401 
‘‘(i) to an organization described in 
section 509(a)(3), or 
‘‘(ii) for establishment of a new, or 
maintenance of an existing, donor advised 
fund (as defined in section 4966(d)(2)). 
‘‘(C) APPLICATION OF ELECTION TO PART-
NERSHIPS AND S CORPORATIONS.—In the case of 
a partnership or S corporation, the election 
under subparagraph (A)(iii) shall be made sepa-
rately by each partner or shareholder.’’. 
(13) SUSPENSION OF CERTAIN LIMITATIONS ON 
PERSONAL CASUALTY LOSSES.—Section 1400S(b)(1), 
by substituting ‘‘the applicable disaster date’’ for 
‘‘August 25, 2005’’. 
(14) SPECIAL RULE FOR DETERMINING EARNED 
INCOME.—Section 1400S(d)— 
(A) by treating an individual as a qualified 
individual if such individual’s principal place of 
abode on the applicable disaster date was located 
in a Midwestern disaster area, 
(B) by treating the applicable disaster date 
with respect to any such individual as the appli-
cable date for purposes of such subsection, and 
(C) by treating an area as described in 
paragraph (2)(B)(ii) thereof if the area is a
402 
Midwestern disaster area only by reason of sub-
section (b)(2) of this section (relating to areas el-
igible only for public assistance). 
(15) ADJUSTMENTS REGARDING TAXPAYER AND 
DEPENDENCY
STATUS.—Section 1400S(e), by sub-
stituting ‘‘2008 or 2009’’ for ‘‘2005 or 2006’’. 
(e) MODIFICATIONS TO KATRINA EMERGENCY TAX RE-
LIEF ACT
OF 2005.—The following provisions of the 
Katrina Emergency Tax Relief Act of 2005 shall be applied 
with the following modifications: 
(1) ADDITIONAL EXEMPTION FOR HOUSING DIS-
PLACED INDIVIDUAL.—Section 302— 
(A) by substituting ‘‘2008 or 2009’’ for 
‘‘2005 or 2006’’ in subsection (a) thereof, 
(B) by substituting ‘‘Midwestern displaced 
individual’’ for ‘‘Hurricane Katrina displaced 
individual’’ each place it appears, and 
(C) by treating an area as a core disaster 
area for purposes of applying subsection (c) 
thereof if the area is a Midwestern disaster area 
without regard to subsection (b)(2) of this section 
(relating to areas eligible only for public assist-
ance). 
(2) INCREASE IN STANDARD MILEAGE RATE.— 
Section 303, by substituting ‘‘beginning on the appli-
403 
cable disaster date and ending on December 31, 2008’’ 
for ‘‘beginning on August 25, 2005, and ending on 
December 31, 2006’’. 
(3) MILEAGE
REIMBURSEMENTS
FOR
CHARI-
TABLE VOLUNTEERS.—Section 304— 
(A) by substituting ‘‘beginning on the ap-
plicable disaster date and ending on December 
31, 2008’’ for ‘‘beginning on August 25, 2005, 
and ending on December 31, 2006’’ in subsection 
(a), and 
(B) by substituting ‘‘the applicable disaster 
date’’ for ‘‘August 25, 2005’’ in subsection (a). 
(4) EXCLUSION OF CERTAIN CANCELLATION OF 
INDEBTEDNESS INCOME.—Section 401— 
(A) by treating an individual whose prin-
cipal place of abode on the applicable disaster 
date was in a Midwestern disaster area (deter-
mined without regard to subsection (b)(2) of this 
section) as an individual described in subsection 
(b)(1) thereof, and by treating an individual 
whose principal place of abode on the applicable 
disaster date was in a Midwestern disaster area 
solely by reason of subsection (b)(2) of this sec-
tion as an individual described in subsection 
(b)(2) thereof,
404 
(B) by substituting ‘‘the applicable disaster 
date’’ for ‘‘August 28, 2005’’ both places it ap-
pears, and 
(C) by substituting ‘‘January 1, 2010’’ for 
‘‘January 1, 2007’’ in subsection (e). 
