtitle A—Provisions expiring in 2018 Sec. 101. Nonbusiness energy property. Sec. 102. Qualified fuel cell motor vehicles. Sec. 103. Alternative fuel refueling property credit. Sec. 104. 2-wheeled plug-in electric vehicle credit. Sec. 105. Second generation biofuel producer credit. Sec. 106. Biodiesel and renewable diesel incentives. Sec. 107. Credit for electricity produced from certain renewable resources. Sec. 108. Production credit for Indian coal facilities. Sec. 109. Railroad track maintenance credit. Sec. 110. Energy efficient homes credit. Sec. 111. Classification of certain race horses as 3-year property. Sec. 112. Special allowance for second generation biofuel plant property. Sec. 113. Energy efficient commercial buildings deduction. Sec. 114. Election to expense advanced mine safety equipment. Sec. 115. Extension of special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities. Sec. 116. Extension and clarification of excise tax credits relating to alternative fuels. Sec. 117. 7-year recovery period for motorsports entertainment complexes. Sec. 118. Accelerated depreciation for business property on Indian reservation. Sec. 119. Expensing rules for certain productions. Sec. 120. Indian employment credit. Sec. 121. Mine rescue team training credit. Sec. 122. Exclusion from gross income of discharge of qualified principal residence indebtedness. Sec. 123. Treatment of mortgage insurance premiums as qualified residence interest. Sec. 124. Deduction of qualified tuition and related expenses. Sec. 125. Extension of empowerment zone tax incentives. Sec. 126. American Samoa economic development credit. Subtitle B—Provisions expiring in 2019 Sec. 151. Temporary reduction in medical expense deduction floor. Sec. 152. Extension of oil spill liability trust fund rate. Sec. 153. Black lung liability trust fund excise tax. TITLE II—Disaster tax relief Sec. 201. Definitions. Sec. 202. Special disaster-related rules for use of retirement funds. Sec. 203. Employee retention credit for employers affected by qualified disasters. Sec. 204. Other disaster-related tax relief provisions. Sec. 205. Treatment of certain possessions. I Extension of expiring provisions A Provisions expiring in 2018 101. Nonbusiness energy property (a) In general Section 25C(g)(2) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2017. 102. Qualified fuel cell motor vehicles (a) In general Section 30B(k)(1) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to property purchased after December 31, 2017. 103. Alternative fuel refueling property credit (a) In general Section 30C(g) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2017. 104. 2-wheeled plug-in electric vehicle credit (a) In general Section 30D(g)(3)(E)(ii) January 1, 2018 January 1, 2020 (b) Effective date The amendment made by this section shall apply to vehicles acquired after December 31, 2017. 105. Second generation biofuel producer credit (a) In general Section 40(b)(6)(J)(i) January 1, 2018 January 1, 2020 (b) Effective date The amendment made by this section shall apply to qualified second generation biofuel production after December 31, 2017. 106. Biodiesel and renewable diesel incentives (a) Income tax credit (1) In general Subsection (g) of section 40A December 31, 2017 December 31, 2019 (2) Effective date The amendment made by this subsection shall apply to fuel sold or used after December 31, 2017. (b) Excise Tax Incentives (1) In general Section 6426(c)(6) December 31, 2017 December 31, 2019 (2) Payments Section 6427(e)(6)(B) December 31, 2017 December 31, 2019 (3) Effective date The amendments made by this subsection shall apply to fuel sold or used after December 31, 2017. (4) Special rule for 2018 Notwithstanding any other provision of law, in the case of any biodiesel mixture credit properly determined under section 6426(c) 107. Credit for electricity produced from certain renewable resources (a) In general The following provisions of section 45(d) are each amended by striking January 1, 2018 January 1, 2020 (1) Paragraph (2)(A). (2) Paragraph (3)(A). (3) Paragraph (4)(B). (4) Paragraph (6). (5) Paragraph (7). (6) Paragraph (9). (7) Paragraph (11)(B). (b) Extension of election to treat qualified facilities as energy property Section 48(a)(5)(C)(ii) before January 1, 2018 (January 1, 2020, in the case of any facility which is described in paragraph (1) of section 45(d)), and before— (I) January 1, 2020, in the case of any facility which is described in paragraph (1) of section 45(d), and (II) January 1, 2020, in the case of any other facility, and . (c) Effective date The amendments made by this section shall take effect on January 1, 2018. 108. Production credit for Indian coal facilities (a) In general Section 45(e)(10)(A) 12-year period 14-year period (b) Effective date The amendment made by this section shall apply to coal produced after December 31, 2017. 