I 
115TH CONGRESS 
1ST SESSION H. R. 4172 
To amend the Internal Revenue Code of 1986 to provide tax relief for 
major disasters declared in any of calendar years 2012 through 2015, 
to make certain tax relief provisions permanent, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 31, 2017 
Mr. NEAL (for himself, Mr. THOMPSON of California, Mr. PASCRELL, Mr. 
LEVIN, Mr. LEWIS of Georgia, Mr. LARSON of Connecticut, Mr. BLU-
MENAUER, Mr. CROWLEY, Mr. DANNY
K. DAVIS
of Illinois, Ms. 
SA´NCHEZ, Mr. HIGGINS of New York, Ms. SEWELL of Alabama, Ms. 
DELBENE, Ms. JUDY CHU of California, Ms. NORTON, Mr. EVANS, Ms. 
WILSON of Florida, Ms. WASSERMAN SCHULTZ, Mr. HUFFMAN, Mr. 
GENE GREEN of Texas, and Ms. PLASKETT) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Energy and Commerce, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
tax relief for major disasters declared in any of calendar 
years 2012 through 2015, to make certain tax relief 
provisions permanent, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Give Assistance and Help to Americans impacted by Nat-
ural Disasters Act’’ or the ‘‘Give A HAND Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—TAX RELIEF RELATING TO DISASTERS IN 2012, 2013, 
2014, AND 2015 
Sec. 101. Expensing of qualified disaster expenses. 
Sec. 102. Increased limitation on charitable contributions for disaster relief. 
Sec. 103. Losses attributable to disasters in 2012, 2013, 2014, and 2015. 
Sec. 104. Net operating losses attributable to disasters in 2012, 2013, 2014, 
and 2015. 
Sec. 105. Waiver of certain mortgage revenue bond requirements following 
2012, 2013, 2014, and 2015 disasters. 
Sec. 106. Increased expensing and bonus depreciation for qualified disaster as-
sistance property following 2012, 2013, 2014, and 2015 disas-
ters. 
Sec. 107. Increase in new markets tax credit for investments in community de-
velopment entities serving 2012, 2013, 2014, and 2015 dis-
aster areas. 
Sec. 108. Special rules for use of retirement funds in connection with federally 
declared disasters in 2012, 2013, 2014, and 2015. 
Sec. 109. Additional exemption for housing qualified disaster displaced individ-
uals. 
Sec. 110. Exclusions of certain cancellations of indebtedness by reason of 2012, 
2013, 2014, and 2015 disasters. 
Sec. 111. Special rule for determining earned income of individuals affected by 
federally declared disasters. 
Sec. 112. Increase in rehabilitation credit for buildings in 2012, 2013, 2014, 
and 2015 disaster areas. 
Sec. 113. Advanced refundings of certain tax-exempt bonds. 
Sec. 114. Qualified disaster area recovery bonds. 
Sec. 115. Additional low-income housing credit allocations. 
Sec. 116. Facilitation of transfer of water leasing and water by mutual ditch 
or irrigation companies in disaster areas. 
TITLE II—OTHER DISASTER TAX RELIEF PROVISIONS 
Sec. 201. Exclusion for disaster mitigation payments received from State and 
local governments. 
Sec. 202. Natural disaster funds. 
TITLE III—PERMANENT TAX DISASTER RELIEF PROVISIONS 
Sec. 301. Increase property replacement period to 5 years. 
Sec. 302. Wage credit for specified disaster-damaged businesses. 
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Sec. 303. Disaster-related medical expenses. 
Sec. 304. Expensing of qualified disaster expenses. 
Sec. 305. Losses attributable to disasters. 
Sec. 306. Net operating losses attributable to disasters. 
Sec. 307. Special rules for use of retirement funds in connection with federally 
declared disasters. 
Sec. 308. Additional exemption for housing qualified disaster displaced individ-
uals. 
Sec. 309. Exclusions of certain cancellations of indebtedness by reason of disas-
ters. 
Sec. 310. Special rule for determining earned income of individuals affected by 
federally declared disasters. 
Sec. 311. Qualified disaster area recovery bonds. 
Sec. 312. Additional low-income housing credit allocations. 
Sec. 313. Suspension of limitation on charitable contributions for disaster relief 
efforts. 
Sec. 314. Increase in New Markets Tax Credit allocations. 
Sec. 315. Increase in rehabilitation credit for buildings in disaster areas. 
Sec. 316. Waiver of certain mortgage revenue bond requirements following dis-
asters. 
Sec. 317. Advanced refundings of certain tax-exempt bonds. 
Sec. 318. Facilitation of transfer of water leasing and water by mutual ditch 
or irrigation companies in disaster areas. 
Sec. 319. Exclusion of employer provided housing for individual affected by dis-
aster. 
Sec. 320. Increased expensing and bonus depreciation for qualified disaster as-
sistance property. 
Sec. 321. Increase in standard mileage rate for charitable use of vehicle. 
Sec. 322. Work opportunity tax credit for employees in disaster area. 
Sec. 323. Expensing for environmental remediation costs in disaster areas. 
Sec. 324. Taxpayer filing assistance. 
TITLE IV—RELIEF RELATING TO PUERTO RICO AND UNITED 
STATES VIRGIN ISLANDS 
Sec. 401. Application of disaster-related tax relief to possessions of United 
States. 
Sec. 402. Application to Puerto Rico and Virgin Islands of deduction for in-
come attributable to domestic production activities. 
Sec. 403. Full rum cover over. 
Sec. 404. Puerto Rico residents eligible for earned income tax credit. 
Sec. 405. Equitable treatment for residents of Puerto Rico with respect to the 
refundable portion of the child tax credit. 
Sec. 406. Technical assistance and administrative relief. 
TITLE V—MEDICARE RELIEF 
Sec. 501. Medicare enrollment filing deadline relief. 
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TITLE I—TAX RELIEF RELATING 
TO DISASTERS IN 2012, 2013, 
2014, AND 2015 
SEC. 101. EXPENSING OF QUALIFIED DISASTER EXPENSES. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 198 the following: 
‘‘SEC. 198A. EXPENSING OF QUALIFIED DISASTER EX-
PENSES. 
‘‘(a) IN GENERAL.—A taxpayer may elect to treat 
any qualified disaster expenses which are paid or incurred 
by the taxpayer as an expense which is not chargeable to 
capital account. Any expense which is so treated shall be 
allowed as a deduction for the taxable year in which it 
is paid or incurred. 
‘‘(b) QUALIFIED DISASTER EXPENSE.—For purposes 
of this section, the term ‘qualified disaster expense’ means 
any expenditure— 
‘‘(1) which is paid or incurred in connection 
with a trade or business or with business-related 
property, 
‘‘(2) which is— 
‘‘(A) for the abatement or control of haz-
ardous substances that were released on ac-
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count of a federally declared disaster occurring 
during the period beginning— 
‘‘(i) after December 31, 2007, and be-
fore January 1, 2010, or 
‘‘(ii) after December 31, 2011, and 
before January 1, 2016, 
‘‘(B) for the removal of debris from, or the 
demolition of structures on, real property which 
is business-related property damaged or de-
stroyed as a result of a federally declared dis-
aster occurring during any such period, or 
‘‘(C) for the repair of business-related 
property damaged as a result of a federally de-
clared disaster occurring during any such pe-
riod, and 
‘‘(3) which is otherwise chargeable to capital ac-
count. 
‘‘(c) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) 
BUSINESS-RELATED
PROPERTY.—The 
term ‘business-related property’ means property— 
‘‘(A) held by the taxpayer for use in a 
trade or business or for the production of in-
come, or 
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‘‘(B) described in section 1221(a)(1) in the 
hands of the taxpayer. 
‘‘(2) FEDERALLY
DECLARED
DISASTER.—The 
term ‘federally declared disaster’ has the meaning 
given such term by section 165(i)(5)(A). 
‘‘(d) DEDUCTION RECAPTURED AS ORDINARY IN-
COME
ON SALE, ETC.—Solely for purposes of section 
1245, in the case of property to which a qualified disaster 
expense would have been capitalized but for this section— 
‘‘(1) the deduction allowed by this section for 
such expense shall be treated as a deduction for de-
preciation, and 
‘‘(2) such property (if not otherwise section 
1245 property) shall be treated as section 1245 
property solely for purposes of applying section 1245 
to such deduction. 
‘‘(e) COORDINATION WITH OTHER PROVISIONS.— 
Sections 198, 280B, and 468 shall not apply to amounts 
which are treated as expenses under this section. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part VI of subchapter B of chapter 1 of the Internal 
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Revenue Code of 1986 is amended by inserting after the 
item relating to section 198 the following item: 
‘‘Sec. 198A. Expensing of qualified disaster expenses.’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred after 
December 31, 2011, in connection with disasters declared 
after such date. 
SEC. 102. INCREASED LIMITATION ON CHARITABLE CON-
TRIBUTIONS FOR DISASTER RELIEF. 
(a) INDIVIDUALS.—Paragraph (1) of section 170(b) 
of the Internal Revenue Code of 1986 is amended by re-
designating subparagraphs (F) and (G) as subparagraphs 
(G) and (H), respectively, and by inserting after subpara-
graph (E) the following new subparagraph: 
‘‘(F) QUALIFIED
DISASTER
CONTRIBU-
TIONS.— 
‘‘(i) IN GENERAL.—Any qualified dis-
aster contribution shall be allowed to the 
extent that the aggregate of such contribu-
tions does not exceed the excess of 80 per-
cent of the taxpayer’s contribution base 
over the amount of all other charitable 
contributions allowable under this para-
graph. 
‘‘(ii) CARRYOVER.—If the aggregate 
amount of contributions described in clause 
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(i) exceeds the limitation under clause (i), 
such excess shall be treated (in a manner 
consistent with the rules of subsection 
(d)(1)) as a charitable contribution to 
which clause (i) applies in each of the 5 
succeeding years in order of time. 
‘‘(iii) COORDINATION
WITH
OTHER 
SUBPARAGRAPHS.—For purposes of apply-
ing this subsection and subsection (d)(1), 
contributions described in clause (i) shall 
not be treated as described in subpara-
graph (A) and such subparagraph shall be 
applied without regard to such contribu-
tions. 
‘‘(iv) 
QUALIFIED
DISASTER
CON-
TRIBUTIONS.—For purposes of this sub-
paragraph, the term ‘qualified disaster 
contribution’ means any charitable con-
tribution if— 
‘‘(I) such contribution is for re-
lief efforts related to a federally de-
clared disaster (as defined in section 
165(h)(3)(C)(i)), 
‘‘(II) such contribution is made 
during the period beginning on the 
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applicable disaster date with respect 
to the disaster described in subclause 
(I) and ending on December 31, 
2015, and 
‘‘(III) such contribution is made 
in cash to an organization described 
in subparagraph (A) (other than an 
organization 
described 
in 
section 
509(a)(3)). 
