I 
116TH CONGRESS 
1ST SESSION H. R. 1148 
To provide for disaster tax relief. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 11, 2019 
Mr. RICE of South Carolina (for himself, Mr. DUNN, and Mr. SABLAN) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To provide for disaster tax relief. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘2018 Natural Disasters Tax Relief Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
Sec. 3. Special disaster-related rules for use of retirement funds. 
Sec. 4. Employee retention credit for employers affected by qualified disasters. 
Sec. 5. Other disaster-related tax relief provisions. 
Sec. 6. Treatment of certain possessions. 
Sec. 7. Automatic extension of filing deadline. 
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SEC. 2. DEFINITIONS. 
For purposes of this Act— 
(1) GENERAL DEFINITIONS.— 
(A) QUALIFIED
DISASTER
AREA.—The 
term ‘‘qualified disaster area’’ means the Hurri-
cane Florence disaster area; the Hurricane Mi-
chael disaster area; the Typhoon Mangkhut dis-
aster area; the Typhoon Yutu disaster area; the 
Mendocino wildfire disaster area; the Camp and 
Woolsey wildfire disaster area; the Kilauea vol-
canic eruption and earthquakes disaster area; 
the Hawaii severe storms, flooding, landslides, 
and mudslides disaster area; the Wisconsin se-
vere storms, tornadoes, straight-line winds, 
flooding, and landslides disaster area; the Texas 
severe storms and flooding disaster area; the 
North Carolina tornado and severe storms dis-
aster area; the Indiana severe storms and flood-
ing disaster area; the Alabama severe storms 
and tornadoes disaster area; and the Tropical 
Storm Gita disaster area. 
(B) QUALIFIED
DISASTER
ZONE.—The 
term ‘‘qualified disaster zone’’ means that por-
tion of any qualified disaster area which is de-
termined by the President to warrant individual 
or individual and public assistance from the 
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Federal Government under the Robert T. Staf-
ford Disaster Relief and Emergency Assistance 
Act by reason of the qualified disaster with re-
spect to such disaster area. 
(C) 
QUALIFIED
DISASTER.—The 
term 
‘‘qualified disaster’’ means, with respect to any 
qualified disaster area, the disaster by reason of 
which a major disaster was declared with re-
spect to such area. 
(2) HURRICANE FLORENCE.— 
(A) 
HURRICANE
FLORENCE
DISASTER 
AREA.—The term ‘‘Hurricane Florence disaster 
area’’ means an area with respect to which a 
major disaster has been declared by the Presi-
dent on or before December 17, 2018, under 
section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act by reason 
of Hurricane Florence. 
(B) INCIDENT BEGINNING DATE.—The in-
cident beginning date of Hurricane Florence is 
September 7, 2018. 
(C) INCIDENT PERIOD.—The incident pe-
riod of Hurricane Florence is the period begin-
ning on the incident beginning date of Hurri-
cane Florence and ending on October 8, 2018. 
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(3) HURRICANE MICHAEL.— 
(A) 
HURRICANE
MICHAEL
DISASTER 
AREA.—The term ‘‘Hurricane Michael disaster 
area’’ means an area with respect to which a 
major disaster has been declared by the Presi-
dent on or before December 17, 2018, under 
section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act by reason 
of Hurricane Michael. 
(B) INCIDENT BEGINNING DATE.—The in-
cident beginning date of Hurricane Michael is 
October 7, 2018. 
(C) INCIDENT PERIOD.—The incident pe-
riod of Hurricane Michael is the period begin-
ning on the incident beginning date of Hurri-
cane Michael and ending on October 23, 2018. 
(4) TYPHOON MANGKHUT.— 
(A) 
TYPHOON
MANGKHUT
DISASTER 
AREA.—The term ‘‘Typhoon Mangkhut disaster 
area’’ means an area with respect to which a 
major disaster has been declared by the Presi-
dent on or before December 17, 2018, under 
section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act by reason 
of Typhoon Mangkhut. 
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area’’ means an area with respect to which, 
during the period beginning on August 4, 2018, 
and ending on December 17, 2018, a major dis-
aster has been declared by the President under 
section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act by reason 
of the wildfire in California commonly known as 
the Mendocino wildfire of 2018 (including the 
Carr wildfire of 2018). 
(B) INCIDENT BEGINNING DATE.—The in-
cident beginning date of the wildfires referred 
to in subparagraph (A) is July 23, 2018. 
