‘‘(i) the applicable period is the period 
beginning on the date of the enactment of 
this subsection and ending on December 
31, 2006, and 
‘‘(ii) the qualified beginning date is 
September 23, 2005. 
‘‘(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 this section, or pur-
suant to any regulation issued by the Sec-
retary or the Secretary of Labor under this 
section, and 
‘‘(ii) on or before the last day of the 
first plan year beginning on or after Janu-
ary 1, 2007, or such later date as the Sec-
retary may prescribe. 
In the case of a governmental plan (as defined 
in section 414(d)), clause (ii) shall be applied 
by substituting 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 de-
scribed in subparagraph (A)(ii) (or, if 
earlier, the date the plan or contract 
amendment 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.
‘‘SEC. 1400P. EMPLOYMENT RELIEF. 
‘‘(a) EMPLOYEE RETENTION CREDIT FOR EMPLOY-
ERS AFFECTED BY HURRICANE KATRINA.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
in the case of an eligible employer, the Hurricane 
Katrina employee retention credit for any taxable 
year is an amount equal to 40 percent of the quali-
fied wages with respect to each eligible employee of 
such employer 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. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) ELIGIBLE EMPLOYER.—The term ‘eli-
gible employer’ means any employer— 
‘‘(i) which conducted an active trade 
or business on August 28, 2005, in the GO 
Zone, and 
‘‘(ii) with respect to whom the trade 
or business described in clause (i) is inop-
erable on any day after August 28, 2005, 
and before January 1, 2006, as a result of 
damage sustained by reason of Hurricane 
Katrina.
‘‘(B) ELIGIBLE EMPLOYEE.—The term ‘el-
igible employee’ means with respect to an eligi-
ble employer an employee whose principal place 
of employment on August 28, 2005, with such 
eligible employer was in the GO Zone. 
‘‘(C) 
QUALIFIED
WAGES.—The 
term 
‘qualified wages’ means wages (as defined in 
section 51(c)(1), but without regard to section 
3306(b)(2)(B)) paid or incurred by an eligible 
employer with respect to an eligible employee on 
any day after August 28, 2005, and before Jan-
uary 1, 2006, which occurs during the period— 
‘‘(i) beginning on the date on which 
the trade or business described in subpara-
graph (A) first became inoperable at the 
principal place of employment of the em-
ployee 
immediately 
before 
Hurricane 
Katrina, and 
‘‘(ii) ending on the date on which such 
trade or business has resumed significant 
operations at such principal place of em-
ployment. 
Such term shall include wages paid without re-
gard to whether the employee performs no serv-
ices, performs services at a different place of
employment than such principal place of em-
ployment, or performs services at such principal 
place of employment before significant oper-
ations have resumed. 
‘‘(3) CREDIT NOT ALLOWED FOR LARGE BUSI-
NESSES.—The term ‘eligible employer’ shall not in-
clude any trade or business for any taxable year if 
such trade or business employed an average of more 
than 200 employees on business days during the tax-
able year. 
‘‘(4) CERTAIN RULES TO APPLY.—For purposes 
of this subsection, rules similar to the rules of sec-
tions 51(i)(1), 52, and 280C(a) shall apply. 
‘‘(5) 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 
with respect to such employee for such period. 
‘‘(b) EMPLOYEE RETENTION CREDIT FOR EMPLOY-
ERS AFFECTED BY HURRICANE RITA.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
in the case of an eligible employer, the Hurricane 
Rita employee retention credit for any taxable year 
is an amount equal to 40 percent of the qualified