date which is 180 days after the date of the enact-
ment of this Act. 
(c) LOANS FROM QUALIFIED PLANS.— 
(1) INCREASE IN LIMIT ON LOANS NOT TREAT-
ED
AS
DISTRIBUTIONS.—In the case of any loan 
from a qualified employer plan (as defined under 
section 72(p)(4) of the Internal Revenue Code of 
1986) to a qualified individual made during the 180- 
day period beginning on the date of the enactment 
of this Act— 
(A) clause (i) of section 72(p)(2)(A) of 
such Code shall be applied by substituting 
‘‘$100,000’’ for ‘‘$50,000’’, and 
(B) clause (ii) of such section shall be ap-
plied by substituting ‘‘the present value of the 
nonforfeitable accrued benefit of the employee 
under the plan’’ for ‘‘one-half of the present 
value of the nonforfeitable accrued benefit of 
the employee under the plan’’. 
(2) DELAY OF REPAYMENT.—In the case of a 
qualified individual (with respect to any qualified 
disaster) with an outstanding loan (on or after the 
first day of the incident period of such qualified dis-
aster) from a qualified employer plan (as defined in 
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section 72(p)(4) of the Internal Revenue Code of 
1986)— 
(A) if the due date pursuant to subpara-
graph (B) or (C) of section 72(p)(2) of such 
Code for any repayment with respect to such 
loan occurs during the period beginning on the 
first day of the incident period of such qualified 
disaster and ending on the date which is 180 
days after the last day of such incident period, 
such due date shall be delayed for 1 year (or, 
if later, until the date which is 180 days after 
the date of the enactment of this Act), 
(B) any subsequent repayments with re-
spect to any such loan shall be appropriately 
adjusted to reflect the delay in the due date 
under subparagraph (A) and any interest accru-
ing during such delay, and 
(C) in determining the 5-year period and 
the term of a loan under subparagraph (B) or 
(C) of section 72(p)(2) of such Code, the period 
described in subparagraph (A) of this para-
graph shall be disregarded. 
(3) QUALIFIED INDIVIDUAL.—For purposes of 
this subsection, the term ‘‘qualified individual’’ 
means any individual— 
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(A) whose principal place of abode at any 
time during the incident period of any qualified 
disaster is located in the qualified disaster area 
with respect to such qualified disaster, and 
(B) who has sustained an economic loss by 
reason of such qualified disaster. 
(d) PROVISIONS
RELATING
TO
PLAN
AMEND-
MENTS.— 
(1) IN GENERAL.—If this subsection applies to 
any amendment to any plan or annuity contract, 
such plan or contract shall be treated as being oper-
ated in accordance with the terms of the plan during 
the period described in paragraph (2)(B)(i). 
(2) AMENDMENTS TO WHICH SUBSECTION AP-
PLIES.— 
(A) IN
GENERAL.—This subsection shall 
apply to any amendment to any plan or annuity 
contract which is made— 
(i) pursuant to any provision of this 
section, or pursuant to any regulation 
issued by the Secretary or the Secretary of 
Labor under any provision of this section, 
and 
(ii) on or before the last day of the 
first plan year beginning on or after Janu-
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ary 1, 2021, or such later date as the Sec-
retary may prescribe. 
In the case of a governmental plan (as defined 
in section 414(d) of the Internal Revenue Code 
of 1986), clause (ii) shall be applied by sub-
stituting the date which is 2 years after the 
date otherwise applied under clause (ii). 
(B) CONDITIONS.—This subsection shall 
not apply to any amendment unless— 
(i) during the period— 
(I) beginning on the date that 
this section or the regulation de-
scribed in subparagraph (A)(i) takes 
effect (or in the case of a plan or con-
tract amendment not required by this 
section or such regulation, the effec-
tive date specified by the plan), and 
(II) ending on the date described 
in subparagraph (A)(ii) (or, if earlier, 
the date the plan or contract amend-
ment is adopted), 
the plan or contract is operated as if such plan 
or contract amendment were in effect, and 
(ii) such plan or contract amendment 
applies retroactively for such period. 
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SEC. 4. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS 
AFFECTED BY QUALIFIED DISASTERS. 
