I 
111TH CONGRESS 
2D SESSION 
H. R. 5398 
To amend the Internal Revenue Code of 1986 to allow the first-time home-
buyer 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 prin-
cipal residence to replace a principal residence damaged 
or destroyed in a federally declared disaster, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Help Disaster Victims 
Buy a New Home Act of 2010’’. 
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SEC. 2. ALLOWANCE OF FIRST-TIME HOMEBUYER CREDIT 
FOR 
REPLACING 
PRINCIPAL 
RESIDENCE 
DAMAGED OR DESTROYED IN FEDERALLY 
DECLARED DISASTER. 
(a) IN GENERAL.—Section 36 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(h) as subsection (i) and by inserting after subsection (g) 
the following new subsection: 
‘‘(h) SPECIAL RULES RELATING TO FEDERALLY DE-
CLARED DISASTERS.— 
‘‘(1) IN GENERAL.—In the case of an individual 
(and, if married, such individual’s spouse) who pur-
chases a principal residence to replace the principal 
residence of such individual (and spouse) damaged 
or destroyed by a federally declared disaster, such 
individual (and spouse) shall be treated as a first- 
time homebuyer for purposes of this section with re-
spect to the purchase of such subsequent residence. 
‘‘(2) FEDERALLY
DECLARED
DISASTER.—For 
purposes of this subsection, the term ‘federally de-
clared disaster’ has the meaning given such term by 
section 165(h)(3).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to purchases after the date of the 
enactment of this Act. 
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SEC. 3. MODIFICATION OF CASUALTY LOSS RULES. 
(a) DEDUCTION
ALLOWED
IN
COMPUTING
AD-
JUSTED GROSS INCOME.—Subsection (a) of section 62 of 
the Internal Revenue Code of 1986 is amended by insert-
ing before the last sentence the following new paragraph: 
‘‘(22) CASUALTY LOSS DUE TO FEDERALLY DE-
CLARED DISASTER.—The deduction allowed by sec-
tion 165 by reason of subsection (h)(3) thereof.’’. 
(b) ELECTION TO TAKE LOSS
IN SUBSEQUENT 
YEAR.—Paragraph (1) of section 165(i) of such Code is 
amended— 
(1) in the text by inserting ‘‘one of the suc-
ceeding 5 taxable years immediately following the 
taxable year in which the disaster occurred’’ before 
the period, and 
(2) in the heading by striking ‘‘FOR
PRE-
CEDING’’ and inserting ‘‘IN A DIFFERENT’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disasters declared in taxable 
years beginning after the date of the enactment of this 
Act. 
SEC. 4. EXCLUSION OF DISASTER-RELATED UNEMPLOY-
MENT ASSISTANCE FROM GROSS INCOME. 
(a) IN GENERAL.—Section 85 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following: 
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‘‘(d) EXCEPTION RELATING TO DISASTERS.—Sub-
section (a) shall not apply to assistance provided under 
section 410 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5177).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to amounts received after the 
date of the enactment of this Act. 
Æ 
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