TITLE L—ADDITIONAL TAX 
RELIEF PROVISIONS 
SEC. 401. EXCLUSIONS OF CERTAIN CANCELLATIONS OF IN-
DEBTEDNESS 
BY 
REASON 
OF 
LOUISIANA 
STORMS AND FLOODING. 
(a) IN GENERAL.—For purposes of the Internal Rev-
enue Code of 1986, gross income shall not include any 
amount which (but for this section) would be includible 
in gross income by reason of the discharge (in whole or 
in part) of indebtedness of a natural person described in 
subsection (b) by an applicable entity (as defined in sec-
tion 6050P(c)(1) of such Code). 
(b) PERSONS DESCRIBED.—A natural person is de-
scribed in this subsection if the principal place of abode 
of such person on the applicable disaster date, was lo-
cated— 
(1) in the core disaster area, or 
(2) in the Louisiana storm and flood disaster 
area (but outside the core disaster area) and such 
person suffered economic loss by reason of the se-
vere storms and flooding giving rise to the Presi-
dential declaration described in section 2(1). 
(c) EXCEPTIONS.— 
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(1) BUSINESS INDEBTEDNESS.—Subsection (a) 
shall not apply to any indebtedness incurred in con-
nection with a trade or business. 
(2) REAL PROPERTY OUTSIDE CORE DISASTER 
AREA.—Subsection (a) shall not apply to any dis-
charge of indebtedness to the extent that real prop-
erty constituting security for such indebtedness is lo-
cated outside of the Louisiana storm and flood dis-
aster area. 
(d) DENIAL OF DOUBLE BENEFIT.—For purposes of 
the Internal Revenue Code of 1986, the amount excluded 
from gross income under subsection (a) shall be treated 
in the same manner as an amount excluded under section 
108(a) of such Code. 
(e) EFFECTIVE DATE.—This section shall apply to 
discharges made on or after the applicable disaster date, 
and before January 1, 2018. 
SEC. 402. SUSPENSION OF CERTAIN LIMITATIONS ON PER-
SONAL CASUALTY LOSSES. 
Paragraphs (1) and (2)(A) of section 165(h) of the 
Internal Revenue Code of 1986 shall not apply to losses 
described in section 165(c)(3) of such Code which arise 
in the Louisiana storm and flood disaster area on or after 
the applicable disaster date, and which are attributable to 
the severe storms and flooding giving rise to the Presi-
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dential declaration described in section 2(1). In the case 
of any other losses, section 165(h)(2)(A) of such Code 
shall be applied without regard to the losses referred to 
in the preceding sentence. 
SEC. 403. REQUIRED EXERCISE OF AUTHORITY UNDER SEC-
TION 7508A FOR TAX RELIEF RELATING TO 
LOUISIANA STORMS AND FLOODING. 
(a) IN GENERAL.—In the case of any taxpayer deter-
mined by the Secretary of the Treasury to be affected by 
the Presidentially declared disaster relating to the severe 
storms and flooding giving rise to the Presidential declara-
tion described in section 2(1)— 
(1) any relief provided by the Secretary of the 
Treasury under section 7508A of the Internal Rev-
enue Code of 1986 shall be for a period ending not 
earlier than August 31, 2017, and shall be treated 
as applying to the filing of returns relating to, and 
the payment of, employment and excise taxes; and 
(2) with respect to any income tax liability, the 
Secretary of the Treasury shall abate any interest, 
penalty, additional amount, or addition to tax which 
accrued during the period beginning on August 11, 
2016, and ending on January 17, 2017. 
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(b) EFFECTIVE DATE.—Subsection (a) shall apply 
for any period for performing an act which has not expired 
before the applicable disaster date. 
SEC. 404. SPECIAL RULES FOR MORTGAGE REVENUE 
BONDS RELATING TO LOUISIANA STORMS 
AND FLOODING. 
(a) IN GENERAL.—In the case of financing provided 
with respect to a qualified Louisiana storm and flood re-
covery residence, section 143(d) of the Internal Revenue 
Code of 1986 shall be applied as if such residence were 
a targeted area residence. 