(a) IN GENERAL.—For purposes of section 38 of the 
Internal Revenue Code of 1986, in the case of an eligible 
employer, the 2021 qualified disaster employee retention 
credit shall be treated as a credit listed at the end of sub-
section (b) of such section. For purposes of this sub-
section, the 2021 qualified disaster employee retention 
credit for any taxable year is an amount equal to 40 per-
cent of the qualified wages with respect to each eligible 
employee of such employer for such taxable year. The 
amount of qualified wages with respect to any employee 
which may be taken into account under this subsection 
by the employer for any taxable year shall not exceed 
$6,000 (reduced by the amount of qualified wages with 
respect to such employee which may be so taken into ac-
count for any prior taxable year). 
(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 in a qualified disaster zone at any time 
during the incident period of the qualified dis-
aster with respect to such qualified disaster 
zone, and 
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(B) with respect to whom the trade or 
business described in subparagraph (A) is inop-
erable at any time during the period beginning 
on the first day of the incident period of such 
qualified disaster and ending on the date of the 
enactment of this Act, as a result of damage 
sustained by reason of such qualified disaster. 
(2) ELIGIBLE EMPLOYEE.—The term ‘‘eligible 
employee’’ means with respect to an eligible em-
ployer an employee whose principal place of employ-
ment with such eligible employer (determined imme-
diately before the qualified disaster referred to in 
paragraph (1)) was in the qualified disaster zone re-
ferred to in such paragraph. 
(3) QUALIFIED WAGES.—The term ‘‘qualified 
wages’’ means wages (as defined in section 51(c)(1) 
of the Internal Revenue Code of 1986, 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 at any time on or after the date 
on which the trade or business described in para-
graph (1) first became inoperable at the principal 
place of employment of the employee (determined 
immediately before the qualified disaster referred to 
in such paragraph) and before the earlier of— 
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(A) the date on which such trade or busi-
ness has resumed significant operations at such 
principal place of employment, or 
(B) the date which 150 days after the last 
day of the incident period of the qualified dis-
aster referred to in paragraph (1). 
Such term shall include wages paid without regard 
to whether the employee performs no services, per-
forms services at a different place of employment 
than such principal place of employment, or per-
forms services at such principal place of employment 
before significant operations have resumed. Such 
term shall not include any wages taken into account 
under section 2301 of the Coronavirus Aid, Relief, 
and Economic Security Act. 
(c) SPECIAL RULES.— 
(1) EMPLOYEE
NOT
TAKEN
INTO
ACCOUNT 
MORE THAN ONCE.—An employee shall not be treat-
ed as an eligible employee for purposes of this sub-
section for any period with respect to any employer 
if such employer is allowed a credit under section 51 
of the Internal Revenue Code of 1986 with respect 
to such employee for such period. 
(2) DENIAL OF DOUBLE BENEFIT.—Any wages 
taken into account in determining the credit allowed 
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under this section shall not be taken into account as 
wages for purposes of sections 41, 45A, 45P, 45S, 
51, and 1396 of the Internal Revenue Code of 1986. 
(3) CERTAIN OTHER RULES TO APPLY.—For 
purposes of this subsection, rules similar to the rules 
of sections 51(i)(1), 52, and 280C(a), of the Internal 
Revenue Code of 1986, shall apply. 
(d) ELECTION TO NOT TAKE CERTAIN WAGES INTO 
ACCOUNT.— 
(1) IN GENERAL.—This section shall not apply 
to qualified wages paid by an eligible employer with 
respect to which such employer makes an election 
(at such time and in such manner as the Secretary 
may prescribe) to have this section not apply to such 
wages. 
(2) COORDINATION WITH PAYCHECK PROTEC-
TION
PROGRAM.—The Secretary, in consultation 
with the Administrator of the Small Business Ad-
ministration, shall issue guidance providing that 
payroll costs paid or incurred during the covered pe-
riod shall not fail to be treated as qualified wages 
under this section by reason of an election under 
paragraph (1) to the extent that a covered loan of 
the eligible employer is not forgiven by reason of a 
decision under section 1106(g) of the CARES Act. 