(C) INCIDENT PERIOD.—The incident pe-
riod of the wildfires referred to in subparagraph 
(A) is the period beginning on the incident be-
ginning date of such wildfires and ending on 
September 19, 2018. 
(7) CAMP AND WOOLSEY WILDFIRES.— 
(A) CAMP AND WOOLSEY WILDFIRE DIS-
ASTER AREA.—The term ‘‘Camp and Woolsey 
wildfire disaster area’’ means an area with re-
spect to which, during the period beginning on 
November 12, 2018, and ending on December 
17, 2018, a major disaster has been declared by 
the President under section 401 of the Robert 
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T. Stafford Disaster Relief and Emergency As-
sistance Act by reason of the wildfires in Cali-
fornia commonly known as the Camp and Wool-
sey wildfires of 2018 (including the Hill wildfire 
of 2018). 
(B) INCIDENT BEGINNING DATE.—The in-
cident beginning date of the wildfires referred 
to in subparagraph (A) is November 8, 2018. 
(C) INCIDENT PERIOD.—The incident pe-
riod of the wildfires referred to in subparagraph 
(A) is the period beginning on the incident be-
ginning date of such wildfires and ending on 
November 25, 2018. 
(8) KILAUEA VOLCANIC ERUPTION AND EARTH-
QUAKES.— 
(A) KILAUEA
VOLCANIC
ERUPTION
AND 
EARTHQUAKES
DISASTER
AREA.—The term 
‘‘Kilauea volcanic eruption and earthquakes dis-
aster area’’ means an area with respect to 
which, during the period beginning on May 11, 
2018, and ending on December 17, 2018, a 
major disaster has been declared by the Presi-
dent under section 401 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance 
Act by reason of the Kilauea volcanic eruption 
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and earthquakes occurring in Hawaii during the 
period beginning on May 3, 2018, and ending 
on August 17, 2018. 
(B) INCIDENT BEGINNING DATE.—The in-
cident beginning date of the volcanic eruption 
and earthquakes referred to in subparagraph 
(A) is May 3, 2018. 
(C) INCIDENT PERIOD.—The incident pe-
riod of the volcanic eruption and earthquakes 
referred to in subparagraph (A) is the period 
beginning on the incident beginning date with 
respect to such eruption and earthquakes and 
ending on August 17, 2018. 
(9) HAWAII SEVERE STORMS, FLOODING, LAND-
SLIDES, AND MUDSLIDES.— 
(A) HAWAII SEVERE STORMS, FLOODING, 
LANDSLIDES, 
AND
MUDSLIDES
DISASTER 
AREA.—The term ‘‘Hawaii severe storms, flood-
ing, landslides, and mudslides disaster area’’ 
means an area with respect to which, during 
the period beginning on May 8, 2018, and end-
ing on December 17, 2018, 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 
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the severe storms, flooding, landslides, and 
mudslides occurring in Hawaii during the pe-
riod beginning on April 13, 2018, and ending 
on April 16, 2018. 
(B) INCIDENT BEGINNING DATE.—The in-
cident beginning date of the severe storms, 
flooding, landslides, and mudslides referred to 
in subparagraph (A) is April 13, 2018. 
(C) INCIDENT PERIOD.—The incident pe-
riod of the severe storms, flooding, landslides, 
and mudslides referred to in subparagraph (A) 
is the period beginning on the incident begin-
ning date with respect to such severe storms, 
flooding, landslides, and mudslides and ending 
on April 16, 2018. 
(10) WISCONSIN SEVERE STORMS, TORNADOES, 
STRAIGHT-LINE
WINDS, 
FLOODING, 
AND
LAND-
SLIDES.— 
(A) WISCONSIN SEVERE STORMS, TORNA-
DOES, STRAIGHT-LINE WINDS, FLOODING, AND 
LANDSLIDES DISASTER AREA.—The term ‘‘Wis-
consin severe storms, tornadoes, straight-line 
winds, flooding, and landslides disaster area’’ 
means an area with respect to which, during 
the period beginning on October 18, 2018, and 
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ending on December 17, 2018, 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 
the severe storms, tornadoes, straight-line 
winds, flooding, and landslides occurring in 
Wisconsin during the period beginning on Au-
gust 17, 2018, and ending on September 14, 
2018. 
