I 
110TH CONGRESS 
2D SESSION 
H. R. 6958 
To provide tax relief for the victims of Hurricane Ike, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 18, 2008 
Mr. BRADY of Texas (for himself, Mr. PAUL, Mr. MCCAUL of Texas, Ms. 
GRANGER, Mr. GOHMERT, Mr. CULBERSON, Mr. POE, Mr. SAM JOHNSON 
of Texas, Mr. SMITH of Texas, Mr. AL GREEN of Texas, Mr. ORTIZ, Mr. 
THORNBERRY, Mr. GONZALEZ, and Mr. CARTER) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
A BILL 
To provide tax relief for the victims of Hurricane Ike, 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 ‘‘Hurricane Ike Tax 
Relief Act of 2008’’. 
SEC. 2. TEMPORARY TAX RELIEF FOR AREAS DAMAGED BY 
HURRICANE IKE. 
(a) IN GENERAL.—Subject to the modifications de-
scribed in this section, the following provisions of or relat-
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
ing to the Internal Revenue Code of 1986 shall apply to 
the Hurricane Ike recovery area in addition to the areas 
to which such provisions otherwise apply: 
(1) GO ZONE BENEFITS.— 
(A) Section 1400N (relating to tax bene-
fits) other than subsections (b), (c), (i), (j), 
(m), and (o) thereof. 
(B) Section 1400P (relating to housing tax 
benefits). 
(C) Section 1400Q (relating to special 
rules for use of retirement funds). 
(D) Section 1400R(a) (relating to em-
ployee retention credit for employers). 
(E) Section 1400S (relating to additional 
tax relief) other than subsection (d) thereof. 
(F) Section 1400T (relating to special 
rules for mortgage revenue bonds). 
(2) OTHER BENEFITS INCLUDED IN KATRINA 
EMERGENCY
TAX
RELIEF
ACT
OF
2005.—Sections 
302, 304, 401, and 405 of the Katrina Emergency 
Tax Relief Act of 2005. 
(b) USE OF AMENDED INCOME TAX RETURNS TO 
TAKE INTO ACCOUNT RECEIPT OF CERTAIN CASUALTY 
LOSS GRANTS
BY DISALLOWING PREVIOUSLY TAKEN 
CASUALTY LOSS DEDUCTIONS.— 
VerDate Aug 31 2005 
22:09 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
(1) IN GENERAL.—Notwithstanding any other 
provision of the Internal Revenue Code of 1986, if 
a taxpayer claims a deduction for any taxable year 
with respect to a casualty loss to a principal resi-
dence (within the meaning of section 121 of such 
Code) resulting from Hurricane Ike and in a subse-
quent taxable year receives a grant under any Fed-
eral or State program as reimbursement for such 
loss, such taxpayer may elect to file an amended in-
come tax return for the taxable year in which such 
deduction was allowed (and for any taxable year to 
which such deduction is carried) and reduce (but not 
below zero) the amount of such deduction by the 
amount of such reimbursement. 
(2) TIME
OF
FILING
AMENDED
RETURN.— 
Paragraph (1) shall apply with respect to any grant 
only if any amended income tax returns with respect 
to such grant are filed not later than the later of— 
(A) the due date for filing the tax return 
for the taxable year in which the taxpayer re-
ceives such grant, or 
(B) the date which is 1 year after the date 
of the enactment of this Act. 
(3) WAIVER OF PENALTIES AND INTEREST.— 
Any underpayment of tax resulting from the reduc-
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
tion under paragraph (1) of the amount otherwise 
allowable as a deduction shall not be subject to any 
penalty or interest under such Code if such tax is 
paid not later than 1 year after the filing of the 
amended return to which such reduction relates. 
(c) HURRICANE IKE RECOVERY AREA.— 
(1) IN GENERAL.—For purposes of this section 
and for applying the substitutions described in sub-
sections (e) and (f), the term ‘‘Hurricane Ike recov-
ery area’’ means an area— 
(A) with respect to which a major disaster 
has been declared by the President under sec-
tion 401 of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act by reason of 
Hurricane Ike, and 
(B) determined by the President to war-
rant individual or individual and public assist-
ance from the Federal Government under such 
Act by reason of Hurricane Ike. 
(2) CERTAIN BENEFITS AVAILABLE TO AREAS 
ELIGIBLE ONLY FOR PUBLIC ASSISTANCE.—For pur-
poses of applying this section to benefits under the 
following provisions, paragraph (1) shall be applied 
without regard to subparagraph (B): 
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
(A) 
Sections 
1400Q, 
1400S(b), 
and 
1400S(d) of the Internal Revenue Code of 
1986. 
