HR 4440 PCS 
plan in a direct trustee to trustee transfer with-
in 60 days of the distribution. 
‘‘(C) TREATMENT
OF
REPAYMENTS
FOR 
DISTRIBUTIONS FROM IRAS.—For purposes of 
this title, if a contribution is made pursuant to 
subparagraph (A) with respect to a qualified 
hurricane distribution from an individual retire-
ment plan (as defined by section 7701(a)(37)), 
then, to the extent of the amount of the con-
tribution, the qualified hurricane distribution 
shall be treated as a distribution described in 
section 408(d)(3) and as having been trans-
ferred to the eligible retirement plan in a direct 
trustee to trustee transfer within 60 days of the 
distribution. 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) QUALIFIED
HURRICANE
DISTRIBU-
TION.—Except as provided in paragraph (2), 
the term ‘qualified hurricane distribution’ 
means— 
‘‘(i) any distribution from an eligible 
retirement plan made on or after August 
25, 2005, and before January 1, 2007, to 
an individual whose principal place of
HR 4440 PCS 
abode on August 28, 2005, is located in 
the Hurricane Katrina disaster area and 
who has sustained an economic loss by rea-
son of Hurricane Katrina, 
‘‘(ii) any distribution (which is not de-
scribed in clause (i)) from an eligible re-
tirement plan made on or after September 
23, 2005, and before January 1, 2007, to 
an individual whose principal place of 
abode on September 23, 2005, is located in 
the Hurricane Rita disaster area and who 
has sustained an economic loss by reason 
of Hurricane Rita, and 
‘‘(iii) any distribution (which is not 
described in clause (i) or (ii)) from an eli-
gible retirement plan made on or after Oc-
tober 23, 2005, and before January 1, 
2007, to an individual whose principal 
place of abode on October 23, 2005, is lo-
cated in the Hurricane Wilma disaster 
area and who has sustained an economic 
loss by reason of Hurricane Wilma. 
‘‘(B) ELIGIBLE RETIREMENT PLAN.—The 
term ‘eligible retirement plan’ shall have the
HR 4440 PCS 
meaning 
given 
such 
term 
by 
section 
402(c)(8)(B). 
‘‘(5) INCOME INCLUSION SPREAD OVER 3-YEAR 
PERIOD.— 
‘‘(A) IN
GENERAL.—In the case of any 
qualified hurricane distribution, unless the tax-
payer elects not to have this paragraph apply 
for any taxable year, any amount required to be 
included in gross income for such taxable year 
shall be so included ratably over the 3-taxable 
year period beginning with such taxable year. 
‘‘(B) SPECIAL
RULE.—For purposes of 
subparagraph (A), rules similar to the rules of 
subparagraph (E) of section 408A(d)(3) shall 
apply. 
‘‘(6) SPECIAL RULES.— 
‘‘(A) EXEMPTION OF DISTRIBUTIONS FROM 
TRUSTEE TO TRUSTEE TRANSFER AND WITH-
HOLDING
RULES.—For purposes of sections 
401(a)(31), 402(f), and 3405, qualified hurri-
cane distributions shall not be treated as eligi-
ble rollover distributions. 
‘‘(B) QUALIFIED
HURRICANE
DISTRIBU-
TIONS TREATED AS MEETING PLAN DISTRIBU-
TION REQUIREMENTS.—For purposes this title,
HR 4440 PCS 
a qualified hurricane distribution shall be treat-
ed as meeting the requirements of sections 
401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), 
and 457(d)(1)(A). 
‘‘(b) RECONTRIBUTIONS
OF
WITHDRAWALS
FOR 
HOME PURCHASES.— 
‘‘(1) RECONTRIBUTIONS.— 
‘‘(A) IN
GENERAL.—Any individual who 
received a qualified distribution may, during the 
applicable period, make one or more contribu-
tions in an aggregate amount not to exceed the 
amount of such qualified distribution to an eli-
gible retirement plan (as defined in section 
402(c)(8)(B)) of which such individual is a ben-
eficiary and to which a rollover contribution of 
such distribution could be made under section 
402(c), 403(a)(4), 403(b)(8), or 408(d)(3), as 
the case may be. 
‘‘(B) TREATMENT
OF
REPAYMENTS.— 
Rules similar to the rules of subparagraphs (B) 
and (C) of subsection (a)(3) shall apply for pur-
poses of this subsection. 
‘‘(2) QUALIFIED DISTRIBUTION.—For purposes 
of this subsection—
HR 4440 PCS 
‘‘(A) IN
GENERAL.—The term ‘qualified 
distribution’ means any qualified Katrina dis-
tribution, any qualified Rita distribution, and 
any qualified Wilma distribution. 
‘‘(B) 
QUALIFIED
KATRINA
DISTRIBU-
TION.—The term ‘qualified Katrina distribu-
tion’ means any distribution— 
‘‘(i) 
described 
in 
section 
401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but 
only to the extent such distribution relates 
to financial hardship), 403(b)(11)(B), or 
72(t)(2)(F), 
‘‘(ii) received after February 28, 
2005, and before August 29, 2005, and 
‘‘(iii) which was to be used to pur-
chase or construct a principal residence in 
the Hurricane Katrina disaster area, but 
which was not so purchased or constructed 
on account of Hurricane Katrina. 
