H. R. 3768
One Hundred Ninth Congress
of the
United States of America 
AT THE FIRST SESSION 
Begun and held at the City of Washington on Tuesday, 
the fourth day of January, two thousand and five 
An Act 
To provide emergency tax relief for persons affected by Hurricane Katrina.
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Katrina Emer-
gency Tax Relief Act of 2005’’. 
(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows:
Sec. 1. Short title, etc. 
Sec. 2. Hurricane Katrina disaster area. 
TITLE I—SPECIAL RULES FOR USE OF RETIREMENT FUNDS FOR RELIEF 
RELATING TO HURRICANE KATRINA 
Sec. 101. Tax-favored withdrawals from retirement plans for relief relating to Hur-
ricane Katrina. 
Sec. 102. Recontributions of withdrawals for home purchases cancelled due to Hur-
ricane Katrina. 
Sec. 103. Loans from qualified plans for relief relating to Hurricane Katrina. 
Sec. 104. Provisions relating to plan amendments. 
TITLE II—EMPLOYMENT RELIEF 
Sec. 201. Work opportunity tax credit for Hurricane Katrina employees. 
Sec. 202. Employee retention credit for employers affected by Hurricane Katrina. 
TITLE III—CHARITABLE GIVING INCENTIVES 
Sec. 301. Temporary suspension of limitations on charitable contributions. 
Sec. 302. Additional exemption for housing Hurricane Katrina displaced individ-
uals. 
Sec. 303. Increase in standard mileage rate for charitable use of vehicles. 
Sec. 304. Mileage reimbursements to charitable volunteers excluded from gross in-
come. 
Sec. 305. Charitable deduction for contributions of food inventory. 
Sec. 306. Charitable deduction for contributions of book inventories to public 
schools. 
TITLE IV—ADDITIONAL TAX RELIEF PROVISIONS 
Sec. 401. Exclusions of certain cancellations of indebtedness by reason of Hurricane 
Katrina. 
Sec. 402. Suspension of certain limitations on personal casualty losses. 
Sec. 403. Required exercise of authority under section 7508A for tax relief relating 
to Hurricane Katrina. 
Sec. 404. Special rules for mortgage revenue bonds. 
Sec. 405. Extension of replacement period for nonrecognition of gain for property lo-
cated in Hurricane Katrina disaster area. 
Sec. 406. Special rule for determining earned income. 
Sec. 407. Secretarial authority to make adjustments regarding taxpayer and de-
pendency status. 
TITLE V—EMERGENCY REQUIREMENT 
Sec. 501. Emergency requirement.
H. R. 3768—2
SEC. 2. HURRICANE KATRINA DISASTER AREA. 
For purposes of this Act—
(1) HURRICANE KATRINA DISASTER AREA.—The term ‘‘Hurri-
cane Katrina disaster area’’ means an area with respect to 
which a major disaster has been declared by the President 
before September 14, 2005, under section 401 of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act by 
reason of Hurricane Katrina. 
(2) CORE DISASTER AREA.—The term ‘‘core disaster area’’ 
means that portion of the Hurricane Katrina disaster area 
determined by the President to warrant individual or individual 
and public assistance from the Federal Government under such 
Act. 
TITLE I—SPECIAL RULES FOR USE OF 
RETIREMENT FUNDS FOR RELIEF RE-
LATING TO HURRICANE KATRINA 
SEC. 101. TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS 
FOR RELIEF RELATING TO HURRICANE KATRINA. 
(a) IN GENERAL.—Section 72(t) of the Internal Revenue Code 
of 1986 shall not apply to any qualified Hurricane Katrina distribu-
tion. 
(b) AGGREGATE DOLLAR LIMITATION.—
(1) IN GENERAL.—For purposes of this section, the aggregate 
amount of distributions received by an individual which may 
be treated as qualified Hurricane Katrina distributions for any 
taxable year shall not exceed the excess (if any) of—
(A) $100,000, over 
(B) the aggregate amounts treated as qualified Hurri-
cane Katrina distributions received by such individual for 
all prior taxable years. 
(2) TREATMENT OF PLAN DISTRIBUTIONS.—If a distribution 
to an individual would (without regard to paragraph (1)) be 
a qualified Hurricane Katrina 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 Hurricane Katrina distribution, unless the aggre-
gate 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. 
(3) CONTROLLED GROUP.—For purposes of paragraph (2), 
the term ‘‘controlled group’’ means any group treated as a 
single employer under subsection (b), (c), (m), or (o) of section 
414 of such Code. 
(c) AMOUNT DISTRIBUTED MAY BE REPAID.—
(1) IN GENERAL.—Any individual who receives a qualified 
Hurricane Katrina distribution may, at any time during the 
3-year period beginning on the day after the date on which 
such distribution was received, make one or more contributions 
in an aggregate amount not to exceed the amount of such 
distribution to an eligible retirement plan of which such indi-
vidual is a beneficiary and to which a rollover contribution 
of such distribution could be made under section 402(c),