(B) INCIDENT BEGINNING DATE.—The in-
cident beginning date of the severe storms, tor-
nadoes, straight-line winds, flooding, and land-
slides referred to in subparagraph (A) is Au-
gust 17, 2018. 
(C) INCIDENT PERIOD.—The incident pe-
riod of the severe storms, tornadoes, straight- 
line winds, flooding, and landslides referred to 
in subparagraph (A) is the period beginning on 
the incident beginning date with respect to such 
severe storms, tornadoes, straight-line winds, 
flooding, and landslides and ending on Sep-
tember 14, 2018. 
(11) TEXAS SEVERE STORMS AND FLOODING.— 
(A) TEXAS SEVERE STORMS AND FLOOD-
ING DISASTER AREA.—The term ‘‘Texas severe 
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storms and flooding disaster area’’ means an 
area with respect to which, during the period 
beginning on July 6, 2018, and ending on De-
cember 17, 2018, a major disaster has been de-
clared by the President under section 401 of 
the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act by reason of the se-
vere storms and flooding occurring in Texas 
during the period beginning on June 19, 2018, 
and ending on July 13, 2018. 
(B) INCIDENT BEGINNING DATE.—The in-
cident beginning date of the severe storms and 
flooding referred to in subparagraph (A) is 
June 19, 2018. 
(C) INCIDENT PERIOD.—The incident pe-
riod of the severe storms and flooding referred 
to in subparagraph (A) is the period beginning 
on the incident beginning date with respect to 
such severe storms and flooding and ending on 
July 13, 2018. 
(12) NORTH CAROLINA TORNADO AND SEVERE 
STORMS.— 
(A) NORTH CAROLINA TORNADO AND SE-
VERE
STORMS
DISASTER
AREA.—The term 
‘‘North Carolina tornado and severe storms dis-
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aster area’’ means an area with respect to 
which, during the period beginning on May 8, 
2018, and ending on December 17, 2018, a 
major disaster has been declared by the Presi-
dent under section 401 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance 
Act by reason of the tornado and severe storms 
occurring in North Carolina on April 15, 2018. 
(B) INCIDENT BEGINNING DATE; INCIDENT 
PERIOD.—The incident beginning date, and the 
incident period, of the tornado and severe 
storms referred to in subparagraph (A) is April 
15, 2018. 
(13) INDIANA
SEVERE
STORMS
AND
FLOOD-
ING.— 
(A) INDIANA SEVERE STORMS AND FLOOD-
ING DISASTER AREA.—The term ‘‘Indiana se-
vere storms and flooding disaster area’’ means 
an area with respect to which, during the period 
beginning on May 4, 2018, and ending on De-
cember 17, 2018, a major disaster has been de-
clared by the President under section 401 of 
the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act by reason of the se-
vere storms and flooding occurring in Indiana 
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during the period beginning on February 14, 
2018, and ending on March 4, 2018. 
(B) INCIDENT BEGINNING DATE.—The in-
cident beginning date of the severe storms and 
flooding referred to in subparagraph (A) is 
February 14, 2018. 
(C) INCIDENT PERIOD.—The incident pe-
riod of the severe storms and flooding referred 
to in subparagraph (A) is the period beginning 
on the incident beginning date with respect to 
such severe storms and flooding and ending on 
March 4, 2018. 
(14) ALABAMA SEVERE STORMS AND TORNA-
DOES.— 
(A) ALABAMA SEVERE STORMS AND TOR-
NADOES DISASTER AREA.—The term ‘‘Alabama 
severe storms and tornadoes disaster area’’ 
means an area with respect to which, during 
the period beginning on April 26, 2018, and 
ending on December 17, 2018, 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 
the severe storms and tornadoes occurring in 
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(C) INCIDENT PERIOD.—The incident pe-
riod of Tropical Storm Gita is the period begin-
ning on the incident beginning date of Tropical 
Storm Gita and ending on February 12, 2018. 
SEC. 3. SPECIAL DISASTER-RELATED RULES FOR USE OF 
RETIREMENT FUNDS. 
(a) TAX-FAVORED WITHDRAWALS FROM RETIRE-
MENT PLANS.— 
(1) IN GENERAL.—Section 72(t) of the Internal 
Revenue Code of 1986 shall not apply to any quali-
fied disaster distribution. 