109. Railroad track maintenance credit (a) In general Section 45G((f) January 1, 2018 January 1, 2020 (b) Effective date (1) In general The amendment made by this section shall apply to expenditures paid or incurred during taxable years beginning after December 31, 2017. (2) Safe harbor assignments Assignments, including related expenditures paid or incurred, under paragraph (2) of section 45G(b) 110. Energy efficient homes credit (a) In general Section 45L(g) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to homes acquired after December 31, 2017. 111. Classification of certain race horses as 3-year property (a) In general Section 168(e)(3)(A)(i) (1) by striking January 1, 2018 January 1, 2020 (2) by striking December 31, 2017 December 31, 2019 (b) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2017. 112. Special allowance for second generation biofuel plant property (a) In general Section 168(l)(2)(D) January 1, 2018 January 1, 2020 (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2017. 113. Energy efficient commercial buildings deduction (a) In general Section 179D(h) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2017. 114. Election to expense advanced mine safety equipment (a) In general Section 179E(g) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2017. 115. Extension of special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities (a) In general Section 451(k)(3) January 1, 2018 January 1, 2020 (b) Effective date The amendment made by this section shall apply to dispositions after December 31, 2017. 116. Extension and clarification of excise tax credits relating to alternative fuels (a) Extension (1) In general Sections 6426(d)(5) 6426(e)(3) December 31, 2017 December 31, 2019 (2) Outlay payments for alternative fuels Section 6427(e)(6)(C) December 31, 2017 December 31, 2019 (3) Effective date The amendments made by this section shall apply to fuel sold or used after December 31, 2017. (b) Special rule for 2018 Notwithstanding any other provision of law, in the case of any alternative fuel credit properly determined under section 6426(d) (c) Clarification of rules regarding alternative fuel mixture credit (1) In general Paragraph (2) of section 6426(e) mixture of alternative fuel mixture of alternative fuel (other than a fuel described in subparagraph (A), (C), or (F) of subsection (d)(2)) (2) Effective date The amendment made by this subsection shall apply to— (A) fuel sold or used on or after the date of the enactment of this Act, and (B) fuel sold or used before such date of enactment, but only to the extent that credits and claims of credit under section 6426(e) 117. 7-year recovery period for motorsports entertainment complexes (a) In general Section 168(i)(15)(D) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2017. 118. Accelerated depreciation for business property on Indian reservation (a) In general Section 168(j)(9) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2017. 119. Expensing rules for certain productions (a) In general Section 181(g) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to productions commencing after December 31, 2017. 120. Indian employment credit (a) In general Section 45A(f) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2017. 121. Mine rescue team training credit (a) In general Section 45N(e) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2017. 122. Exclusion from gross income of discharge of qualified principal residence indebtedness (a) In general Section 108(a)(1)(E) January 1, 2018 January 1, 2020 (b) Effective date The amendment made by this section shall apply to discharges of indebtedness after December 31, 2017. 123. Treatment of mortgage insurance premiums as qualified residence interest (a) In general Section 163(h)(3)(E)(iv)(I) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to amounts paid or accrued after December 31, 2017. 124. Deduction of qualified tuition and related expenses (a) In general Section 222(e) December 31, 2017 December 31, 2019 (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2017. 125. Extension of empowerment zone tax incentives (a) In general Section 1391(d)(1)(A)(i) December 31, 2017 December 31, 2019 (b) Treatment of certain termination dates specified in nominations In the case of a designation of an empowerment zone the nomination for which included a termination date which is contemporaneous with the date specified in subparagraph (A)(i) of section 1391(d)(1) (c) Effective date The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2017. 126. American Samoa economic development credit (a) In general Section 119(d) of division A of the Tax Relief and Health Care Act of 2006 is amended— (1) by striking January 1, 2018 January 1, 2020 (2) by striking first 12 taxable years first 14 taxable years (3) by striking first 6 taxable years first 8 taxable years (4) by adding at the end the following flush sentence: In the case of a corporation described in subsection (a)(2), the Internal Revenue Code of 1986 shall be applied and administered without regard to the amendments made by section 401(d)(1) of the Tax Technical Corrections Act of 2018. