H. R. 3768—11
described in the matter preceding clause (i) of subpara-
graph (A). 
‘‘(ii) QUALIFIED
BOOK
CONTRIBUTION.—For pur-
poses of this paragraph, the term ‘qualified book con-
tribution’ means a charitable contribution of books to 
a public school which is an educational organization 
described in subsection (b)(1)(A)(ii) and which provides 
elementary education or secondary education (kinder-
garten through grade 12). 
‘‘(iii) CERTIFICATION BY DONEE.—Subparagraph (A) 
shall not apply to any contribution unless (in addition 
to the certifications required by subparagraph (A) (as 
modified by this subparagraph)), the donee certifies 
in writing that—
‘‘(I) the books are suitable, in terms of cur-
rency, content, and quantity, for use in the donee’s 
educational programs, and 
‘‘(II) the donee will use the books in its edu-
cational programs. 
‘‘(iv) TERMINATION.—This subparagraph shall not 
apply to contributions made after December 31, 2005.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to contributions made on or after August 28, 2005, 
in taxable years ending after such date. 
TITLE IV—ADDITIONAL TAX RELIEF 
PROVISIONS 
SEC. 401. EXCLUSIONS OF CERTAIN CANCELLATIONS OF INDEBTED-
NESS BY REASON OF HURRICANE KATRINA. 
(a) IN GENERAL.—For purposes of the Internal Revenue Code 
of 1986, gross income shall not include any amount which (but 
for this section) would be includible in gross income by reason 
of the discharge (in whole or in part) of indebtedness of a natural 
person described in subsection (b) by an applicable entity (as defined 
in section 6050P(c)(1) of such Code). 
(b) PERSONS DESCRIBED.—A natural person is described in this 
subsection if the principal place of abode of such person on August 
25, 2005, was located—
(1) in the core disaster area, or 
(2) in the Hurricane Katrina disaster area (but outside 
the core disaster area) and such person suffered economic loss 
by reason of Hurricane Katrina. 
(c) EXCEPTIONS.—
(1) BUSINESS
INDEBTEDNESS.—Subsection (a) shall not 
apply to any indebtedness incurred in connection with a trade 
or business. 
(2) REAL PROPERTY OUTSIDE CORE DISASTER AREA.—Sub-
section (a) shall not apply to any discharge of indebtedness 
to the extent that real property constituting security for such 
indebtedness is located outside of the Hurricane Katrina dis-
aster area. 
(d) DENIAL OF DOUBLE BENEFIT.—For purposes of the Internal 
Revenue Code of 1986, the amount excluded from gross income 
under subsection (a) shall be treated in the same manner as an 
amount excluded under section 108(a) of such Code.
H. R. 3768—12
(e) EFFECTIVE DATE.—This section shall apply to discharges 
made on or after August 25, 2005, and before January 1, 2007. 
SEC. 402. SUSPENSION OF CERTAIN LIMITATIONS ON PERSONAL CAS-
UALTY LOSSES. 
Paragraphs (1) and (2)(A) of section 165(h) of the Internal 
Revenue Code of 1986 shall not apply to losses described in section 
165(c)(3) of such Code which arise in the Hurricane Katrina disaster 
area on or after August 25, 2005, and which are attributable to 
Hurricane Katrina. In the case of any other losses, section 
165(h)(2)(A) of such Code shall be applied without regard to the 
losses referred to in the preceding sentence. 
SEC. 403. REQUIRED EXERCISE OF AUTHORITY UNDER SECTION 7508A 
FOR TAX RELIEF RELATING TO HURRICANE KATRINA. 
(a) AUTHORITY INCLUDES SUSPENSION OF PAYMENT OF EMPLOY-
MENT AND EXCISE TAXES.—Subparagraphs (A) and (B) of section 
7508(a)(1) of the Internal Revenue Code of 1986 are amended 
to read as follows: 
‘‘(A) Filing any return of income, estate, gift, employ-
ment, or excise tax; 
‘‘(B) Payment of any income, estate, gift, employment, 
or excise tax or any installment thereof or of any other 
liability to the United States in respect thereof;’’. 
(b) APPLICATION WITH RESPECT TO HURRICANE KATRINA.—In 
the case of any taxpayer determined by the Secretary of the 
Treasury to be affected by the Presidentially declared disaster 
relating to Hurricane Katrina, any relief provided by the Secretary 
of the Treasury under section 7508A of the Internal Revenue Code 
of 1986 shall be for a period ending not earlier than February 
28, 2006, and shall be treated as applying to the filing of returns 
relating to, and the payment of, employment and excise taxes. 
(c) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply for any period for performing an act which has not 
expired before August 25, 2005. 
SEC. 404. SPECIAL RULES FOR MORTGAGE REVENUE BONDS. 
(a) IN GENERAL.—In the case of financing provided with respect 
to a qualified Hurricane Katrina recovery residence, subsection 
(d) of section 143 of the Internal Revenue Code of 1986 shall 
be applied as if such residence were a targeted area residence. 
(b) QUALIFIED HURRICANE KATRINA RECOVERY RESIDENCE.—
For purposes of this section, the term ‘‘qualified Hurricane Katrina 
recovery residence’’ means—
(1) any residence in the core disaster area, and 
(2) any other residence if—
(A) such other residence is located in the same State 
as the principal residence referred to in subparagraph (B), 
and 
(B) the mortgagor with respect to such other residence 
owned a principal residence on August 28, 2005, which—
(i) was located in the Hurricane Katrina disaster 
area, and 
(ii) was rendered uninhabitable by reason of Hurri-
cane Katrina. 
(c) SPECIAL RULE
FOR HOME IMPROVEMENT LOANS.—In the 
case of any loan with respect to a residence in the Hurricane 
Katrina disaster area, section 143(k)(4) of such Code shall be applied