HR 7006 PCS 
area’’ shall have the respective meaning 
given such terms by section 165(h)(3)(C). 
‘‘(ii) NO EFFECT ON CARRYOVERS.— 
An allocation of housing credit dollar 
amount to a State under this paragraph 
shall not be taken into account under para-
graph (3). 
‘‘(iii) CONSULTATION WITH FEMA.— 
Any allocation made under this paragraph 
by the Secretary shall be made after con-
sultation with the Director of the Federal 
Emergency Management Agency. 
‘‘(F) TERMINATION.—Allocations under 
this paragraph may be made only with respect 
to disasters occurring during the period begin-
ning on January 1, 2008, and ending on De-
cember 31, 2011. No allocation under this 
paragraph may be made to any building after 
December 31, 2012.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to allocations made after the date 
of the enactment of this Act. 
SEC. 8. PRIVATE ACTIVITY DISASTER BONDS. 
(a) IN GENERAL.—Section 144 is amended by adding 
at the end the following new subsection: 
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‘‘(d) QUALIFIED DISASTER BOND.— 
‘‘(1) IN GENERAL.—For purposes of this part, 
the term ‘qualified disaster bond’ means any bond 
issued as part of an issue if— 
‘‘(A) 95 percent or more of the net pro-
ceeds of the issue are to be used for the re-
placement, repair, reconstruction, or renovation 
of property of a character subject to the allow-
ance for depreciation which was damaged or de-
stroyed as a result of a federally declared dis-
aster, and 
‘‘(B) such bond is designated by a State 
for purposes of this subsection. 
‘‘(2) DESIGNATION OF BONDS.— 
‘‘(A) DESIGNATION BY STATE.—The max-
imum aggregate face amount of bonds des-
ignated under paragraph (1)(B) by any State 
may not exceed the bond limitation allocated to 
such State by the Secretary under subpara-
graph (B). 
‘‘(B) ALLOCATION
OF
BOND
LIMITA-
TION.— 
‘‘(i) IN
GENERAL.—The Secretary 
may, upon application by any State, make 
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allocation of bond limitation to such State 
if such State includes a disaster area. 
‘‘(ii) 
LIMITATION.—The 
aggregate 
amount of bond limitation allocated to the 
States by the Secretary under clause (i) 
may not exceed $13,000,000,000. Any allo-
cation which is terminated by the Sec-
retary (by reason of disuse or otherwise) 
shall not be treated as having been allo-
cated for purposes of the preceding sen-
tence. 
‘‘(iii) PRIORITY FOR BUSINESS LOSS 
DISASTER
AREAS.—In making allocation 
under this subsection, the Secretary shall 
give priority to business loss disaster areas. 
‘‘(iv) LIMITATION TO BUILDINGS LO-
CATED
IN
BUSINESS
LOSS
DISASTER 
AREAS.—Any allocation of bond limitation 
under this subsection may be used by such 
State only to issue bonds with respect to— 
‘‘(I) property located in a dis-
aster area, and 
‘‘(II) in the case of any allocation 
made by reason of a priority under 
clause (iii), property located in the 
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business loss disaster area with re-
spect to which such priority was 
given. 
‘‘(v) PRO
RATA
ALLOCATIONS.—The 
allocations made by the Secretary under 
this subparagraph shall be made ratably 
over the period described in paragraph (5) 
unless the Secretary determines, on the 
basis of the severity or frequency of disas-
ters, that a different allocation is appro-
priate. 
‘‘(3) BUSINESS
LOSS
DISASTER
AREA.—For 
purposes of this subsection, the term ‘business loss 
disaster area’ means any county or municipality— 
‘‘(A) with respect to which the Governor of 
the State in which such county or municipality 
is located demonstrates to the satisfaction of 
the Secretary that business property located in 
such county or municipality has sustained dam-
ages by reason of a federally declared disaster 
of at least the lesser of— 
‘‘(i) $50,000,000, or 
‘‘(ii) 5 percent of the value of all such 
business property (determined immediately 
before such disaster on the basis of prop-
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erty tax records or such other method as 
the Secretary determines appropriate), and 
‘‘(B) which is located in a disaster area. 
‘‘(4) DEFINITIONS AND SPECIAL RULES.—For 
purposes of this subsection— 
‘‘(A) FEDERALLY
DECLARED
DISASTER; 
DISASTER
AREA.—The terms ‘‘federally de-
clared disaster’’ and ‘‘disaster area’’ shall have 
the respective meaning given such terms by sec-
tion 165(h)(3)(C). 