(5) EXTENSION OF REPLACEMENT PERIOD FOR 
NONRECOGNITION
OF
GAIN.—Section 405, by sub-
stituting ‘‘on or after the applicable disaster date’’ for 
‘‘on or after August 25, 2005’’. 
SEC. 703. REPORTING REQUIREMENTS RELATING TO DIS-
ASTER RELIEF CONTRIBUTIONS. 
(a) IN GENERAL.—Section 6033(b) (relating to returns 
of certain organizations described in section 501(c)(3)) is 
amended by striking ‘‘and’’ at the end of paragraph (13), 
by redesignating paragraph (14) as paragraph (15), and 
by adding after paragraph (13) the following new para-
graph: 
‘‘(14) such information as the Secretary may re-
quire with respect to disaster relief activities, includ-
ing the amount and use of qualified contributions to 
which section 1400S(a) applies, and’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to returns the due date for which (deter-
mined without regard to any extension) occurs after Decem-
ber 31, 2008.
405 
SEC. 704. TEMPORARY TAX-EXEMPT BOND FINANCING AND 
LOW-INCOME 
HOUSING 
TAX 
RELIEF 
FOR 
AREAS DAMAGED BY HURRICANE IKE. 
(a) 
TAX-EXEMPT
BOND
FINANCING.—Section 
1400N(a) of the Internal Revenue Code of 1986 shall apply 
to any Hurricane Ike disaster area in addition to any other 
area referenced in such section, but with the following modi-
fications: 
(1) By substituting ‘‘qualified Hurricane Ike 
disaster area bond’’ for ‘‘qualified Gulf Opportunity 
Zone Bond’’ each place it appears, except that in de-
termining whether a bond is a qualified Hurricane 
Ike disaster area bond— 
(A) paragraph (2)(A)(i) shall be applied by 
only treating costs as qualified project costs if— 
(i) in the case of a project involving a 
private business use (as defined in section 
141(b)(6)), either the person using the prop-
erty suffered a loss in a trade or business 
attributable to Hurricane Ike or is a person 
designated for purposes of this section by 
the Governor of the State in which the 
project is located as a person carrying on a 
trade or business replacing a trade or busi-
ness with respect to which another person 
suffered such a loss, and
406 
(ii) in the case of a project relating to 
public utility property, the project involves 
repair or reconstruction of public utility 
property damaged by Hurricane Ike, and 
(B) paragraph (2)(A)(ii) shall be applied 
by treating an issue as a qualified mortgage 
issue only if 95 percent or more of the net pro-
ceeds (as defined in section 150(a)(3)) of the 
issue are to be used to provide financing for 
mortgagors who suffered damages to their prin-
cipal residences attributable to Hurricane Ike. 
(2) By substituting ‘‘any State in which any 
Hurricane Ike disaster area is located’’ for ‘‘the State 
of Alabama, Louisiana, or Mississippi’’ in paragraph 
(2)(B). 
(3) By substituting ‘‘designated for purposes of 
this section (on the basis of providing assistance to 
areas in the order in which such assistance is most 
needed)’’ for ‘‘designated for purposes of this section’’ 
in paragraph (2)(C). 
(4) By substituting ‘‘January 1, 2013’’ for ‘‘Jan-
uary 1, 2011’’ in paragraph (2)(D). 
(5) By substituting the following for subpara-
graph (A) of paragraph (3):
407 
‘‘(A) AGGREGATE AMOUNT DESIGNATED.— 
The maximum aggregate face amount of bonds 
which may be designated under this subsection 
with respect to any State shall not exceed the 
product of $2,000 multiplied by the portion of 
the State population which is in— 
‘‘(i) in the case of Texas, the counties 
of Brazoria, Chambers, Galveston, Jefferson, 
and Orange, and 
‘‘(ii) in the case of Louisiana, the par-
ishes of Calcasieu and Cameron, 
(as determined on the basis of the most recent 
census estimate of resident population released 
by the Bureau of Census before September 13, 
2008).’’. 
(6) By substituting ‘‘qualified Hurricane Ike 
disaster area repair or construction’’ for ‘‘qualified 
GO Zone repair or construction’’ each place it ap-
pears. 