(b) QUALIFIED LOUISIANA STORMS AND FLOODING 
RECOVERY RESIDENCE.—For purposes of this section, the 
term ‘‘qualified Louisiana storm and flood recovery resi-
dence’’ means— 
(1) any residence in the core disaster area, and 
(2) any other residence if— 
(A) such other residence is located in the 
same State as the principal residence referred 
to in subparagraph (B), and 
(B) the mortgagor with respect to such 
other residence owned a principal residence on 
the applicable disaster date, which— 
(i) was located in the Louisiana storm 
and flood disaster area, and 
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(ii) was rendered uninhabitable by 
reason of the severe storms and flooding 
giving rise to the Presidential declaration 
described in section 2(1). 
(c) SPECIAL
RULE
FOR
HOME
IMPROVEMENT 
LOANS.—In the case of any loan with respect to a resi-
dence in the Louisiana storm and flood disaster area, sec-
tion 143(k)(4) of such Code shall be applied by sub-
stituting $150,000 for the dollar amount contained there-
in to the extent such loan is for the repair of damage by 
reason of the severe storms and flooding giving rise to the 
Presidential declaration described in section 2(1). 
(d) APPLICATION.—Subsection (a) shall not apply to 
financing provided after December 31, 2018. 
SEC. 405. EXTENSION OF REPLACEMENT PERIOD FOR NON-
RECOGNITION OF GAIN FOR PROPERTY LO-
CATED IN LOUISIANA STORM AND FLOOD 
DISASTER AREA. 
Section 1033(a)(2)(B)(i) of the Internal Revenue 
Code of 1986 shall be applied by substituting ‘‘5 years’’ 
for ‘‘2 years’’ with respect to property in the Louisiana 
storm and flood disaster area which is compulsorily or in-
voluntarily converted on or after the applicable disaster 
date, by reason of the severe storms and flooding giving 
rise to the Presidential declaration described in section 
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giving rise to the Presidential declaration described 
in section 2(1). 
(c) EARNED INCOME.—For purposes of this section, 
the term ‘‘earned income’’ has the meaning given such 
term under section 32(c) of such Code. 
(d) SPECIAL RULES.— 
(1) APPLICATION
TO
JOINT
RETURNS.—For 
purposes of subsection (a), in the case of a joint re-
turn for a taxable year which includes the applicable 
disaster date— 
(A) such subsection shall apply if either 
spouse is a qualified individual, and 
(B) the earned income of the taxpayer for 
the preceding taxable year shall be the sum of 
the earned income of each spouse for such pre-
ceding taxable year. 
(2) UNIFORM
APPLICATION
OF
ELECTION.— 
Any election made under subsection (a) shall apply 
with respect to both section 24(d) and section 32 of 
such Code. 
(3) ERRORS
TREATED
AS
MATHEMATICAL 
ERROR.—For purposes of section 6213 of such 
Code, an incorrect use on a return of earned income 
pursuant to subsection (a) shall be treated as a 
mathematical or clerical error. 
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(4) NO EFFECT ON DETERMINATION OF GROSS 
INCOME, ETC.—Except as otherwise provided in this 
section, the Internal Revenue Code of 1986 shall be 
applied without regard to any substitution under 
subsection (a). 
SEC. 407. SECRETARIAL AUTHORITY TO MAKE ADJUST-
MENTS REGARDING TAXPAYER AND DEPEND-
ENCY STATUS. 
With respect to taxable years beginning in 2016 or 
2017, the Secretary of the Treasury or the Secretary’s del-
egate may make such adjustments in the application of 
the internal revenue laws as may be necessary to ensure 
that taxpayers do not lose any deduction or credit or expe-
rience a change of filing status by reason of temporary 
relocations by reason of the severe storms and flooding 
giving rise to the Presidential declaration described in sec-
tion 2(1). Any adjustments made under the preceding sen-
tence shall ensure that an individual is not taken into ac-
count by more than one taxpayer with respect to the same 
tax benefit. 
