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wages with respect to each eligible employee of such 
employer for such taxable year. For purposes of the 
preceding sentence, the amount of qualified wages 
which may be taken into account with respect to any 
individual shall not exceed $6,000. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) ELIGIBLE EMPLOYER.—The term ‘eli-
gible employer’ means any employer— 
‘‘(i) which conducted an active trade 
or business on September 23, 2005, in the 
Rita GO Zone, and 
‘‘(ii) with respect to whom the trade 
or business described in clause (i) is inop-
erable on any day after September 23, 
2005, and before January 1, 2006, as a re-
sult of damage sustained by reason of 
Hurricane Rita. 
‘‘(B) ELIGIBLE EMPLOYEE.—The term ‘el-
igible employee’ means with respect to an eligi-
ble employer an employee whose principal place 
of employment on September 23, 2005, with 
such eligible employer was in the Rita GO 
Zone.
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‘‘(C) 
QUALIFIED
WAGES.—The 
term 
‘qualified wages’ means wages (as defined in 
section 51(c)(1), but without regard to section 
3306(b)(2)(B)) paid or incurred by an eligible 
employer with respect to an eligible employee on 
any day after September 23, 2005, and before 
January 1, 2006, 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 Rita, 
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.
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‘‘(3) CREDIT NOT ALLOWED FOR LARGE BUSI-
NESSES.—The term ‘eligible employer’ shall not in-
clude any trade or business for any taxable year if 
such trade or business employed an average of more 
than 200 employees on business days during the tax-
able year. 
‘‘(4) CERTAIN RULES TO APPLY.—For purposes 
of this subsection, rules similar to the rules of sec-
tions 51(i)(1), 52, and 280C(a) shall apply. 
‘‘(5) 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 section 51 with respect to such employee for 
such period. 
‘‘(c) EMPLOYEE RETENTION CREDIT FOR EMPLOY-
ERS AFFECTED BY HURRICANE WILMA.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
in the case of an eligible employer, the Hurricane 
Wilma employee retention credit for any taxable year 
is an amount equal to 40 percent of the qualified 
wages with respect to each eligible employee of such 
employer for such taxable year. For purposes of the 
preceding sentence, the amount of qualified wages
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which may be taken into account with respect to any 
individual shall not exceed $6,000. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) ELIGIBLE EMPLOYER.—The term ‘eli-
gible employer’ means any employer— 
‘‘(i) which conducted an active trade 
or business on October 23, 2005, in the 
Wilma GO Zone, and 
‘‘(ii) with respect to whom the trade 
or business described in clause (i) is inop-
erable on any day after October 23, 2005, 
and before January 1, 2006, as a result of 
damage sustained by reason of Hurricane 
Wilma. 
‘‘(B) ELIGIBLE EMPLOYEE.—The term ‘el-
igible employee’ means with respect to an eligi-
ble employer an employee whose principal place 
of employment on October 23, 2005, with such 
eligible employer was in the Wilma GO Zone. 
‘‘(C) 
QUALIFIED
WAGES.—The 
term 
‘qualified wages’ means wages (as defined in 
section 51(c)(1), but without regard to section 
3306(b)(2)(B)) paid or incurred by an eligible 
employer with respect to an eligible employee on
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any day after October 23, 2005, and before 
January 1, 2006, 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 
Wilma, 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) CREDIT NOT ALLOWED FOR LARGE BUSI-
NESSES.—The term ‘eligible employer’ shall not in-
clude any trade or business for any taxable year if 
such trade or business employed an average of more
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than 200 employees on business days during the tax-
able year. 
‘‘(4) CERTAIN RULES TO APPLY.—For purposes 
of this subsection, rules similar to the rules of sec-
tions 51(i)(1), 52, and 280C(a) shall apply. 
‘‘(5) 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 with respect to such em-
ployee for such period. 
‘‘SEC. 1400Q. ADDITIONAL TAX RELIEF PROVISIONS. 
‘‘(a) TEMPORARY SUSPENSION OF LIMITATIONS ON 
CHARITABLE CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in paragraph (2), section 170(b) 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 section 170 to 
other contributions. 
‘‘(2) 
TREATMENT
OF
EXCESS
CONTRIBU-
TIONS.—For purposes of section 170— 
‘‘(A) INDIVIDUALS.—In the case of an in-
dividual—
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‘‘(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 (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
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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)),
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‘‘(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)—
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‘‘(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
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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.
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‘‘(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—
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‘‘(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.
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‘‘(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
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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.