Such term shall not include a contribution 
if the contribution is for establishment of 
a new, or maintenance in an existing, 
donor advised fund (as defined in section 
4966(d)(2)). 
‘‘(v) APPLICABLE DISASTER DATE.— 
For purposes of clause (iv)(II), the term 
‘applicable disaster date’ means, with re-
spect to any federally declared disaster de-
scribed in clause (iv)(I), the date on which 
the disaster giving rise to the Presidential 
declaration 
described 
in 
section 
165(i)(5)(A) occurred. 
‘‘(vi) 
SUBSTANTIATION
REQUIRE-
MENT.—This paragraph shall not apply to 
any qualified disaster contribution unless 
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the taxpayer obtains from such organiza-
tion to which the contribution was made a 
contemporaneous written acknowledgment 
(within the meaning of subsection (f)(8)) 
that such contribution was used (or is to 
be used) for a purpose described in clause 
(iv)(III).’’. 
(b) CORPORATIONS.— 
(1) IN
GENERAL.—Paragraph (2) of section 
170(b) of the Internal Revenue Code of 1986 is 
amended by redesignating subparagraph (D) as sub-
paragraph (E) and by inserting after subparagraph 
(C) the following new subparagraph: 
‘‘(D) QUALIFIED
DISASTER
CONTRIBU-
TIONS.— 
‘‘(i) IN GENERAL.—Any qualified dis-
aster contribution shall be allowed to the 
extent that the aggregate of such contribu-
tions does not exceed the excess of 20 per-
cent of the taxpayer’s taxable income over 
the amount of charitable contributions al-
lowed under subparagraph (A). 
‘‘(ii) CARRYOVER.—If the aggregate 
amount of contributions described in clause 
(i) exceeds the limitation under clause (i), 
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such excess shall be treated (in a manner 
consistent with the rules of subsection 
(d)(1)) as a charitable contribution to 
which clause (i) applies in each of the 5 
succeeding years in order of time. 
‘‘(iii) 
QUALIFIED
DISASTER
CON-
TRIBUTION.—The term ‘qualified disaster 
contribution’ has the meaning given such 
term under paragraph (2)(F)(iv). 
‘‘(iv) 
SUBSTANTIATION
REQUIRE-
MENT.—This paragraph shall not apply to 
any qualified disaster contribution unless 
the taxpayer obtains from such organiza-
tion to which the contribution was made a 
contemporaneous written acknowledgment 
(within the meaning of subsection (f)(8)) 
that such contribution was used (or is to 
be used) for a purpose described in para-
graph (1)(F)(iv)(III).’’. 
(2) CONFORMING AMENDMENT.—Subparagraph 
(A) of section 170(b)(2) of such Code is amended by 
striking ‘‘subparagraph (B) and (C) apply’’ and in-
serting ‘‘subparagraphs (B), (C) and (D) apply’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disasters arising in taxable years 
ending after December 31, 2011. 
SEC. 103. LOSSES ATTRIBUTABLE TO DISASTERS IN 2012, 
2013, 2014, AND 2015. 
(a) IN GENERAL.—Section 165(h) of the Internal 
Revenue Code of 1986 is amended by redesignating para-
graphs (3) and (4) as paragraphs (4) and (5), respectively, 
and by inserting after paragraph (2) the following: 
‘‘(3) SPECIAL RULE FOR LOSSES IN FEDERALLY 
DECLARED DISASTERS.— 
‘‘(A) IN GENERAL.—If an individual has a 
net disaster loss for any taxable year, the 
amount determined under paragraph (2)(A)(ii) 
shall be the sum of— 
‘‘(i) such net disaster loss, and 
‘‘(ii) so much of the excess referred to 
in the matter preceding clause (i) of para-
graph (2)(A) (reduced by the amount in 
clause (i) of this subparagraph) as exceeds 
10 percent of the adjusted gross income of 
the individual. 
‘‘(B) NET DISASTER LOSS.—For purposes 
of subparagraph (A), the term ‘net disaster 
loss’ means the excess of— 
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(c) LOSS ALLOWED WHETHER OR NOT INDIVIDUAL 
ITEMIZED DEDUCTIONS.—Section 62(a) of the Internal 
Revenue Code of 1986 is amended by inserting after para-
graph (21) the following new paragraph: 
‘‘(22) DISASTER CASUALTY LOSSES.—Any net 
disaster loss (as defined in section 165(h)(3)(B)).’’. 
(d) TECHNICAL AMENDMENT.—Subparagraph (A) of 
section 165(i)(5) of the Internal Revenue Code of 1986 
is amended by inserting ‘‘major’’ after ‘‘means any’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disasters declared in taxable 
years beginning after December 31, 2011. 
(f) USE OF AMENDED INCOME TAX RETURNS TO 
TAKE INTO ACCOUNT RECEIPT OF CERTAIN CASUALTY 
LOSS GRANTS
BY DISALLOWING PREVIOUSLY TAKEN 
CASUALTY LOSS DEDUCTIONS.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of the Internal Revenue Code of 1986, if 
a taxpayer— 
(A) claims a deduction for any taxable year 
with respect to a casualty loss to a principal 
residence (within the meaning of section 121 of 
such Code) resulting from any federally de-
clared 
disaster 
(as 
defined 
in 
section 
165(h)(3)(C) of such Code) occurring during 
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the period beginning after December 31, 2011, 
and before January 1, 2016, and 
(B) in a subsequent taxable year receives 
a grant under any Federal or State program as 
reimbursement for such loss, 
such taxpayer may elect to file an amended income 
tax return for the taxable year in which such deduc-
tion was allowed (and for any taxable year to which 
such deduction is carried) and reduce (but not below 
zero) the amount of such deduction by the amount 
of such reimbursement. 
(2) TIME
OF
FILING
AMENDED
RETURN.— 
Paragraph (1) shall apply with respect to any grant 
only if any amended income tax returns with respect 
to such grant are filed not later than the later of— 
(A) the due date for filing the tax return 
for the taxable year in which the taxpayer re-
ceives such grant, or 
(B) the date which is 1 year after the date 
of the enactment of this Act. 
(3) WAIVER OF PENALTIES AND INTEREST.— 
Any underpayment of tax resulting from the reduc-
tion under paragraph (1) of the amount otherwise 
allowable as a deduction shall not be subject to any 
penalty or interest under such Code if such tax is 
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paid not later than 1 year after the filing of the 
amended return to which such reduction relates. 
SEC. 104. NET OPERATING LOSSES ATTRIBUTABLE TO DIS-
ASTERS IN 2012, 2013, 2014, AND 2015. 
(a) IN GENERAL.—Section 172(b)(1) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: 
‘‘(G) CERTAIN
LOSSES
ATTRIBUTABLE 
FEDERALLY
DECLARED
DISASTERS.—In the 
case of a taxpayer who has a qualified disaster 
loss (as defined in subsection (i)), such loss 
shall be a net operating loss carryback to each 
of the 5 taxable years preceding the taxable 
year of such loss.’’. 
(b) RULES RELATING
TO QUALIFIED DISASTER 
LOSSES.—Section 172 of the Internal Revenue Code of 
1986 is amended by redesignating subsection (i) as sub-
section (j) and by inserting after subsection (h) the fol-
lowing: 
‘‘(i) RULES RELATING
TO QUALIFIED DISASTER 
LOSSES.—For purposes of this section— 
‘‘(1) IN
GENERAL.—The term ‘qualified dis-
aster loss’ means the lesser of— 
‘‘(A) the sum of— 
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‘‘(i) the losses allowable under section 
165 for the taxable year— 
‘‘(I) attributable to a federally 
declared disaster (as defined in sec-
tion 165(i)(5)(A)) occurring during 
the period beginning after December 
31, 2007, and before January 1, 
2010, or during the period beginning 
after December 31, 2011, and before 
January 1, 2016, and 
‘‘(II) occurring in a disaster area 
(as defined in section 165(i)(5)(B)), 
and 
‘‘(ii) the deduction for the taxable 
year for qualified disaster expenses which 
is allowable under section 198A(a) or 
which would be so allowable if not other-
wise treated as an expense, or 
‘‘(B) the net operating loss for such tax-
able year. 
‘‘(2) 
COORDINATION
WITH
SUBSECTION 
(b)(2).—For purposes of applying subsection (b)(2), 
a qualified disaster loss for any taxable year shall be 
treated in a manner similar to the manner in which 
a specified liability loss is treated. 
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‘‘(3) ELECTION.—Any taxpayer entitled to a 5- 
year carryback under subsection (b)(1)(G) from any 
loss year may elect to have the carryback period 
with respect to such loss year determined without re-
gard to subsection (b)(1)(G). Such election shall be 
made in such manner as may be prescribed by the 
Secretary and shall be made by the due date (includ-
ing extensions of time) for filing the taxpayer’s re-
turn for the taxable year of the net operating loss. 
Such election, once made for any taxable year, shall 
be irrevocable for such taxable year. 
‘‘(4) EXCLUSION.—The term ‘qualified disaster 
loss’ shall not include any loss with respect to any 
property described in section 1400N(p)(3).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to losses arising in taxable years 
beginning after December 31, 2011, in connection with 
disasters declared after such date. 
SEC. 105. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
REQUIREMENTS FOLLOWING 2012, 2013, 2014, 
AND 2015 DISASTERS. 
(a) IN GENERAL.—Paragraph (13) of section 143(k) 
of the Internal Revenue Code of 1986 is amended— 
(1) in clause (i), by striking ‘‘before January 1, 
2010’’ and inserting ‘‘during the period beginning 
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after December 31, 2007, and before January 1, 
2010, or during the period beginning after Decem-
ber 31, 2011, and before January 1, 2016’’, and 
(2) in clause (ii), by striking ‘‘before such date’’ 
and inserting ‘‘during either such period’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disasters occurring after Decem-
ber 31, 2011. 
SEC. 106. INCREASED EXPENSING AND BONUS DEPRECIA-
TION FOR QUALIFIED DISASTER ASSISTANCE 
PROPERTY FOLLOWING 2012, 2013, 2014, AND 
2015 DISASTERS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
168(n)(2)(A)(ii) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘before January 1, 2010’’ and insert-
ing ‘‘during the period beginning after December 31, 
2007, and before January 1, 2010, or during the period 
beginning after December 31, 2011, and before January 
1, 2016’’. 
(b) 
REMOVAL
OF
EXCLUSION.—Section 
168(n)(2)(B)(i) of such Code is amended by inserting 
‘‘and’’ at the end of subclause (I), by striking ‘‘, and’’ 
at the end of subclause (II) and inserting a period, and 
by striking subclause (III). 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2011, with respect to disasters declared 
after such date. 
