loans described in subclause (II) of such 
subparagraph, as the case may be, with re-
spect to the issue of which such bond is a 
part, and 
‘‘(ii) any such payment or loan is 
made in equal amounts from the proceeds 
of such issue and from the amount pledged 
under clause (i). 
The requirement of clause (ii) shall be treated 
as met with respect to any such payment or 
loan made during the 1-year period beginning 
on the date of the issuance (or any successor 1- 
year period) if such requirement is met when 
applied with respect to the aggregate amount of 
such payments and loans made during such pe-
riod. 
‘‘(C) AGGREGATE
LIMIT
ON
BOND
DES-
IGNATIONS.—The maximum aggregate face 
amount of bonds which may be designated 
under this subsection by the Governor of a 
State shall not exceed— 
‘‘(i) $200,000,000 in the case of the 
State of Louisiana, 
‘‘(ii) $100,000,000 in the case of the 
State of Mississippi, and
‘‘(iii) $50,000,000 in the case of the 
State of Alabama. 
‘‘(D) SPECIAL RULES RELATING TO ARBI-
TRAGE.—A bond which is part of an issue shall 
not be treated as a Gulf tax credit bond unless, 
with respect to the issue of which the bond is 
a part, the issuer satisfies the arbitrage require-
ments of section 148 with respect to proceeds 
of the issue and any loans made with such pro-
ceeds. 
‘‘(5) QUALIFIED BOND.—For purposes of this 
subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
bond’ means any obligation of a State or polit-
ical subdivision thereof which was outstanding 
on August 28, 2005. 
‘‘(B) EXCEPTION FOR PRIVATE ACTIVITY 
BONDS.—Such term shall not include any pri-
vate activity bond. 
‘‘(C) 
EXCEPTION
FOR
ADVANCE 
REFUNDINGS.—Such term shall not include any 
bond with respect to which there is any out-
standing refunded or refunding bond during the 
period in which a Gulf tax credit bond is out-
standing with respect to such bond.
‘‘(6) CREDIT INCLUDED IN GROSS INCOME.— 
Gross income includes the amount of the credit al-
lowed to the taxpayer under this subsection (deter-
mined without regard to paragraph (3)) and the 
amount so included shall be treated as interest in-
come. 
‘‘(7) 
OTHER
DEFINITIONS
AND
SPECIAL 
RULES.—For purposes of this subsection— 
‘‘(A) BOND.—The term ‘bond’ includes 
any obligation. 
‘‘(B) PARTNERSHIP; S CORPORATION; AND 
OTHER PASS-THRU ENTITIES.— 
‘‘(i) IN GENERAL.—Under regulations 
prescribed by the Secretary, in the case of 
a partnership, trust, S corporation, or 
other pass-thru entity, rules similar to the 
rules of section 41(g) shall apply with re-
spect to the credit allowable under para-
graph (1). 
‘‘(ii) NO BASIS ADJUSTMENT.—In the 
case of a bond held by a partnership or an 
S corporation, rules similar to the rules 
under section 1397E(i) shall apply. 
‘‘(C) BONDS
HELD
BY
REGULATED
IN-
VESTMENT COMPANIES.—If any Gulf tax credit
bond is held by a regulated investment com-
pany, the credit determined under paragraph 
(1) shall be allowed to shareholders of such 
company under procedures prescribed by the 
Secretary. 
‘‘(D) REPORTING.—Issuers of Gulf tax 
credit bonds shall submit reports similar to the 
reports required under section 149(e). 
‘‘(E) CREDIT
TREATED
AS
NONREFUND-
ABLE BONDHOLDER CREDIT.—For purposes of 
this title, the credit allowed by this subsection 
shall be treated as a credit allowable under sub-
part H of part IV of subchapter A of this chap-
ter. 