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. B Provisions expiring in 2019 151. Temporary reduction in medical expense deduction floor (a) In general Section 213(f) (f) Special rule In the case of taxable years beginning before January 1, 2020, subsection (a) shall be applied by substituting 7.5 percent 10 percent . (b) Alternative minimum tax Section 56(b)(1)(B) January 1, 2019 January 1, 2020 (c) Effective date The amendments made by this section shall apply to taxable years ending after December 31, 2018. 152. Extension of oil spill liability trust fund rate (a) In general Section 4611(f)(2) December 31, 2018 December 31, 2019 (b) Effective date The amendment made by this section shall apply on and after the first day of the first calendar month beginning after the date of the enactment of this Act. 153. Black lung liability trust fund excise tax (a) In general Section 4121(e)(2)(A) December 31, 2018 December 31, 2019 (b) Effective date The amendment made by this section shall apply on and after the first day of the first calendar month beginning after the date of the enactment of this Act. II Disaster tax relief 201. Definitions For purposes of this title— (1) Qualified disaster area (A) In general The term qualified disaster area (B) Exception Such term shall not include the California wildfire disaster area (as defined in section 20101 of subdivision 2 of division B of the Bipartisan Budget Act of 2018). (2) Qualified disaster zone The term qualified disaster zone (3) Qualified disaster The term qualified disaster (4) Incident period The term incident period 202. Special disaster-related rules for use of retirement funds (a) Tax-favored withdrawals from retirement plans (1) In general Section 72(t) (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 disaster distributions for any taxable year shall not exceed the excess (if any) of— (i) $100,000, over (ii) the aggregate amounts treated as qualified disaster 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 disaster distribution, a plan shall not be treated as violating any requirement of the Internal Revenue Code of 1986 merely because the plan treats such distribution as a qualified disaster 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 section 414 (D) Special rule for individuals affected by more than one disaster The limitation of subparagraph (A) shall be applied separately with respect to distributions made with respect to each qualified disaster. (3) Amount distributed may be repaid (A) In general Any individual who receives a qualified disaster distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make 1 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), of the Internal Revenue Code of 1986, as the case may be. (B) Treatment of repayments of distributions from eligible retirement plans other than IRAs For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) with respect to a qualified disaster 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 disaster distribution in an eligible rollover distribution (as defined in section 402(c)(4) of such Code) 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 of distributions from IRAs For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to subparagraph (A) with respect to a qualified disaster distribution from an individual retirement plan (as defined by section 7701(a)(37) of such Code), then, to the extent of the amount of the contribution, the qualified disaster distribution shall be treated as a distribution described in section 408(d)(3) of such Code 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 disaster distribution Except as provided in paragraph (2), the term qualified disaster distribution (i) on or after the first day of the incident period of a qualified disaster and before the date which is 180 days after the date of the enactment of this Act, and (ii) to an individual whose principal place of abode at any time during the incident period of such qualified disaster is located in the qualified disaster area with respect to such qualified disaster and who has sustained an economic loss by reason of such qualified disaster. (B) Eligible retirement plan The term eligible retirement plan section 402(c)(8)(B) (5) Income inclusion spread over 3-year period (A) In general In the case of any qualified disaster 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) (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 of the Internal Revenue Code of 1986, qualified disaster distributions shall not be treated as eligible rollover distributions. (B) Qualified disaster distributions treated as meeting plan distribution requirements For purposes the Internal Revenue Code of 1986, a qualified disaster 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) of such Code. (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 1 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) (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 (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), of the Internal Revenue Code of 1986, (B) which was to be used to purchase or construct