SEC. 408. LOW-INCOME HOUSING CREDIT. 
(a) 
ADDITIONAL
HOUSING
CREDIT
DOLLAR 
AMOUNT.— 
(1) IN GENERAL.—For purposes of section 42 
of the Internal Revenue Code of 1986, in the case 
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of calendar years 2017, 2018, and 2019, the State 
housing credit ceiling of Louisiana shall be increased 
by the lesser of— 
(A) the aggregate housing credit dollar 
amount allocated by the State housing credit 
agency of Louisiana to buildings located in the 
Louisiana storm and flood disaster area for 
such calendar year, or 
(B) the Louisiana storm and flood housing 
amount for such State for such calendar year. 
(2) LOUISIANA
STORM
AND
FLOOD
HOUSING 
AMOUNT.—For purposes of paragraph (1), the term 
‘‘Louisiana storm and flood housing amount’’ 
means, for any calendar year, the amount equal to 
the product of $18.00 multiplied by the portion of 
the Louisiana population which is in the Louisiana 
storm and flood disaster area (as determined on the 
basis of the most recent census estimate of resident 
population released by the Bureau of the Census be-
fore August 28, 2016). 
(3) ALLOCATIONS
TREATED
AS
MADE
FIRST 
FROM ADDITIONAL ALLOCATION AMOUNT FOR PUR-
POSES
OF
DETERMINING
CARRYOVER.—For pur-
poses of determining the unused State housing cred-
it ceiling under section 42(h)(3)(C) of such Code for 
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any calendar year, any increase in the State housing 
credit ceiling under paragraph (1) shall be treated 
as an amount described in clause (ii) of such section. 
(b) ADDITIONAL HOUSING CREDIT DOLLAR AMOUNT 
FOR LOUISIANA.—For purposes of section 42 of such 
Code, in the case of calendar years 2017 and 2018, the 
State housing credit ceiling of Louisiana shall each be in-
creased by $3,500,000. 
(c) DIFFICULT DEVELOPMENT AREA.— 
(1) IN GENERAL.—For purposes of section 42 
of such Code, in the case of property placed in serv-
ice during the period beginning on January 1, 2017, 
and ending on December 31, 2021, the Louisiana 
storm and flood disaster area— 
(A) shall be treated as difficult develop-
ment areas designated under subclause (I) of 
section 42(d)(5)(B)(iii) of such Code, and 
(B) shall not be taken into account for 
purposes of applying the limitation under sub-
clause (II) of such section. 
(2) APPLICATION.—Paragraph (1) shall apply 
only to— 
(A) housing credit dollar amounts allocated 
during the period beginning on January 1, 
2017, and ending on December 31, 2019, and 
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(B) buildings placed in service during the 
period described in paragraph (1) to the extent 
that paragraph (1) of section 42(h) does not 
apply to any building by reason of paragraph 
(4) thereof, but only with respect to bonds 
issued after December 31, 2016. 
(d) SPECIAL RULE FOR APPLYING INCOME TESTS.— 
In the case of property placed in service— 
(1) during 2017, 2018, or 2019, 
(2) in the Louisiana storm and flood disaster 
area, and 
(3) in a nonmetropolitan area (as defined in 
section 42(d)(5)(B)(iv)(IV)), 
section 42 of such Code shall be applied by substituting 
‘‘national nonmetropolitan median gross income (deter-
mined under rules similar to the rules of section 
142(d)(2)(B))’’ for ‘‘area median gross income’’ in sub-
paragraphs (A) and (B) of section 42(g)(1) of such Code. 
(e) DEFINITIONS.—Any term used in this section 
which is also used in section 42 shall have the same mean-
ing as when used in such section. 
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SEC. 409. APPLICATION OF NEW MARKETS TAX CREDIT TO 
INVESTMENTS 
IN 
COMMUNITY 
DEVELOP-
MENT ENTITIES SERVING LOUISIANA STORM 
AND FLOOD DISASTER AREA. 