‘‘(m) TAX BENEFITS NOT AVAILABLE WITH RE-
SPECT TO FACILITIES FOR GAMBLING, ETC.— 
‘‘(1) TAX-EXEMPT
BOND
FINANCING.—Sub-
section (a) shall not apply to any bond issued as 
part of an issue if any portion of the proceeds of 
such issue is to be used to provide any property de-
scribed in section 144(c)(6)(B). 
‘‘(2) 
ADVANCE
REFUNDING
BONDS.—Sub-
section (b) shall not apply to any advance refunding 
of a bond which is issued as part of an issue if any 
portion of the proceeds of such issue (or any prior
issue) was (or is to be) used to provide any property 
described in section 144(c)(6)(B). 
‘‘(3) LOW-INCOME HOUSING CREDIT.—For pur-
poses of subsection (c), property shall not be treated 
as located or placed in service in the Gulf Oppor-
tunity Zone if such property is described in section 
144(c)(6)(B). 
‘‘(4) SPECIAL ALLOWANCE FOR CERTAIN PROP-
ERTY; SECTION
179
EXPENSING; CARRYBACK
OF 
COST
RECOVERY
DEDUCTIONS.—For purposes of 
subsections (d), (e), and (k), the term ‘qualified Gulf 
Opportunity Zone property’ shall not include any 
property described in section 144(c)(6)(B). 
‘‘(5) DEMOLITION AND CLEAN-UP COSTS; RE-
MEDIATION; 
REHABILITATION
EXPENSES.—Sub-
sections (f), (g), and (h) shall not apply with respect 
to any amount paid or incurred with respect to any 
property described in section 144(c)(6)(B). 
‘‘(6) TIMBER
PRODUCERS.—For purposes of 
subsection (i), qualified timber property shall not in-
clude 
any 
property 
described 
in 
section 
144(c)(6)(B). 
‘‘(7) PUBLIC UTILITY CASUALTY LOSSES.—For 
purposes of subsection (j), public utility property
shall not include any property described in section 
144(c)(6)(B). 
‘‘(8) GULF TAX CREDIT BONDS.—Subsection (l) 
shall not apply to any bond issued as part of an 
issue if any portion of the proceeds of such issue is 
to be used to provide any property described in sec-
tion 144(c)(6)(B).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 54(c) is amended 
by inserting ‘‘, section 1400N(l),’’ after ‘‘subpart 
C’’. 
(2) Subparagraph (A) of section 6049(d)(8) is 
amended— 
(A) by inserting ‘‘or 1400N(l)(6)’’ after 
‘‘section 54(g)’’, and 
(B) by inserting ‘‘or 1400N(l)(2)(D), as 
the case may be’’ after ‘‘section 54(b)(4)’’. 
(3) So much of subchapter Y of chapter 1 as 
precedes section 1400L is amended to read as fol-
lows: 
‘‘Subchapter Y—Short-term Regional Benefits 
‘‘PART I—TAX BENEFITS FOR NEW YORK LIBERTY ZONE 
‘‘PART II—TAX BENEFITS FOR GULF OPPORTUNITY ZONE 
‘‘PART I—TAX BENEFITS FOR NEW YORK LIBERTY 
ZONE 
‘‘Sec. 1400L. Tax benefits for New York Liberty Zone.’’.
(4) The item relating to subchapter Y in the 
table of subchapters for chapter 1 is amended to 
read as follows: 
‘‘SUBCHAPTER Y—SHORT-TERM REGIONAL BENEFITS’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years ending on or after Au-
gust 28, 2005. 
(2) CARRYBACKS.—Subsections (i)(2), (j), and 
(k) of section 1400N of the Internal Revenue Code 
of 1986 (as added by this section) shall apply to 
losses arising in such taxable years. 
SEC. 102. FEDERAL GUARANTEE OF CERTAIN STATE 
BONDS. 