a principal residence in a qualified disaster area, but which was not so used on account of the qualified disaster with respect to such area, and (C) which was received during the period beginning on the date which is 180 days before the first day of the incident period of such qualified disaster and ending on the date which is 30 days after the last day of such incident period. (3) Applicable period For purposes of this subsection, the term applicable period (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) (A) clause (i) of section 72(p)(2)(A) of such Code shall be applied by substituting $100,000 $50,000 (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 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 respect to any qualified disaster) with an outstanding loan (on or after the first day of the incident period of such qualified disaster) 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) of such Code for any repayment with respect to such loan occurs during the period beginning on the first day of the incident period of such qualified disaster and ending on the date which is 180 days after the last day of such incident period, such due date shall be delayed for 1 year (or, if later, until the date which is 180 days after the date of the enactment of this Act), (B) any subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date under subparagraph (A) 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) of such Code, the period described in subparagraph (A) of this paragraph shall be disregarded. (3) Qualified individual For purposes of this subsection, the term qualified individual (A) whose principal place of abode at any time during the incident period of any qualified disaster is located in the qualified disaster area with respect to such qualified disaster, and (B) who has sustained an economic loss by reason of such qualified disaster. (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, 2020, or such later date as the Secretary may prescribe. In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), 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. 203. Employee retention credit for employers affected by qualified disasters (a) In general For purposes of section 38 (b) Definitions For purposes of this section— (1) Eligible employer The term eligible employer (A) which conducted an active trade or business in a qualified disaster zone at any time during the incident period of the qualified disaster with respect to such qualified disaster zone, and (B) with respect to whom the trade or business described in subparagraph (A) is inoperable at any time on or after the first day of the incident period of such qualified disaster, and before January 1, 2019, as a result of damage sustained by reason of such qualified disaster. (2) Eligible employee The term eligible employee (3) Qualified wages The term qualified wages section 51(c)(1) (A) the date on which such trade or business has resumed significant operations at such principal place of employment, or (B) the date which is 150 days after the last day of the incident period of the qualified disaster referred to in paragraph (1). Such term shall include wages paid without regard to whether the employee performs no services, performs services at a different place of employment 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), 52, and 280C(a), of the Internal Revenue Code of 1986, 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 section for any period with respect to any employer if such employer is allowed a credit under section 51 204. Other disaster-related tax relief provisions (a) Temporary increase in limitation on qualified contributions (1) Suspension of current limitation Except as otherwise provided in paragraph (2), qualified contributions shall be disregarded in applying subsections (b) and (d) of section 170 (2) Application of increased limitation For purposes of section 170 (A) Individuals In the case of an individual— (i) Limitation Any qualified contribution shall be allowed as a deduction 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 (H) of section 170(b)(1) of such Code) over the amount of all other charitable contributions allowed under section 170(b)(1) of such Code. (ii) Carryover If the aggregate amount of qualified contributions made in the contribution year (within the meaning of section 170(d)(1) of such Code) exceeds the limitation of clause (i), such excess shall be added to the excess described in section 170(b)(1)(G)(ii). (B) Corporations In the case of a corporation— (i) Limitation Any qualified contribution shall be allowed as a deduction 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) of such Code) over the amount of all other charitable contributions allowed under such paragraph. (ii) Carryover If the aggregate amount of qualified contributions made in the contribution year (within the meaning of section 170(d)(2) of such Code) exceeds the limitation of clause (i), such excess shall be appropriately taken into account under section 