I 
112TH CONGRESS 
1ST SESSION H. R. 2718 
To amend the Internal Revenue Code of 1986 to extend and expand tax 
relief for national disasters. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2011 
Mr. KIND (for himself, Mr. NEAL, Mr. BACHUS, and Ms. SEWELL) introduced 
the following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to extend 
and expand tax relief for national disasters. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Disaster Tax Act of 
2011’’. 
SEC. 2. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED 
DISASTERS. 
(a) WAIVER OF ADJUSTED GROSS INCOME LIMITA-
TION; INCREASE IN STANDARD DEDUCTION BY DISASTER 
CASUALTY LOSS.— 
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(1) IN
GENERAL.—Subclause (I) of section 
165(h)(3)(B)(i) of the Internal Revenue Code of 
1986 is amended by striking ‘‘before January 1, 
2010’’ and inserting ‘‘after December 31, 2010’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to disasters declared 
in taxable years beginning after December 31, 2010. 
(b) INCREASE IN LIMITATION ON INDIVIDUAL LOSS 
PER CASUALTY.— 
(1) IN
GENERAL.—Paragraph (1) of section 
165(h) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘($100 for taxable years begin-
ning after December 31, 2009)’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2010. 
(c) TECHNICAL AMENDMENT.—Clause (i) of section 
165(h)(3)(C) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘major’’ after ‘‘means any’’. 
SEC. 3. EXPENSING OF QUALIFIED DISASTER EXPENSES. 
(a) IN GENERAL.—Subparagraph (A) of section 
198A(b)(2) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘before January 1, 2010’’ and insert-
ing ‘‘after December 31, 2010’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred after 
December 31, 2010, in connection with disasters declared 
after such date. 
SEC. 4. NET OPERATING LOSSES ATTRIBUTABLE TO FED-
ERALLY DECLARED DISASTERS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
172(j)(1)(A)(i) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘before January 1, 2010’’ and insert-
ing ‘‘after December 31, 2010’’. 
(b) ELIMINATION OF EXCLUSION.—Section 172(j) of 
the Internal Revenue Code of 1986 is amended by striking 
paragraph (4). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to losses arising in taxable years 
beginning after December 31, 2010, in connection with 
disasters declared after such date. 
SEC. 5. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
REQUIREMENTS FOLLOWING FEDERALLY DE-
CLARED DISASTERS. 
(a) IN GENERAL.—Subparagraphs (A)(i) and (B)(i) 
of section 143(k)(12) of the Internal Revenue Code of 
1986, as added by the Tax Extenders and Alternative 
Minimum Tax Relief Act of 2008, are each amended by 
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striking ‘‘before January 1, 2010’’ and inserting ‘‘after 
December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disasters occurring after Decem-
ber 31, 2010. 
SEC. 6. INCREASED EXPENSING FOR QUALIFIED DISASTER 
ASSISTANCE PROPERTY. 
(a) IN GENERAL.—Paragraph (2) of section 179(e) 
of the Internal Revenue Code of 1986 is amended by in-
serting ‘‘, except that ‘after December 31, 2010’ shall be 
substituted for ‘before January 1, 2010’ in subparagraph 
(A)(ii)(I) thereof’’ after ‘‘as defined in section 168(n)(2)’’. 
(b) 
ELIMINATION
OF
EXCLUSION.—Section 
168(n)(2)(B) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘and’’ at the end of clause (i), by 
striking ‘‘, and’’ at the end of clause (ii) and inserting 
a period, and by striking clause (iii). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2010, with respect to disasters declared 
after such date. 
SEC. 7. INCREASED LIMITATION ON CHARITABLE CON-
TRIBUTIONS FOR DISASTER RELIEF. 
(a) INDIVIDUALS.—Paragraph (1) of section 170(b) 
of the Internal Revenue Code of 1986 is amended by re-
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designating subparagraphs (F) and (G) as subparagraphs 
(G) and (H), respectively, and by inserting after subpara-
graph (E) the following new subparagraph: 
‘‘(F) QUALIFIED
DISASTER
CONTRIBU-
TIONS.— 
‘‘(i) IN GENERAL.—Any qualified dis-
aster contribution shall be allowed to the 
extent that the aggregate of such contribu-
tions does not exceed the excess of 80 per-
cent of the taxpayer’s contribution base 
over the amount of all other charitable 
contributions allowable under this para-
graph. 
‘‘(ii) CARRYOVER.—If the aggregate 
amount of contributions described in clause 
(i) exceeds the limitation under clause (i), 
such excess shall be treated (in a manner 
consistent with the rules of subsection 
(d)(1)) as a charitable contribution to 
which clause (i) applies in each of the 5 
succeeding years in order of time. 
‘‘(iii) COORDINATION
WITH
OTHER 
SUBPARAGRAPHS.—For purposes of apply-
ing this subsection and subsection (d)(1), 
contributions described in clause (i) shall 
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not be treated as described in subpara-
graphs (A) and such subparagraph shall be 
applied without regard to such contribu-
tions. 