(a) STATE BONDS DESCRIBED.— 
(1) IN GENERAL.—This section shall apply to a 
bond issued as part of an issue if— 
(A) the issue of which such bond is part is 
an issue of the State of Alabama, Louisiana, or 
Mississippi, 
(B) the bond is a general obligation of the 
issuing State and is in registered form, 
(C) the proceeds of the bond are distrib-
uted to one or more political subdivisions of the 
issuing State,
(D) the maturity of such bond does not ex-
ceed 5 years, 
(E) the bond is issued after the date of the 
enactment of this Act and before January 1, 
2008, and 
(F) the bond is designated by the Sec-
retary of the Treasury for purposes of this sec-
tion. 
(2) FACILITIES FOR GAMBLING, ETC.—The Sec-
retary of the Treasury may not designate any bond 
for purposes of this section if such bond is issued as 
part of an issue any portion of the proceeds of which 
is to be used to provide any property described in 
section 144(c)(6)(B). 
(b) APPLICATION.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury may only designate a bond for purposes of this 
section pursuant to an application submitted to the 
Secretary by the State which demonstrates the need 
for such designation on the basis of the criteria 
specified in paragraph (2). 
(2) CRITERIA.—For purposes of paragraph (1), 
the criteria specified in this paragraph are—
(A) the loss of revenue base of one or more 
political subdivisions of the State by reason of 
Hurricane Katrina, 
(B) the need for resources to fund infra-
structure within, or operating expenses of, any 
such political subdivision, 
(C) the lack of access of such political sub-
division to capital, and 
(D) any other criteria as may be deter-
mined by the Secretary. 
(3) GUIDANCE FOR SUBMISSION AND CONSID-
ERATION OF APPLICATIONS.—The Secretary of the 
Treasury shall prescribe regulations or other guid-
ance which provide for the time and manner for the 
submission and consideration of applications under 
this subsection. 
(c) FEDERAL GUARANTEE.—A bond described in 
subsection (a) is guaranteed by the United States in an 
amount equal to 50 percent of the outstanding principal 
with respect to such bond. 
(d) AGGREGATE LIMIT ON BOND DESIGNATIONS.— 
The maximum aggregate face amount of bonds which may 
be 
issued 
under 
this 
section 
shall 
not 
exceed 
$3,000,000,000.
TITLE 
II—TAX 
BENEFITS 
RE-
LATED TO HURRICANES RITA 
AND WILMA 
SEC. 201. EXTENSION OF CERTAIN EMERGENCY TAX RE-
LIEF FOR HURRICANE KATRINA TO HURRI-
CANES RITA AND WILMA. 
(a) IN GENERAL.—Part II of subchapter Y of chap-
ter 1 (as added by this Act) is amended by adding at the 
end the following new sections: 
‘‘SEC. 1400O. SPECIAL RULES FOR USE OF RETIREMENT 
FUNDS. 
‘‘(a) TAX-FAVORED WITHDRAWALS FROM RETIRE-
MENT PLANS.— 
‘‘(1) IN
GENERAL.—Section 72(t) shall not 
apply to any qualified hurricane 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 hurricane distributions for 
any taxable year shall not exceed the excess (if 
any) of— 
‘‘(i) $100,000, over 
‘‘(ii) the aggregate amounts treated as 
qualified hurricane 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 
qualified hurricane distribution, a plan shall not 
be treated as violating any requirement of this 
title merely because the plan treats such dis-
tribution as a qualified hurricane 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 employer) to such individual ex-
ceeds $100,000. 
‘‘(C) CONTROLLED GROUP.—For purposes 
of subparagraph (B), the term ‘controlled 
group’ means any group treated as a single em-
ployer under subsection (b), (c), (m), or (o) of 
section 414. 
‘‘(3) AMOUNT DISTRIBUTED MAY BE REPAID.— 
‘‘(A) IN
GENERAL.—Any individual who 
receives a qualified hurricane distribution may, 
at any time during the 3-year period beginning 
on the day after the date on which such dis-
tribution was received, make one or more con-
tributions in an aggregate amount not to exceed 
the amount of such distribution to an eligible 
retirement plan of which such individual is a 
beneficiary and to which a rollover contribution 
of such distribution could be made under sec-
tion 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 
457(e)(16), as the case may be. 