SEC. 107. INCREASE IN NEW MARKETS TAX CREDIT FOR IN-
VESTMENTS IN COMMUNITY DEVELOPMENT 
ENTITIES SERVING 2012, 2013, 2014, AND 2015 
DISASTER AREAS. 
(a) IN GENERAL.—Subsection (f) of section 45D of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(4) INCREASED
SPECIAL
ALLOCATION
FOR 
COMMUNITY DEVELOPMENT ENTITIES SERVING DIS-
ASTER AREAS WITH RESPECT TO DISASTERS OCCUR-
RING IN ANY OF CALENDAR YEARS 2012 THROUGH 
2015.— 
‘‘(A) IN GENERAL.—In the case of each 
calendar year which begins after 2012 and be-
fore 2017, the new markets tax credit limitation 
shall be increased by an amount equal to 
$500,000,000, to be allocated among qualified 
community development entities to make quali-
fied low-income community investments within 
any covered federally declared disaster area. 
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‘‘(B) ALLOCATION
OF
INCREASE.—The 
amount of the increase in limitation under sub-
paragraph (A) shall be allocated by the Sec-
retary under paragraph (2) to qualified commu-
nity development entities and shall give priority 
to such entities with a record of having success-
fully provided capital or technical assistance to 
businesses or communities within any covered 
federally declared disaster area or areas for 
which the allocation is requested. 
‘‘(C) APPLICATION OF CARRYFORWARD.— 
Paragraph (3) shall be applied separately with 
respect to the amount of any increase under 
subparagraph (A). 
‘‘(D) COVERED
FEDERALLY
DECLARED 
DISASTER AREA.—For purposes of this para-
graph, the term ‘covered federally declared dis-
aster area’ means any disaster area resulting 
from any federally declared disaster occurring 
after December 31, 2011, and before January 
1, 2016. For purposes of the preceding sen-
tence, the terms ‘federally declared disaster’ 
and ‘disaster area’ have the meanings given 
such terms in section 165(i)(5).’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning after 
2012. 
SEC. 108. SPECIAL RULES FOR USE OF RETIREMENT FUNDS 
IN 
CONNECTION 
WITH 
FEDERALLY 
DE-
CLARED DISASTERS IN 2012, 2013, 2014, AND 
2015. 
(a) TAX-FAVORED WITHDRAWALS FROM RETIRE-
MENT PLANS.— 
(1) IN
GENERAL.—Paragraph (2) of section 
72(t) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
subparagraph: 
‘‘(H) DISTRIBUTIONS FROM RETIREMENT 
PLANS IN CONNECTION WITH FEDERALLY DE-
CLARED
DISASTERS
OCCURRING
IN
ANY
CAL-
ENDAR YEAR AFTER 2011.—Any qualified dis-
aster recovery distribution.’’. 
(2) QUALIFIED DISASTER RECOVERY DISTRIBU-
TION.—Section 72(t) of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(11) QUALIFIED
DISASTER
RECOVERY
DIS-
TRIBUTION.—For purposes of paragraph (2)(H)— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘qualified disaster 
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recovery distribution’ means, with respect to 
any federally declared disaster occurring in any 
calendar year beginning after 2011 and before 
January 1, 2016, any distribution from an eli-
gible retirement plan made on or after the ap-
plicable disaster date and before the date that 
is 1 year after the applicable disaster date, to 
an individual whose principal place of abode on 
the applicable disaster date, is located in the 
disaster area and who has sustained an eco-
nomic loss by reason of such federally declared 
disaster. 
‘‘(B) DOLLAR LIMITATION.— 
‘‘(i) IN
GENERAL.—For purposes of 
this subsection, the aggregate amount of 
distributions received by an individual with 
respect to any federally declared disaster 
occurring in any calendar year beginning 
after 2011 shall not exceed $100,000. 
‘‘(ii) TREATMENT OF PLAN DISTRIBU-
TIONS.—If a distribution to an individual 
would (without regard to clause (i)) be a 
qualified disaster recovery distribution, a 
plan shall not be treated as violating any 
requirement of this title merely because 
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the plan treats such distribution as a 
qualified disaster recovery distribution, un-
less the aggregate amount of such distribu-
tions from all plans maintained by the em-
ployer (and any member of any controlled 
group which includes the employer) to such 
individual with respect to any federally de-
clared disaster occurring in any calendar 
year 
beginning 
after 
2011 
exceeds 
$100,000. 
‘‘(iii) CONTROLLED GROUP.—For pur-
poses of clause (ii), the term ‘controlled 
group’ means any group treated as a single 
employer under subsection (b), (c), (m), or 
(o) of section 414. 
‘‘(C) AMOUNT DISTRIBUTED MAY BE RE-
PAID.— 
‘‘(i) IN
GENERAL.—Any individual 
who receives a qualified disaster recovery 
distribution may, at any time during the 3- 
year period beginning on the day after the 
date on which such distribution was re-
ceived, make one or more contributions in 
an aggregate amount not to exceed the 
amount of such distribution to an eligible 
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retirement plan of which such individual is 
a beneficiary and to which a rollover con-
tribution of such distribution could be 
made under section 402(c), 403(a)(4), 
403(b)(8), 408(d)(3), or 457(e)(16), as the 
case may be. 
‘‘(ii) TREATMENT OF REPAYMENTS OF 
DISTRIBUTIONS
FROM
ELIGIBLE
RETIRE-
MENT
PLANS
OTHER
THAN
IRAS.—For 
purposes of this title, if a contribution is 
made pursuant to clause (i) with respect to 
a qualified disaster recovery distribution 
from an eligible retirement plan other than 
an individual retirement plan, then the tax-
payer shall, to the extent of the amount of 
the contribution, be treated as having re-
ceived the qualified disaster recovery dis-
tribution in an eligible rollover distribution 
(as defined in section 402(c)(4)) and as 
having transferred the amount to the eligi-
ble retirement plan in a direct trustee to 
trustee transfer within 60 days of the dis-
tribution. 
‘‘(iii) TREATMENT
OF
REPAYMENTS 
FOR
DISTRIBUTIONS
FROM
IRAS.—For 
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purposes of this title, if a contribution is 
made pursuant to clause (i) with respect to 
a qualified disaster recovery distribution 
from an individual retirement plan (as de-
fined by section 7701(a)(37)), then, to the 
extent of the amount of the contribution, 
the qualified disaster recovery distribution 
shall be treated as a distribution described 
in section 408(d)(3) and as having been 
transferred to the eligible retirement plan 
in a direct trustee to trustee transfer with-
in 60 days of the distribution. 
‘‘(D) INCOME INCLUSION SPREAD OVER 3- 
YEAR PERIOD.— 
‘‘(i) IN GENERAL.—In the case of any 
qualified disaster recovery distribution, un-
less the taxpayer elects not to have this 
paragraph apply for any taxable year, any 
amount required to be included in gross in-
come for such taxable year shall be so in-
cluded ratably over the 3-taxable-year pe-
riod beginning with such taxable year. 
‘‘(ii) SPECIAL RULE.—For purposes of 
clause (i), rules similar to the rules of sub-
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paragraph (E) of section 408A(d)(3) shall 
apply. 
‘‘(E) OTHER DEFINITIONS.— 
‘‘(i) 
FEDERALLY
DECLARED
DIS-
ASTER; DISASTER AREA.—The terms ‘fed-
erally declared disaster’ and ‘disaster area’ 
have the meanings given such terms under 
section 165(i)(5). 
‘‘(ii) APPLICABLE DISASTER DATE.— 
The term ‘applicable disaster date’ means, 
with respect to any federally declared dis-
aster, the date on which such federally de-
clared disaster occurs. 
‘‘(iii) ELIGIBLE RETIREMENT PLAN.— 
The term ‘eligible retirement plan’ shall 
have the meaning given such term by sec-
tion 402(c)(8)(B). 
‘‘(F) SPECIAL RULES.— 
‘‘(i) EXEMPTION
OF
DISTRIBUTIONS 
FROM
TRUSTEE
TO
TRUSTEE
TRANSFER 
AND WITHHOLDING RULES.—For purposes 
of sections 401(a)(31), 402(f), and 3405, 
qualified disaster recovery distributions 
shall not be treated as eligible rollover dis-
tributions. 
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‘‘(ii) QUALIFIED DISASTER RECOVERY 
DISTRIBUTIONS
TREATED
AS
MEETING 
PLAN
DISTRIBUTION
REQUIREMENTS.— 
For purposes of this title, a qualified dis-
aster recovery distribution shall be treated 
as meeting the requirements of sections 
401(k)(2)(B)(i), 
403(b)(7)(A)(ii), 
403(b)(11), and 457(d)(1)(A).’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to distributions with 
respect to disasters declared after December 31, 
2011. 
(b) LOANS FROM QUALIFIED PLANS.— 
(1) IN GENERAL.—Subsection (p) of section 72 
of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new paragraph: 
‘‘(6) INCREASE IN LIMIT ON LOANS NOT TREAT-
ED AS DISTRIBUTIONS WITH RESPECT TO DISASTERS 
IN ANY CALENDAR YEAR AFTER 2011.— 
‘‘(A) IN
GENERAL.—In the case of any 
loan from a qualified employer plan to a quali-
fied individual made during the applicable pe-
riod— 
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‘‘(i) clause (i) of paragraph (2)(A) 
shall be applied by substituting ‘$100,000’ 
for ‘$50,000’, and 
‘‘(ii) clause (ii) of such paragraph 
shall be applied by substituting ‘the 
present value of the nonforfeitable accrued 
benefit of the employee under the plan’ for 
‘one-half of the present value of the non-
forfeitable accrued benefit of the employee 
under the plan’. 
‘‘(B) DELAY OF REPAYMENT.—In the case 
of a qualified individual with an outstanding 
loan on or after the applicable disaster date 
from a qualified employer plan— 
‘‘(i) if the due date pursuant to sub-
paragraph (B) or (C) of paragraph (2) for 
any repayment with respect to such loan 
occurs during the 1-year period beginning 
on the applicable disaster date, such due 
date shall be delayed for 1 year, 
‘‘(ii) any subsequent repayments with 
respect to any such loan shall be appro-
priately adjusted to reflect the delay in the 
due date under clause (i) and any interest 
accruing during such delay, and 
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‘‘(iii) in determining the 5-year period 
and the term of a loan under subpara-
graph (B) or (C) of paragraph (2), the pe-
riod described in clause (i) shall be dis-
regarded. 
‘‘(C) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) QUALIFIED
INDIVIDUAL.—The 
term ‘qualified individual’ means, with re-
spect to any federally declared disaster oc-
curring in any calendar year beginning 
after 2011, an individual whose principal 
place of abode on the applicable disaster 
date is located in the disaster area and 
who has sustained an economic loss by rea-
son of such federally declared disaster. 
‘‘(ii) APPLICABLE PERIOD.—The ap-
plicable period is the period beginning on 
the applicable disaster date and ending on 
December 31, 2016. 