(2) AGGREGATE DOLLAR LIMITATION.— 
(A) IN GENERAL.—For purposes of this 
subsection, the aggregate amount of distribu-
tions received by an individual which may be 
treated as qualified disaster distributions for 
any taxable year shall not exceed the excess (if 
any) of— 
(i) $100,000, over 
(ii) the aggregate amounts treated as 
qualified disaster distributions received by 
such individual for all prior taxable years. 
(B) TREATMENT
OF
PLAN
DISTRIBU-
TIONS.—If a distribution to an individual would 
(without regard to subparagraph (A)) be a 
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qualified disaster distribution, a plan shall not 
be treated as violating any requirement of the 
Internal Revenue Code of 1986 merely because 
the plan treats such distribution as a qualified 
disaster distribution, unless the aggregate 
amount of such distributions from all plans 
maintained by the employer (and any member 
of any controlled group which includes the em-
ployer) to such individual exceeds $100,000. 
(C) CONTROLLED GROUP.—For purposes 
of subparagraph (B), the term ‘‘controlled 
group’’ means any group treated as a single 
employer under subsection (b), (c), (m), or (o) 
of section 414 of the Internal Revenue Code of 
1986. 
(D) SPECIAL RULE FOR INDIVIDUALS AF-
FECTED BY MORE THAN ONE DISASTER.—The 
limitation of subparagraph (A) shall be applied 
separately with respect to distributions made 
with respect to each qualified disaster which is 
described in a separate paragraph of section 2. 
(3) AMOUNT DISTRIBUTED MAY BE REPAID.— 
(A) IN GENERAL.—Any individual who re-
ceives a qualified disaster distribution may, at 
any time during the 3-year period beginning on 
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the day after the date on which such distribu-
tion was received, make 1 or more contributions 
in an aggregate amount not to exceed the 
amount of such distribution to an eligible retire-
ment plan of which such individual is a bene-
ficiary and to which a rollover contribution of 
such distribution could be made under section 
402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 
457(e)(16), of the Internal Revenue Code of 
1986, as the case may be. 
(B) TREATMENT OF REPAYMENTS OF DIS-
TRIBUTIONS
FROM
ELIGIBLE
RETIREMENT 
PLANS
OTHER
THAN
IRAS.—For purposes of 
the Internal Revenue Code of 1986, if a con-
tribution is made pursuant to subparagraph (A) 
with respect to a qualified disaster distribution 
from an eligible retirement plan other than an 
individual retirement plan, then the taxpayer 
shall, to the extent of the amount of the con-
tribution, be treated as having received the 
qualified disaster distribution in an eligible roll-
over 
distribution 
(as 
defined 
in 
section 
402(c)(4) of such Code) and as having trans-
ferred the amount to the eligible retirement 
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plan in a direct trustee to trustee transfer with-
in 60 days of the distribution. 
(C) TREATMENT OF REPAYMENTS OF DIS-
TRIBUTIONS FROM IRAS.—For purposes of the 
Internal Revenue Code of 1986, if a contribu-
tion is made pursuant to subparagraph (A) 
with respect to a qualified disaster distribution 
from an individual retirement plan (as defined 
by section 7701(a)(37) of such Code), then, to 
the extent of the amount of the contribution, 
the qualified disaster distribution shall be treat-
ed as a distribution described in section 
408(d)(3) of such Code and as having been 
transferred to the eligible retirement plan in a 
direct trustee to trustee transfer within 60 days 
of the distribution. 
(4) DEFINITIONS.—For purposes of this sub-
section— 
(A) 
QUALIFIED
DISASTER
DISTRIBU-
TION.—Except as provided in paragraph (2), 
the term ‘‘qualified disaster distribution’’ means 
any distribution from an eligible retirement 
plan made on or after the incident beginning 
date of a qualified disaster and before January 
1, 2020, to an individual whose principal place 
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of abode at any time during the incident period 
of such qualified disaster is located in the quali-
fied disaster area with respect to such qualified 
disaster and who has sustained an economic 
loss by reason of such qualified disaster. 
(B) ELIGIBLE
RETIREMENT
PLAN.—The 
term ‘‘eligible retirement plan’’ shall have the 
meaning 
given 
such 
term 
by 
section 
402(c)(8)(B) of the Internal Revenue Code of 
1986. 