‘‘(B) TREATMENT
OF
REPAYMENTS
OF 
DISTRIBUTIONS
FROM
ELIGIBLE
RETIREMENT 
PLANS
OTHER
THAN
IRAS.—For purposes of 
this title, if a contribution is made pursuant to 
subparagraph (A) with respect to a qualified 
hurricane distribution from an eligible retire-
ment plan other than an individual retirement 
plan, then the taxpayer shall, to the extent of 
the amount of the contribution, be treated as 
having received the qualified hurricane distribu-
tion in an eligible rollover distribution (as de-
fined in section 402(c)(4)) and as having trans-
ferred the amount to the eligible retirement 
plan in a direct trustee to trustee transfer with-
in 60 days of the distribution. 
‘‘(C) TREATMENT
OF
REPAYMENTS
FOR 
DISTRIBUTIONS FROM IRAS.—For purposes of 
this title, if a contribution is made pursuant to
subparagraph (A) with respect to a qualified 
hurricane distribution from an individual retire-
ment plan (as defined by section 7701(a)(37)), 
then, to the extent of the amount of the con-
tribution, the qualified hurricane distribution 
shall be treated as a distribution described in 
section 408(d)(3) and as having been trans-
ferred 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
HURRICANE
DISTRIBU-
TION.—Except as provided in paragraph (2), 
the term ‘qualified hurricane distribution’ 
means— 
‘‘(i) any distribution from an eligible 
retirement plan made on or after August 
25, 2005, and before January 1, 2007, to 
an individual whose principal place of 
abode on August 28, 2005, is located in 
the Hurricane Katrina disaster area and 
who has sustained an economic loss by rea-
son of Hurricane Katrina,
‘‘(ii) any distribution (which is not de-
scribed in clause (i)) from an eligible re-
tirement plan made on or after September 
23, 2005, and before January 1, 2007, to 
an individual whose principal place of 
abode on September 23, 2005, is located in 
the Hurricane Rita disaster area and who 
has sustained an economic loss by reason 
of Hurricane Rita, and 
‘‘(iii) any distribution (which is not 
described in clause (i) or (ii)) from an eli-
gible retirement plan made on or after Oc-
tober 23, 2005, and before January 1, 
2007, to an individual whose principal 
place of abode on October 23, 2005, is lo-
cated in the Hurricane Wilma disaster 
area and who has sustained an economic 
loss by reason of Hurricane Wilma. 
‘‘(B) ELIGIBLE RETIREMENT PLAN.—The 
term ‘eligible retirement plan’ shall have the 
meaning 
given 
such 
term 
by 
section 
402(c)(8)(B). 
‘‘(5) INCOME INCLUSION SPREAD OVER 3-YEAR 
PERIOD.—
‘‘(A) IN
GENERAL.—In the case of any 
qualified hurricane 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 
subparagraph (A), rules similar to the rules of 
subparagraph (E) of section 408A(d)(3) shall 
apply. 
‘‘(6) SPECIAL RULES.— 
‘‘(A) EXEMPTION OF DISTRIBUTIONS FROM 
TRUSTEE TO TRUSTEE TRANSFER AND WITH-
HOLDING
RULES.—For purposes of sections 
401(a)(31), 402(f), and 3405, qualified hurri-
cane distributions shall not be treated as eligi-
ble rollover distributions. 
‘‘(B) QUALIFIED
HURRICANE
DISTRIBU-
TIONS TREATED AS MEETING PLAN DISTRIBU-
TION REQUIREMENTS.—For purposes this title, 
a qualified hurricane distribution shall be treat-
ed as meeting the requirements of sections 
401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), 
and 457(d)(1)(A).