‘‘(C) QUALIFIED
RITA
DISTRIBUTION.— 
The term ‘qualified Rita distribution’ means 
any distribution (other than a qualified Katrina 
distribution)— 
‘‘(i) 
described 
in 
section 
401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but
HR 4440 PCS 
only to the extent such distribution relates 
to financial hardship), 403(b)(11)(B), or 
72(t)(2)(F), 
‘‘(ii) received after February 28, 
2005, and before September 24, 2005, and 
‘‘(iii) which was to be used to pur-
chase or construct a principal residence in 
the Hurricane Rita disaster area, but 
which was not so purchased or constructed 
on account of Hurricane Rita. 
‘‘(D) QUALIFIED WILMA DISTRIBUTION.— 
The term ‘qualified Wilma distribution’ means 
any distribution (other than a qualified Katrina 
distribution or a qualified Rita distribution)— 
‘‘(i) 
described 
in 
section 
401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but 
only to the extent such distribution relates 
to financial hardship), 403(b)(11)(B), or 
72(t)(2)(F), 
‘‘(ii) received after February 28, 
2005, and before October 24, 2005, and 
‘‘(iii) which was to be used to pur-
chase or construct a principal residence in 
the Hurricane Wilma disaster area, but
HR 4440 PCS 
which was not so purchased or constructed 
on account of Hurricane Wilma. 
‘‘(3) APPLICABLE
PERIOD.—For purposes of 
this subsection, the term ‘applicable period’ means— 
‘‘(A) with respect to any qualified Katrina 
distribution, the period beginning on August 
25, 2005, and ending on February 28, 2006, 
‘‘(B) with respect to any qualified Rita dis-
tribution, the period beginning on September 
23, 2005, and ending on February 28, 2006, 
and 
‘‘(C) with respect to any qualified Wilma 
distribution, the period beginning on October 
23, 2005, and ending on February 28, 2006. 
‘‘(c) LOANS FROM QUALIFIED PLANS.— 
‘‘(1) INCREASE IN LIMIT ON LOANS NOT TREAT-
ED
AS
DISTRIBUTIONS.—In the case of any loan 
from a qualified employer plan (as defined under 
section 72(p)(4)) to a qualified individual made dur-
ing the applicable period— 
‘‘(A) clause (i) of section 72(p)(2)(A) shall 
be applied by substituting ‘$100,000’ for 
‘$50,000’, and 
‘‘(B) clause (ii) of such section shall be ap-
plied by substituting ‘the present value of the
HR 4440 PCS 
nonforfeitable accrued benefit of the employee 
under the plan’ for ‘one-half of the present 
value of the nonforfeitable accrued benefit of 
the employee under the plan’. 
‘‘(2) DELAY OF REPAYMENT.—In the case of a 
qualified individual with an outstanding loan on or 
after the qualified beginning date from a qualified 
employer plan (as defined in section 72(p)(4))— 
‘‘(A) if the due date pursuant to subpara-
graph (B) or (C) of section 72(p)(2) for any re-
payment with respect to such loan occurs dur-
ing the period beginning on the qualified begin-
ning date and ending on December 31, 2006, 
such due date shall be delayed for 1 year, 
‘‘(B) any subsequent repayments with re-
spect to any such loan shall be appropriately 
adjusted to reflect the delay in the due date 
under paragraph (1) and any interest accruing 
during such delay, and 
‘‘(C) in determining the 5-year period and 
the term of a loan under subparagraph (B) or 
(C) of section 72(p)(2), the period described in 
subparagraph (A) shall be disregarded. 
‘‘(3) QUALIFIED INDIVIDUAL.—For purposes of 
this subsection—
HR 4440 PCS 
‘‘(A) IN
GENERAL.—The term ‘qualified 
individual’ means any qualified Hurricane 
Katrina individual, any qualified Hurricane 
Rita individual, and any qualified Hurricane 
Wilma individual. 
‘‘(B) QUALIFIED HURRICANE KATRINA IN-
DIVIDUAL.—The 
term 
‘qualified 
Hurricane 
Katrina individual’ means an individual whose 
principal place of abode on August 28, 2005, is 
located in the Hurricane Katrina disaster area 
and who has sustained an economic loss by rea-
son of Hurricane Katrina. 
‘‘(C) QUALIFIED
HURRICANE
RITA
INDI-
VIDUAL.—The term ‘qualified Hurricane Rita 
individual’ means an individual (other than a 
qualified Hurricane Katrina individual) whose 
principal place of abode on September 23, 
2005, is located in the Hurricane Rita disaster 
area and who has sustained an economic loss by 
reason of Hurricane Rita. 
‘‘(D) QUALIFIED HURRICANE WILMA INDI-
VIDUAL.—The term ‘qualified Hurricane Wilma 
individual’ means an individual (other than a 
qualified Hurricane Katrina individual or a 
qualified Hurricane Rita individual) whose prin-
HR 4440 PCS 
cipal place of abode on October 23, 2005, is lo-
cated in the Hurricane Wilma disaster area and 
who has sustained an economic loss by reason 
of Hurricane Wilma. 