For purposes of section 45D of the Internal Revenue 
Code of 1986— 
(1) a qualified community development entity 
shall be eligible for an allocation under subsection 
(f)(2) thereof of the increase in the new markets tax 
credit limitation described in paragraph (2) only if 
a significant mission of such entity is the recovery 
and redevelopment of the Louisiana storm and flood 
disaster area, 
(2) the new markets tax credit limitation other-
wise determined under subsection (f)(1) thereof shall 
be increased by an amount equal to— 
(A) $300,000,000 for 2016 and 2017, to 
be allocated among qualified community devel-
opment entities to make qualified low-income 
community investments within the Louisiana 
storm and flood disaster area, and 
(B) $400,000,000 for 2018, to be so allo-
cated, and 
(3) subsection (f)(3) thereof shall be applied 
separately with respect to the amount of the increase 
under paragraph (2). 
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commission of Louisiana, such bond commis-
sion, and 
(B) in the case of any other bond, the Gov-
ernor of Louisiana, 
(4) such bond is issued after the date of the en-
actment of this section and before January 1, 2023, 
and 
(5) no portion of the proceeds of such issue is 
to be used to provide any property described in sec-
tion 144(c)(6)(B) of such Code. 
(c) LIMITATION ON BONDS.— 
(1) AGGREGATE
AMOUNT
DESIGNATED.—The 
maximum aggregate face amount of bonds which 
may be designated under this subsection with re-
spect to any State shall not exceed the product of 
$2,500 multiplied by the portion of the Louisiana 
population which is in the Louisiana storm and flood 
disaster area (as determined on the basis of the 
most recent census estimate of resident population 
released by the Bureau of the Census before August 
28, 2016). 
(2) MOVABLE PROPERTY.—No bonds shall be 
issued which are to be used for movable fixtures and 
equipment. 
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(d) QUALIFIED PROJECT COSTS.—For purposes of 
this subsection, the term ‘‘qualified project costs’’ 
means— 
(1) the cost of any qualified residential rental 
project (as defined in section 142(d) of such Code) 
located in the Louisiana storm and flood disaster 
area, and 
(2) the cost of acquisition, construction, recon-
struction, and renovation of— 
(A) nonresidential real property (including 
fixed improvements associated with such prop-
erty) located in the Louisiana storm and flood 
disaster area, and 
(B) public utility property (as defined in 
section 168(i)(10) of such Code) located in the 
Louisiana storm and flood disaster area. 
(e) SPECIAL RULES.—In applying this title to any 
qualified Louisiana storm and flood disaster area bond, 
the following modifications shall apply: 
(1) Section 142(d)(1) of such Code (defining 
qualified residential rental project) shall be ap-
plied— 
(A) by substituting ‘‘60 percent’’ for ‘‘50 
percent’’ in subparagraph (A) thereof, and 
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(B) by substituting ‘‘70 percent’’ for ‘‘60 
percent’’ in subparagraph (B) thereof. 
(2) Section 143 of such Code (relating to mort-
gage revenue bonds: qualified mortgage bond and 
qualified veterans’ mortgage bond) shall be ap-
plied— 
(A) only with respect to owner-occupied 
residences in the Louisiana storm and flood dis-
aster area, 
(B) by treating any such residence in the 
Louisiana storm and flood disaster area as a 
targeted area residence, 
(C) by applying subsection (f)(3) thereof 
without regard to subparagraph (A) thereof, 
and 
(D) 
by 
substituting 
‘‘$150,000’’ 
for 
‘‘$15,000’’ in subsection (k)(4) thereof. 
(3) Except as provided in section 143 of such 
Code, repayments of principal on financing provided 
by the issue of which such bond is a part may not 
be used to provide financing. 
(4) Section 146 of such Code (relating to vol-
ume cap) shall not apply. 
(5) Section 147(d)(2) of such Code (relating to 
acquisition of existing property not permitted) shall 
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be applied by substituting ‘‘50 percent’’ for ‘‘15 per-
cent’’ each place it appears. 