‘‘(b) RECONTRIBUTIONS
OF
WITHDRAWALS
FOR 
HOME PURCHASES.— 
‘‘(1) RECONTRIBUTIONS.— 
‘‘(A) IN
GENERAL.—Any individual who 
received a qualified distribution may, during the 
applicable period, make one or more contribu-
tions 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 which such individual is a ben-
eficiary and to which a rollover contribution of 
such distribution could be made under section 
402(c), 403(a)(4), 403(b)(8), or 408(d)(3), 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 pur-
poses of this subsection. 
‘‘(2) QUALIFIED DISTRIBUTION.—For purposes 
of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
distribution’ means any qualified Katrina dis-
tribution, any qualified Rita distribution, and 
any qualified Wilma distribution.
‘‘(B) 
QUALIFIED
KATRINA
DISTRIBU-
TION.—The term ‘qualified Katrina distribu-
tion’ means any distribution— 
‘‘(i) 
described 
in 
section 
401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but 
only to the extent such distribution relates 
to financial hardship), 403(b)(11)(B), or 
72(t)(2)(F), 
‘‘(ii) received after February 28, 
2005, and before August 29, 2005, and 
‘‘(iii) which was to be used to pur-
chase or construct a principal residence in 
the Hurricane Katrina disaster area, but 
which was not so purchased or constructed 
on account of Hurricane Katrina. 
‘‘(C) QUALIFIED
RITA
DISTRIBUTION.— 
The term ‘qualified Rita distribution’ means 
any distribution (other than a qualified Katrina 
distribution)— 
‘‘(i) 
described 
in 
section 
401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but 
only to the extent such distribution relates 
to financial hardship), 403(b)(11)(B), or 
72(t)(2)(F),
‘‘(ii) received after February 28, 
2005, and before September 24, 2005, and 
‘‘(iii) which was to be used to pur-
chase or construct a principal residence in 
the Hurricane Rita disaster area, but 
which was not so purchased or constructed 
on account of Hurricane Rita. 
‘‘(D) QUALIFIED WILMA DISTRIBUTION.— 
The term ‘qualified Wilma distribution’ means 
any distribution (other than a qualified Katrina 
distribution or a qualified Rita distribution)— 
‘‘(i) 
described 
in 
section 
401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but 
only to the extent such distribution relates 
to financial hardship), 403(b)(11)(B), or 
72(t)(2)(F), 
‘‘(ii) received after February 28, 
2005, and before October 24, 2005, and 
‘‘(iii) which was to be used to pur-
chase or construct a principal residence in 
the Hurricane Wilma disaster area, but 
which was not so purchased or constructed 
on account of Hurricane Wilma. 
‘‘(3) APPLICABLE
PERIOD.—For purposes of 
this subsection, the term ‘applicable period’ means—
‘‘(A) with respect to any qualified Katrina 
distribution, the period beginning on August 
25, 2005, and ending on February 28, 2006, 
‘‘(B) with respect to any qualified Rita dis-
tribution, the period beginning on September 
23, 2005, and ending on February 28, 2006, 
and 
‘‘(C) with respect to any qualified Wilma 
distribution, the period beginning on October 
23, 2005, and ending on February 28, 2006. 
‘‘(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)) to a qualified individual made dur-
ing the applicable period— 
‘‘(A) clause (i) of section 72(p)(2)(A) 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 
value of the nonforfeitable accrued benefit of 
the employee under the plan’.
‘‘(2) DELAY OF REPAYMENT.—In the case of a 
qualified individual with an outstanding loan on or 
after the qualified beginning date from a qualified 
employer plan (as defined in section 72(p)(4))— 
‘‘(A) if the due date pursuant to subpara-
graph (B) or (C) of section 72(p)(2) for any re-
payment with respect to such loan occurs dur-
ing the period beginning on the qualified begin-
ning date and ending on December 31, 2006, 
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), the period described in 
subparagraph (A) shall be disregarded. 
‘‘(3) QUALIFIED INDIVIDUAL.—For purposes of 
this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
individual’ means any qualified Hurricane 
Katrina individual, any qualified Hurricane
Rita individual, and any qualified Hurricane 
Wilma individual. 
