tent that the aggregate of such contribu-
tions does not exceed the excess of the tax-
payer’s contribution base (as defined in 
subparagraph (F) of section 170(b)(1)) 
over the amount of all other charitable 
contributions 
allowed 
under 
section 
170(b)(1). 
‘‘(ii) CARRYOVER.—If the aggregate 
amount of qualified contributions made in 
the contribution year (within the meaning 
of section 170(d)(1)) exceeds the limitation 
of clause (i), such excess shall be added to 
the excess described in the portion of sub-
paragraph (A) of such section which pre-
cedes clause (i) thereof for purposes of ap-
plying such section. 
‘‘(B) CORPORATIONS.—In the case of a 
corporation— 
‘‘(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)) 
over the amount of all other charitable
contributions allowed under such para-
graph. 
‘‘(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 as does not exceed the 
qualified contributions paid during the taxable year 
shall not be treated as an itemized deduction for 
purposes of section 68. 
‘‘(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)) if— 
‘‘(i) such contribution is paid during 
the period beginning on August 28, 2005, 
and ending on December 31, 2005, in cash 
to an organization described in section 
170(b)(1)(A) (other than an organization 
described in section 509(a)(3)), 
‘‘(ii) in the case of a contribution paid 
by a corporation, such contribution is for
relief efforts related to Hurricane Katrina, 
Hurricane Rita, or Hurricane Wilma, 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 if the contribution is for 
establishment of a new, or maintenance in an 
existing, segregated fund or account with re-
spect to which the donor (or any person ap-
pointed or designated by such donor) has, or 
reasonably expects to have, advisory privileges 
with respect to distributions or investments by 
reason of the donor’s status as a donor. 
‘‘(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) SUSPENSION
OF CERTAIN LIMITATIONS
ON 
PERSONAL
CASUALTY
LOSSES.—Paragraphs (1) and 
(2)(A) of section 165(h) shall not apply to losses described 
in section 165(c)(3)—
‘‘(1) which arise in the Hurricane Katrina dis-
aster area on or after August 25, 2005, and which 
are attributable to Hurricane Katrina, 
‘‘(2) which arise in the Hurricane Rita disaster 
area on or after September 23, 2005, and which are 
attributable to Hurricane Rita, or 
‘‘(3) which arise in the Hurricane Wilma dis-
aster area on or after October 23, 2005, and which 
are attributable to Hurricane Wilma. 
In the case of any other losses, section 165(h)(2)(A) shall 
be applied without regard to the losses referred to in the 
preceding sentence. 
‘‘(c) REQUIRED EXERCISE OF AUTHORITY UNDER 
SECTION 7508A.—In the case of any taxpayer determined 
by the Secretary to be affected by the Presidentially de-
clared disaster relating to Hurricane Katrina, Hurricane 
Rita, or Hurricane Wilma, any relief provided by the Sec-
retary under section 7508A shall be for a period ending 
not earlier than February 28, 2006. 
‘‘(d) SPECIAL RULE FOR DETERMINING EARNED IN-
COME.— 
‘‘(1) IN GENERAL.—In the case of a qualified 
individual, 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 may, at the election of the 
taxpayer, be determined 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. 
‘‘(2) 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 any individual whose 
principal place of abode on August 25, 2005, 
was located— 
‘‘(i) in the GO Zone, or 
‘‘(ii) in the Hurricane Katrina dis-
aster area (but outside the GO Zone) and 
such individual was displaced from such 
principal place of abode by reason of Hur-
ricane Katrina.
‘‘(C) QUALIFIED
HURRICANE
RITA
INDI-
VIDUAL.—The term ‘qualified Hurricane Rita 
individual’ means any individual (other than a 
qualified Hurricane Katrina individual) whose 
principal place of abode on September 23, 
2005, was located— 
‘‘(i) in the Rita GO Zone, or 
‘‘(ii) in the Hurricane Rita disaster 
area (but outside the Rita GO Zone) and 
such individual was displaced from such 
principal place of abode by reason of Hur-
ricane Rita. 
‘‘(D) QUALIFIED HURRICANE WILMA INDI-
VIDUAL.—The term ‘qualified Hurricane Wilma 
individual’ means any individual whose prin-
cipal place of abode on October 23, 2005, was 
located— 
‘‘(i) in the Wilma GO Zone, or 
‘‘(ii) in the Hurricane Wilma disaster 
area (but outside the Wilma GO Zone) and 
such individual was displaced from such 
principal place of abode by reason of Hur-
ricane Wilma. 
‘‘(3) APPLICABLE DATE.—For purposes of this 
subsection, the term ‘applicable date’ means—
‘‘(A) in the case of a qualified Hurricane 
Katrina individual, August 25, 2005, 
‘‘(B) in the case of a qualified Hurricane 
Rita individual, September 23, 2005, and 
‘‘(C) in the case of a qualified Hurricane 
Wilma individual, October 23, 2005. 
‘‘(4) EARNED INCOME.—For purposes of this 
subsection, the term ‘earned income’ has the mean-
ing given such term under section 32(c). 
‘‘(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 tax-
payer 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 section 24(d) 
and section 32.
‘‘(C) ERRORS TREATED AS MATHEMATICAL 
ERROR.—For purposes of section 6213, an in-
correct use on a return of earned income pursu-
ant to paragraph (1) shall be treated as a 
mathematical or clerical error. 
‘‘(D) NO EFFECT ON DETERMINATION OF 
GROSS INCOME, ETC.—Except as otherwise pro-
vided in this subsection, this title shall be ap-
plied without regard to any substitution under 
paragraph (1). 
‘‘(e) SECRETARIAL AUTHORITY TO MAKE ADJUST-
MENTS REGARDING TAXPAYER AND DEPENDENCY STA-
TUS.—With respect to taxable years beginning in 2005 or 
2006, the Secretary may make such adjustments in the 
application of the internal revenue laws as may be nec-
essary to ensure that taxpayers do not lose any deduction 
or credit or experience a change of filing status by reason 
of temporary relocations by reason of Hurricane Katrina, 
Hurricane Rita, or Hurricane Wilma. Any adjustments 
made under the preceding sentence shall ensure that an 
individual is not taken into account by more than one tax-
payer with respect to the same tax benefit.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (b) of section 38 is amended by 
striking ‘‘and’’ at the end of paragraph (25), by
striking the period at the end of paragraph (26) and 
inserting a comma, and by adding at the end the fol-
lowing new paragraphs: 
‘‘(27) the Hurricane Katrina employee reten-
tion credit determined under section 1400P(a), 
‘‘(28) the Hurricane Rita employee retention 
credit determined under section 1400P(b), and 
‘‘(29) the Hurricane Wilma employee retention 
credit determined under section 1400P(c).’’. 
(2) The table of sections for part II of sub-
chapter Y of chapter 1 is amended by adding at the 
end the following new items: 
‘‘Sec. 1400O. Special rules for use of retirement funds. 
‘‘Sec. 1400P. Employment relief. 
‘‘Sec. 1400Q. Additional tax relief provisions.’’. 
(3) The heading for such part is amended by 
striking ‘‘GULF OPPORTUNITY ZONE’’ and 
inserting ‘‘HURRICANE RELIEF’’. 
(4) The following provisions of the Katrina 
Emergency Tax Relief Act of 2005 are hereby re-
pealed: 
(A) Title I. 
(B) Sections 202, 301, 402, 403(b), 406, 
and 407.