(B) Sections 302, 401, and 405 of the 
Katrina Emergency Tax Relief Act of 2005. 
(d) REFERENCES.— 
(1) AREA.—Any reference in such provisions to 
the Hurricane Katrina disaster area or the Gulf Op-
portunity Zone shall be treated as a reference to the 
Hurricane Ike recovery area and any reference to 
the Hurricane Katrina disaster area or the Gulf Op-
portunity Zone within a State shall be treated as a 
reference to the portion of the Hurricane Ike recov-
ery area within the State. 
(2) ITEMS ATTRIBUTABLE TO DISASTER.—Any 
reference in such provisions to any loss, damage, or 
other item attributable to Hurricane Katrina shall 
be treated as a reference to any loss, damage, or 
other item attributable to Hurricane Ike. 
(e) MODIFICATIONS TO 1986 CODE.—In the case of 
the Hurricane Ike recovery area, the following provisions 
of the Internal Revenue Code of 1986 shall be applied with 
the following modifications: 
(1) TAX-EXEMPT
BOND
FINANCING.—Section 
1400N(a)— 
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
(A) by substituting ‘‘qualified Hurricane 
Ike recovery area bond’’ for ‘‘qualified Gulf Op-
portunity Zone Bond’’ each place it appears, ex-
cept that in determining whether a bond is a 
qualified Hurricane Ike recovery area bond— 
(i) paragraph (2)(A)(i) shall be ap-
plied by only treating costs as qualified 
project costs if— 
(I) in the case of a project involv-
ing a private business use (as defined 
in section 141(b)(6)), either the per-
son using the property suffered a loss 
in a trade or business attributable to 
Hurricane Ike or is a person des-
ignated for purposes of this section by 
the Governor of the State in which the 
project is located as a person carrying 
on a trade or business replacing a 
trade or business with respect to 
which another person suffered such a 
loss, and 
(II) in the case of a project relat-
ing to public utility property, the 
project involves repair or reconstruc-
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
tion of public utility property dam-
aged by Hurricane Ike, and 
(ii) paragraph (2)(A)(ii) shall be ap-
plied by treating an issue as a qualified 
mortgage issue only if 95 percent or more 
of the net proceeds (as defined in section 
150(a)(3)) of the issue are to be used to 
provide financing for mortgagors who suf-
fered damages to their principal residences 
attributable to Hurricane Ike, 
(B) by substituting ‘‘any State any portion 
of which is in the Hurricane Ike recovery area’’ 
for ‘‘the State of Alabama, Louisiana, or Mis-
sissippi’’ in paragraph (2)(B), 
(C) by substituting ‘‘designated for pur-
poses of this section (on the basis of providing 
assistance to areas in the order in which such 
assistance is most needed)’’ for ‘‘designated for 
purposes of this section’’ in paragraph (2)(C), 
(D) by substituting ‘‘January 1, 2013’’ for 
‘‘January 1, 2011’’ in paragraph (2)(D), 
(E) in paragraph (3)(A)— 
(i) by substituting ‘‘$1,000’’ for 
‘‘$2,500’’, and 
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
(ii) by substituting ‘‘before September 
12, 2008’’ for ‘‘before August 28, 2005’’, 
(F) by substituting ‘‘qualified Hurricane 
Ike recovery area repair or construction’’ for 
‘‘qualified GO Zone repair or construction’’ 
each place it appears, and 
(G) by substituting ‘‘after the date of the 
enactment of the Hurricane Ike Tax Relief Act 
of 2008 and before January 1, 2013’’ for ‘‘after 
the date of the enactment of this paragraph 
and before January 1, 2011’’ in paragraph 
(7)(C). 
