term ‘qualified book contribution’ means a 
charitable contribution of books to a public 
school which is an educational organization 
described in subsection (b)(1)(A)(ii) and 
which provides elementary education or sec-
ondary education (kindergarten through 
grade 12). 
‘‘(iii) CERTIFICATION
BY
DONEE.—
Subparagraph (A) shall not apply to any 
contribution unless (in addition to the cer-
tifications required by subparagraph (A) 
(as modified by this subparagraph)), the 
donee certifies in writing that—
‘‘(I) the books are suitable, in 
terms of currency, content, and quan-
tity, for use in the donee’s educational 
programs, and 
‘‘(II) the donee will use the books 
in its educational programs. 
‘‘(iv) TERMINATION.—This subpara-
graph shall not apply to contributions made 
after December 31, 2005.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to contributions made on or after August 
28, 2005, in taxable years ending after such date.
TITLE IV—ADDITIONAL TAX 
RELIEF PROVISIONS 
SEC. 401. EXCLUSIONS OF CERTAIN CANCELLATIONS OF IN-
DEBTEDNESS BY REASON OF HURRICANE 
KATRINA. 
(a) IN GENERAL.—For purposes of the Internal Rev-
enue Code of 1986, gross income shall not include any 
amount which (but for this section) would be includible in 
gross income by reason of the discharge (in whole or in 
part) of indebtedness of a natural person described in sub-
section (b) by an applicable entity (as defined in section 
6050P(c)(1) of such Code). 
(b) PERSONS DESCRIBED.—A natural person is de-
scribed in this subsection if the principal place of abode 
of such person on August 25, 2005, was located—
(1) in the core disaster area, or 
(2) in the Hurricane Katrina disaster area (but 
outside the core disaster area) and such person suf-
fered economic loss by reason of Hurricane Katrina. 
(c) EXCEPTIONS.—
(1) BUSINESS
INDEBTEDNESS.—Subsection (a) 
shall not apply to any indebtedness incurred in con-
nection with a trade or business. 
(2) REAL PROPERTY OUTSIDE CORE DISASTER 
AREA.—Subsection (a) shall not apply to any dis-
charge of indebtedness to the extent that real property 
constituting security for such indebtedness is located 
outside of the Hurricane Katrina disaster area. 
(d) DENIAL OF DOUBLE BENEFIT.—For purposes of 
the Internal Revenue Code of 1986, the amount excluded 
from gross income under subsection (a) shall be treated in 
the same manner as an amount excluded under section 
108(a) of such Code. 
(e) EFFECTIVE DATE.—This section shall apply to dis-
charges made on or after August 25, 2005, and before Janu-
ary 1, 2007. 
SEC. 402. SUSPENSION OF CERTAIN LIMITATIONS ON PER-
SONAL CASUALTY LOSSES. 
Paragraphs (1) and (2)(A) of section 165(h) of the In-
ternal Revenue Code of 1986 shall not apply to losses de-
scribed in section 165(c)(3) of such Code which arise in the 
Hurricane Katrina disaster area on or after August 25, 
2005, and which are attributable to Hurricane Katrina. In 
the case of any other losses, section 165(h)(2)(A) of such 
Code shall be applied without regard to the losses referred 
to in the preceding sentence.
SEC. 403. REQUIRED EXERCISE OF AUTHORITY UNDER SEC-
TION 7508A FOR TAX RELIEF RELATING TO 
HURRICANE KATRINA. 
(a) AUTHORITY INCLUDES SUSPENSION OF PAYMENT 
OF EMPLOYMENT AND EXCISE TAXES.—Subparagraphs (A) 
and (B) of section 7508(a)(1) of the Internal Revenue Code 
of 1986 are amended to read as follows: 
‘‘(A) Filing any return of income, estate, 
gift, employment, or excise tax; 
‘‘(B) Payment of any income, estate, gift, 
employment, or excise tax or any installment 
thereof or of any other liability to the United 
States in respect thereof;’’. 
(b) APPLICATION WITH RESPECT
TO HURRICANE 
KATRINA.—In the case of any taxpayer determined by the 
Secretary of the Treasury to be affected by the Presi-
dentially declared disaster relating to Hurricane Katrina, 
any relief provided by the Secretary of the Treasury under 
section 7508A of the Internal Revenue Code of 1986 shall 
be for a period ending not earlier than February 28, 2006, 
and shall be treated as applying to the filing of returns 
relating to, and the payment of, employment and excise 
taxes. 
(c) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply for any period for performing an 
act which has not expired before August 25, 2005.