sections (k) and (l), respectively, and by inserting after 
subsection (i) the following new subsection: 
‘‘(j) RULES RELATING
TO QUALIFIED DISASTER 
LOSSES.—For purposes of this section— 
‘‘(1) IN
GENERAL.—The term ‘qualified dis-
aster loss’ means the lesser of— 
‘‘(A) the sum of— 
‘‘(i) the losses allowable under section 
165 for the taxable year— 
‘‘(I) attributable to a federally 
declared disaster (as defined in sec-
tion 165(h)(3)(C)(i)) occurring after 
December 31, 2007, and before Janu-
ary 1, 2012, and 
‘‘(II) occurring in a disaster area 
(as 
defined 
in 
section 
165(h)(3)(C)(ii)), and 
‘‘(ii) the deduction for the taxable 
year for qualified disaster expenses which 
is allowable under section 198A(a) or 
which would be so allowable if not other-
wise treated as an expense, or 
‘‘(B) the net operating loss for such tax-
able year.
‘‘(2) 
COORDINATION
WITH
SUBSECTION 
(b)(2).—For purposes of applying subsection (b)(2), 
a qualified disaster loss for any taxable year shall be 
treated in a manner similar to the manner in which 
a specified liability loss is treated. 
‘‘(3) ELECTION.—Any taxpayer entitled to a 5- 
year carryback under subsection (b)(1)(J) from any 
loss year may elect to have the carryback period 
with respect to such loss year determined without re-
gard to subsection (b)(1)(J). Such election shall be 
made in such manner as may be prescribed by the 
Secretary and shall be made by the due date (includ-
ing extensions of time) for filing the taxpayer’s re-
turn for the taxable year of the net operating loss. 
Such election, once made for any taxable year, shall 
be irrevocable for such taxable year.’’. 
(c) LOSS DEDUCTION ALLOWED IN COMPUTING AL-
TERNATIVE MINIMUM TAXABLE INCOME.—Subsection (d) 
of section 56 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(3) NET OPERATING LOSS ATTRIBUTABLE TO 
FEDERALLY DECLARED DISASTERS.—In the case of 
a taxpayer which has a qualified disaster loss (as de-
fined by section 172(b)(1)(J)) for the taxable year, 
paragraph (1) shall be applied by increasing the
amount determined under subparagraph (A)(ii)(I) 
thereof by the sum of the carrybacks and carryovers 
of such loss.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Clause (ii) of section 172(b)(1)(F) is 
amended by inserting ‘‘or qualified disaster loss (as 
defined in subsection (j))’’ before the period at the 
end of the last sentence. 
(2) Paragraph (1) of section 172(i) is amended 
by adding at the end the following new flush sen-
tence: 
‘‘Such term shall not include any qualified disaster 
loss (as defined in subsection (j)).’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to net operating losses for taxable 
years beginning after December 31, 2007. 
SEC. 5. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
REQUIREMENTS FOLLOWING FEDERALLY DE-
CLARED DISASTERS. 
(a) IN GENERAL.—Paragraph (11) of section 143(k) 
is amended to read as follows: 
‘‘(11) SPECIAL
RULES
FOR
FEDERALLY
DE-
CLARED DISASTERS.—
‘‘(A) 
PRINCIPAL
RESIDENCE
DE-
STROYED.—If the principal residence (within 
the meaning of section 121) of a taxpayer is— 
‘‘(i) rendered unsafe for use as a resi-
dence by reason of a federally declared dis-
aster, or 
‘‘(ii) demolished or relocated by rea-
son of an order of the government of a 
State or political subdivision thereof on ac-
count of a federally declared disaster, 
then for the 2-year period beginning on the 
date of the disaster declaration, subsection 
(d)(1) shall not apply with respect to such tax-
payer and subsection (e) shall be applied by 
substituting ‘110’ for ‘90’ in paragraph (1) 
thereof. 
‘‘(B) PRINCIPAL RESIDENCE DAMAGED.— 
‘‘(i) IN
GENERAL.—If the principal 
residence (within the meaning of section 
121) of a taxpayer resulting from a feder-
ally declared disaster, was damaged, any 
owner-financing provided in connection 
with the repair or reconstruction of such 
residence shall be treated as a qualified re-
habilitation loan.
‘‘(ii) 
LIMITATION.—The 
aggregate 
owner-financing to which clause (i) applies 
shall not exceed the lesser of— 
‘‘(I) the cost of such repair or re-
construction, or 
‘‘(II) $150,000. 
‘‘(C) FEDERALLY DECLARED DISASTER.— 
For purposes of this paragraph, the term ‘fed-
erally declared disaster’ has the meaning given 
such term by section 165(h)(3)(C)(i), except 
that such term shall not include any disaster 
occurring before January 1, 2008, or after De-
cember 31, 2011.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to obligations issued after the 
date of the enactment of this Act. 
SEC. 6. DETERMINATION OF STANDARD MILEAGE RATE 
FOR CHARITABLE CONTRIBUTIONS DEDUC-
TION. 
(a) IN GENERAL.—Subsection (i) of section 170 (re-
lating to standard mileage rate for use of passenger auto-
mobile) is amended by adding at the end the following new 
sentence: ‘‘In the case of the use of a passenger auto-
mobile after the date of the enactment of this sentence 
and before January 1, 2012, the standard mileage rate
shall be the rate determined by the Secretary, which rate 
shall not be less than the standard mileage rate used for 
purposes of section 213.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
SEC. 7. ADDITIONAL LOW INCOME HOUSING ALLOCATIONS. 
(a) IN GENERAL.—Subsection (h) of section 42 of is 
amended by redesignating paragraph (8) as paragraph (9) 
and by inserting after paragraph (7) the following new 
paragraph: 
‘‘(8) ADDITIONAL
ALLOCATIONS
FOR
DISAS-
TERS.— 
‘‘(A) IN
GENERAL.—In addition to any 
other allocation made under this subsection, the 
Secretary may, upon application by any State, 
make allocations of housing credit dollar 
amounts to such State for allocation to build-
ings in such State consistent with the require-
ments of subparagraph (C). 
‘‘(B) LIMITATIONS.—The aggregate quali-
fied disaster allocations made by the Secretary 
under 
this 
paragraph 
may 
not 
exceed 
$190,000,000. Any allocation which is termi-
nated by the Secretary (by reason of disuse or