‘‘(iii) FEDERALLY
DECLARED
DIS-
ASTER; DISASTER AREA.—The terms ‘fed-
erally declared disaster’ and ‘disaster area’ 
have the meanings given such terms under 
section 165(i)(5). 
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‘‘(iv) APPLICABLE DISASTER DATE.— 
The term ‘applicable disaster date’ means, 
with respect to any federally declared dis-
aster, the date on which such federally de-
clared disaster occurs.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to loans made with re-
spect to disasters declared after December 31, 2011. 
(c) PROVISIONS
RELATING
TO
PLAN
AMEND-
MENTS.— 
(1) IN GENERAL.—If this subsection applies to 
any amendment to any plan or annuity contract, 
such plan or contract shall be treated as being oper-
ated in accordance with the terms of the plan during 
the period described in paragraph (2)(B)(i). 
(2) AMENDMENTS TO WHICH SUBSECTION AP-
PLIES.— 
(A) IN
GENERAL.—This subsection shall 
apply to any amendment to any plan or annuity 
contract which is made— 
(i) pursuant to any provision of, or 
amendment made by, this section, or pur-
suant to any regulation issued by the Sec-
retary or the Secretary of Labor under any 
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provision of, or amendment made by, this 
section, and 
(ii) on or before the last day of the 
first plan year beginning on or after Janu-
ary 1, 2016, or such later date as the Sec-
retary may prescribe. 
In the case of a governmental plan (as defined 
in section 414(d)), clause (ii) shall be applied 
by substituting the date which is 2 years after 
the date otherwise applied under clause (ii). 
(B) CONDITIONS.—This subsection shall 
not apply to any amendment unless— 
(i) during the period— 
(I) beginning on the date that 
the provisions of, and amendments 
made by, this section or the regulation 
described 
in 
subparagraph 
(A)(i) 
takes effect (or in the case of a plan 
or contract amendment not required 
by the provisions of, or amendments 
made by, this section or such regula-
tion, the effective date specified by the 
plan), and 
(II) ending on the date described 
in subparagraph (A)(ii) (or, if earlier, 
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the date the plan or contract amend-
ment is adopted), 
the plan or contract is operated as if such 
plan or contract amendment were in effect, 
and 
(ii) such plan or contract amendment 
applies retroactively for such period. 
SEC. 109. ADDITIONAL EXEMPTION FOR HOUSING QUALI-
FIED DISASTER DISPLACED INDIVIDUALS. 
(a) IN GENERAL.—Section 151 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(f) ADDITIONAL EXEMPTION FOR CERTAIN DIS-
ASTER-DISPLACED INDIVIDUALS.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning in any calendar year beginning after 
2011, there shall be allowed an exemption of $500 
for each qualified disaster-displaced individual with 
respect to the taxpayer for the taxable year. 
‘‘(2) LIMITATIONS.— 
‘‘(A) DOLLAR
LIMITATION.—The exemp-
tion under paragraph (1) shall not exceed 
$2,000, reduced by the amount of the exemp-
tion under this subsection for all prior taxable 
years. 
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‘‘(B) INDIVIDUALS TAKEN INTO ACCOUNT 
ONLY ONCE.—An individual shall not be taken 
into account under paragraph (1) if such indi-
vidual was taken into account under this sub-
section by the taxpayer for any prior taxable 
year. 
‘‘(C) 
IDENTIFYING
INFORMATION
RE-
QUIRED.—An individual shall not be taken into 
account under paragraph (1) for a taxable year 
unless the taxpayer identification number of 
such individual is included on the return of the 
taxpayer for such taxable year. 
‘‘(3) QUALIFIED
DISASTER-DISPLACED
INDI-
VIDUAL.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘qualified disaster-dis-
placed individual’ means, with respect to any 
taxpayer for any taxable year, any qualified in-
dividual if such individual 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. 
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‘‘(B) QUALIFIED INDIVIDUAL.—The term 
‘qualified individual’ means any individual 
who— 
‘‘(i) on the date of a federally declared 
disaster occurring in calendar years begin-
ning after 2011 and before 2016 main-
tained such individual’s principal place of 
abode in the disaster area declared with re-
spect to such disaster, and 
‘‘(ii) was displaced from such prin-
cipal place of abode by reason of the feder-
ally declared disaster. 
For purposes of the preceding sentence, the 
terms ‘federally declared disaster’ and ‘disaster 
area’ have the meanings given such terms in 
section 165(i)(5). 
‘‘(4) COMPENSATION
FOR
HOUSING.—No de-
duction shall be allowed under this subsection if the 
taxpayer receives any rent or other amount (from 
any source) in connection with the providing of such 
housing.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
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SEC. 110. EXCLUSIONS OF CERTAIN CANCELLATIONS OF IN-
DEBTEDNESS BY REASON OF 2012, 2013, 2014, 
AND 2015 DISASTERS. 
(a) IN GENERAL.—Section 108 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(j) DISCHARGE OF INDEBTEDNESS FOR INDIVID-
UALS AFFECTED BY DISASTERS IN ANY CALENDAR YEAR 
AFTER 2011.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), gross income shall not include any 
amount which (but for this subsection) would be in-
cludible in gross income by reason of any discharge 
(in whole or in part) of indebtedness of a natural 
person described in paragraph (3) by an applicable 
entity (as defined in section 6050P(c)(1)) during the 
applicable period. 
‘‘(2) EXCEPTIONS
FOR
BUSINESS
INDEBTED-
NESS.—Paragraph (1) shall not apply to any indebt-
edness incurred in connection with a trade or busi-
ness. 
‘‘(3) PERSONS DESCRIBED.—A natural person 
is described in this paragraph if the principal place 
of abode of such person on the applicable disaster 
date was located in the disaster area with respect to 
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any federally declared disaster occurring during any 
calendar year beginning after 2011 and before 2016. 
‘‘(4) APPLICABLE
PERIOD.—For purposes of 
this subsection, the term ‘applicable period’ means 
the period beginning on the applicable disaster date 
and ending on the date which is 14 months after 
such date. 
‘‘(5) OTHER
DEFINITIONS.—For purposes of 
this subsection— 
‘‘(A) FEDERALLY
DECLARED
DISASTER; 
DISASTER AREA.—The terms ‘federally declared 
disaster’ and ‘disaster area’ have the meanings 
given such terms under section 165(i)(5). 
‘‘(B) APPLICABLE DISASTER DATE.—The 
term ‘applicable disaster date’ means, with re-
spect to any federally declared disaster, the 
date on which such federally declared disaster 
occurs.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to discharges made on or after De-
cember 31, 2011. 
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SEC. 111. SPECIAL RULE FOR DETERMINING EARNED IN-
COME OF INDIVIDUALS AFFECTED BY FEDER-
ALLY DECLARED DISASTERS. 
(a) IN GENERAL.—Section 32 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(n) SPECIAL RULE FOR DETERMINING EARNED IN-
COME OF TAXPAYERS AFFECTED BY FEDERALLY DE-
CLARED DISASTERS.— 
‘‘(1) IN GENERAL.—In the case of a qualified 
individual with respect to any federally declared dis-
aster occurring during any calendar year beginning 
after 2011, if the earned income of the taxpayer for 
the taxable year which includes the applicable dis-
aster date is less than the earned income of the tax-
payer for the preceding taxable year, the credit al-
lowed under this section and section 24(d) may, at 
the election of the taxpayer, be determined by sub-
stituting— 
‘‘(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, the term ‘qualified individual’ 
means, with respect to any federally declared dis-
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aster occurring in any calendar year beginning after 
2011 and before 2016, any individual whose prin-
cipal place of abode on the applicable disaster date, 
was located— 
‘‘(A) in any portion of a disaster area de-
termined by the President to warrant individual 
or individual and public assistance under the 
Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act by reason of the federally 
declared disaster, or 
‘‘(B) in any portion of the disaster area 
not described in subparagraph (A) and such in-
dividual was displaced from such principal place 
of abode by reason of the federally declared dis-
aster. 
‘‘(3) OTHER
DEFINITIONS.—For purposes of 
this paragraph— 
‘‘(A) FEDERALLY
DECLARED
DISASTER; 
DISASTER AREA.—The terms ‘federally declared 
disaster’ and ‘disaster area’ have the meanings 
given such terms under section 165(i)(5). 
‘‘(B) APPLICABLE DISASTER DATE.—The 
term ‘applicable disaster date’ means, with re-
spect to any federally declared disaster, the 
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date on which such federally declared disaster 
occurs. 
‘‘(4) 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 disaster 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 this section. 
‘‘(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-
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plied without regard to any substitution under 
paragraph (1).’’. 
(b) CHILD TAX CREDIT.—Section 24(d) of the Inter-
nal Revenue Code of 1986 is amended by inserting after 
paragraph (2) the following new paragraph: 
‘‘(3) 
SPECIAL
RULE
FOR
DETERMINING 
EARNED INCOME OF TAXPAYERS AFFECTED BY FED-
ERALLY
DECLARED
DISASTERS.—For election by 
qualified individuals with respect to certain federally 
declared disasters to substitute earned income from 
the preceding taxable year, see section 32(n).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 112. INCREASE IN REHABILITATION CREDIT FOR 
BUILDINGS IN 2012, 2013, 2014, AND 2015 DIS-
ASTER AREAS. 
(a) IN GENERAL.—Section 47 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(e) SPECIAL RULE FOR EXPENDITURES MADE IN 
CONNECTION WITH CERTAIN DISASTERS.— 
‘‘(1) IN GENERAL.—In the case of qualified re-
habilitation expenditures paid or incurred during the 
applicable period with respect to any qualified reha-
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bilitated building or certified historic structure lo-
cated in a disaster area with respect to any federally 
declared disaster occurring in, subsection (a) shall 
be applied— 
‘‘(A) by substituting ‘13 percent’ for ‘10 
percent’ in paragraph (1) thereof, and 
‘‘(B) by substituting ‘26 percent’ for ‘20 
percent’ in paragraph (2) thereof. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) FEDERALLY
DECLARED
DISASTER; 
DISASTER AREA.—The terms ‘federally declared 
disaster’ and ‘disaster area’ have the meanings 
given such terms under section 165(i)(5). 
‘‘(B) APPLICABLE PERIOD.—The term ‘ap-
plicable period’ means the period beginning on 
the applicable disaster date and ending on De-
cember 31, 2015. 
‘‘(C) APPLICABLE DISASTER DATE.—The 
term ‘applicable disaster date’ means, with re-
spect to any federally declared disaster, the 
date on which such federally declared disaster 
occurs.’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2011. 
SEC. 113. ADVANCED REFUNDINGS OF CERTAIN TAX-EX-
EMPT BONDS. 
