SEC. 14. ADDITIONAL LOW-INCOME HOUSING CREDIT MAY 
BE ALLOCATED IN STATES DAMAGED BY 
HURRICANE SANDY. 
(a) IN GENERAL.—Paragraph (3) of section 42(h) of 
the Internal Revenue Code of 1986 (relating to limitation 
on aggregate credit allowable with respect to projects lo-
cated in a State) is amended by adding at the end the 
following new subparagraph: 
‘‘(J) INCREASE IN STATE HOUSING CREDIT 
FOR
STATES
DAMAGED
BY
HURRICANE 
SANDY.— 
‘‘(i) IN GENERAL.—In the case of cal-
endar year 2013, the State housing credit 
ceiling of each State any portion of which 
includes any portion of the Hurricane 
Sandy disaster area shall be increased by 
so much of the aggregate housing credit 
dollar amount as does not exceed the appli-
cable limitation allocated by the State 
housing credit agency of such State for 
such calendar year to buildings located in 
such disaster area. 
‘‘(ii) APPLICABLE
LIMITATION.—For 
purposes of clause (i), the applicable limi-
tation is the greater of— 
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‘‘(I) $8 multiplied by the popu-
lation of the area described in clause 
(vii)(I), or 
‘‘(II) 50 percent of the State 
housing credit ceiling (determined 
without regard to this subparagraph) 
for 2013. 
‘‘(iii) APPLICABLE
PERCENTAGE.— 
For purposes of this section, the applicable 
percentage with respect to any building to 
which amounts allocated under clause (i) 
shall be determined under subsection 
(b)(2), except that subparagraph (A) 
thereof shall be applied by substituting 
‘December 31, 2015’ for ‘December 31, 
2013’. 
‘‘(iv) 
ALLOCATIONS
TREATED
AS 
MADE FIRST FROM ADDITIONAL ALLOCA-
TION AMOUNT FOR PURPOSES OF DETER-
MINING CARRYOVER.—For purposes of de-
termining the unused State housing credit 
ceiling under subparagraph (C) for any 
calendar year, any increase in the State 
housing credit ceiling under clause (i) shall 
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be treated as an amount described in 
clause (ii) of such subparagraph. 
‘‘(v) 
DIFFICULT
DEVELOPMENT 
AREA.— 
‘‘(I) IN GENERAL.—In the case 
of property placed in service during 
2013, 2014, or 2015, the Hurricane 
Sandy disaster area shall be treated 
as a difficult development area des-
ignated under subclause (I) of sub-
section (d)(5)(B)(iii), and shall not be 
taken into account for purposes of ap-
plying the limitation under subclause 
(II) of such subsection. 
‘‘(II) 
APPLICATION
OF 
CLAUSE.—Subclause (I) shall apply 
only to— 
‘‘(aa) housing credit dollar 
amounts allocated during 2013, 
and 
‘‘(bb) to the extent that 
paragraph (1) does not apply to 
any building by reason of para-
graph (4), only with respect to 
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bonds issued after December 31, 
2012. 
‘‘(vi) HURRICANE
SANDY
DISASTER 
AREA AND HURRICANE SANDY FEDERALLY 
DECLARED
DISASTER.—For purposes of 
this subparagraph— 
‘‘(I) DISASTER AREA.—The term 
‘Hurricane 
Sandy 
disaster 
area’ 
means each county included in the 
geographical area covered by the Hur-
ricane Sandy federally declared dis-
aster. 
‘‘(II) HURRICANE SANDY FEDER-
ALLY DECLARED DISASTER AND DIS-
ASTER
AREA.—The term ‘Hurricane 
Sandy federally declared disaster’ has 
the meaning given such term by sec-
tion 165(h)(3)(D).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 15. SPECIAL RULES FOR USE OF RETIREMENT FUNDS. 
(a) EARLY
WITHDRAWAL
FROM
RETIREMENT 
PLANS.—Paragraph (2) of section 72(t) is amended by 
adding at the end the following new subparagraph: 
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‘‘(H) 
HURRICANE
SANDY
DISTRIBU-
TIONS.—Distributions to an individual which 
are Hurricane Sandy distributions (as defined 
in paragraph (11)).’’. 
(b) SPECIAL RULES.—Subsection (t) of section 72 is 
amended by adding at the end the following: 
‘‘(11) SPECIAL RULES RELATING TO USE OF 
RETIREMENT
FUNDS
RELATING
TO
HURRICANE 
SANDY.— 
‘‘(A) DISTRIBUTIONS.—For purposes of 
this paragraph— 
‘‘(i) IN GENERAL.—The term ‘Hurri-
cane Sandy distribution’ means any dis-
tribution from an eligible retirement plan 
(as defined by section 402(c)(8)(B)) made 
on or after October 29, 2012, and before 
January 1, 2014, to an individual whose 
principal place of abode on October 29, 
2012, is located in the Hurricane Sandy 
disaster area (as defined in section 
165(h)(3)(D)) and who has sustained an 
economic loss by reason of Hurricane 
Sandy. 
‘‘(ii) AGGREGATE
DOLLAR
LIMITA-
TION.— 
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‘‘(I) IN GENERAL.—For purposes 
of this paragraph, the aggregate 
amount of distributions received by an 
individual which may be treated as 
Hurricane Sandy distributions for any 
taxable year shall not exceed the ex-
cess (if any) of— 
‘‘(aa) $100,000, over 
‘‘(bb) the aggregate amounts 
treated as Hurricane Sandy dis-
tributions received by such indi-
vidual for all prior taxable years. 
‘‘(II) TREATMENT OF PLAN DIS-
TRIBUTIONS.—If a distribution to an 
individual would (without regard to 
subclause (I)) be a Hurricane Sandy 
distribution, a plan shall not be treat-
ed as violating any requirement of 
this title merely because the plan 
treats such distribution as a Hurri-
cane Sandy distribution, unless the 
aggregate amount of such distribu-
tions from all plans maintained by the 
employer (and any member of any 
controlled group which includes the 
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