‘‘(4) APPLICABLE PERIOD; QUALIFIED BEGIN-
NING DATE.—For purposes of this subsection— 
‘‘(A) HURRICANE KATRINA.—In the case 
of any qualified Hurricane Katrina individual— 
‘‘(i) the applicable period is the period 
beginning on September 24, 2005, and 
ending on December 31, 2006, and 
‘‘(ii) the qualified beginning date is 
August 25, 2005. 
‘‘(B) HURRICANE
RITA.—In the case of 
any qualified Hurricane Rita individual— 
‘‘(i) the applicable period is the period 
beginning on the date of the enactment of 
this subsection and ending on December 
31, 2006, and 
‘‘(ii) the qualified beginning date is 
September 23, 2005. 
‘‘(C) HURRICANE WILMA.—In the case of 
any qualified Hurricane Wilma individual— 
‘‘(i) the applicable period is the period 
beginning on the date of the enactment of
HR 4440 PCS 
this subparagraph and ending on Decem-
ber 31, 2006, and 
‘‘(ii) the qualified beginning date is 
October 23, 2005. 
‘‘(d) 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 this 
section, or pursuant to any regulation 
issued by the Secretary or the Secretary of 
Labor under any provision of this section, 
and 
‘‘(ii) on or before the last day of the 
first plan year beginning on or after Janu-
ary 1, 2007, or such later date as the Sec-
retary may prescribe.
HR 4440 PCS 
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 
this section or the regulation de-
scribed in subparagraph (A)(i) takes 
effect (or in the case of a plan or con-
tract amendment not required by this 
section or such regulation, the effec-
tive date specified by the plan), and 
‘‘(II) ending on the date de-
scribed in subparagraph (A)(ii) (or, if 
earlier, the date the plan or contract 
amendment 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.
HR 4440 PCS 
‘‘SEC. 1400P. EMPLOYMENT RELIEF. 
‘‘(a) EMPLOYEE RETENTION CREDIT FOR EMPLOY-
ERS AFFECTED BY HURRICANE KATRINA.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
in the case of an eligible employer, the Hurricane 
Katrina employee retention credit for any taxable 
year is an amount equal to 40 percent of the quali-
fied wages with respect to each eligible employee of 
such employer for such taxable year. For purposes 
of the preceding sentence, the amount of qualified 
wages which may be taken into account with respect 
to any individual shall not exceed $6,000. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) ELIGIBLE EMPLOYER.—The term ‘eli-
gible employer’ means any employer— 
‘‘(i) which conducted an active trade 
or business on August 28, 2005, in the GO 
Zone, and 
‘‘(ii) with respect to whom the trade 
or business described in clause (i) is inop-
erable on any day after August 28, 2005, 
and before January 1, 2006, as a result of 
damage sustained by reason of Hurricane 
Katrina.
HR 4440 PCS 
‘‘(B) ELIGIBLE EMPLOYEE.—The term ‘el-
igible employee’ means with respect to an eligi-
ble employer an employee whose principal place 
of employment on August 28, 2005, with such 
eligible employer was in the GO Zone. 
‘‘(C) 
QUALIFIED
WAGES.—The 
term 
‘qualified wages’ means wages (as defined in 
section 51(c)(1), but without regard to section 
3306(b)(2)(B)) paid or incurred by an eligible 
employer with respect to an eligible employee on 
any day after August 28, 2005, and before Jan-
uary 1, 2006, which occurs during the period— 
‘‘(i) beginning on the date on which 
the trade or business described in subpara-
graph (A) first became inoperable at the 
principal place of employment of the em-
ployee 
immediately 
before 
Hurricane 
Katrina, and 
‘‘(ii) ending on the date on which such 
trade or business has resumed significant 
operations at such principal place of em-
ployment. 
Such term shall include wages paid without re-
gard to whether the employee performs no serv-
ices, performs services at a different place of
HR 4440 PCS 
employment than such principal place of em-
ployment, or performs services at such principal 
place of employment before significant oper-
ations have resumed. 
‘‘(3) CREDIT NOT ALLOWED FOR LARGE BUSI-
NESSES.—The term ‘eligible employer’ shall not in-
clude any trade or business for any taxable year if 
such trade or business employed an average of more 
than 200 employees on business days during the tax-
able year. 
‘‘(4) CERTAIN RULES TO APPLY.—For purposes 
of this subsection, rules similar to the rules of sec-
tions 51(i)(1), 52, and 280C(a) shall apply. 
‘‘(5) EMPLOYEE
NOT
TAKEN
INTO
ACCOUNT 
MORE THAN ONCE.—An employee shall not be treat-
ed as an eligible employee for purposes of this sub-
section for any period with respect to any employer 
if such employer is allowed a credit under section 51 
with respect to such employee for such period. 
‘‘(b) EMPLOYEE RETENTION CREDIT FOR EMPLOY-
ERS AFFECTED BY HURRICANE RITA.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
in the case of an eligible employer, the Hurricane 
Rita employee retention credit for any taxable year 
is an amount equal to 40 percent of the qualified