(i) which conducted an active trade or 
business on September 16, 2017, in the 
Hurricane Maria disaster zone, and 
(ii) with respect to whom the trade or 
business described in clause (i) is inoper-
able on any day after September 16, 2017, 
and before January 1, 2018, as a result of 
damage sustained by reason of Hurricane 
Maria. 
(B) ELIGIBLE EMPLOYEE.—The term ‘‘eli-
gible employee’’ means with respect to an eligi-
ble employer an employee whose principal place 
of employment on September 16, 2017, with 
such eligible employer was in the Hurricane 
Maria disaster zone. 
(C) QUALIFIED WAGES.—The term ‘‘quali-
fied 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 em-
ployer with respect to an eligible employee on 
any day after September 16, 2017, and before 
January 1, 2018, 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 
Maria, 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) CERTAIN RULES TO APPLY.—For purposes 
of this subsection, rules similar to the rules of sec-
tions 51(i)(1) and 52, of the Internal Revenue Code 
of 1986, shall apply. 
(4) 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 of the Internal Revenue 
Code of 1986, with respect to such employee for 
such period. 
SEC. 504. ADDITIONAL DISASTER-RELATED TAX RELIEF 
PROVISIONS. 
(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 (G) of section 170(b)(1) of 
such Code) over the amount of all other 
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. 
(3) EXCEPTION TO OVERALL LIMITATION ON 
ITEMIZED DEDUCTIONS.—So much of any deduction 
allowed under section 170 of the Internal Revenue 
Code of 1986 as does not exceed the qualified con-
tributions paid during the taxable year shall not be 
treated as an itemized deduction for purposes of sec-
tion 68 of such Code. 
(4) 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 August 23, 2017, and end-
ing on December 31, 2017, in cash to 
an organization described in section 
170(b)(1)(A) of such Code, and 
(II) is made for relief efforts in 
the Hurricane Harvey disaster area,
the Hurricane Irma disaster area, or 
the Hurricane Maria disaster area, 
(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. 
(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-
tion 165(h)(2)(A) of such Code (reduced 
by the amount in clause (i) of this sub-
paragraph) as exceeds 10 percent of the 
adjusted gross income of the individual, 
(B) section 165(h)(1) of such Code shall 
be applied by substituting ‘‘$500’’ for ‘‘$500 
($100 for taxable years beginning after Decem-
ber 31, 2009)’’, 
(C) the standard deduction determined 
under section 63(c) of such Code shall be in-
creased by the net disaster loss, and 
(D) section 56(b)(1)(E) of such Code shall 
not apply to so much of the standard deduction
as is attributable to the increase under sub-
paragraph (C) of this paragraph. 
(2) NET DISASTER LOSS.—For purposes of this 
subsection, the term ‘‘net disaster loss’’ means the 
excess of qualified disaster-related personal casualty 
losses over personal casualty gains (as defined in 
section 165(h)(3)(A) of the Internal Revenue Code 
of 1986). 
(3) QUALIFIED DISASTER-RELATED PERSONAL 
CASUALTY
LOSSES.—For purposes of this sub-
section, the term ‘‘qualified disaster-related personal 
casualty losses’’ means losses described in section 
165(c)(3) of the Internal Revenue Code of 1986— 
(A) which arise in the Hurricane Harvey 
disaster area on or after August 23, 2017, and 
which are attributable to Hurricane Harvey, 
(B) which arise in the Hurricane Irma dis-
aster area on or after September 4, 2017, and 
which are attributable to Hurricane Irma, or 
(C) which arise in the Hurricane Maria 
disaster area on or after September 16, 2017, 
and which are attributable to Hurricane Maria. 
(c) SPECIAL RULE FOR DETERMINING EARNED IN-
COME.—
(1) IN GENERAL.—In the case of a qualified in-
dividual, if the earned income of the taxpayer for the 
taxable year which includes the applicable date is 
less than the earned income of the taxpayer for the 
preceding taxable year, the credits allowed under 
sections 24(d) and 32 of the Internal Revenue Code 
of 1986 may, at the election of the taxpayer, be de-
termined by substituting— 
(A) such earned income for the preceding 
taxable year, for 
(B) such earned income for the taxable 
year which includes the applicable date. 
In the case of a resident of Puerto Rico determining 
the credit allowed under section 24(d)(1)(B)(ii) of 
such Code, the preceding sentence shall be applied 
by substituting ‘‘social security taxes (as defined in 
section 24(d)(2)(A) of the Internal Revenue Code of 
1986)’’ for ‘‘earned income’’ each place it appears. 
(2) QUALIFIED INDIVIDUAL.—For purposes of 
this subsection— 
(A) IN GENERAL.—The term ‘‘qualified in-
dividual’’ means any qualified Hurricane Har-
vey individual, any qualified Hurricane Irma in-
dividual, and any qualified Hurricane Maria in-
dividual.
(B) QUALIFIED HURRICANE HARVEY INDI-
VIDUAL.—The term ‘‘qualified Hurricane Har-
vey individual’’ means any individual whose 
principal place of abode on August 23, 2017, 
was located— 
(i) in the Hurricane Harvey disaster 
zone, or 
(ii) in the Hurricane Harvey disaster 
area (but outside the Hurricane Harvey 
disaster zone) and such individual was dis-
placed from such principal place of abode 
by reason of Hurricane Harvey. 
(C) QUALIFIED
HURRICANE
IRMA
INDI-
VIDUAL.—The term ‘‘qualified Hurricane Irma 
individual’’ means any individual (other than a 
qualified Hurricane Harvey individual) whose 
principal place of abode on September 4, 2017, 
was located— 
(i) in the Hurricane Irma disaster 
zone, or 
(ii) in the Hurricane Irma disaster 
area (but outside the Hurricane Irma dis-
aster zone) and such individual was dis-
placed from such principal place of abode 
by reason of Hurricane Irma.
