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after August 28, 2005, and before January
1, 2006.’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to contributions made after August 28,
2005.
SEC. 304. ADDITIONAL EXEMPTION FOR HOUSING HURRI-
CANE KATRINA DISPLACED INDIVIDUALS.
(a) IN GENERAL.—In the case of taxable years of a
natural person beginning in 2005 and 2006, for purposes
of the Internal Revenue Code of 1986, taxable income shall
be reduced by $500 for each Hurricane Katrina displaced
individual of the taxpayer for the taxable year.
(b) LIMITATIONS.—
(1) DOLLAR LIMITATION.—The reduction under
subsection (a) shall not exceed $2,000, reduced by the
amount of the reduction under this section for all pre-
vious taxable years.
(2) INDIVIDUALS
TAKEN
INTO
ACCOUNT
ONLY
ONCE.—An individual shall not be taken into account
under subsection (a) if such individual was taken
into account under such subsection by the taxpayer in
any prior taxable year.
(c) HURRICANE KATRINA DISPLACED INDIVIDUAL.—
For purposes of this subsection, the term ‘‘Hurricane
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Katrina displaced individual’’ means, with respect to any
taxpayer for any taxable year, a natural person who—
(1) was (as of August 28, 2005) a resident of
any Hurricane Katrina disaster area,
(2) is displaced from the person’s residence lo-
cated in the area described in paragraph (1), and
(3) is provided housing free of charge by the tax-
payer in the principal residence of the taxpayer for
a period of 60 consecutive days which ends in such
taxable year.
Such term shall not include the spouse or any dependent
of the taxpayer.
SEC. 305. INCREASE IN STANDARD MILEAGE RATE FOR
CHARITABLE 
USE 
OF 
PASSENGER 
AUTO-
MOBILE.
Notwithstanding section 170(i) of the Internal Revenue
Code of 1986, for purposes of computing the deduction
under section 170 of such Code for use of a vehicle described
in subsection (f)(12)(E)(i) for provision of relief related to
Hurricane Katrina during the period beginning on August
29, 2005, and ending before January 1, 2007, the standard
mileage rate shall be 70 percent of the standard mileage
rate in effect under section 162(a) of such Code at the time
of such use. Any increase under this section shall be rounded
to the next highest cent.
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SEC. 306. MILEAGE REIMBURSEMENTS TO CHARITABLE
VOLUNTEERS EXCLUDED FROM GROSS IN-
COME.
(a) IN GENERAL.—Part III of subchapter B of chapter
1 is amended by inserting after section 139A the following
new section:
‘‘SEC. 139B. MILEAGE REIMBURSEMENTS TO CHARITABLE
VOLUNTEERS.
‘‘(a) IN GENERAL.—Gross income of an individual
does not include amounts received, from an organization
described in section 170(c), as reimbursement of operating
expenses with respect to use of a passenger automobile for
the benefit of such organization. The preceding sentence
shall apply only to the extent that the expenses which are
reimbursed would be deductible under this chapter if section
274(d) were applied—
‘‘(1) by using the standard business mileage rate
established under such section, and
‘‘(2) as if the individual were an employee of an
organization not described in section 170(c).
‘‘(b) APPLICATION TO VOLUNTEER SERVICES ONLY.—
Subsection (a) shall not apply with respect to any expenses
relating to the performance of services for compensation.
‘‘(c) NO DOUBLE BENEFIT.—A taxpayer may not
claim a deduction or credit under any other provision of
this title with respect to the expenses under subsection (a).