Sec. 309. Exclusions of certain cancellations of indebtedness by reason of disas-
ters. 
Sec. 310. Special rule for determining earned income of individuals affected by 
federally declared disasters. 
Sec. 311. Qualified disaster area recovery bonds. 
Sec. 312. Additional low-income housing credit allocations. 
TITLE I—TAX RELIEF RELATING 
TO DISASTERS IN 2012, 2013, 
2014, AND 2015 
SEC. 101. EXPENSING OF QUALIFIED DISASTER EXPENSES. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 198 the following: 
‘‘SEC. 198A. EXPENSING OF QUALIFIED DISASTER EX-
PENSES. 
‘‘(a) IN GENERAL.—A taxpayer may elect to treat 
any qualified disaster expenses which are paid or incurred 
by the taxpayer as an expense which is not chargeable to 
capital account. Any expense which is so treated shall be 
allowed as a deduction for the taxable year in which it 
is paid or incurred. 
‘‘(b) QUALIFIED DISASTER EXPENSE.—For purposes 
of this section, the term ‘qualified disaster expense’ means 
any expenditure— 
‘‘(1) which is paid or incurred in connection 
with a trade or business or with business-related 
property, 
‘‘(2) which is— 
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‘‘(A) for the abatement or control of haz-
ardous substances that were released on ac-
count of a federally declared disaster occurring 
during the period beginning— 
‘‘(i) after December 31, 2007, and be-
fore January 1, 2010, or 
‘‘(ii) after December 31, 2011, and 
before January 1, 2016, 
‘‘(B) for the removal of debris from, or the 
demolition of structures on, real property which 
is business-related property damaged or de-
stroyed as a result of a federally declared dis-
aster occurring during any such period, or 
‘‘(C) for the repair of business-related 
property damaged as a result of a federally de-
clared disaster occurring during any such pe-
riod, and 
‘‘(3) which is otherwise chargeable to capital ac-
count. 
‘‘(c) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) 
BUSINESS-RELATED
PROPERTY.—The 
term ‘business-related property’ means property— 
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‘‘(A) held by the taxpayer for use in a 
trade or business or for the production of in-
come, or 
‘‘(B) described in section 1221(a)(1) in the 
hands of the taxpayer. 
‘‘(2) FEDERALLY
DECLARED
DISASTER.—The 
term ‘federally declared disaster’ has the meaning 
given such term by section 165(i)(5)(A). 
‘‘(d) DEDUCTION RECAPTURED AS ORDINARY IN-
COME
ON SALE, ETC.—Solely for purposes of section 
1245, in the case of property to which a qualified disaster 
expense would have been capitalized but for this section— 
‘‘(1) the deduction allowed by this section for 
such expense shall be treated as a deduction for de-
preciation, and 
‘‘(2) such property (if not otherwise section 
1245 property) shall be treated as section 1245 
property solely for purposes of applying section 1245 
to such deduction. 
‘‘(e) COORDINATION WITH OTHER PROVISIONS.— 
Sections 198, 280B, and 468 shall not apply to amounts 
which are treated as expenses under this section. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for part VI of subchapter B of chapter 1 of the Internal 
Revenue Code of 1986 is amended by inserting after the 
item relating to section 198 the following item: 
‘‘Sec. 198A. Expensing of qualified disaster expenses.’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred after 
December 31, 2011, in connection with disasters declared 
after such date. 
SEC. 102. 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-
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. 
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‘‘(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 
not be treated as described in subpara-
graph (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 for re-
lief efforts related to a federally de-
clared disaster (as defined in section 
165(h)(3)(C)(i)), 
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