(2) SPECIAL ALLOWANCE FOR CERTAIN PROP-
ERTY
ACQUIRED
ON
OR
AFTER
THE
APPLICABLE 
DISASTER DATE.—Section 1400N(d)— 
(A) by substituting ‘‘qualified Hurricane 
Ike recovery area property’’ for ‘‘qualified Gulf 
Opportunity Zone property’’ each place it ap-
pears, except that a taxpayer shall be allowed 
additional bonus depreciation and expensing 
under such subsection or section 1400N(e) with 
respect to such property only if— 
(i) the taxpayer suffered an economic 
loss attributable to Hurricane Ike, and 
(ii) such property— 
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
(I) rehabilitates property dam-
aged, or replaces property destroyed 
or condemned, as a result of Hurri-
cane Ike, except that, for purposes of 
this clause, property shall be treated 
as replacing property destroyed or 
condemned if, as part of an integrated 
plan, such property replaces property 
which is included in a continuous area 
which includes real property destroyed 
or condemned, and 
(II) is similar in nature to, and 
located in the same county as, the 
property being rehabilitated or re-
placed, 
(B) by substituting ‘‘September 12, 2008’’ 
for ‘‘August 28, 2005’’ each place it appears, 
(C) by substituting ‘‘December 31, 2011’’ 
for 
‘‘December 
31, 
2007’’ 
in 
paragraph 
(2)(A)(v), 
(D) by substituting ‘‘December 31, 2012’’ 
for 
‘‘December 
31, 
2008’’ 
in 
paragraph 
(2)(A)(v), 
(E) by substituting ‘‘September 11, 2008’’ 
for ‘‘August 27, 2005’’ in paragraph (3)(A), 
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
(A) by substituting ‘‘Hurricane Ike tax 
credit bond’’ for ‘‘Gulf tax credit bond’’ each 
place it appears, 
(B) by substituting ‘‘any State any portion 
of which is in the Hurricane Ike recovery area’’ 
for ‘‘the State of Alabama, Louisiana, or Mis-
sissippi’’ in paragraph (4)(A)(i), 
(C) by substituting ‘‘after December 31, 
2008 and before January 1, 2010’’ for ‘‘after 
December 31, 2005, and before January 1, 
2007’’, 
(D) by substituting ‘‘shall not exceed 
$100,000,000 for any State with an aggregate 
population located in the portion of the State 
which is in the Hurricane Ike recovery area of 
at least 2,000,000, $50,000,000 for any State 
with an aggregate population located in such 
portion of at least 1,000,000 but less than 
2,000,000, and zero for any other State. The 
population of a State within any area shall be 
determined on the basis of the most recent cen-
sus estimate of resident population released by 
the Bureau of Census before September 12, 
2008.’’ for ‘‘shall not exceed’’ and all that fol-
lows in paragraph (4)(C), and 
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
and ending on December 31, 2006’’ in sub-
section (c)(4)(A)(i), 
(L) by substituting ‘‘September 12, 2008’’ 
for 
‘‘August 
25, 
2005’’ 
in 
subsection 
(c)(4)(A)(ii), and 
(M) by substituting ‘‘January 1, 2010’’ for 
‘‘January 1, 2007’’ in subsection (d)(2)(A)(ii). 
(11) EMPLOYEE RETENTION CREDIT FOR EM-
PLOYERS AFFECTED BY HURRICANE IKE.—Section 
1400R(a)— 
(A) by substituting ‘‘September 12, 2008’’ 
for ‘‘August 28, 2005’’ each place it appears, 
(B) by substituting ‘‘January 1, 2009’’ for 
‘‘January 1, 2006’’ both places it appears, and 
(C) only with respect to eligible employers 
who employed an average of not more than 200 
employees on business days during the taxable 
year before September 12, 2008. 
(12) TEMPORARY SUSPENSION OF LIMITATIONS 
ON
CHARITABLE
CONTRIBUTIONS.—Section 
1400S(a), by substituting the following paragraph 
for paragraph (4) thereof: 
‘‘(4) QUALIFIED CONTRIBUTIONS.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘qualified contribution’ 
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
means any charitable contribution (as defined 
in section 170(c)) if— 
‘‘(i) such contribution— 
‘‘(I) is paid during the period be-
ginning on September 12, 2008, and 
ending on December 31, 2008, in cash 
to an organization described in section 
170(b)(1)(A), and 
‘‘(II) is made for relief efforts in 
the Hurricane Ike recovery area, 
‘‘(ii) the taxpayer obtains from such 
organization contemporaneous written ac-
knowledgment (within the meaning of sec-
tion 170(f)(8)) that such contribution was 
used (or is to be used) for relief efforts in 
the Hurricane Ike recovery area, and 
‘‘(iii) the taxpayer has elected the ap-
plication of this subsection with respect to 
such contribution. 
‘‘(B) EXCEPTION.—Such term shall not in-
clude a contribution by a donor if the contribu-
tion is— 
‘‘(i) to an organization described in 
section 509(a)(3), or 
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
‘‘(ii) for establishment of a new, or 
maintenance of an existing, donor advised 
fund (as defined in section 4966(d)(2)). 
‘‘(C) APPLICATION OF ELECTION TO PART-
NERSHIPS AND S CORPORATIONS.—In the case 
of a partnership or S corporation, the election 
under subparagraph (A)(iii) shall be made sepa-
rately by each partner or shareholder.’’. 
(13) SUSPENSION OF CERTAIN LIMITATIONS ON 
PERSONAL
CASUALTY
LOSSES.—Section 
1400S(b)(1), by substituting ‘‘September 12, 2008’’ 
for ‘‘August 25, 2005’’. 