‘‘(B) QUALIFIED HURRICANE KATRINA IN-
DIVIDUAL.—The 
term 
‘qualified 
Hurricane 
Katrina individual’ means an individual whose 
principal place of abode on August 28, 2005, is 
located in the Hurricane Katrina disaster area 
and who has sustained an economic loss by rea-
son of Hurricane Katrina. 
‘‘(C) QUALIFIED
HURRICANE
RITA
INDI-
VIDUAL.—The term ‘qualified Hurricane Rita 
individual’ means an individual (other than a 
qualified Hurricane Katrina individual) whose 
principal place of abode on September 23, 
2005, is located in the Hurricane Rita disaster 
area and who has sustained an economic loss by 
reason of Hurricane Rita. 
‘‘(D) QUALIFIED HURRICANE WILMA INDI-
VIDUAL.—The term ‘qualified Hurricane Wilma 
individual’ means an individual (other than a 
qualified Hurricane Katrina individual or a 
qualified Hurricane Rita individual) whose prin-
cipal place of abode on October 23, 2005, is lo-
cated in the Hurricane Wilma disaster area and
who has sustained an economic loss by reason 
of Hurricane Wilma. 
‘‘(4) APPLICABLE PERIOD; QUALIFIED BEGIN-
NING DATE.—For purposes of this subsection— 
‘‘(A) HURRICANE KATRINA.—In the case 
of any qualified Hurricane Katrina individual— 
‘‘(i) the applicable period is the period 
beginning on September 24, 2005, and 
ending on December 31, 2006, and 
‘‘(ii) the qualified beginning date is 
August 25, 2005. 
‘‘(B) HURRICANE
RITA.—In the case of 
any qualified Hurricane Rita individual— 
‘‘(i) the applicable period is the period 
beginning on the date of the enactment of 
this subsection and ending on December 
31, 2006, and 
‘‘(ii) the qualified beginning date is 
September 23, 2005. 
‘‘(C) HURRICANE WILMA.—In the case of 
any qualified Hurricane Wilma individual— 
‘‘(i) the applicable period is the period 
beginning on the date of the enactment of 
this subparagraph and ending on Decem-
ber 31, 2006, and
‘‘(ii) the qualified beginning date is 
October 23, 2005. 
‘‘(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 
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, 2007, or such later date as the Sec-
retary may prescribe. 
In the case of a governmental plan (as defined 
in section 414(d)), clause (ii) shall be applied
by substituting 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 de-
scribed in subparagraph (A)(ii) (or, if 
earlier, the date the plan or contract 
amendment is adopted), 
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. 1400P. EMPLOYMENT RELIEF. 
‘‘(a) EMPLOYEE RETENTION CREDIT FOR EMPLOY-
ERS AFFECTED BY HURRICANE KATRINA.—
‘‘(1) IN GENERAL.—For purposes of section 38, 
in the case of an eligible employer, the Hurricane 
Katrina employee retention credit for any taxable 
year is an amount equal to 40 percent of the quali-
fied wages with respect to each eligible employee of 
such employer for such taxable year. For purposes 
of the preceding sentence, the amount of qualified 
wages which may be taken into account with respect 
to any individual shall not exceed $6,000. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) ELIGIBLE EMPLOYER.—The term ‘eli-
gible employer’ means any employer— 
‘‘(i) which conducted an active trade 
or business on August 28, 2005, in the GO 
Zone, and 
‘‘(ii) with respect to whom the trade 
or business described in clause (i) is inop-
erable on any day after August 28, 2005, 
and before January 1, 2006, as a result of 
damage sustained by reason of Hurricane 
Katrina. 
‘‘(B) ELIGIBLE EMPLOYEE.—The term ‘el-
igible employee’ means with respect to an eligi-
ble employer an employee whose principal place
of employment on August 28, 2005, with such 
eligible employer was in the GO Zone. 
