the plan or contract is operated as if such plan 
or contract amendment were in effect; and 
(B) such plan or contract amendment ap-
plies retroactively for such period. 
TITLE II—EMPLOYMENT RELIEF 
SEC. 201. WORK OPPORTUNITY TAX CREDIT FOR HURRI-
CANE KATRINA EMPLOYEES. 
(a) IN GENERAL.—For purposes of section 51 of the 
Internal Revenue Code of 1986, a Hurricane Katrina em-
ployee shall be treated as a member of a targeted group. 
(b) HURRICANE KATRINA EMPLOYEE.—For purposes 
of this section, the term ‘‘Hurricane Katrina employee’’ 
means—
(1) any individual who on August 28, 2005, had 
a principal place of abode in the core disaster area 
and who is hired during the 2-year period beginning 
on such date for a position the principal place of em-
ployment of which is located in the core disaster area, 
and 
(2) any individual who on such date had a prin-
cipal place of abode in the core disaster area, who is 
displaced from such abode by reason of Hurricane 
Katrina, and who is hired during the period begin-
ning on such date and ending on December 31, 2005.
(c) REASONABLE IDENTIFICATION ACCEPTABLE.—In 
lieu of the certification requirement under subparagraph 
(A) of section 51(d)(12) of such Code, an individual may 
provide to the employer reasonable evidence that the indi-
vidual is a Hurricane Katrina employee, and subpara-
graph (B) of such section shall be applied as if such evidence 
were a certification described in such subparagraph. 
(d) SPECIAL RULES FOR DETERMINING CREDIT.—For 
purposes of applying subpart F of part IV of subchapter 
A of chapter 1 of such Code to wages paid or incurred to 
any Hurricane Katrina employee—
(1) section 51(c)(4) of such Code shall not apply, 
and 
(2) section 51(i)(2) of such Code shall not apply 
with respect to the first hire of such employee as a 
Hurricane Katrina employee, unless such employee 
was an employee of the employer on August 28, 2005. 
SEC. 202. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS 
AFFECTED BY HURRICANE KATRINA. 
(a) IN GENERAL.—In the case of an eligible employer, 
there shall be allowed as a credit against the tax imposed 
by chapter 1 of the Internal Revenue Code of 1986 for the 
taxable year an amount equal to 40 percent of the qualified 
wages with respect to each eligible employee of such em-
ployer for such taxable year. For purposes of the preceding
sentence, the amount of qualified wages which may be taken 
into account with respect to any individual shall not exceed 
$6,000. 
(b) DEFINITIONS.—For purposes of this section—
(1) ELIGIBLE
EMPLOYER.—The term ‘‘eligible 
employer’’ means any employer—
(A) which conducted an active trade or 
business on August 28, 2005, in a core disaster 
area, and 
(B) with respect to whom the trade or busi-
ness described in subparagraph (A) is inoperable 
on any day after August 28, 2005, and before 
January 1, 2006, as a result of damage sus-
tained by reason of Hurricane Katrina. 
(2) ELIGIBLE
EMPLOYEE.—The term ‘‘eligible 
employee’’ means with respect to an eligible employer 
an employee whose principal place of employment on 
August 28, 2005, with such eligible employer was in 
a core disaster area. 
(3) QUALIFIED
WAGES.—The term ‘‘qualified 
wages’’ means wages (as defined in section 51(c)(1) of 
such 
Code, 
but 
without 
regard 
to 
section 
3306(b)(2)(B) of such Code) paid or incurred by an 
eligible employer with respect to an eligible employee
on any day after August 28, 2005, and before Janu-
ary 1, 2006, which occurs during the period—
(A) beginning on the date on which the 
trade or business described in paragraph (1) 
first became inoperable at the principal place of 
employment of the employee immediately before 
Hurricane Katrina, and 
(B) ending on the date on which such trade 
or business has resumed significant operations at 
such principal place of employment. 
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 signifi-
cant operations have resumed. 
(c) CREDIT NOT ALLOWED FOR LARGE BUSINESSES.—
The term ‘‘eligible employer’’ shall not include any trade 
or business for any taxable year if such trade or business 
employed an average of more than 200 employees on busi-
ness days during the taxable year. 
(d) CERTAIN RULES TO APPLY.—For purposes of this 
section, rules similar to the rules of sections 51(i)(1), 52, 
and 280C(a) of such Code shall apply.
(e) EMPLOYEE
NOT TAKEN INTO ACCOUNT MORE 
THAN ONCE.—An employee shall not be treated as an eligi-
ble employee for purposes of this section for any period with 
respect to any employer if such employer is allowed a credit 
under section 51 of such Code with respect to such employee 
for such period. 
(f) CREDIT
TO BE PART
OF GENERAL BUSINESS 
CREDIT.—The credit allowed under this section shall be 
added to the current year business credit under section 
38(b) of such Code and shall be treated as a credit allowed 
under subpart D of part IV of subchapter A of chapter 1 
of such Code. 
TITLE III—CHARITABLE GIVING 
INCENTIVES 
SEC. 301. TEMPORARY SUSPENSION OF LIMITATIONS ON 
CHARITABLE CONTRIBUTIONS. 
(a) IN GENERAL.—Except as otherwise provided in 
subsection (b), section 170(b) of the Internal Revenue Code 
of 1986 shall not apply to qualified contributions and such 
contributions shall not be taken into account for purposes 
of applying subsections (b) and (d) of section 170 of such 
Code to other contributions. 
(b) TREATMENT
OF EXCESS CONTRIBUTIONS.—For 
purposes of section 170 of such Code—