(5) INCOME INCLUSION SPREAD OVER 3-YEAR 
PERIOD.— 
(A) IN
GENERAL.—In the case of any 
qualified disaster distribution, unless the tax-
payer elects not to have this paragraph apply 
for any taxable year, any amount required to be 
included in gross income for such taxable year 
shall be so included ratably over the 3-taxable- 
year period beginning with such taxable year. 
(B) SPECIAL RULE.—For purposes of sub-
paragraph (A), rules similar to the rules of sub-
paragraph (E) of section 408A(d)(3) of the In-
ternal Revenue Code of 1986 shall apply. 
(6) SPECIAL RULES.— 
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(A) EXEMPTION OF DISTRIBUTIONS FROM 
TRUSTEE TO TRUSTEE TRANSFER AND WITH-
HOLDING
RULES.—For purposes of sections 
401(a)(31), 402(f), and 3405 of the Internal 
Revenue Code of 1986, qualified disaster dis-
tributions shall not be treated as eligible roll-
over distributions. 
(B) QUALIFIED DISASTER DISTRIBUTIONS 
TREATED AS MEETING PLAN DISTRIBUTION RE-
QUIREMENTS.—For purposes of the Internal 
Revenue Code of 1986, a qualified disaster dis-
tribution shall be treated as meeting the re-
quirements 
of 
sections 
401(k)(2)(B)(I), 
403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) 
of such Code. 
(b) RECONTRIBUTIONS
OF
WITHDRAWALS
FOR 
HOME PURCHASES.— 
(1) RECONTRIBUTIONS.— 
(A) IN GENERAL.—Any individual who re-
ceived a qualified distribution may, during the 
applicable period, make 1 or more contributions 
in an aggregate amount not to exceed the 
amount of such qualified distribution to an eli-
gible retirement plan (as defined in section 
402(c)(8)(B) of the Internal Revenue Code of 
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1986) of which such individual is a beneficiary 
and to which a rollover contribution of such dis-
tribution could be made under section 402(c), 
403(a)(4), 403(b)(8), or 408(d)(3), of such 
Code, as the case may be. 
(B) TREATMENT OF REPAYMENTS.—Rules 
similar to the rules of subparagraphs (B) and 
(C) of subsection (a)(3) shall apply for purposes 
of this subsection. 
(2) QUALIFIED DISTRIBUTION.—For purposes 
of this subsection, the term ‘‘qualified distribution’’ 
means any distribution— 
(A) 
described 
in 
section 
401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only 
to the extent such distribution relates to finan-
cial hardship), 403(b)(11)(B), or 72(t)(2)(F), 
of the Internal Revenue Code of 1986, 
(B) which was to be used to purchase or 
construct a principal residence in a qualified 
disaster area, but which was not so used on ac-
count of the qualified disaster with respect to 
such area, and 
(C) which was received on or after January 
1, 2018, and before the date which is 30 days 
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after the last day of the incident period of such 
qualified disaster. 
(3) APPLICABLE PERIOD.—For purposes of this 
subsection, the term ‘‘applicable period’’ means, in 
the case of a principal residence in a qualified dis-
aster area with respect to any qualified disaster, the 
period beginning on the incident beginning date of 
such qualified disaster and ending on February 28, 
2019. 
(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 pe-
riod beginning on the date of the enactment of this 
Act and ending on December 31, 2019— 
(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 
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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 
incident beginning date (of such qualified disaster) 
from a qualified employer plan (as defined in 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 
incident beginning date of such qualified dis-
aster and ending on December 31, 2019, such 
due date shall be delayed for 1 year, 
(B) any subsequent repayments with re-
spect to any such loan shall be appropriately 
adjusted to reflect the delay in the due date 
under paragraph (1) and any interest accruing 
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. 
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(3) QUALIFIED INDIVIDUAL.—For purposes of 
this subsection, the term ‘‘qualified individual’’ 
means any individual— 
(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 
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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-
ary 1, 2020, 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), 
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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. 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 2018 qualified disaster employee retention 
credit shall be treated as a credit listed in subsection (b) 
of such section. For purposes of this subsection, the 2018 
qualified disaster employee retention credit for any taxable 
year is an amount equal to 40 percent of the qualified 
wages with respect to each eligible employee of such em-
ployer for such taxable year. For purposes of the pre-
ceding sentence, the amount of qualified wages which may 
be taken into account with respect to any individual shall 
not exceed $6,000. 
