•HRES 454 ATH 
(2) EXCEPTION.—Such term shall not include a 
contribution if the contribution is for establishment 
of a new, or maintenance in an existing, segregated 
fund or account with respect to which the donor (or 
any person appointed or designated by such donor) 
has, or reasonably expects to have, advisory privi-
leges with respect to distributions or investments by 
reason of the donor’s status as a donor. 
(3) APPLICATION OF ELECTION TO PARTNER-
SHIPS AND S CORPORATIONS.—In the case of a part-
nership or S corporation, the election under para-
graph (1)(C) shall be made separately by each part-
ner or shareholder. 
SEC. 302. ADDITIONAL EXEMPTION FOR HOUSING HURRI-
CANE KATRINA DISPLACED INDIVIDUALS. 
(a) IN GENERAL.—In the case of taxable years of a 
natural person beginning in 2005 or 2006, for purposes 
of the Internal Revenue Code of 1986, taxable income 
shall be reduced by $500 for each Hurricane Katrina dis-
placed individual of the taxpayer for the taxable year. 
(b) LIMITATIONS.— 
(1) DOLLAR LIMITATION.—The reduction under 
subsection (a) shall not exceed $2,000, reduced by 
the amount of the reduction under this section for 
all prior taxable years.
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(2) INDIVIDUALS TAKEN INTO ACCOUNT ONLY 
ONCE.—An individual shall not be taken into ac-
count under subsection (a) if such individual was 
taken into account under such subsection by the tax-
payer for any prior taxable year. 
(3) IDENTIFYING
INFORMATION
REQUIRED.— 
An individual shall not be taken into account under 
subsection (a) for a taxable year unless the taxpayer 
identification number of such individual is included 
on the return of the taxpayer for such taxable year. 
(c) HURRICANE KATRINA DISPLACED INDIVIDUAL.— 
For purposes of this section, the term ‘‘Hurricane Katrina 
displaced individual’’ means, with respect to any taxpayer 
for any taxable year, any natural person if— 
(1) such person’s principal place of abode on 
August 28, 2005, was in the Hurricane Katrina dis-
aster area, 
(2)(A) in the case of such an abode located in 
the core disaster area, such person is displaced from 
such abode, or 
(B) in the case of such an abode located outside 
of the core disaster area, such person is displaced 
from such abode, and 
(i) such abode was damaged by Hurricane 
Katrina, or
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(ii) such person was evacuated from such 
abode by reason of Hurricane Katrina, and 
(3) such person is provided housing free of 
charge by the taxpayer in the principal residence of 
the taxpayer for a period of 60 consecutive days 
which ends in such taxable year. 
Such term shall not include the spouse or any dependent 
of the taxpayer. 
(d) COMPENSATION FOR HOUSING.—No deduction 
shall be allowed under this section if the taxpayer receives 
any rent or other amount (from any source) in connection 
with the providing of such housing. 
SEC. 303. INCREASE IN STANDARD MILEAGE RATE FOR 
CHARITABLE USE OF VEHICLES. 
Notwithstanding section 170(i) of the Internal Rev-
enue Code of 1986, for purposes of computing the deduc-
tion under section 170 of such Code for use of a vehicle 
described in subsection (f)(12)(E)(i) of such section for 
provision of relief related to Hurricane Katrina during the 
period beginning on August 25, 2005, and ending on De-
cember 31, 2006, the standard mileage rate shall be 70 
percent of the standard mileage rate in effect under sec-
tion 162(a) of such Code at the time of such use. Any 
increase under this section shall be rounded to the next 
highest cent.
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SEC. 304. MILEAGE REIMBURSEMENTS TO CHARITABLE 
VOLUNTEERS EXCLUDED FROM GROSS IN-
COME. 
(a) IN GENERAL.—For purposes of the Internal Rev-
enue Code of 1986, gross income of an individual for tax-
able years ending on or after August 25, 2005, does not 
include amounts received, from an organization described 
in section 170(c) of such Code, as reimbursement of oper-
ating expenses with respect to use of a passenger auto-
mobile for the benefit of such organization in connection 
with providing relief relating to Hurricane Katrina during 
the period beginning on August 25, 2005, and ending on 
December 31, 2006. The preceding sentence shall apply 
only to the extent that the expenses which are reimbursed 
would be deductible under chapter 1 of such Code if sec-
tion 274(d) of such Code were applied— 
(1) by using the standard business mileage rate 
in effect under section 162(a) at the time of such 
use, and 
(2) as if the individual were an employee of an 
organization not described in section 170(c) of such 
Code. 