(a) IN GENERAL.—Section 149(d) of the Internal 
Revenue Code of 1986 is amended by redesignating para-
graph (7) as paragraph (8) and by inserting after para-
graph (6) the following new paragraph: 
‘‘(7) SPECIAL RULE WITH RESPECT TO CER-
TAIN NATURAL DISASTERS.— 
‘‘(A) IN
GENERAL.—With respect to a 
bond described in subparagraph (C), one addi-
tional advance refunding after the date of the 
enactment of this paragraph and before Janu-
ary 1, 2018, shall be allowed under the rules of 
this subsection if— 
‘‘(i) the Governor of the State des-
ignates the advance refunding bond for 
purposes of this subsection, and 
‘‘(ii) the requirements of subpara-
graph (E) are met. 
‘‘(B) 
CERTAIN
PRIVATE
ACTIVITY 
BONDS.—With respect to a bond described in 
subparagraph (C) which is an exempt facility 
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bond described in paragraph (1) or (2) of sec-
tion 142(a), one advance refunding after the 
date of the enactment of this paragraph and be-
fore January 1, 2018, shall be allowed under 
the applicable rules of this subsection (notwith-
standing paragraph (2) thereof) if the require-
ments of clauses (i) and (ii) of subparagraph 
(A) are met. 
‘‘(C) BONDS DESCRIBED.—A bond is de-
scribed in this paragraph if, with respect to any 
federally declared disaster, such bond— 
‘‘(i) was outstanding on the applicable 
disaster date, and 
‘‘(ii) is issued by an applicable State 
or a political subdivision thereof. 
‘‘(D) AGGREGATE LIMIT.—The maximum 
aggregate face amount of bonds which may be 
designated under this subsection by the Gov-
ernor 
of 
a 
State 
shall 
not 
exceed 
$4,500,000,000. 
‘‘(E) ADDITIONAL
REQUIREMENTS.—The 
requirements of this subparagraph are met with 
respect to any advance refunding of a bond de-
scribed in subparagraph (C) if— 
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in which a portion of the disaster area is 
located.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
SEC. 114. QUALIFIED DISASTER AREA RECOVERY BONDS. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter B of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 146 the fol-
lowing new section: 
‘‘SEC. 146A. QUALIFIED DISASTER AREA RECOVERY BONDS. 
‘‘(a) IN GENERAL.—For purposes of this title, any 
qualified disaster area recovery bond shall— 
‘‘(1) be treated as an exempt facility bond, and 
‘‘(2) not be subject to section 146. 
‘‘(b) 
QUALIFIED
DISASTER
AREA
RECOVERY 
BOND.—For purposes of this section, the term ‘qualified 
disaster area recovery bond’ means any bond issued as 
part of an issue if— 
‘‘(1) 95 percent or more of the net proceeds of 
such issue are to be used for qualified project costs, 
‘‘(2) such bond is issued by a State or any po-
litical subdivision thereof any part of which is in a 
qualified disaster area, 
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‘‘(3) the Governor of the issuing State des-
ignates such bond for purposes of this section, and 
‘‘(4) such bond is issued after the date of the 
enactment of this section and before January 1, 
2017. 
‘‘(c) LIMITATION ON AMOUNT OF BONDS.— 
‘‘(1) IN
GENERAL.—The maximum aggregate 
face amount of bonds which may be designated 
under this section by any State shall not exceed 
$10,000,000,000. 
‘‘(2) MOVABLE PROPERTY.—No bonds shall be 
issued which are to be used for movable fixtures and 
equipment. 
‘‘(3) TREATMENT
OF
CURRENT
REFUNDING 
BONDS.—Paragraph (1) shall not apply to any bond 
(or series of bonds) issued to refund a qualified dis-
aster area recovery bond, if— 
‘‘(A) the average maturity date of the issue 
of which the refunding bond is a part is not 
later than the average maturity date of the 
bonds to be refunded by such issue, 
‘‘(B) the amount of the refunding bond 
does not exceed the outstanding amount of the 
refunded bond, and 
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‘‘(C) the net proceeds of the refunding 
bond are used to redeem the refunded bond not 
later than 90 days after the date of the 
issuance of the refunding bond. 
For purposes of subparagraph (A), average maturity 
shall be determined in accordance with section 
147(b)(2)(A). 
‘‘(d) QUALIFIED PROJECT COSTS.—For purposes of 
this section, the term ‘qualified project costs’ means the 
cost of acquisition, construction, reconstruction, and ren-
ovation of— 
‘‘(1) residential rental property (as defined in 
section 142(d)), 
‘‘(2) nonresidential real property (including 
fixed improvements associated with such property), 
‘‘(3) a facility described in paragraph (2) or (3) 
of section 142(a), or 
‘‘(4) public utility property (as defined in sec-
tion 168(i)(10)), 
which is located in a qualified disaster area and was dam-
aged or destroyed by reason of a federally declared dis-
aster. 
‘‘(e) SPECIAL RULES.—In applying this title to any 
qualified disaster area recovery bond, the following modi-
fications shall apply: 
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‘‘(1) Section 147(d) (relating to acquisition of 
existing property not permitted) shall be applied by 
substituting ‘50 percent’ for ‘15 percent’ each place 
it appears. 
‘‘(2) Section 148(f)(4)(C) (relating to exception 
from rebate for certain proceeds to be used to fi-
nance construction expenditures) shall apply to the 
available construction proceeds of bonds issued 
under this section. For purposes of the preceding 
sentence, the following spending requirements shall 
apply in lieu of the requirements in clause (ii) of 
such section: 
‘‘(A) 40 percent of such available construc-
tion proceeds are spent for the governmental 
purposes of the issue within the 2-year period 
beginning on the date the bonds are issued. 
‘‘(B) 60 percent of such proceeds are spent 
for such purposes within the 3-year period be-
ginning on such date. 
‘‘(C) 80 percent of such proceeds are spent 
for such purposes within the 4-year period be-
ginning on such date. 
‘‘(D) 100 percent of such proceeds are 
spent for such purposes within the 5-year pe-
riod beginning on such date. 
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‘‘(3) Repayments of principal on financing pro-
vided by the issue— 
‘‘(A) may not be used to provide financing, 
and 
‘‘(B) must be used not later than the close 
of the first semiannual period beginning after 
the date of the repayment to redeem bonds 
which are part of such issue. 
The requirement of subparagraph (B) shall be treat-
ed as met with respect to amounts received within 
5 years after the date of issuance of the issue (or, 
in the case of a refunding bond, the date of issuance 
of the original bond) if such amounts are used by 
the close of such 5 years to redeem bonds which are 
part of such issue. 
‘‘(4) Section 57(a)(5) shall not apply. 
‘‘(f) SEPARATE ISSUE TREATMENT OF PORTIONS OF 
AN ISSUE.—This section shall not apply to the portion of 
an issue which (if issued as a separate issue) would be 
treated as a qualified bond or as a bond that is not a 
private activity bond (determined without regard to para-
graph (1)), if the issuer elects to so treat such portion. 
‘‘(g) QUALIFIED DISASTER AREA; FEDERALLY DE-
CLARED DISASTER.— 
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‘‘(1) QUALIFIED
DISASTER
AREA.—The term 
‘qualified disaster area’ means any area determined 
to warrant individual or individual and public assist-
ance from the Federal Government under the Robert 
T. Stafford Disaster Relief and Emergency Assist-
ance Act by reason of a federally declared disaster 
occurring during the period beginning after Decem-
ber 31, 2011, and before January 1, 2016. 
‘‘(2) FEDERALLY
DECLARED
DISASTER.—The 
term ‘federally declared disaster’ has the meaning 
given to such term under section 165(i)(5).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter B of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 146 the following new item: 
‘‘Sec. 146A. Qualified disaster area recovery bonds.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2015. 
SEC. 115. ADDITIONAL LOW-INCOME HOUSING CREDIT AL-
LOCATIONS. 
(a) IN GENERAL.—Paragraph (3) of section 42(h) of 
the Internal Revenue Code of 1986 (relating to limitation 
on aggregate credit allowable with respect to projects lo-
cated in a State) is amended by adding at the end the 
following new subparagraph: 
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‘‘(J) INCREASE IN STATE HOUSING CREDIT 
FOR
STATES
DAMAGED
BY
NATURAL
DISAS-
TERS.— 
‘‘(i) IN GENERAL.—In the case of cal-
endar year 2016, the State housing credit 
ceiling of each State any portion of which 
includes any portion of a qualifying dis-
aster area shall be increased by so much of 
the aggregate housing credit dollar amount 
as does not exceed the applicable limitation 
allocated by the State housing credit agen-
cy of such State for such calendar year to 
buildings located in qualifying disaster 
areas. 
‘‘(ii) APPLICABLE
LIMITATION.—For 
purposes of clause (i), the applicable limi-
tation is the greater of— 
‘‘(I) $8 multiplied by the popu-
lation of the qualifying disaster areas 
in such State, or 
‘‘(II) 50 percent of the State 
housing credit ceiling (determined 
without regard to this subparagraph) 
for 2015. 
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‘‘(iii) APPLICABLE
PERCENTAGE.— 
For purposes of this section, the applicable 
percentage with respect to any building to 
which amounts allocated under clause (i) 
shall be determined under subsection 
(b)(2), except that subparagraph (A) 
thereof shall be applied by substituting 
‘January 1, 2016’ for ‘January 1, 2015’. 
‘‘(iv) 
ALLOCATIONS
TREATED
AS 
MADE FIRST FROM ADDITIONAL ALLOCA-
TION AMOUNT FOR PURPOSES OF DETER-
MINING CARRYOVER.—For purposes of de-
termining the unused State housing credit 
ceiling under subparagraph (C) for any 
calendar year, any increase in the State 
housing credit ceiling under clause (i) shall 
be treated as an amount described in 
clause (ii) of such subparagraph. 
‘‘(v) QUALIFYING DISASTER AREA.— 
For purposes of this subparagraph, the 
term ‘qualifying federally declared disaster 
area’ means— 
‘‘(I) each county which is deter-
mined to warrant individual or indi-
vidual and public assistance from the 
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Federal Government under a quali-
fying natural disaster declaration de-
scribed in clause (vi)(I), and 
‘‘(II) each county not described 
in subclause (I) which is included in 
the geographical area covered by a 
qualifying natural disaster declaration 
described in subclause (II) or (III) of 
clause (vi). 