(14) 
SPECIAL
RULE
FOR
DETERMINING 
EARNED INCOME.—Section 1400S(d)— 
(A) by treating an individual as a qualified 
individual if such individual’s principal place of 
abode on September 12, 2008, was located in 
the Hurricane Ike recovery area, 
(B) by treating September 12, 2008, with 
respect to any such individual as the applicable 
date for purposes of such subsection, and 
(C) by treating an area as described in 
paragraph (2)(B)(ii) thereof if the area is a 
Hurricane Ike recovery area only by reason of 
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
subsection (b)(2) of this section (relating to 
areas eligible only for public assistance). 
(15) ADJUSTMENTS REGARDING TAXPAYER AND 
DEPENDENCY STATUS.—Section 1400S(e), by sub-
stituting ‘‘2008 or 2009’’ for ‘‘2005 or 2006’’. 
(f) MODIFICATIONS TO KATRINA EMERGENCY TAX 
RELIEF ACT OF 2005.—In the case of the Hurricane Ike 
recovery area, the following provisions of the Katrina 
Emergency Tax Relief Act of 2005 shall be applied with 
the following modifications: 
(1) ADDITIONAL EXEMPTION FOR HOUSING DIS-
PLACED INDIVIDUAL.—Section 302— 
(A) by substituting ‘‘2008 or 2009’’ for 
‘‘2005 or 2006’’ in subsection (a) thereof, 
(B) by substituting ‘‘Hurricane Ike dis-
placed individual’’ for ‘‘Hurricane Katrina dis-
placed individual’’ each place it appears, and 
(C) by treating an area as a core disaster 
area for purposes of applying subsection (c) 
thereof if the area is a Hurricane Ike recovery 
area without regard to subsection (b)(2) of this 
section (relating to areas eligible only for public 
assistance). 
(2) MILEAGE
REIMBURSEMENTS
FOR
CHARI-
TABLE VOLUNTEERS.—Section 304— 
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
(A) by substituting ‘‘beginning on Sep-
tember 12, 2008, and ending on December 31, 
2008’’ for ‘‘beginning on August 25, 2005, and 
ending on December 31, 2006’’ in subsection 
(a), and 
(B) by substituting ‘‘September 12, 2008’’ 
for ‘‘August 25, 2005’’ in subsection (a). 
(3) EXCLUSION OF CERTAIN CANCELLATION OF 
INDEBTEDNESS INCOME.—Section 401— 
(A) by treating an individual whose prin-
cipal place of abode on September 12, 2008, 
was in the Hurricane Ike recovery area (deter-
mined without regard to subsection (b)(2) of 
this section) as an individual described in sub-
section (b)(1) thereof, and by treating an indi-
vidual whose principal place of abode on Sep-
tember 12, 2008, was in the Hurricane Ike re-
covery area solely by reason of subsection (b)(2) 
of this section as an individual described in sub-
section (b)(2) thereof, 
(B) by substituting ‘‘September 12, 2008’’ 
for ‘‘August 28, 2005’’ both places it appears, 
and 
(C) by substituting ‘‘January 1, 2010’’ for 
‘‘January 1, 2007’’ in subsection (e). 
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS
(4) EXTENSION OF REPLACEMENT PERIOD FOR 
NONRECOGNITION OF GAIN.—Section 405, by sub-
stituting ‘‘on or after September 12, 2008’’ for ‘‘on 
or after August 25, 2005’’. 
SEC. 3. ENHANCED CHARITABLE DEDUCTIONS FOR CON-
TRIBUTIONS OF FOOD INVENTORY. 
(a) INCREASED AMOUNT OF DEDUCTION.— 
(1) IN
GENERAL.—Clause (iv) of section 
170(e)(3)(C) (relating to termination) of the Inter-
nal Revenue Code of 1986 is amended by striking 
‘‘December 31, 2007’’ and inserting ‘‘December 31, 
2009’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to contributions made 
after December 31, 2007. 
(b) TEMPORARY SUSPENSION OF LIMITATIONS ON 
CHARITABLE CONTRIBUTIONS.— 
(1) IN GENERAL.—Section 170(b) of such Code 
is amended by adding at the end the following new 
paragraph: 
‘‘(3) TEMPORARY SUSPENSION OF LIMITATIONS 
ON CHARITABLE CONTRIBUTIONS.—In the case of a 
qualified farmer or rancher (as defined in paragraph 
(1)(E)(v)), any charitable contribution of food— 
VerDate Aug 31 2005 
01:58 Sep 23, 2008
Jkt 069200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H6958.IH
H6958
wwoods2 on PRODPC68 with BILLS