(D) QUALIFIED HURRICANE MARIA INDI-
VIDUAL.—The term ‘‘qualified Hurricane Maria 
individual’’ means any individual (other than a 
qualified Hurricane Harvey individual or a 
qualified Hurricane Irma individual) whose 
principal place of abode on September 16, 
2017, was located— 
(i) in the Hurricane Maria disaster 
zone, or 
(ii) in the Hurricane Maria disaster 
area (but outside the Hurricane Maria dis-
aster zone) and such individual was dis-
placed from such principal place of abode 
by reason of Hurricane Maria. 
(3) APPLICABLE DATE.—For purposes of this 
subsection, the term ‘‘applicable date’’ means— 
(A) in the case of a qualified Hurricane 
Harvey individual, August 23, 2017, 
(B) in the case of a qualified Hurricane 
Irma individual, September 4, 2017, and 
(C) in the case of a qualified Hurricane 
Maria individual, September 16, 2017. 
(4) EARNED
INCOME.—For purposes of this 
subsection, the term ‘‘earned income’’ has the mean-
ing given such term under section 32(c) of the Inter-
nal Revenue Code of 1986. 
(5) SPECIAL RULES.— 
(A) APPLICATION TO JOINT RETURNS.— 
For purposes of paragraph (1), in the case of 
a joint return for a taxable year which includes 
the applicable date— 
(i) such paragraph shall apply if ei-
ther spouse is a qualified individual, and 
(ii) the earned income of the taxpayer 
for the preceding taxable year shall be the 
sum of the earned income of each spouse 
for such preceding taxable year. 
(B) UNIFORM
APPLICATION
OF
ELEC-
TION.—Any election made under paragraph (1) 
shall apply with respect to both sections 24(d) 
and 32, of the Internal Revenue Code of 1986. 
(C) ERRORS TREATED AS MATHEMATICAL 
ERROR.—For purposes of section 6213 of the 
Internal Revenue Code of 1986, an incorrect 
use on a return of earned income pursuant to 
paragraph (1) shall be treated as a mathe-
matical or clerical error. 
(D) NO EFFECT ON DETERMINATION OF 
GROSS INCOME, ETC.—Except as otherwise pro-
vided in this subsection, the Internal Revenue 
Code of 1986 shall be applied without regard to 
any substitution under paragraph (1). 
(d) APPLICATION OF DISASTER-RELATED TAX RE-
LIEF TO POSSESSIONS OF THE UNITED STATES.— 
(1) PAYMENTS TO UNITED STATES VIRGIN IS-
LANDS AND PUERTO RICO.— 
(A) UNITED
STATES
VIRGIN
ISLANDS.— 
The Secretary of the Treasury shall pay to the 
United States Virgin Islands amounts equal to 
the loss in revenues to the United States Virgin 
Islands by reason of the provisions of this title. 
Such amounts shall be determined by the Sec-
retary of the Treasury based on information 
provided by the government of the United 
States Virgin Islands. 
(B) PUERTO RICO.—The Secretary of the 
Treasury shall pay to Puerto Rico amounts es-
timated by the Secretary of the Treasury as 
being equal to the aggregate benefits that would 
have been provided to residents of Puerto Rico 
by reason of the provisions of this title if a mir-
ror code tax system had been in effect in Puer-
to Rico. The preceding sentence shall not apply 
with respect to Puerto Rico unless Puerto Rico
has a plan, which has been approved by the 
Secretary of the Treasury, under which Puerto 
Rico will promptly distribute such payments to 
its residents. 
(2) DEFINITION AND SPECIAL RULES.— 
(A) MIRROR CODE TAX SYSTEM.—For pur-
poses of this subsection, the term ‘‘mirror code 
tax system’’ means, with respect to any posses-
sion of the United States, the income tax sys-
tem of such possession if the income tax liabil-
ity of the residents of such possession under 
such system is determined by reference to the 
income tax laws of the United States as if such 
possession were the United States. 
(B) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324 of title 31, United States 
Code, the payments under this subsection shall 
be treated in the same manner as a refund due 
from a credit provision referred to in subsection 
(b)(2) of such section. 
(C) COORDINATION WITH UNITED STATES 
INCOME
TAXES.—In the case of any person 
with respect to whom a tax benefit is taken into 
account with respect to the taxes imposed by 
any possession of the United States by reason
of this title, the Internal Revenue Code of 1986 
shall be applied with respect to such person 
without regard to the provisions of this title 
which provide such benefit. 
SEC. 505. BUDGETARY EFFECTS. 
(a) EMERGENCY DESIGNATION.—This title is des-
ignated as an emergency requirement pursuant to section 
4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 
U.S.C. 933(g)). 
(b) DESIGNATION IN SENATE.—In the Senate, this 
title is designated as an emergency requirement pursuant 
to section 403(a) of S. Con. Res. 13 (111th Congress), 
the concurrent resolution on the budget for fiscal year 
2010. 
Passed the House of Representatives September 28, 
2017. 
Attest: 
Clerk.
115TH CONGRESS 
1ST SESSION 
H. R. 3823 
AN ACT 
To amend title 49, United States Code, to extend 
authorizations for the airport improvement pro-
gram, to amend the Internal Revenue Code of 
1986 to extend the funding and expenditure au-
thority of the Airport and Airway Trust Fund, to 
provide disaster tax relief, and for other pur-
poses.