(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-
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aster with respect to such qualified disaster 
zone, and 
(B) with respect to whom the trade or 
business described in subparagraph (A) is inop-
erable at any time after the incident beginning 
date of such qualified disaster, and before Jan-
uary 1, 2019, 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 at any time during the incident period of the 
qualified disaster referred to in paragraph (1) with 
such eligible employer was in the qualified disaster 
zone referred 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 after the incident 
beginning date of the qualified disaster referred to 
in paragraph (1), and before January 1, 2019, 
which occurs during the period— 
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(A) beginning on the date on which the 
trade or business described in paragraph (1) 
first became inoperable at the principal place of 
employment of the employee immediately before 
the qualified disaster referred to in such para-
graph, and 
(B) ending on the date on which such 
trade or business has resumed significant oper-
ations at such principal place of employment. 
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. 
(c) CERTAIN 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) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE 
THAN ONCE.—An employee shall not be treated as an eli-
gible employee for purposes of this subsection for any pe-
riod with respect to any employer if such employer is al-
lowed a credit under section 51 of the Internal Revenue 
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Code of 1986 with respect to such employee for such pe-
riod. 
SEC. 5. OTHER DISASTER-RELATED TAX RELIEF PROVI-
SIONS. 
(a) TEMPORARY SUSPENSION OF LIMITATIONS ON 
CHARITABLE CONTRIBUTIONS.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in paragraph (2), subsection (b) of section 170 
of the Internal Revenue Code of 1986 shall not 
apply to qualified contributions and such contribu-
tions shall not be taken into account for purposes of 
applying subsections (b) and (d) of such section to 
other contributions. 
(2) TREATMENT OF EXCESS CONTRIBUTIONS.— 
For purposes of section 170 of the Internal Revenue 
Code of 1986— 
(A) INDIVIDUALS.—In the case of an indi-
vidual— 
(i) LIMITATION.—Any qualified con-
tribution shall be allowed only to the ex-
tent that the aggregate of such contribu-
tions does not exceed the excess of the tax-
payer’s contribution base (as defined in 
subparagraph (H) of section 170(b)(1) of 
such Code) over the amount of all other 
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charitable contributions allowed under sec-
tion 170(b)(1) of such Code. 
(ii) CARRYOVER.—If the aggregate 
amount of qualified contributions made in 
the contribution year (within the meaning 
of section 170(d)(1) of such Code) exceeds 
the limitation of clause (i), such excess 
shall be added to the excess described in 
the portion of subparagraph (A) of such 
section which precedes clause (i) thereof 
for purposes of applying such section. 
(B) CORPORATIONS.—In the case of a cor-
poration— 
(i) LIMITATION.—Any qualified con-
tribution shall be allowed only to the ex-
tent that the aggregate of such contribu-
tions does not exceed the excess of the tax-
payer’s taxable income (as determined 
under paragraph (2) of section 170(b) of 
such Code) over the amount of all other 
charitable contributions allowed under such 
paragraph. 
(ii) CARRYOVER.—Rules similar to the 
rules of subparagraph (A)(ii) shall apply 
for purposes of this subparagraph. 
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(3) QUALIFIED CONTRIBUTIONS.— 
(A) IN GENERAL.—For purposes of this 
subsection, the term ‘‘qualified contribution’’ 
means any charitable contribution (as defined 
in section 170(c) of the Internal Revenue Code 
of 1986) if— 
(i) such contribution— 
(I) is paid during the period be-
ginning on February 7, 2018, and 
ending on December 31, 2018, in cash 
to an organization described in section 
170(b)(1)(A) of such Code, and 
(II) is made for relief efforts in 
one or more qualified disaster areas, 
(ii) the taxpayer obtains from such or-
ganization contemporaneous written ac-
knowledgment (within the meaning of sec-
tion 170(f)(8) of such Code) that such con-
tribution was used (or is to be used) for 
relief efforts described in clause (i)(II), 
and 
(iii) the taxpayer has elected the ap-
plication of this subsection with respect to 
such contribution. 
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(B) EXCEPTION.—Such term shall not in-
clude a contribution by a donor if the contribu-
tion is— 
(i) to an organization described in sec-
tion 509(a)(3) of the Internal Revenue 
Code of 1986, or 
(ii) for the establishment of a new, or 
maintenance of an existing, donor advised 
fund (as defined in section 4966(d)(2) of 
such Code). 
(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. 
(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-
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