(b) APPLICATION TO VOLUNTEER SERVICES ONLY.— 
Subsection (a) shall not apply with respect to any expenses 
relating to the performance of services for compensation.
•HRES 454 ATH 
(c) NO DOUBLE BENEFIT.—No deduction or credit 
shall be allowed under any other provision of such Code 
with respect to the expenses excludable from gross income 
under subsection (a). 
SEC. 305. CHARITABLE DEDUCTION FOR CONTRIBUTIONS 
OF FOOD INVENTORY. 
(a) IN GENERAL.—Paragraph (3) of section 170(e) 
of the Internal Revenue Code of 1986 (relating to special 
rule for certain contributions of inventory and other prop-
erty) is amended by redesignating subparagraph (C) as 
subparagraph (D) and by inserting after subparagraph 
(B) the following new subparagraph: 
‘‘(C) SPECIAL RULE FOR CONTRIBUTIONS 
OF FOOD INVENTORY.— 
‘‘(i) GENERAL RULE.—In the case of 
a charitable contribution of food from any 
trade or business of the taxpayer, this 
paragraph shall be applied— 
‘‘(I) without regard to whether 
the contribution is made by a C cor-
poration, and 
‘‘(II) only to food that is appar-
ently wholesome food. 
‘‘(ii) LIMITATION.—In the case of a 
taxpayer other than a C corporation, the
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aggregate amount of such contributions for 
any taxable year which may be taken into 
account under this section shall not exceed 
10 percent of the taxpayer’s aggregate net 
income for such taxable year from all 
trades or businesses from which such con-
tributions were made for such year, com-
puted without regard to this section. 
‘‘(iii) 
APPARENTLY
WHOLESOME 
FOOD.—For purposes of this subpara-
graph, the term ‘apparently wholesome 
food’ has the meaning given to such term 
by section 22(b)(2) of the Bill Emerson 
Good Samaritan Food Donation Act (42 
U.S.C. 1791(b)(2)), as in effect on the 
date of the enactment of this subpara-
graph. 
‘‘(iv) TERMINATION.—This subpara-
graph shall not apply to contributions 
made after December 31, 2005.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to contributions made on or after 
August 28, 2005, in taxable years ending after such date.
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SEC. 306. CHARITABLE DEDUCTION FOR CONTRIBUTIONS 
OF BOOK INVENTORIES TO PUBLIC SCHOOLS. 
(a) IN GENERAL.—Paragraph (3) of section 170(e) 
of the Internal Revenue Code of 1986 (relating to certain 
contributions of ordinary income and capital gain prop-
erty), as amended by section 305, is amended by redesig-
nating subparagraph (D) as subparagraph (E) and by in-
serting after subparagraph (C) the following new subpara-
graph: 
‘‘(D) SPECIAL RULE FOR CONTRIBUTIONS 
OF BOOK INVENTORY TO PUBLIC SCHOOLS.— 
‘‘(i) CONTRIBUTIONS OF BOOK INVEN-
TORY.—In determining whether a qualified 
book contribution is a qualified contribu-
tion, subparagraph (A) shall be applied 
without regard to whether the donee is an 
organization described in the matter pre-
ceding clause (i) of subparagraph (A). 
‘‘(ii) QUALIFIED
BOOK
CONTRIBU-
TION.—For purposes of this paragraph, 
the term ‘qualified book contribution’ 
means a charitable contribution of books to 
a public school which is an educational or-
ganization 
described 
in 
subsection 
(b)(1)(A)(ii) and which provides elemen-
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tary education or secondary education 
(kindergarten through grade 12). 
‘‘(iii) CERTIFICATION
BY
DONEE.— 
Subparagraph (A) shall not apply to any 
contribution unless (in addition to the cer-
tifications required by subparagraph (A) 
(as modified by this subparagraph)), the 
donee certifies in writing that— 
‘‘(I) the books are suitable, in 
terms of currency, content, and quan-
tity, for use in the donee’s educational 
programs, and 
‘‘(II) the donee will use the books 
in its educational programs. 
‘‘(iv) TERMINATION.—This subpara-
graph shall not apply to contributions 
made after December 31, 2005.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made on or after 
August 28, 2005, in taxable years ending after such date.
•HRES 454 ATH 
TITLE IV—ADDITIONAL TAX 
RELIEF PROVISIONS 
SEC. 401. EXCLUSIONS OF CERTAIN CANCELLATIONS OF IN-
DEBTEDNESS BY REASON OF HURRICANE 
KATRINA. 