‘‘(B) 
CERTAIN
USES
PROHIBITED.—A 
bond which is part of an issue shall not be 
treated as a qualified disaster bond if any pro-
ceeds of such issue are to be used for any prop-
erty described in section 1400N(p)(3). 
‘‘(C) CONSULTATION
WITH
FEMA.—Any 
allocation made under this subsection by the 
Secretary shall be made after consultation with 
the Director of the Federal Emergency Man-
agement Agency. 
‘‘(5) TERMINATION.—Allocations under this 
subsection may be made only— 
‘‘(A) before December 31, 2012, and 
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‘‘(B) with respect to disasters occurring 
during the period beginning on January 1, 
2008, and ending on December 31, 2011.’’. 
(b) EXEMPTION
FROM
ALTERNATIVE
MINIMUM 
TAX.— 
(1) Subparagraph (C) of section 57(a)(5) is 
amended by redesignating clauses (iv) and (v) as 
clauses (v) and (vi) and by inserting after clause (iii) 
the following new clause: 
‘‘(iv) EXCEPTION FOR QUALIFIED DIS-
ASTER BONDS.—For purposes of clause (i), 
the term ‘private activity bond’ shall not 
include any qualified disaster bond (as de-
fined in section 144(d)).’’. 
(2) Clause (iii) of section 56(g)(4)(B) is amend-
ed— 
(A) by striking ‘‘section 57(a)(5)(C)(iii)’’ 
and inserting ‘‘clause (iii) or (iv) of section 
57(a)(5)(C)’’, and 
(B) by striking ‘‘HOUSING’’ in the heading 
thereof. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 141(e)(1) is amended by striking 
‘‘or’’ at the end of subparagraph (F), by striking the 
period at the end of subparagraph (G) and inserting 
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be taken into account for purposes of applying 
such paragraphs or subsection (d) to other con-
tributions. 
‘‘(B) TREATMENT OF EXCESS CONTRIBU-
TIONS.—For purposes of this section— 
‘‘(i) INDIVIDUALS.—In the case of an 
individual— 
‘‘(I) 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 contribu-
tion base over the amount of all other 
charitable 
contributions 
allowable 
under paragraph (1). 
‘‘(II) CARRYOVER.—If the aggre-
gate amount of qualified disaster con-
tributions made in the contribution 
year (within the meaning of sub-
section (d)(1)) exceeds the limitation 
of subclause (I), such excess shall be 
added to the excess described in the 
portion of subparagraph (A) of such 
subsection which precedes clause (i) 
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thereof for purposes of applying such 
subsection. 
‘‘(ii) CORPORATIONS.—In the case of 
a corporation— 
‘‘(I) 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 para-
graph (2)) over the amount of all 
other charitable contributions allow-
able under such paragraph. 
‘‘(II) CARRYOVER.—Rules similar 
to the rules of clause (i)(II) shall 
apply for purposes of this clause. 
‘‘(C) EXCEPTION TO OVERALL LIMITATION 
ON ITEMIZED DEDUCTIONS.—So much of any 
deduction allowed under this section as does not 
exceed the qualified disaster contributions paid 
during the taxable year shall not be treated as 
an itemized deduction for purposes of section 
68. 
‘‘(D) QUALIFIED
DISASTER
CONTRIBU-
TIONS.— 
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‘‘(i) IN
GENERAL.—For purposes of 
this subsection, the term ‘qualified disaster 
contribution’ means any charitable con-
tribution if— 
‘‘(I) such contribution is paid 
during the period beginning on the 
date of the enactment of this para-
graph, and ending on December 31, 
2009, in cash to an organization de-
scribed in paragraph (1)(A) (other 
than an organization described in sec-
tion 509(a)(3)), 
‘‘(II) such contribution is for re-
lief efforts related to a federally de-
clared disaster (as defined in section 
165(h)(3)(C)(i)), and 
‘‘(III) the taxpayer has elected 
the application of this subsection with 
respect to such contribution. 
‘‘(ii) EXCEPTION.—Such term shall 
not include a contribution if the contribu-
tion is for establishment of a new, or main-
tenance in a donor advised fund (as de-
fined in section 4966(d)(2)). 
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‘‘(iii) APPLICATION OF ELECTION TO 
PARTNERSHIPS AND S CORPORATIONS.—In 
the case of a partnership or S corporation, 
the election under clause (i)(III) shall be 
made separately by each partner or share-
holder.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
Passed the House of Representatives September 24, 
2008. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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Calendar No. 1129 
110TH CONGRESS 
2D SESSION 
H. R. 7006 
AN ACT 
To amend the Internal Revenue Code of 1986 to 
provide disaster assistance relief. 
DECEMBER 9, 2008 
Read the second time and placed on the calendar 
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