‘‘(vi) QUALIFYING NATURAL DISASTER 
DECLARATION.—For purposes of clause 
(v), the term ‘qualifying natural disaster 
declaration’ means— 
‘‘(I) a federally declared disaster 
(as defined in section 165(i)(5)) oc-
curring during the period beginning 
after December 31, 2011, and before 
January 1, 2016, 
‘‘(II) a natural disaster declared 
by the Secretary of Agriculture in 
2011 due to damaging weather and 
other conditions relating to Hurricane 
Irene or Tropical Storm Lee under 
section 321(a) of the Consolidated 
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Farm and Rural Development Act (7 
U.S.C. 1961(a)), or 
‘‘(III) a major disaster or emer-
gency designated by the President in 
2011 due to damaging weather and 
other conditions relating to Hurricane 
Irene or Tropical Storm Lee under 
the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 
U.S.C. 5121 et seq.).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 116. FACILITATION OF TRANSFER OF WATER LEASING 
AND WATER BY MUTUAL DITCH OR IRRIGA-
TION COMPANIES IN DISASTER AREAS. 
(a) IN GENERAL.—Paragraph (12) of section 501(c) 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new subparagraph: 
‘‘(I) TREATMENT OF MUTUAL DITCH OR 
IRRIGATION COMPANIES IN CERTAIN DISASTER 
AREAS.— 
‘‘(i) IN GENERAL.—In the case of a 
qualified mutual ditch or irrigation com-
pany or like organization, subparagraph 
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(A) shall be applied without taking into ac-
count any income received or accrued dur-
ing the applicable period— 
‘‘(I) from the sale, lease, or ex-
change of fee or other interests in real 
property, including interests in water, 
‘‘(II) from the sale or exchange 
of stock in a mutual ditch or irriga-
tion company or like organization or 
contract rights for the delivery or use 
of water, 
‘‘(III) from the investment of 
proceeds from sales, leases, or ex-
changes under subclauses (I) and (II), 
or 
‘‘(IV) from the United States, or 
a State or local government, resulting 
from the federally declared disaster, 
except that any income received under sub-
clause (I), (II), (III), or (IV) which is dis-
tributed or expended for expenses (other 
than for operations, maintenance, and cap-
ital improvements) of the qualified mutual 
ditch or irrigation company or like organi-
zation shall be treated as nonmember in-
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come in the year in which it is distributed 
or expended. 
‘‘(ii) QUALIFIED MUTUAL DITCH OR 
IRRIGATION COMPANY OR LIKE ORGANIZA-
TION.—For purposes of this paragraph— 
‘‘(I) IN
GENERAL.—The term 
‘qualified mutual ditch or irrigation 
company or like organization’ means 
any mutual ditch or irrigation com-
pany or like organization that di-
verted, delivered, transported, stored, 
or used its water for agricultural irri-
gation purposes on its own or through 
its shareholders in a qualified disaster 
area during any of calendar years 
2012 through 2015. 
‘‘(II) QUALIFIED
ASSET.—The 
term ‘qualified asset’ means any real 
property or tangible personal property 
used in the mutual ditch or irrigation 
company’s (or like organization’s) sys-
tem. 
‘‘(III) MULTIPLE AREAS.—Under 
regulations, if the qualified assets of 
any mutual ditch or irrigation com-
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pany or like organization are located 
in more than 1 qualified disaster area, 
all such areas shall be treated as 1 
area and if more than 1 federally de-
clared disaster is involved, the date on 
which the last of such disasters oc-
curred shall be the date used for pur-
poses of this paragraph. 
‘‘(iii) APPLICABLE PERIOD.—For pur-
poses of this paragraph, the term ‘applica-
ble period’ means the taxable year in which 
the federally declared disaster occurred 
and the 5 following taxable years. 
‘‘(iv) OTHER DEFINITIONS.— 
‘‘(I) 
QUALIFIED
DISASTER 
AREA.—The term ‘qualified disaster 
area’ means any area determined to 
warrant individual or individual and 
public assistance from the Federal 
Government under the Robert T. 
Stafford Disaster Relief and Emer-
gency Assistance Act by reason of a 
federally declared disaster occurring 
during the period beginning on Janu-
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ary 1, 2012, and ending on December 
31, 2015. 
‘‘(II) 
FEDERALLY
DECLARED 
DISASTER.—The term ‘federally de-
clared disaster’ has the meaning given 
to 
such 
term 
under 
section 
165(i)(5).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years ending after 
December 31, 2011. 
TITLE II—OTHER DISASTER TAX 
RELIEF PROVISIONS 
SEC. 201. EXCLUSION FOR DISASTER MITIGATION PAY-
MENTS RECEIVED FROM STATE AND LOCAL 
GOVERNMENTS. 
(a) IN GENERAL.—Paragraph (2) of section 139(g) 
of the Internal Revenue Code of 1986 is amended by in-
serting ‘‘, or any other amount which is paid by a State 
or local government or agency or instrumentality thereof,’’ 
after ‘‘(as in effect on such date)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to payments received after the date 
of the enactment of this Act. 
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SEC. 202. NATURAL DISASTER FUNDS. 
(a) NATURAL DISASTER FUND.—Subpart C of part 
II of subchapter E of chapter 1 of the Internal Revenue 
Code of 1986 is amended by inserting after section 468B 
the following new section: 
‘‘SEC. 468C. SPECIAL RULES FOR NATURAL DISASTER 
FUNDS. 
‘‘(a) IN GENERAL.—If a qualified taxpayer elects the 
application of this section, there shall be allowed as a de-
duction for any taxable year the amount of payments 
made by the taxpayer to a natural disaster fund during 
such taxable year. 
‘‘(b) NATURAL DISASTER FUND.—The term ‘natural 
disaster fund’ means a fund meeting the following require-
ments: 
‘‘(1) 
DESIGNATION.—The 
taxpayer 
des-
ignates— 
‘‘(A) the fund as a natural disaster fund in 
the manner prescribed by the Secretary, and 
‘‘(B) the line or lines of business to which 
the fund applies. 
‘‘(2) SEGREGATION.—The assets of the fund 
are segregated from other assets of the taxpayer. 
‘‘(3) INVESTMENTS.— 
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‘‘(A) The assets of the fund are main-
tained in one or more qualified accounts and 
are invested only in— 
‘‘(i) deposits with banks whose depos-
its are insured subject to applicable limits 
by the Federal Deposit Insurance Corpora-
tion, or 
‘‘(ii) in stock or other securities in 
which the fund would be permitted to in-
vest if it were a capital construction fund 
subject to the investment limitations of 
paragraphs 
(2) 
and 
(3) 
of 
section 
7518(b)(2). 
‘‘(B) All investment earnings (including 
gains and losses) from investments of the fund 
become part of the fund. 
‘‘(4) CONTRIBUTIONS
TO
THE
FUND.—The 
fund does not accept any deposits (or other 
amounts) other than cash payments with respect to 
which a deduction is allowable under subsection (a) 
and earnings (including gains and losses) from fund 
investments. 
‘‘(5) PURPOSE.—The fund is established and 
maintained for the purposes of covering costs, ex-
penses, and losses (including business interruption 
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losses) resulting from a Federally declared natural 
disaster to the extent such costs are not covered by 
insurance. 
‘‘(6) MAXIMUM BALANCE.—The balance of the 
fund does not exceed the lesser of— 
‘‘(A) the sum of— 
‘‘(i) 150 percent of the maximum de-
ductible, and 
‘‘(ii) 100 percent of the maximum co- 
insurance (to the extent not taken into ac-
count in clause (i)), 
that, in the case of a Federally declared natural 
disaster resulting in losses, the taxpayer could 
be expected to pay with respect to property and 
business interruption insurance maintained by 
the taxpayer for the line of business to which 
the fund applies and that would cover losses re-
sulting from a Federally declared natural dis-
aster, and 
‘‘(B) the maximum loss under any insur-
ance coverage that the taxpayer could reason-
ably expect to occur for the line of business in 
the case of a severe natural disaster. 
‘‘(7) FINANCIAL
STATEMENTS.—The fund or 
the balance of the fund is recorded in the taxpayer’s 
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financial statements in accordance with generally ac-
cepted accounting principles and not as a current 
asset and the footnotes to the taxpayer’s financial 
statements include a short description of the fund 
and its purposes. 
‘‘(8) INSURANCE.—The taxpayer property in-
surance maintained by the qualified taxpayer applies 
to 75 percent or more of the property used— 
‘‘(A) in the qualified taxpayer’s line of 
business to which the fund relates, and 
‘‘(B) in the United States. 
‘‘(c) QUALIFIED TAXPAYER.—For purposes of this 
section, the term ‘qualified taxpayer’ means any taxpayer 
that— 
‘‘(1) actively conducts a trade or business, and 
‘‘(2) maintains property insurance with respect 
to such trade or business that insures against losses 
in natural disasters. 
‘‘(d) FAILURE TO MEET REQUIREMENTS.—If a fund 
that was a natural disaster fund ceases to meet any of 
the requirements of subsection (b) or a taxpayer who has 
a natural disaster fund ceases to meet the requirement 
of subsection (c), the entire balance of the fund shall be 
deemed distributed in a nonqualified distribution at the 
time the fund ceases to meet such requirements. 
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‘‘(e) TAXATION OF FUND.— 
‘‘(1) IN
GENERAL.—The earnings (including 
gains and losses) from the investment and reinvest-
ment of amounts held in the fund shall not be taken 
into account in determining the gross income of the 
taxpayer that owns the fund. 
‘‘(2) NOT A SEPARATE TAXPAYER.—A natural 
disaster fund shall not be considered a separate tax-
payer for purposes of this subtitle. 
‘‘(f) TAXATION
OF
DISTRIBUTIONS
FROM
THE 
FUND.— 
‘‘(1) QUALIFIED
DISTRIBUTIONS.—For pur-
poses of this chapter, qualified distributions shall be 
treated in the same manner as proceeds from prop-
erty or business interruption insurance. 
‘‘(2) NONQUALIFIED DISTRIBUTIONS.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year for which there is a nonqualified 
distribution— 
‘‘(i) such nonqualified distributions 
shall be excluded from the gross income of 
the taxpayer, and 
‘‘(ii) the tax imposed by this chapter 
(determined without regard to this sub-
section) shall be increased by the product 
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of the amount of such nonqualified dis-
tribution and the highest rate of tax speci-
fied in section 1 (section 11 in the case of 
a corporation). 
‘‘(B) TAX BENEFIT RULE; COORDINATION 
WITH
DEDUCTION
FOR
NET
OPERATING 
LOSSES.—Rules similar to the rules of subpara-
graphs (B) and (C) of section 7518(g)(6) shall 
apply for purposes of this paragraph. 
‘‘(3) ADDITIONAL TAX.—The tax imposed by 
this chapter for any taxable year on any taxpayer 
that a owns natural disaster fund shall be increased 
by the greater of— 
‘‘(A) 20 percent of the amount of any non- 
qualified distributions from the fund in the tax-
able year, and 
‘‘(B) an amount equal to interest, at the 
underpayment rate established under section 
6621, on the nonqualified distribution from the 
time the amount is added to the fund to the 
time the amount is distributed. 