‘‘(iv) 
QUALIFIED
DISASTER
CON-
TRIBUTIONS.—For purposes of this sub-
paragraph, the term ‘qualified disaster 
contribution’ means any charitable con-
tribution if— 
‘‘(I) such contribution is made 
after the date of the enactment of this 
paragraph, 
‘‘(II) such contribution is made 
in cash to an organization described 
in subparagraph (A) (other than an 
organization 
described 
in 
section 
509(a)(3)), and 
‘‘(III) such contribution is for re-
lief efforts related to a federally de-
clared disaster (as defined in section 
165(h)(3)(C)(i)). 
Such term shall not include a contribution 
if the contribution is for establishment of 
a new, or maintenance in an existing, 
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donor advised fund (as defined in section 
4966(d)(2)). 
‘‘(v) 
SUBSTANTIATION
REQUIRE-
MENT.—This paragraph shall not apply to 
any qualified disaster contribution unless 
the taxpayer obtains from such organiza-
tion to which the contribution was made a 
contemporaneous written acknowledgment 
(within the meaning of subsection (f)(8)) 
that such contribution was used (or is to 
be used) for a purpose described in clause 
(iv)(III).’’. 
(b) CORPORATIONS.— 
(1) IN
GENERAL.—Paragraph (2) of section 
170(b) of the Internal Revenue Code of 1986 is 
amended by redesignating subparagraph (C) as sub-
paragraph (D) and by inserting after subparagraph 
(B) the following new subparagraph: 
‘‘(C) QUALIFIED
DISASTER
CONTRIBU-
TIONS.— 
‘‘(i) IN GENERAL.—Any qualified dis-
aster contribution shall be allowed to the 
extent that the aggregate of such contribu-
tions does not exceed the excess of 20 per-
cent of the taxpayer’s taxable income over 
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the amount of charitable contributions al-
lowed under subparagraph (A). 
‘‘(ii) CARRYOVER.—If the aggregate 
amount of contributions described in clause 
(i) exceeds the limitation under clause (i), 
such excess shall be treated (in a manner 
consistent with the rules of subsection 
(d)(1)) as a charitable contribution to 
which clause (i) applies in each of the 5 
succeeding years in order of time. 
‘‘(iii) 
QUALIFIED
DISASTER
CON-
TRIBUTION.—The term ‘qualified disaster 
contribution’ has the meaning given such 
term under paragraph (2)(F)(iv). 
‘‘(iv) 
SUBSTANTIATION
REQUIRE-
MENT.—This paragraph shall not apply to 
any qualified disaster contribution unless 
the taxpayer obtains from such organiza-
tion to which the contribution was made a 
contemporaneous written acknowledgment 
(within the meaning of subsection (f)(8)) 
that such contribution was used (or is to 
be used) for a purpose described in para-
graph (1)(F)(iv)(III).’’. 
(2) CONFORMING AMENDMENTS.— 
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(A) Subparagraph (A) of section 170(b)(2) 
of such Code is amended by striking ‘‘subpara-
graph (B) applies’’ and inserting ‘‘subpara-
graphs (B) and (C) apply’’. 
(B) Subparagraph (B) of section 170(b)(2) 
of such Code is amended by striking ‘‘subpara-
graph (A)’’ and inserting ‘‘subparagraphs (A) 
and (C)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
SEC. 8. INCREASE IN NEW MARKETS TAX CREDIT FOR IN-
VESTMENTS IN COMMUNITY DEVELOPMENT 
ENTITIES SERVING DISASTER AREAS. 
(a) IN GENERAL.—Subsection (f) of section 45D of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(4) INCREASED
SPECIAL
ALLOCATION
FOR 
COMMUNITY DEVELOPMENT ENTITIES SERVING FED-
ERAL DISASTER AREAS.— 
‘‘(A) IN GENERAL.—In the case of any cal-
endar year which begins after 2010, the limita-
tion under paragraph (1) shall be increased by 
an amount equal to $250,000,000, to be allo-
cated among qualified community development 
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entities to make qualified low-income commu-
nity investments within a federally declared dis-
aster area. 
‘‘(B) ALLOCATION
OF
INCREASE.—The 
amount of the increase in limitation under sub-
paragraph (A) shall be allocated by the Sec-
retary under paragraph (2) to qualified commu-
nity development entities and shall give priority 
to such entities with a record of having success-
fully provided capital or technical assistance to 
businesses or communities within the federally 
declared disaster area or areas for which the al-
location is requested. 
‘‘(C) DENIAL OF CARRYFORWARD.—Para-
graph (3) shall not apply with respect to the 
amount of any increase under subparagraph 
(A). 
‘‘(D) FEDERALLY
DECLARED
DISASTER 
AREA.—For purposes of this paragraph, the 
term ‘Federally declared disaster area’ means 
an area determined to warrant assistance under 
the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act pursuant to a feder-
ally declared disaster (as defined in section 
165(h)(3)(C)).’’. 
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