I 
113TH CONGRESS 
2D SESSION 
H. R. 5082 
To provide tax relief for major disaster areas declared in 2012, 2013, and 
2014, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 11, 2014 
Mr. REED (for himself, Mr. GARDNER, Mr. GIBSON, Mr. COLE, Mr. GRIFFIN 
of 
Arkansas, 
Mr. 
HARPER, 
Mr. 
RUNYAN, 
Mrs. 
CAPITO, 
Mr. 
MCALLISTER, Mr. KING of New York, Mr. CASSIDY, Mr. GERLACH, Mr. 
FITZPATRICK, Mr. SCHOCK, Mr. PASCRELL, Mr. BUTTERFIELD, Ms. 
DELBENE, Mr. POLIS, Mr. PALLONE, Mr. CROWLEY, Mr. HOLT, Mr. 
LARSON of Connecticut, Mr. RANGEL, Mr. RICHMOND, Mr. ISRAEL, Mr. 
BISHOP of New York, Mr. LARSEN of Washington, Mr. SIRES, Mrs. 
MCCARTHY of New York, and Mr. RODNEY DAVIS of Illinois) introduced 
the following bill; which was referred to the Committee on Ways and 
Means 
A BILL 
To provide tax relief for major disaster areas declared in 
2012, 2013, and 2014, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘National Disaster Tax Relief Act of 2014’’. 
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(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, 
AND 2014 
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, and 2014. 
Sec. 104. Net operating losses attributable to disasters in 2012, 2013, and 
2014. 
Sec. 105. Waiver of certain mortgage revenue bond requirements following 
2012, 2013, and 2014 disasters. 
Sec. 106. Increased expensing and bonus depreciation for qualified disaster as-
sistance property following 2012, 2013, and 2014 disasters. 
Sec. 107. Increase in new markets tax credit for investments in community de-
velopment entities serving 2012, 2013, and 2014 disaster 
areas. 
Sec. 108. Special rules for use of retirement funds in connection with federally 
declared disasters in 2012, 2013, or 2014. 
Sec. 109. Additional exemption for housing qualified disaster displaced individ-
uals. 
Sec. 110. Exclusions of certain cancellations of indebtedness by reason of 2012, 
2013, or 2014 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, and 
2014 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 I—TAX RELIEF RELATING 
TO DISASTERS IN 2012, 2013, 
AND 2014 
SEC. 101. EXPENSING OF QUALIFIED DISASTER EXPENSES. 
(a) IN GENERAL.—Section 198A(b)(2) of the Inter-
nal Revenue Code of 1986 is amended— 
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(1) by striking ‘‘before January 1, 2010’’ in 
subparagraph (A) and inserting ‘‘during the period 
beginning after December 31, 2007, and before Jan-
uary 1, 2010, or during the period beginning after 
December 31, 2011, and before January 1, 2015’’, 
and 
(2) by striking ‘‘before such date’’ each place it 
appears in subparagraphs (B) and (C) and inserting 
‘‘during any such period’’. 
(b) 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-
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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 
(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 
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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 
applicable disaster date with respect 
to the disaster described in subclause 
(I) and ending on December 31, 
2014, 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-
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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(h)(3)(C)(i) occurred. 
‘‘(vi) 
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 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 (C) as sub-
paragraph (D) and by inserting after subparagraph 
(B) the following new subparagraph: 
‘‘(C) QUALIFIED
DISASTER
CONTRIBU-
TIONS.— 
‘‘(i) IN GENERAL.—Any qualified dis-
aster contribution shall be allowed to the 
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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), 
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 
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be used) for a purpose described in para-
graph (1)(F)(iv)(III).’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Subparagraph (A) of section 170(b)(2) 
of such Code is amended by striking ‘‘subpara-
graph (B) applies’’ and inserting ‘‘subpara-
graphs (B) and (C) apply’’. 
(B) Subparagraph (B) of section 170(b)(2) 
of such Code is amended by striking ‘‘subpara-
graph (A)’’ and inserting ‘‘subparagraphs (A) 
and (C)’’. 
(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, AND 2014. 
(a) WAIVER OF ADJUSTED GROSS INCOME LIMITA-
TION; INCREASE IN STANDARD DEDUCTION BY DISASTER 
CASUALTY
LOSS.—Subclause 
(I) 
of 
section 
165(h)(3)(B)(i) 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, 2015’’. 
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(b) 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)).’’. 
(c) TECHNICAL AMENDMENT.—Clause (i) of section 
165(h)(3)(C) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘major’’ after ‘‘means any’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disasters declared in taxable 
years beginning after December 31, 2011. 
(e) 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, 2015, 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, AND 2014. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
172(j)(1)(A)(i) 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, 2015’’. 
(b) 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, AND 
2014 DISASTERS. 
(a) IN GENERAL.—Section 143(k) of the Internal 
Revenue Code of 1986 is amended— 
(1) by redesignating paragraph (12), as added 
by section 709(a) of the Tax Extenders and Alter-
native Minimum Tax Relief Act of 2008, as para-
graph (13), and 
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(2) by striking ‘‘before January 1, 2010’’ in 
subparagraphs (A)(i) and (B)(i) of such paragraph 
and inserting ‘‘during the period beginning after De-
cember 31, 2007, and before January 1, 2010, or 
during the period beginning after December 31, 
2011, and before January 1, 2015’’. 
(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, AND 2014 
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, 2015’’. 
(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, AND 2014 DIS-
ASTER 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 2012, 
2013, AND 2014 DISASTER AREAS.— 
‘‘(A) IN GENERAL.—In the case of each 
calendar year which begins after 2012 and be-
fore 2016, 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 2012, 2013, or 2014 federally declared dis-
aster area. 