(6) Section 148(f)(4)(C) of such Code (relating 
to exception from rebate for certain proceeds to be 
used to finance construction expenditures) shall 
apply to the available construction proceeds of bonds 
which are part of an issue described in subsection 
(b)(1)(A). 
(7) Section 57(a)(5) of such Code (relating to 
tax-exempt interest) shall not apply. 
(f) SPECIAL RULE FOR REPAIRS AND RECONSTRUC-
TIONS.— 
(1) IN GENERAL.—For purposes of section 143 
of the Internal Revenue Code of 1986 and this sec-
tion, any qualified Louisiana storm and flood dis-
aster area repair or reconstruction shall be treated 
as a qualified rehabilitation. 
(2) QUALIFIED LOUISIANA STORM AND FLOOD 
DISASTER AREA REPAIR OR RECONSTRUCTION.—For 
purposes of subparagraph (A), the term ‘‘qualified 
Louisiana storm and flood disaster area repair or re-
construction’’ means any repair of damage caused by 
the severe storms and flooding giving rise to the 
Presidential declaration described in section 2(1) (or 
reconstruction of such building in the case of dam-
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age constituting destruction) if the expenditures for 
such repair or reconstruction are 25 percent or more 
of the mortgagor’s adjusted basis in the residence. 
For purposes of the preceding sentence, the mortga-
gor’s adjusted basis shall be determined as of the 
completion of the repair or reconstruction or, if 
later, the date on which the mortgagor acquires the 
residence. 
(3) TERMINATION.—This paragraph shall apply 
only to owner-financing provided after the date of 
the enactment of this subsection and before January 
1, 2023. 
SEC. 411. EXPENSING FOR CERTAIN DEMOLITION AND 
CLEAN-UP COSTS. 
(a) IN GENERAL.—A taxpayer may elect to treat 50 
percent of any qualified Louisiana storm and flood dis-
aster area clean-up cost as an expense which is not charge-
able to capital account. Any cost so treated shall be al-
lowed as a deduction for the taxable year in which such 
cost is paid or incurred. 
(b) QUALIFIED LOUISIANA STORM AND FLOOD DIS-
ASTER AREA CLEAN-UP COST.—For purposes of this sub-
section, the term ‘‘qualified Louisiana storm and flood dis-
aster area clean-up cost’’ means any amount paid or in-
curred during the period beginning on the applicable dis-
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aster date, and ending on December 31, 2018, for the re-
moval of debris from, or the demolition of structures on, 
real property which is located in the Louisiana storm and 
flood disaster area and which is— 
(1) held by the taxpayer for use in a trade or 
business or for the production of income, or 
(2) property described in section 1221(a)(1) in 
the hands of the taxpayer. 
For purposes of the preceding sentence, amounts paid or 
incurred shall be taken into account only to the extent that 
such amount would (but for subsection (a)) be chargeable 
to capital account. 
SEC. 412. EXTENSION OF EXPENSING FOR ENVIRON-
MENTAL REMEDIATION COSTS. 
With respect to any qualified environmental remedi-
ation expenditure (as defined in section 198(b)) paid or 
incurred on or after the applicable disaster date, in con-
nection with a qualified contaminated site located in the 
Louisiana storm and flood disaster area, section 198 (re-
lating to expensing of environmental remediation costs) 
shall be applied— 
(1) in the case of expenditures paid or incurred 
on or after the applicable disaster date, and before 
January 1, 2019, by substituting ‘‘December 31, 
2018’’ for the date contained in section 198(h), and 
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(2) except as provided in section 198(d)(2), by 
treating petroleum products (as defined in section 
4612(a)(3)) as a hazardous substance. 
SEC. 413. TREATMENT OF NET OPERATING LOSSES ATTRIB-
UTABLE TO LOUISIANA STORM AND FLOOD 
DISASTER AREA LOSSES. 