170(d)(2) subject to the limitations thereof. (3) Qualified contributions (A) In general For purposes of this subsection, the term qualified contribution section 170(c) (i) such contribution— (I) is paid during 2018 in cash to an organization described in section 170(b)(1)(A) of such Code, and (II) is made for relief efforts in one or more qualified disaster areas, (ii) the taxpayer obtains from such organization contemporaneous written acknowledgment (within the meaning of section 170(f)(8) of such Code) that such contribution was used (or is to be used) for relief efforts described in clause (i)(II), 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 by a donor if the contribution is— (i) to an organization described in section 509(a)(3) (ii) for the establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2) of such Code). (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) Special rules for qualified disaster-related personal casualty losses (1) In general If an individual has a net disaster loss for any taxable year— (A) the amount determined under section 165(h)(2)(A)(ii) (i) such net disaster loss, and (ii) so much of the excess referred to in the matter preceding clause (i) of section 165(h)(2)(A) of such Code (reduced by the amount in clause (i) of this subparagraph) as exceeds 10 percent of the adjusted gross income of the individual, (B) section 165(h)(1) of such Code shall be applied by substituting $500 $500 ($100 for taxable years beginning after December 31, 2009) (C) the standard deduction determined under section 63(c) of such Code shall be increased by the net disaster loss, and (D) section 56(b)(1)(E) of such Code shall not apply to so much of the standard deduction as is attributable to the increase under subparagraph (C) of this paragraph. (2) Net disaster loss For purposes of this subsection, the term net disaster loss section 165(h)(3)(A) (3) Qualified disaster-related personal casualty losses For purposes of this subsection, the term qualified disaster-related personal casualty losses section 165(c)(3) (c) 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 applicable taxable year is less than the earned income of the taxpayer for the preceding taxable year, the credits allowed under sections 24(d) and 32 of the Internal Revenue Code of 1986 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 applicable taxable year. (2) Qualified individual For purposes of this subsection, the term qualified individual (A) in the qualified disaster zone with respect to such qualified disaster, or (B) in the qualified disaster area with respect to such qualified disaster (but outside the qualified disaster zone with respect to such qualified disaster) and such individual was displaced from such principal place of abode by reason of such qualified disaster. (3) Applicable taxable year The term applicable taxable year (4) Earned income For purposes of this subsection, the term earned income section 32(c) (5) Special rules (A) Application to joint returns For purposes of paragraph (1), in the case of a joint return for an applicable taxable year— (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 32 of the Internal Revenue Code of 1986. (C) Errors treated as mathematical error For purposes of section 6213 (D) No effect on determination of gross income, etc Except as otherwise provided in this subsection, the Internal Revenue Code of 1986 shall be applied without regard to any substitution under paragraph (1). 205. Treatment of certain possessions (a) Payments to Guam and the Commonwealth of the Northern Mariana Islands In the case of Guam and the Commonwealth of the Northern Mariana Islands, the Secretary of the Treasury shall pay to each such possession amounts equal to the loss in revenues (if any) to that possession by reason of the application of the provisions of this title. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. (b) Payments to American Samoa The Secretary of the Treasury shall pay to American Samoa amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits (if any) that would have been provided to residents of American Samoa by reason of the provisions of this title if American Samoa had in effect a tax system under which the income tax liability of residents of American Samoa were determined by reference to the income tax laws of the United States. The preceding sentence shall not apply unless American Samoa has a plan, which has been approved by the Secretary of the Treasury, under which it will promptly distribute such payments to its residents. (c) Treatment of payments For purposes of section 1324 of title 31, United States Code, the payments under this section shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section. March 4, 2019 Read the second time and placed on the calendar

Summary: Tax Extender and Disaster Relief Act of 2019 This bill extends certain tax credits and deductions expiring in 2018 and 2019, and provides disaster tax relief, including penalty-free withdrawal of retirement funds for disaster expenses.