‘‘(B) ALLOCATION
OF
INCREASE.—The 
amount of the increase in limitation under sub-
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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 2011 or 
2012 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) 2012, 2013, OR 2014 FEDERALLY DE-
CLARED DISASTER AREA.—For purposes of this 
paragraph, the term ‘2012, 2013, or 2014 fed-
erally declared disaster area’ means any dis-
aster area resulting from any federally declared 
disaster occurring after December 31, 2011, 
and before January 1, 2015. For purposes of 
the preceding sentence, the terms ‘federally de-
clared disaster’ and ‘disaster area’ have the 
meanings 
given 
such 
terms 
in 
section 
165(h)(3).’’. 
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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, OR 2014. 
(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
DURING
2012, 2013, AND 
2014.—Any qualified 2012, 2013, or 2014 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 2012, 2013, OR 2014 DISASTER 
RECOVERY DISTRIBUTION.—For purposes of para-
graph (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 during 
2012, 2013, or 2014, any distribution from an 
eligible retirement plan made on or after the 
applicable disaster date and before January 1, 
2015, to 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 reason of such federally de-
clared 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 during 2012, 2013, or 2014 
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 2012, 2013, or 2014 disaster re-
covery distribution, a plan shall not be 
treated as violating any requirement of this 
title merely because the plan treats such 
distribution as a qualified 2012, 2013, or 
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2014 disaster recovery distribution, unless 
the aggregate amount of such distributions 
from all plans maintained by the employer 
(and any member of any controlled group 
which includes the employer) to such indi-
vidual with respect to any federally de-
clared disaster occurring during 2012, 
2013, or 2014 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 2012, 2013, or 
2014 disaster recovery distribution may, at 
any time during the 3-year period begin-
ning on the day after the date on which 
such distribution was received, make one 
or more contributions in an aggregate 
amount not to exceed the amount of such 
distribution to an eligible retirement plan 
of which such individual is a beneficiary 
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and to which a rollover contribution of 
such distribution could be made under sec-
tion 
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 2012, 2013, or 2014 disaster 
recovery distribution from an eligible re-
tirement plan other than an individual re-
tirement plan, then the taxpayer shall, to 
the extent of the amount of the contribu-
tion, be treated as having received the 
qualified 2012, 2013, or 2014 disaster re-
covery distribution in an eligible rollover 
distribution 
(as 
defined 
in 
section 
402(c)(4)) and as having transferred the 
amount to the eligible retirement plan in a 
direct trustee to trustee transfer within 60 
days of the distribution. 
‘‘(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 2012, 2013, or 2014 disaster 
recovery distribution from an individual re-
tirement plan (as defined by section 
7701(a)(37)), then, to the extent of the 
amount of the contribution, the qualified 
2012, 2013, or 2014 disaster recovery dis-
tribution shall be treated as a distribution 
described in section 408(d)(3) and as hav-
ing been transferred to the eligible retire-
ment plan in a direct trustee to trustee 
transfer within 60 days of the distribution. 
‘‘(D) INCOME INCLUSION SPREAD OVER 3- 
YEAR PERIOD.— 
‘‘(i) IN GENERAL.—In the case of any 
qualified 2012, 2013, or 2014 disaster re-
covery distribution, unless the taxpayer 
elects not to have this paragraph apply for 
any taxable year, any amount required to 
be included in gross income for such tax-
able year shall be so included ratably over 
the 3-taxable-year period beginning with 
such taxable year. 
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‘‘(ii) SPECIAL RULE.—For purposes of 
clause (i), rules similar to the rules of sub-
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(h)(3)(C). 
‘‘(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 2012, 2013, or 2014 disaster re-
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covery distributions shall not be treated as 
eligible rollover distributions. 
‘‘(ii) QUALIFIED 2012, 2013, OR 2014 
DISASTER
RECOVERY
DISTRIBUTIONS 
TREATED
AS
MEETING
PLAN
DISTRIBU-
TION
REQUIREMENTS.—For purposes of 
this title, a qualified 2012, 2013, or 2014 
disaster recovery distribution shall be 
treated as meeting the requirements of sec-
tions 
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 disaster 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 2012, 2013, 
AND 2014 DISASTERS.— 
‘‘(A) IN
GENERAL.—In the case of any 
loan from a qualified employer plan to a quali-
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fied individual made during the applicable pe-
riod— 
‘‘(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 period beginning on the 
applicable disaster date and ending on De-
cember 31, 2014, such due date shall be 
delayed for 1 year, 
‘‘(ii) any subsequent repayments with 
respect to any such loan shall be appro-
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priately adjusted to reflect the delay in the 
due date under clause (i) and any interest 
accruing during such delay, and 
‘‘(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 during 2012, 2013, or 2014, an in-
dividual whose principal place of abode on 
the applicable disaster date is located in 
the disaster area and who has sustained an 
economic loss by reason 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, 2014. 
‘‘(iii) FEDERALLY
DECLARED
DIS-
ASTER; DISASTER AREA.—The terms ‘fed-
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erally declared disaster’ and ‘disaster area’ 
have the meanings given such terms under 
section 165(h)(3)(C). 
‘‘(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 disaster 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-
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suant to any regulation issued by the Sec-
retary or the Secretary of Labor under any 
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, 2015, 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 
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(II) ending on the date described 
in subparagraph (A)(ii) (or, if earlier, 
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: 
‘‘(g) ADDITIONAL EXEMPTION FOR CERTAIN DIS-
ASTER-DISPLACED INDIVIDUALS.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning in 2012, 2013, or 2014, there shall 
be allowed an exemption of $500 for each qualified 
disaster-displaced individual with respect to the tax-
payer 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-
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tion under this subsection for all prior taxable 
years. 
‘‘(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 
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