‘‘(4) INTEREST
CALCULATION.—For purposes 
of calculating interest under paragraph (3)(B)— 
‘‘(A) all investment earnings (including 
gains or losses) in the taxable year shall be 
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treated as added to the fund on the last day of 
the taxable year, and 
‘‘(B) amounts distributed from the fund 
shall be treated as distributed on a first-in, 
first-out basis. 
‘‘(g) DEFINITIONS.—For purposes of this section— 
‘‘(1) FEDERALLY
DECLARED
NATURAL
DIS-
ASTER.—The term ‘Federally declared natural dis-
aster’ means a natural disaster that is determined 
by Presidential declaration under the Robert T. 
Stafford Disaster Relief and Emergency Assistance 
Act to warrant individual or individual and public 
assistance under such Act. 
‘‘(2) NONQUALIFIED DISTRIBUTION.—The term 
‘nonqualified distribution’ means a distribution from 
a natural disaster fund other than a qualified dis-
tribution. 
‘‘(3) QUALIFIED ACCOUNT.—The term ‘quali-
fied account’ means an account with a bank (as de-
fined in section 581) or a brokerage account but 
only if the investments of such accounts are limited 
to those permitted by subsection (b)(3) and no in-
vestments are made in a related person (as defined 
in section 465(b)(3)(C)) to the taxpayer. 
‘‘(4) QUALIFIED DISTRIBUTION.— 
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‘‘(A) IN
GENERAL.—The term ‘qualified 
distribution’ means with respect to a natural 
disaster fund an amount equal to the excess 
of— 
‘‘(i) costs, expenses, and losses (in-
cluding losses of a type reimbursable by 
proceeds of business interruption insur-
ance) incurred by the taxpayer as a result 
of the Federally declared natural disaster 
with respect to the line or lines of business 
for which the fund was designated, over 
‘‘(ii) the proceeds of property and 
business interruption insurance paid for 
the benefit of the taxpayer with respect to 
costs, expenses, and losses described in 
clause (i). 
‘‘(B) LIMITATION.—A distribution from a 
natural disaster fund shall not be treated as a 
qualified distribution if such distribution is allo-
cated to a Federally declared natural disaster 
occurring more than 3 years before the date of 
such distribution. 
‘‘(h) SPECIAL RULES.—For purposes of this sec-
tion— 
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‘‘(1) NO DOUBLE COUNTING.—Any portion of 
any deductible or coinsurance taken into account 
under subsection (b)(6) in determining the max-
imum balance for a natural disaster fund shall not 
be taken into account in determining the maximum 
balance for another natural disaster fund. 
‘‘(2) EXCESS BALANCE.— 
‘‘(A) IN GENERAL.—If the balance of a 
natural disaster fund exceeds the maximum bal-
ance permitted by subsection (b)(6) by reason 
of investment earnings or a reduction in the 
maximum balance, the account shall not cease 
to be a natural disaster fund as the result of 
exceeding such limit if the excess is distributed 
within 120 days of the date that such excess 
first occurred. 
‘‘(B) TREATMENT OF DISTRIBUTIONS OF 
EXCESS BALANCE.—In the case of any distribu-
tion of the excess balance of a natural disaster 
fund within 120 days of the date that such ex-
cess first occurred— 
‘‘(i) paragraphs (2) and (3) of sub-
section (f) shall not apply to the distribu-
tion of such excess if distributed within 
such period, and 
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‘‘(ii) the amount of such distribution 
shall be included in the gross income of the 
taxpayer in the year such distribution was 
made. 
‘‘(C) ANTI-ABUSE
RULE.—Subparagraph 
(B) shall not apply in the case of any reduction 
in the maximum balance resulting from any ac-
tion of the taxpayer the primary purpose of 
which was to reduce the maximum balance to 
enable a distribution that would not be subject 
to the maximum tax rate calculation or the ad-
ditional tax. 
‘‘(3) 
CERTAIN
ASSET
ACQUISITIONS.—The 
transfer of a natural disaster fund (or the portion of 
a natural disaster fund) from one person to another 
person shall not constitute a nonqualified distribu-
tion if— 
‘‘(A) such transfer is part of a trans-
action— 
‘‘(i) to which section 381 applies, 
‘‘(ii) the transferee acquires substan-
tially all of the assets of the transferor 
used in the line or lines of business for 
which the fund was designated, 
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‘‘(iii) the transferee acquires substan-
tially all of the assets of the transferor 
used in one, but not all, of the lines of 
business for which the fund was des-
ignated, or 
‘‘(iv) the transferee acquires substan-
tially all of the transferor’s assets located 
in a geographical area and used in a line 
of business for which the fund was des-
ignated, and 
‘‘(B) the transferee elects to treat the ac-
quired natural disaster fund (or portion there-
of) as a natural disaster fund for the line of 
business for which the transferor had previously 
designated the fund and as a continuation of 
the fund (or pro rata portion thereof) for pur-
poses of determining the additional tax imposed 
by subsection (f)(4). 
‘‘(i) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the provisions of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart C of part II of subchapter E of chapter 1 of 
the Internal Revenue Code of 1986 is amended by insert-
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ing after the item relating to section 468B the following 
new item: 
‘‘Sec. 468C. Special rules for natural disaster funds.’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
TITLE III—PERMANENT TAX 
DISASTER RELIEF PROVISIONS 
SEC. 301. INCREASE PROPERTY REPLACEMENT PERIOD TO 
5 YEARS. 
(a) IN GENERAL.—Section 1033(a)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: 
‘‘(F) FEDERALLY DECLARED DISASTER.— 
‘‘(i) IN GENERAL.—In the case of con-
verted property that is located in the dis-
aster area of a federally declared disaster 
occurring during a calendar year beginning 
after 2011 and that is damaged or de-
stroyed by the federally declared disaster, 
subparagraph (B)(i) shall be applied by 
substituting ‘5 years’ for ‘2 years’. 
‘‘(ii) FEDERALLY
DECLARED
DIS-
ASTER
AND
DISASTER
AREA.—For pur-
poses of clause (i), the terms ‘federally de-
clared disaster’ and ‘disaster area’ have 
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the meanings given such terms under sec-
tion 165(i)(5).’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
1033(h)(1)(B) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘4 years’’ and inserting ‘‘5 years’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disasters declared after Decem-
ber 31, 2015. 
SEC. 302. WAGE CREDIT FOR SPECIFIED DISASTER-DAM-
AGED BUSINESSES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45S. WAGE CREDIT FOR SPECIFIED DISASTER-DAM-
AGED BUSINESSES. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of an eligible employer, the specified disaster- 
damaged business wage credit for any taxable year is an 
amount equal to 40 percent of the qualified wages for such 
year. 
‘‘(b) QUALIFIED WAGES DEFINED.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘qualified wages’ 
means, with respect to any covered employee, wages 
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paid or incurred by the eligible employer to the em-
ployee who is not able to work at the disaster-dam-
aged business of the employer during an inoper-
ability period because of a federally declared dis-
aster. Such term shall not include amounts paid or 
incurred for overtime compensation. 
‘‘(2) LIMITATIONS.— 
‘‘(A) LIMITATION ON WAGES TAKEN INTO 
ACCOUNT.—The amount of the qualified wages 
with respect to any individual which may be 
taken into account with respect to a federally 
declared disaster shall not exceed $6,000. 
‘‘(B) INOPERABILITY PERIOD.—The inop-
erability period with respect to a federally de-
clared disaster is the period beginning with the 
first day the trade or business is rendered inop-
erable due to damage from the federally de-
clared disaster and ending on the earlier of— 
‘‘(i) the last day on which the trade or 
business is inoperable, or 
‘‘(ii) 16 weeks after the first day of 
such disaster. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE EMPLOYER.— 
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‘‘(A) IN GENERAL.—The term ‘eligible em-
ployer’ means, with respect to any taxable year, 
any employer which— 
‘‘(i) employed an average of less than 
200 employees on business days during 
such taxable year, and 
‘‘(ii) has a disaster-damaged business. 
‘‘(B) DISASTER-DAMAGED BUSINESS.—The 
term ‘disaster-damaged business’ means a place 
of business within a disaster area which is ren-
dered inoperable due to damage from the feder-
ally declared disaster. 
‘‘(C) CONTROLLED
GROUPS.—For pur-
poses of this section, all persons treated as a 
single employer under subsection (b), (c), (m), 
or (o) of section 414 shall be treated as a single 
employer. 
‘‘(2) COVERED EMPLOYEE.—The term ‘covered 
employee’ means, with respect to an eligible em-
ployer, an individual— 
‘‘(A) whose principal place of employment 
is in a disaster area with respect to a federally 
declared disaster, and 
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‘‘(B) who has been employed by the em-
ployer for more than 30 days before the first 
day of the federally declared disaster. 
‘‘(3) FEDERALLY
DECLARED
DISASTER
AND 
DISASTER AREA.—For purposes of clause (i), the 
terms ‘federally declared disaster’ and ‘disaster area’ 
have the meanings given such terms under section 
165(i)(5).’’. 
(b) ALLOWANCE AS GENERAL BUSINESS CREDIT.— 
Section 38(b) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘plus’’ at the end of paragraph (35), 
by striking the period at the end of paragraph (36) and 
inserting ‘‘, plus’’, and by adding at the end the following: 
‘‘(37) the specified disaster-damaged business 
wage credit determined under section 45S(a).’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Subsection (a) 
of section 280C of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘45S(a),’’ after ‘‘45P(a)’’. 
(d) CLERICAL AMENDMENT.—The table of contents 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 45S. Wage credit for specified disaster-damaged businesses.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
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SEC. 303. DISASTER-RELATED MEDICAL EXPENSES. 
(a) IN GENERAL.—Section 213 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(g) DISASTER-RELATED MEDICAL EXPENSES.— 
‘‘(1) IN GENERAL.—In the case of expenses di-
rectly related to an injury caused by a federally de-
clared disaster occurring during the taxable year or 
the preceding taxable year, there shall be allowed a 
separate deduction under this section, which shall be 
determined under this section (without regard to 
this subsection), except that— 
‘‘(A) subsection (a) shall be applied by 
substituting ‘zero percent’ for ‘10 percent’, and 
‘‘(B) subsection (f) shall be applied by sub-
stituting ‘zero percent’ for ‘7.5 percent’. 
‘‘(2) COORDINATION.—Any expense taken into 
account under paragraph (1) shall not be treated as 
an expense taken into account under this section 
(without regard to this section). 
‘‘(3) FEDERALLY
DECLARED
DISASTER.—For 
purposes of this subsection, the term ‘federally de-
clared disaster’ shall have the meaning given such 
term under section 165(i)(5).’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to disasters occur-
ring after the date of the enactment of this Act. 
SEC. 304. EXPENSING OF QUALIFIED DISASTER EXPENSES. 
(a) IN GENERAL.—Section 198A(b)(2)(A)(ii) of the 
Internal Revenue Code of 1986, as added by section 101 
of this Act, is amended by striking ‘‘and before January 
1, 2016,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred after 
December 31, 2015. 