(a) IN GENERAL.—If a portion of any net operating 
loss of the taxpayer for any taxable year is a qualified 
Louisiana storm and flood disaster area loss, the following 
rules shall apply: 
(1) EXTENSION OF CARRYBACK PERIOD.—Sec-
tion 172(b)(1) of the Internal Revenue Code of 1986 
shall be applied with respect to such portion— 
(A) by substituting ‘‘5 taxable years’’ for 
‘‘2 taxable years’’ in subparagraph (A)(i) there-
of, and 
(B) by not taking such portion into ac-
count in determining any eligible loss of the 
taxpayer under subparagraph (F) thereof for 
the taxable year. 
(2) SUSPENSION OF 90 PERCENT AMT LIMITA-
TION.—Section 56(d)(1) of such Code shall be ap-
plied by increasing the amount determined under 
subparagraph (A)(ii)(I) thereof by the sum of the 
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carrybacks and carryovers of any net operating loss 
attributable to such portion. 
(b) QUALIFIED LOUISIANA STORM AND FLOOD DIS-
ASTER AREA LOSS.— 
(1) IN GENERAL.—For purposes of subsection 
(a), the term ‘‘qualified Louisiana storm and flood 
disaster area loss’’ means the lesser of— 
(A) the excess of— 
(i) the net operating loss for such tax-
able year, over 
(ii) the specified liability loss for such 
taxable year to which a 10-year carryback 
applies under section 172(b)(1)(C) of such 
Code, or 
(B) the aggregate amount of the following 
deductions to the extent taken into account in 
computing the net operating loss for such tax-
able year: 
(i) Any deduction for any qualified 
Louisiana storm and flood disaster area 
casualty loss. 
(ii) Any deduction for moving ex-
penses paid or incurred after the applicable 
disaster date, and before January 1, 2019, 
and allowable under this chapter to any 
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taxpayer in connection with the employ-
ment of any individual— 
(I) whose principal place of abode 
was located in the Louisiana storm 
and flood disaster area before the ap-
plicable disaster date, 
(II) who was unable to remain in 
such abode as the result of the severe 
storms and flooding giving rise to the 
Presidential declaration described in 
section 2(1), and 
(III) whose principal place of em-
ployment with the taxpayer after such 
expense is located in the Louisiana 
storm and flood disaster area. 
For purposes of this subparagraph, the 
term ‘‘moving expenses’’ has the meaning 
given such term by section 217(b) of such 
Code, except that the taxpayer’s former 
residence and new residence may be the 
same residence if the initial vacating of the 
residence was as the result of the severe 
storms and flooding giving rise to the 
Presidential declaration described in sec-
tion 2(1). 
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(iii) Any deduction allowable under 
this chapter for expenses paid or incurred 
on or after the applicable disaster date, 
and before January 1, 2019, to tempo-
rarily house any employee of the taxpayer 
whose principal place of employment is in 
the Louisiana storm and flood disaster 
area. 
(iv) Any deduction for depreciation 
(or amortization in lieu of depreciation) al-
lowable under this chapter with respect to 
any qualified Louisiana storm and flood 
disaster area property for the taxable year 
such property is placed in service. 
(v) Any deduction allowable under this 
chapter for repair expenses (including ex-
penses for removal of debris) paid or in-
curred on or after the applicable disaster 
date, and before January 1, 2019, with re-
spect to any damage attributable to the se-
vere storms and flooding giving rise to the 
Presidential declaration described in sec-
tion 2(1) and in connection with property 
which is located in the Louisiana storm 
and flood disaster area. 