‘‘(C) 
QUALIFIED
WAGES.—The 
term 
‘qualified wages’ means wages (as defined in 
section 51(c)(1), but without regard to section 
3306(b)(2)(B)) paid or incurred by an eligible 
employer with respect to an eligible employee on 
any day after August 28, 2005, and before Jan-
uary 1, 2006, which occurs during the period— 
‘‘(i) beginning on the date on which 
the trade or business described in subpara-
graph (A) first became inoperable at the 
principal place of employment of the em-
ployee 
immediately 
before 
Hurricane 
Katrina, and 
‘‘(ii) ending on the date on which such 
trade or business has resumed significant 
operations at such principal place of em-
ployment. 
Such term shall include wages paid without re-
gard to whether the employee performs no serv-
ices, performs services at a different place of 
employment than such principal place of em-
ployment, or performs services at such principal
place of employment before significant oper-
ations have resumed. 
‘‘(3) CREDIT NOT ALLOWED FOR LARGE BUSI-
NESSES.—The term ‘eligible employer’ shall not in-
clude any trade or business for any taxable year if 
such trade or business employed an average of more 
than 200 employees on business days during the tax-
able year. 
‘‘(4) CERTAIN RULES TO APPLY.—For purposes 
of this subsection, rules similar to the rules of sec-
tions 51(i)(1), 52, and 280C(a) shall apply. 
‘‘(5) EMPLOYEE
NOT
TAKEN
INTO
ACCOUNT 
MORE THAN ONCE.—An employee shall not be treat-
ed as an eligible employee for purposes of this sub-
section for any period with respect to any employer 
if such employer is allowed a credit under section 51 
with respect to such employee for such period. 
‘‘(b) EMPLOYEE RETENTION CREDIT FOR EMPLOY-
ERS AFFECTED BY HURRICANE RITA.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
in the case of an eligible employer, the Hurricane 
Rita 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 
employer for such taxable year. For purposes of the
preceding sentence, the amount of qualified wages 
which may be taken into account with respect to any 
individual shall not exceed $6,000. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) ELIGIBLE EMPLOYER.—The term ‘eli-
gible employer’ means any employer— 
‘‘(i) which conducted an active trade 
or business on September 23, 2005, in the 
Rita GO Zone, and 
‘‘(ii) with respect to whom the trade 
or business described in clause (i) is inop-
erable on any day after September 23, 
2005, and before January 1, 2006, as a re-
sult of damage sustained by reason of 
Hurricane Rita. 
‘‘(B) ELIGIBLE EMPLOYEE.—The term ‘el-
igible employee’ means with respect to an eligi-
ble employer an employee whose principal place 
of employment on September 23, 2005, with 
such eligible employer was in the Rita GO 
Zone. 
‘‘(C) 
QUALIFIED
WAGES.—The 
term 
‘qualified wages’ means wages (as defined in 
section 51(c)(1), but without regard to section
3306(b)(2)(B)) paid or incurred by an eligible 
employer with respect to an eligible employee on 
any day after September 23, 2005, and before 
January 1, 2006, which occurs during the pe-
riod— 
‘‘(i) beginning on the date on which 
the trade or business described in subpara-
graph (A) first became inoperable at the 
principal place of employment of the em-
ployee immediately before Hurricane Rita, 
and 
‘‘(ii) ending on the date on which such 
trade or business has resumed significant 
operations at such principal place of em-
ployment. 
Such term shall include wages paid without re-
gard to whether the employee performs no serv-
ices, performs services at a different place of 
employment than such principal place of em-
ployment, or performs services at such principal 
place of employment before significant oper-
ations have resumed. 
‘‘(3) CREDIT NOT ALLOWED FOR LARGE BUSI-
NESSES.—The term ‘eligible employer’ shall not in-
clude any trade or business for any taxable year if
such trade or business employed an average of more 
than 200 employees on business days during the tax-
able year. 