SEC. 305. LOSSES ATTRIBUTABLE TO DISASTERS. 
(a) IN GENERAL.—Section 165(h)(3)(B)(i)(I) of the 
Internal Revenue Code of 1986, as amended by section 
103 of this Act, is amended by striking ‘‘the period begin-
ning after December 31, 2011, and before January 1, 
2016,’’ and inserting ‘‘any period beginning after Decem-
ber 31, 2011,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to disasters declared in taxable 
years beginning after December 31, 2015. 
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SEC. 306. NET OPERATING LOSSES ATTRIBUTABLE TO DIS-
ASTERS. 
(a) IN GENERAL.—Section 172(i)(1)(A)(i)(I) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘and before January 1, 2016,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to disasters declared in taxable 
years beginning after December 31, 2015. 
SEC. 307. SPECIAL RULES FOR USE OF RETIREMENT FUNDS 
IN 
CONNECTION 
WITH 
FEDERALLY 
DE-
CLARED DISASTERS. 
(a) WITHDRAWALS.—Section 72(t)(11)(A) of the In-
ternal Revenue Code of 1986, as amended by section 108 
of this Act, is amended by striking ‘‘2011 and before Jan-
uary 1, 2016,’’ and inserting ‘‘2011,’’. 
(b) LOANS.—Section 72(p)(6)(C)(ii) of such Code is 
amended by striking ‘‘and ending on December 31, 2016’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions with respect to dis-
asters declared after December 31, 2015. 
SEC. 308. ADDITIONAL EXEMPTION FOR HOUSING QUALI-
FIED DISASTER DISPLACED INDIVIDUALS. 
(a) IN GENERAL.—Section 151(f)(3)(B)(i) of the In-
ternal Revenue Code of 1986, as amended by section 109 
of this Act, is amended by striking ‘‘and before 2016’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 309. EXCLUSIONS OF CERTAIN CANCELLATIONS OF IN-
DEBTEDNESS BY REASON OF DISASTERS. 
(a) IN GENERAL.—Section 108(j)(3) of the Internal 
Revenue Code of 1986, as amended by section 110 of this 
Act, is amended by striking ‘‘and before 2016’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to discharges made on or after De-
cember 31, 2015. 
SEC. 310. SPECIAL RULE FOR DETERMINING EARNED IN-
COME OF INDIVIDUALS AFFECTED BY FEDER-
ALLY DECLARED DISASTERS. 
(a) IN GENERAL.—Section 32(n)(2) of the Internal 
Revenue Code of 1986, as amended by section 111 of this 
Act, is amended by striking ‘‘and before 2016’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 311. QUALIFIED DISASTER AREA RECOVERY BONDS. 
(a) IN GENERAL.—Section 146A(b)(4) of the Inter-
nal Revenue Code of 1986, as amended by section 114 
of this Act, is further amended by striking ‘‘and before 
January 1, 2017’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to obligations issued after Decem-
ber 31, 2015. 
SEC. 312. ADDITIONAL LOW-INCOME HOUSING CREDIT AL-
LOCATIONS. 
(a) IN GENERAL.—Section 42(h)(3)(J) of the Inter-
nal Revenue Code of 1986, as amended by section 115 
of this Act, is amended— 
(1) in clause (i) by striking ‘‘In the case of cal-
endar year 2016,’’ and inserting ‘‘In the case of a 
calendar year beginning after 2015,’’, 
(2) in clause (ii)(II) by striking ‘‘2015’’ and in-
serting ‘‘the preceding calendar year’’, and 
(3) in clause (iii) by striking ‘‘January 1, 
2016’’ and inserting ‘‘January 1 of the calendar 
year in which the taxable year ends’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 313. SUSPENSION OF LIMITATION ON CHARITABLE 
CONTRIBUTIONS FOR DISASTER RELIEF EF-
FORTS. 
(a) IN GENERAL.—Section 170 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
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(p) as subsection (q) and by inserting after subsection (o) 
the following new subsection: 
‘‘(p) SUSPENSION OF LIMITATION ON CHARITABLE 
CONTRIBUTIONS FOR DISASTER RELIEF EFFORTS.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in paragraph (2), subsection (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) to other contribu-
tions. 
‘‘(2) 
TREATMENT
OF
EXCESS
CONTRIBU-
TIONS.— 
‘‘(A) INDIVIDUALS.— 
‘‘(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 over the amount 
of all other charitable contributions allowed 
under subsection (b)(1). 
‘‘(ii) CARRYOVER.—If the aggregate 
amount of qualified contributions made in 
the contribution year (within the meaning 
of subsection (d)(1)) exceeds the limitation 
of clause (i), such excess shall be added to 
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the excess described in the portion of sub-
paragraph (A) of such subsection which 
precedes clause (i) thereof for purposes of 
applying such subsection. 
‘‘(B) CORPORATIONS.— 
‘‘(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 subsection (b)(2)) over the amount 
of all other charitable contributions allowed 
under such subsection. 
‘‘(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 this section 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 of such Code. 
‘‘(4) QUALIFIED CONTRIBUTIONS.— 
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‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘qualified contribution’ 
means any charitable contribution if— 
‘‘(i) such contribution— 
‘‘(I) is paid during the 120-day 
period beginning on the date a Feder-
ally declared disaster first occurred, in 
cash to an organization described in 
subsection (b)(1)(A), and 
‘‘(II) is made for relief efforts in 
the disaster area with respect to 
which such declaration relates, 
‘‘(ii) the taxpayer obtains from such 
organization contemporaneous written ac-
knowledgment that such contribution was 
used (or is to be used) for relief efforts de-
scribed in clause (i)(II), 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 by a donor if the contribu-
tion is— 
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‘‘(i) to an organization described in 
section 509(a)(3) of the Internal Revenue 
Code of 1986, or 
‘‘(ii) for the establishment of a new, 
or maintenance of an existing, donor ad-
vised 
fund 
(as 
defined 
in 
section 
4966(d)(2) of such Code). 
‘‘(C) APPLICATION TO PARTNERSHIPS AND 
S CORPORATIONS.—In the case of a partnership 
or S corporation, the election under subpara-
graph (A)(iii) shall be made separately by each 
partner or shareholder.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 314. INCREASE IN NEW MARKETS TAX CREDIT ALLO-
CATIONS. 
(a) EXTENSION.—Section 45D(f)(4) of the Internal 
Revenue Code of 1986, as amended by the preceding pro-
visions of this Act, is amended— 
(1) by striking ‘‘and before 2017’’, in subpara-
graph (A), and 
(2) by striking ‘‘, and before January 1, 2016’’ 
in subparagraph (D). 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disasters occurring after Decem-
ber 31, 2015. 
SEC. 315. INCREASE IN REHABILITATION CREDIT FOR 
BUILDINGS IN DISASTER AREAS. 
(a) IN GENERAL.—Section 47(e)(2)(B) of the Inter-
nal Revenue Code of 1986, as added by this Act, is amend-
ed by striking ‘‘and ending on December 31, 2015’’ and 
inserting ‘‘and ending on the date that is 6 years after 
such applicable disaster date’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to periods beginning after Decem-
ber 31, 2015. 
SEC. 316. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
REQUIREMENTS FOLLOWING DISASTERS. 
(a) IN GENERAL.—Section 143(k)(13) of the Inter-
nal Revenue Code of 1986, as amended by this Act, is 
amended by striking ‘‘, and before January 1, 2016’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to disasters occurring after Decem-
ber 31, 2015. 
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SEC. 317. ADVANCED REFUNDINGS OF CERTAIN TAX-EX-
EMPT BONDS. 
(a) IN GENERAL.—Section 149(d)(7)(A) of the Inter-
nal Revenue Code of 1986, as added by this Act, is amend-
ed by striking ‘‘and before January 1, 2018,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to bonds issued after December 
31, 2017. 
SEC. 318. FACILITATION OF TRANSFER OF WATER LEASING 
AND WATER BY MUTUAL DITCH OR IRRIGA-
TION COMPANIES IN DISASTER AREAS. 
(a) IN GENERAL.—Section 501(c)(12)(I) of the In-
ternal Revenue Code of 1986, as added by this Act, is 
amended— 
(1) by striking ‘‘through 2015’’ in clause (ii)(I), 
and 
(2) by striking ‘‘, and ending on December 31, 
2015’’ in clause (iv)(I). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disasters occurring after Decem-
ber 31, 2015. 
SEC. 319. EXCLUSION OF EMPLOYER PROVIDED HOUSING 
FOR INDIVIDUAL AFFECTED BY DISASTER. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting before section 140 the following new section: 
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‘‘SEC. 139G. EMPLOYER-PROVIDED HOUSING FOR INDI-
VIDUAL AFFECTED BY DISASTER. 
‘‘(a) IN GENERAL.—Gross income of a qualified em-
ployee shall not include the value of any lodging furnished 
in-kind to such employee (and such employee’s spouse or 
any of such employee’s dependents) by or on behalf of a 
qualified employer for any month during the taxable year. 
‘‘(b) LIMITATION.—The amount which may be ex-
cluded under this section for any month for which lodging 
is furnished during the taxable year shall not exceed $600. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) QUALIFIED EMPLOYEE.—The term ‘quali-
fied employee’ means, with respect to any month, an 
individual— 
‘‘(A) who had a principal residence (as de-
fined in section 121) in a disaster area, and 
‘‘(B) who performs substantially all em-
ployment services— 
‘‘(i) in such area, and 
‘‘(ii) for the qualified employer which 
furnishes lodging to such individual. 
‘‘(2) QUALIFIED EMPLOYER.—For purposes of 
this section, the term ‘qualified employer’ means any 
employer with a trade or business located in the dis-
aster area. 
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‘‘(3) DISASTER AREA; FEDERALLY DECLARED 
DISASTER.—The terms ‘disaster area’ and ‘Federally 
declared disaster area’ shall have the respective 
meanings given such terms in section 165(i). 
‘‘(4) CERTAIN RULES TO APPLY.—For purposes 
of this section, rules similar to the rules of sections 
51(i)(1) and 52 shall apply. 
‘‘(5) APPLICATION OF SECTION.—This section 
shall apply to lodging furnished to an individual dur-
ing the 6-month period beginning on the date the 
Federally declared disaster first occurred with re-
spect to such disaster area.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
is amended by inserting before section 140 the following 
new item: 
‘‘Sec. 139G. Employer-provided housing for individual affected by disaster.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2016. 
SEC. 320. INCREASED EXPENSING AND BONUS DEPRECIA-
TION FOR QUALIFIED DISASTER ASSISTANCE 
PROPERTY. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
168(n)(2)(A)(ii) of the Internal Revenue Code of 1986, 
as amended by this Act, is amended by striking ‘‘or during 
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