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(2) QUALIFIED LOUISIANA STORM AND FLOOD 
DISASTER AREA PROPERTY.—For purposes of this 
subsection— 
(A) IN
GENERAL.—The term ‘‘qualified 
Louisiana storm and flood disaster area prop-
erty’’ means property— 
(i)(I) which is described in section 
168(k)(2)(A)(i) of the Internal Revenue 
Code of 1986, or 
(II) which is nonresidential real prop-
erty or residential rental property, 
(ii) substantially all of the use of 
which is in the Louisiana storm and flood 
disaster area and is in the active conduct 
of a trade or business by the taxpayer in 
such area, 
(iii) the original use of which in the 
Louisiana storm and flood disaster area 
commences with the taxpayer on or after 
the applicable disaster date, 
(iv) which is acquired by the taxpayer 
by purchase (as defined in section 179(d) 
of such Code) on or after the applicable 
disaster date, but only if no written bind-
ing contract for the acquisition was in ef-
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fect before the applicable disaster date, 
and 
(v) which is placed in service by the 
taxpayer on or before December 31, 2018 
(December 31, 2019, in the case of non-
residential real property and residential 
rental property). 
(B) EXCEPTIONS.— 
(i) 
ALTERNATIVE
DEPRECIATION 
PROPERTY.—Such term shall not include 
any 
property 
described 
in 
section 
168(k)(2)(D) of such Code. 
(ii) 
TAX-EXEMPT
BOND-FINANCED 
PROPERTY.—Such term shall not include 
any property any portion of which is fi-
nanced with the proceeds of any obligation 
the interest on which is exempt from tax 
under section 103 of such Code. 
(iii) 
QUALIFIED
REVITALIZATION 
BUILDINGS.—Such term shall not include 
any qualified revitalization building with 
respect to which the taxpayer has elected 
the application of paragraph (1) or (2) of 
section 1400I(a) of such Code. 
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(c) QUALIFIED LOUISIANA STORM AND FLOOD AREA 
CASUALTY LOSS.— 
(1) IN GENERAL.—For purposes of paragraph 
(1)(B)(i), the term ‘‘qualified Louisiana storm and 
flood area casualty loss’’ means any uncompensated 
section 
1231 
loss 
(as 
defined 
in 
section 
1231(a)(3)(B) of such Code) of property located in 
the Louisiana storm and flood disaster area, if— 
(A) such loss is allowed as a deduction 
under section 165 of such Code for the taxable 
year, and 
(B) such loss is by reason of the storms 
and flooding giving rise to the Presidential dec-
laration described in section 2(1). 
(2) REDUCTION
FOR
GAINS
FROM
INVOLUN-
TARY CONVERSION.—The amount of qualified Lou-
isiana storm and flood area casualty loss which 
would (but for this paragraph) be taken into account 
under paragraph (1) for any taxable year shall be 
reduced by the amount of any gain recognized by the 
taxpayer for such year from the involuntary conver-
sion by reason of the storms and flooding giving rise 
to the Presidential declaration described in section 
2(1) of property located in the Louisiana storm and 
flood disaster area. 
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(3) COORDINATION WITH GENERAL DISASTER 
LOSS RULES.—Section 165(i) of such Code shall not 
apply to any qualified Louisiana storm and flood 
disaster area casualty loss to the extent such loss is 
taken into account under this subsection. 
(4) SPECIAL
RULES.—For purposes of para-
graph (1), rules similar to the rules of paragraphs 
(2) and (3) of section 172(i) of such Code shall 
apply with respect to such portion. 
SEC. 414. INCREASED EXPENSING FOR QUALIFIED TIMBER 
PROPERTY. 
(a) IN GENERAL.—In the case of qualified timber 
property any portion of which is located in the Louisiana 
storm and flood disaster area, the limitation under sub-
paragraph (B) of section 194(b)(1) of such Code shall be 
increased by the lesser of— 
(1) the limitation which would (but for this sec-
tion) apply under such subparagraph, or 
(2) the amount of reforestation expenditures 
(as defined in section 194(c)(3) of such Code) paid 
or incurred by the taxpayer with respect to such 
qualified timber property during the specified por-
tion of the taxable year. 
(b) DEFINITIONS.—For purposes of this sub-
section— 
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(1) SPECIFIED PORTION.—The term ‘‘specified 
portion’’ means that portion of the taxable year 
which is on or after the applicable disaster date, and 
before January 1, 2019. 