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Terms used in the preceding sentence which are also 
used in section 1106 of such Act shall have the same 
meaning as when used in such section. 
(e) AMENDMENT TO PAYCHECK PROTECTION PRO-
GRAM.—Section 1106(a)(8) of the CARES Act is amended 
by inserting ‘‘, except that such costs shall not include 
qualified wages taken into account in determining the 
credit allowed under section 4 of the Disaster Tax Relief 
Act of 2021’’ before the period at the end. 
SEC. 5. OTHER DISASTER-RELATED TAX RELIEF PROVI-
SIONS. 
(a) SPECIAL RULES FOR QUALIFIED DISASTER RE-
LIEF CONTRIBUTIONS.— 
(1) IN GENERAL.—In the case of a qualified 
disaster relief contribution made by a corporation— 
(A) section 2205(a)(2)(B) of the CARES 
Act shall be applied first to qualified contribu-
tions without regard to any qualified disaster 
relief contributions and then separately to such 
qualified disaster relief contribution, and 
(B) in applying such section to such quali-
fied disaster relief contributions, clause (i) 
thereof shall be applied— 
(i) by substituting ‘‘100 percent’’ for 
‘‘25 percent’’, and 
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(ii) by treating qualified contributions 
other than qualified disaster relief con-
tributions as contributions allowed under 
section 170(b)(2) of the Internal Revenue 
Code of 1986. 
(2) QUALIFIED
DISASTER
RELIEF
CONTRIBU-
TION.—For purposes of this subsection, the term 
‘‘qualified disaster relief contribution’’ means any 
qualified 
contribution 
(as 
defined 
in 
section 
2205(a)(3) of the CARES Act) if— 
(A) such contribution— 
(i) is paid, during the period begin-
ning on December 28, 2020, and ending 
on the date which is 60 days after the date 
of the enactment of this Act, and 
(ii) is made for relief efforts in one or 
more qualified disaster areas, 
(B) the taxpayer obtains from such organi-
zation contemporaneous written acknowledg-
ment (within the meaning of section 170(f)(8) 
of such Code) that such contribution was used 
(or is to be used) for relief efforts described in 
subparagraph (A)(ii), and 
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(C) the taxpayer has elected the applica-
tion of this subsection with respect to such con-
tribution. 
(b) SPECIAL RULES FOR QUALIFIED DISASTER-RE-
LATED PERSONAL CASUALTY LOSSES.— 
(1) IN GENERAL.—If an individual has a net 
disaster loss for any taxable year— 
(A) the amount determined under section 
165(h)(2)(A)(ii) of the Internal Revenue Code 
of 1986 shall be equal to the sum of— 
(i) such net disaster loss, and 
(ii) so much of the excess referred to 
in the matter preceding clause (i) of sec-
tion 165(h)(2)(A) of such Code (reduced 
by the amount in clause (i) of this sub-
paragraph) as exceeds 10 percent of the 
adjusted gross income of the individual, 
(B) in the case of qualified disaster-related 
personal casualty losses, section 165(h)(1) of 
such Code shall be applied to by substituting 
‘‘$500’’ for ‘‘$500 ($100 for taxable years be-
ginning after December 31, 2009)’’, 
(C) the standard deduction determined 
under section 63(c) of such Code shall be in-
creased by the net disaster loss, and 
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the basis of such property shall be reduced by the 
amount of the credit allowed under subsection (a) 
with respect to such expenditure (determined with-
out regard to subsection (c)). 
‘‘(3) DENIAL
OF
DOUBLE
BENEFIT.—The 
amount of any deduction or other credit allowable 
under this chapter for any expenditure for which a 
credit is allowable under subsection (a) shall be re-
duced by the amount of credit allowed under such 
subsection for such expenditure (determined without 
regard to subsection (c)).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (32), by 
striking the period at the end of paragraph (33) and 
inserting ‘‘, plus’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(34) the portion of the qualified wildfire miti-
gation expenditures credit to which section 28(c)(1) 
applies.’’. 
(2) Section 1016(a) of such Code is amended 
by redesignating paragraphs (35) through (38) as 
paragraphs (36) through (39), respectively, and by 
inserting after paragraph (34) the following new 
paragraph: 
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