‘‘(4) CERTAIN RULES TO APPLY.—For purposes 
of this subsection, rules similar to the rules of sec-
tions 51(i)(1), 52, and 280C(a) shall apply. 
‘‘(5) EMPLOYEE
NOT
TAKEN
INTO
ACCOUNT 
MORE THAN ONCE.—An employee shall not be treat-
ed as an eligible employee for purposes of this sub-
section for any period with respect to any employer 
if such employer is allowed a credit under subsection 
(a) or section 51 with respect to such employee for 
such period. 
‘‘(c) EMPLOYEE RETENTION CREDIT FOR EMPLOY-
ERS AFFECTED BY HURRICANE WILMA.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
in the case of an eligible employer, the Hurricane 
Wilma 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 
employer for such taxable year. For purposes of the 
preceding sentence, the amount of qualified wages 
which may be taken into account with respect to any 
individual shall not exceed $6,000.
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) ELIGIBLE EMPLOYER.—The term ‘eli-
gible employer’ means any employer— 
‘‘(i) which conducted an active trade 
or business on October 23, 2005, in the 
Wilma GO Zone, and 
‘‘(ii) with respect to whom the trade 
or business described in clause (i) is inop-
erable on any day after October 23, 2005, 
and before January 1, 2006, as a result of 
damage sustained by reason of Hurricane 
Wilma. 
‘‘(B) ELIGIBLE EMPLOYEE.—The term ‘el-
igible employee’ means with respect to an eligi-
ble employer an employee whose principal place 
of employment on October 23, 2005, with such 
eligible employer was in the Wilma GO Zone. 
‘‘(C) 
QUALIFIED
WAGES.—The 
term 
‘qualified wages’ means wages (as defined in 
section 51(c)(1), but without regard to section 
3306(b)(2)(B)) paid or incurred by an eligible 
employer with respect to an eligible employee on 
any day after October 23, 2005, and before
January 1, 2006, which occurs during the pe-
riod— 
‘‘(i) beginning on the date on which 
the trade or business described in subpara-
graph (A) first became inoperable at the 
principal place of employment of the em-
ployee 
immediately 
before 
Hurricane 
Wilma, and 
‘‘(ii) ending on the date on which such 
trade or business has resumed significant 
operations at such principal place of em-
ployment. 
Such term shall include wages paid without re-
gard to whether the employee performs no serv-
ices, performs services at a different place of 
employment than such principal place of em-
ployment, or performs services at such principal 
place of employment before significant oper-
ations have resumed. 
‘‘(3) CREDIT NOT ALLOWED FOR LARGE BUSI-
NESSES.—The term ‘eligible employer’ shall not in-
clude any trade or business for any taxable year if 
such trade or business employed an average of more 
than 200 employees on business days during the tax-
able year.
‘‘(4) CERTAIN RULES TO APPLY.—For purposes 
of this subsection, rules similar to the rules of sec-
tions 51(i)(1), 52, and 280C(a) shall apply. 
‘‘(5) EMPLOYEE
NOT
TAKEN
INTO
ACCOUNT 
MORE THAN ONCE.—An employee shall not be treat-
ed as an eligible employee for purposes of this sub-
section for any period with respect to any employer 
if such employer is allowed a credit under subsection 
(a) or (b) or section 51 with respect to such em-
ployee for such period. 
‘‘SEC. 1400Q. ADDITIONAL TAX RELIEF PROVISIONS. 
‘‘(a) TEMPORARY SUSPENSION OF LIMITATIONS ON 
CHARITABLE CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in paragraph (2), section 170(b) 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 section 170 to 
other contributions. 
‘‘(2) 
TREATMENT
OF
EXCESS
CONTRIBU-
TIONS.—For purposes of section 170— 
‘‘(A) INDIVIDUALS.—In the case of an in-
dividual— 
‘‘(i) LIMITATION.—Any qualified con-
tribution shall be allowed only to the ex-