(2) QUALIFIED TIMBER PROPERTY.—The term 
‘‘qualified timber property’’ has the meaning given 
such term in section 194(c)(1) of such Code. 
SEC. 415. DISASTER LOSS CARRYBACK. 
(a) IN GENERAL.—In the case of a loss occurring in 
the Louisiana storm and flood disaster area and attrib-
utable to the severe storms and flooding giving rise to the 
Presidential declaration described in section 2(1), at the 
election of the taxpayer, section 165(i)(1) of the Internal 
Revenue Code of 1986 shall be applied by substituting 
‘‘any of the 3 taxable years preceding’’ for ‘‘the taxable 
year immediately preceding’’. 
(b) SPECIAL RULES.— 
(1) DETERMINED
WITHOUT
REGARD
TO
AD-
JUSTED GROSS INCOME.—Any loss described in sub-
section (a) shall be determined for the taxable year 
without regard to section 165(h)(2)(A) of such Code. 
(2) TREATED AS SALE OR EXCHANGE.—Not-
withstanding section 165(h)(2)(B) of such Code, any 
loss described in subsection (a) shall be treated as 
a loss from a sale or exchange of a capital asset. 
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SEC. 416. HOUSING RELIEF FOR INDIVIDUALS AFFECTED 
BY LOUISIANA STORMS AND FLOODING. 
(a) EXCLUSION OF EMPLOYER-PROVIDED HOUSING 
FOR INDIVIDUAL AFFECTED BY LOUISIANA STORMS AND 
FLOODING.— 
(1) IN GENERAL.—Gross income of a qualified 
employee shall not include the value of any lodging 
furnished in kind to such employee (and such em-
ployee’s spouse or any of such employee’s depend-
ents) by or on behalf of a qualified employer for any 
month during the taxable year. 
(2) LIMITATION.—The amount which may be 
excluded under paragraph (1) for any month for 
which lodging is furnished during the taxable year 
shall not exceed $600. 
(3) TREATMENT
OF
EXCLUSION.—The exclu-
sion under paragraph (1) shall be treated as an ex-
clusion under section 119 of such Code (other than 
for 
purposes 
of 
sections 
3121(a)(19) 
and 
3306(b)(14) of such Code). 
(b) EMPLOYER CREDIT FOR HOUSING EMPLOYEES 
AFFECTED BY LOUISIANA STORMS AND FLOODING.—For 
purposes of section 38, in the case of a qualified employer, 
the Louisiana storm and flood housing credit for any 
month during the taxable year is an amount equal to 30 
percent of any amount which is excludable from the gross 
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income of a qualified employee of such employer under 
subsection (a) and not otherwise excludable under section 
119 of such Code. 
(c) QUALIFIED EMPLOYEE.—For purposes of this 
section, the term ‘‘qualified employee’’ means, with respect 
to any month, an individual— 
(1) who had a principal residence (as defined in 
section 121 of such Code) in the Louisiana storm 
and flood disaster area on the applicable disaster 
date, and 
(2) who performs substantially all employment 
services— 
(A) in the Louisiana storm and flood dis-
aster area, and 
(B) for the qualified employer which fur-
nishes lodging to such individual. 
(d) QUALIFIED EMPLOYER.—For purposes of this 
section, the term ‘‘qualified employer’’ means any em-
ployer with a trade or business located in the Louisiana 
storm and flood disaster area. 
(e) CERTAIN RULES TO APPLY.—For purposes of 
this subsection, rules similar to the rules of sections 
51(i)(1) and 52 of such Code shall apply. 
(f) APPLICATION OF SECTION.—This section shall 
apply to lodging furnished during the period— 
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(1) beginning on the first day of the first 
month beginning after the date of the enactment of 
this section, and 
(2) ending on the date which is 6 months after 
the first day described in paragraph (1). 
(g) TREATED
AS PART
OF GENERAL BUSINESS 
CREDIT.—The Louisiana storm and flood housing credit 
determined under subsection (b) shall be treated as listed 
in section 38(b) of the Internal Revenue Code of 1986. 
Æ 
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