side, San Diego, Los Angeles, Ventura, Santa Bar-
bara, and Orange Counties. 
(2) More than 753 square miles of land were 
consumed by the relentless flames that were further 
ignited by Santa Ana winds. 
(3) 2,205 structures were destroyed. 
(4) 14 lives were lost and more than 600 people 
were injured. 
(5) The projected damages of property exceed 
$1,000,000,000. 
(6) The President declared portions of Cali-
fornia a natural disaster area and the Governor of 
California declared a state of emergency. 
TITLE I—GENERAL TAX RELIEF 
PROVISIONS 
RELATED 
TO 
CALIFORNIA WILDFIRES OF 
OCTOBER 2007 
SEC. 101. EXTENSION OF REPLACEMENT PERIOD FOR NON-
RECOGNITION OF GAIN RELATED TO CALI-
FORNIA WILDFIRES OF OCTOBER 2007. 
Clause (i) of section 1033(a)(2)(B) of the Internal 
Revenue Code of 1986 shall be applied by substituting ‘‘5 
years’’ for ‘‘2 years’’ with respect to property which— 
(1) is located in an area determined by the 
President to warrant individual or individual and 
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public assistance from the Federal Government 
under the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act by reason of the wildfires 
which burned in California during October 2007, 
and 
(2) is compulsorily or involuntarily converted as 
a result of such wildfire, 
but only if substantially all of the use of the replacement 
property is located in any such area. 
SEC. 102. SUSPENSION OF LIMITATIONS ON CHARITABLE 
CONTRIBUTIONS FOR RELIEF EFFORTS RE-
LATED TO CALIFORNIA WILDFIRES OF OCTO-
BER 2007. 
(a) IN GENERAL.—Except as otherwise provided in 
subsection (b), qualified disaster contributions shall not be 
taken into account for purposes of subsections (b) and (d) 
of section 170 of the Internal Revenue Code of 1986. 
(b) TREATMENT OF EXCESS CONTRIBUTIONS.—For 
purposes of section 170 of such Code— 
(1) INDIVIDUALS.—In the case of an indi-
vidual— 
(A) LIMITATION.—Any qualified disaster 
contribution shall be allowed only to the extent 
that the aggregate of such contributions does 
not exceed the excess of the taxpayer’s con-
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tribution base (as defined in paragraph (1) of 
section 170(b) of such Code) over the amount 
of all other charitable contributions allowed 
under such paragraph. 
(B) 
CARRYOVER.—If 
the 
aggregate 
amount of qualified disaster contributions made 
in the contribution year (within the meaning of 
section 170(d)(1) of such Code) exceeds the 
limitation of subparagraph (A), 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. 
(2) CORPORATIONS.—In the case of a corpora-
tion— 
(A) LIMITATION.—Any qualified disaster 
contribution shall be allowed only to the extent 
that the aggregate of such contributions does 
not exceed the excess of the taxpayer’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. 
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(B) CARRYOVER.—Rules similar to the 
rules of paragraph (1)(B) shall apply for pur-
poses of this paragraph. 
(c) EXCEPTION
TO
OVERALL
LIMITATION
ON 
ITEMIZED DEDUCTIONS.—So much of any deduction al-
lowed under section 170 of such Code as does not exceed 
the qualified disaster contributions made during the tax-
able year shall not be treated as an itemized deduction 
for purposes of section 68 of such Code. 
(d) QUALIFIED
DISASTER
CONTRIBUTIONS.—For 
purposes of this section, the term ‘‘qualified disaster con-
tribution’’ means any charitable contribution (as defined 
in section 170(c) of such Code)— 
(1) made during the period beginning on Octo-
ber 21, 2007, and ending on January 1, 2008, in 
cash to an organization described in section 
170(b)(1)(A) of such Code (other than an organiza-
tion described in section 509(a)(3) of such Code) for 
relief efforts related to the wildfires which burned in 
California during October 2007, and 
(2) with respect to which the taxpayer has 
elected the application of this section. 
In the case of a partnership or S corporation, the election 
under paragraph (2) shall be made separately by each 
partner or shareholder. 
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SEC. 103. EXCLUSION OF CERTAIN CANCELLATIONS OF IN-
DEBTEDNESS 
RELATED 
TO 
CALIFORNIA 
WILDFIRES OF OCTOBER 2007. 
(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 qualified nonbusiness debt of a qualified indi-
vidual by an applicable entity (as defined in section 
6050P(c)). 
(b) QUALIFIED NONBUSINESS DEBT.—For purposes 
of this section, the term ‘‘qualified nonbusiness debt’’ 
means any indebtedness other than indebtedness incurred 
in connection with a trade or business. 
(c) QUALIFIED INDIVIDUAL.—For purposes of this 
section, the term ‘‘qualified individual’’ means any natural 
person who was a resident (as of October 20, 2007) of, 
or who owned real property (as of the date of such dis-
charge) in, any area which is determined by the President 
to warrant individual or individual and public assistance 
from the Federal Government under the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act by 
reason of the wildfires which burned in California during 
October 2007. 
(d) EXCEPTION FOR REAL PROPERTY OUTSIDE DIS-
ASTER AREA.—Subsection (a) shall not apply to any dis-
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