(a) IN GENERAL.—For purposes of the Internal Rev-
enue Code of 1986, gross income shall not include any 
amount which (but for this section) would be includible 
in gross income by reason of the discharge (in whole or 
in part) of indebtedness of a natural person described in 
subsection (b) by an applicable entity (as defined in sec-
tion 6050P(c)(1) of such Code). 
(b) PERSONS DESCRIBED.—A natural person is de-
scribed in this subsection if the principal place of abode 
of such person on August 25, 2005, was located— 
(1) in the core disaster area, or 
(2) in the Hurricane Katrina disaster area (but 
outside the core disaster area) and such person suf-
fered economic loss by reason of Hurricane Katrina. 
(c) EXCEPTIONS.— 
(1) BUSINESS INDEBTEDNESS.—Subsection (a) 
shall not apply to any indebtedness incurred in con-
nection with a trade or business. 
(2) REAL PROPERTY OUTSIDE CORE DISASTER 
AREA.—Subsection (a) shall not apply to any dis-
•HRES 454 ATH 
charge of indebtedness to the extent that real prop-
erty constituting security for such indebtedness is lo-
cated outside of the Hurricane Katrina disaster 
area. 
(d) DENIAL OF DOUBLE BENEFIT.—For purposes of 
the Internal Revenue Code of 1986, the amount excluded 
from gross income under subsection (a) shall be treated 
in the same manner as an amount excluded under section 
108(a) of such Code. 
(e) EFFECTIVE DATE.—This section shall apply to 
discharges made on or after August 25, 2005, and before 
January 1, 2007. 
SEC. 402. SUSPENSION OF CERTAIN LIMITATIONS ON PER-
SONAL CASUALTY LOSSES. 
Paragraphs (1) and (2)(A) of section 165(h) of the 
Internal Revenue Code of 1986 shall not apply to losses 
described in section 165(c)(3) of such Code which arise 
in the Hurricane Katrina disaster area on or after August 
25, 2005, and which are attributable to Hurricane 
Katrina. In the case of any other losses, section 
165(h)(2)(A) of such Code shall be applied without regard 
to the losses referred to in the preceding sentence.
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SEC. 403. REQUIRED EXERCISE OF AUTHORITY UNDER SEC-
TION 7508A FOR TAX RELIEF RELATING TO 
HURRICANE KATRINA. 
(a) AUTHORITY INCLUDES SUSPENSION
OF PAY-
MENT OF EMPLOYMENT AND EXCISE TAXES.—Subpara-
graphs (A) and (B) of section 7508(a)(1) of the Internal 
Revenue Code of 1986 are amended to read as follows: 
‘‘(A) Filing any return of income, estate, 
gift, employment, or excise tax; 
‘‘(B) Payment of any income, estate, gift, 
employment, or excise tax or any installment 
thereof or of any other liability to the United 
States in respect thereof;’’. 
(b) APPLICATION WITH RESPECT TO HURRICANE 
KATRINA.—In the case of any taxpayer determined by the 
Secretary of the Treasury to be affected by the Presi-
dentially declared disaster relating to Hurricane Katrina, 
any relief provided by the Secretary of the Treasury under 
section 7508A of the Internal Revenue Code of 1986 shall 
be for a period ending not earlier than February 28, 2006, 
and shall be treated as applying to the filing of returns 
relating to, and the payment of, employment and excise 
taxes. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply for any period for performing 
an act which has not expired before August 25, 2005.
•HRES 454 ATH 
SEC. 404. SPECIAL RULES FOR MORTGAGE REVENUE 
BONDS. 
(a) IN GENERAL.—In the case of financing provided 
with respect to a qualified Hurricane Katrina recovery res-
idence, subsection (d) of section 143 of the Internal Rev-
enue Code of 1986 shall be applied as if such residence 
were a targeted area residence. 
(b) QUALIFIED HURRICANE KATRINA RECOVERY 
RESIDENCE.—For purposes of this section, the term 
‘‘qualified 
Hurricane 
Katrina 
recovery 
residence’’ 
means— 
(1) any residence in the core disaster area, and 
(2) any other residence if— 
(A) such other residence is located in the 
same State as the principal residence referred 
to in subparagraph (B), and 
(B) the mortgagor with respect to such 
other residence owned a principal residence on 
August 28, 2005, which— 
(i) was located in the Hurricane 
Katrina disaster area, and 
(ii) was rendered uninhabitable by 
reason of Hurricane Katrina. 
(c) SPECIAL
RULE
FOR
HOME
IMPROVEMENT 
LOANS.—In the case of any loan with respect to a resi-
dence in the Hurricane Katrina disaster area, section