(7) By substituting ‘‘after the date of the enact-
ment of the Heartland Disaster Tax Relief Act of 
2008 and before January 1, 2013’’ for ‘‘after the date 
of the enactment of this paragraph and before Janu-
ary 1, 2011’’ in paragraph (7)(C). 
(8) By disregarding paragraph (8) thereof.
408 
(9) By substituting ‘‘any Hurricane Ike disaster 
area’’ for ‘‘the Gulf Opportunity Zone’’ each place it 
appears. 
(b) 
LOW-INCOME
HOUSING
CREDIT.—Section 
1400N(c) of the Internal Revenue Code of 1986 shall apply 
to any Hurricane Ike disaster area in addition to any other 
area referenced in such section, but with the following modi-
fications: 
(1) Only with respect to calendar years 2008, 
2009, and 2010. 
(2) By substituting ‘‘any Hurricane Ike disaster 
area’’ for ‘‘the Gulf Opportunity Zone’’ each place it 
appears. 
(3) By substituting ‘‘Hurricane Ike Recovery As-
sistance housing amount’’ for ‘‘Gulf Opportunity 
housing amount’’ each place it appears. 
(4) By substituting the following for subpara-
graph (B) of paragraph (1): 
‘‘(B) HURRICANE IKE HOUSING AMOUNT.— 
For purposes of subparagraph (A), the term 
‘Hurricane Ike housing amount’ means, for any 
calendar year, the amount equal to the product 
of $16.00 multiplied by the portion of the State 
population which is in—
409 
‘‘(i) in the case of Texas, the counties 
of Brazoria, Chambers, Galveston, Jefferson, 
and Orange, and 
‘‘(ii) in the case of Louisiana, the par-
ishes of Calcasieu and Cameron, 
(as determined on the basis of the most recent 
census estimate of resident population released 
by the Bureau of Census before September 13, 
2008).’’. 
(5) Determined without regard to paragraphs 
(2), (3), (4), (5), and (6) thereof. 
(c) HURRICANE IKE DISASTER AREA.—For purposes 
of this section and for applying the substitutions described 
in subsections (a) and (b), the term ‘‘Hurricane Ike disaster 
area’’ means an area in the State of Texas or Louisiana— 
(1) with respect to which a major disaster has 
been declared by the President on September 13, 2008, 
under section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act by reason of 
Hurricane Ike, and 
(2) determined by the President to warrant indi-
vidual or individual and public assistance from the 
Federal Government under such Act with respect to 
damages attributable to Hurricane Ike.
410 
Subtitle B—National Disaster 
Relief 
SEC. 706. LOSSES ATTRIBUTABLE TO FEDERALLY DE-
CLARED DISASTERS. 
(a) WAIVER OF ADJUSTED GROSS INCOME LIMITA-
TION.— 
(1) IN GENERAL.—Subsection (h) of section 165 
is amended by redesignating paragraphs (3) and (4) 
as paragraphs (4) and (5), respectively, and by in-
serting after paragraph (2) the following new para-
graph: 
‘‘(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.
411 
‘‘(B) NET DISASTER LOSS.—For purposes of 
subparagraph (A), the term ‘net disaster loss’ 
means the excess of— 
‘‘(i) the personal casualty losses— 
‘‘(I) attributable to a federally de-
clared disaster occurring before Janu-
ary 1, 2010, and 
‘‘(II) occurring in a disaster area, 
over 
‘‘(ii) personal casualty gains. 
‘‘(C) FEDERALLY
DECLARED
DISASTER.— 
For purposes of this paragraph— 
‘‘(i) 
FEDERALLY
DECLARED
DIS-
ASTER.—The term ‘federally declared dis-
aster’ means any disaster subsequently de-
termined by the President of the United 
States to warrant assistance by the Federal 
Government under the Robert T. Stafford 
Disaster Relief and Emergency Assistance 
Act. 
‘‘(ii) DISASTER AREA.—The term ‘dis-
aster area’ means the area so determined to 
warrant such assistance.’’. 
(2) CONFORMING AMENDMENTS.—
412 
(A) Section 165(h)(4)(B) (as so redesig-
nated) is amended by striking ‘‘paragraph (2)’’ 
and inserting ‘‘paragraphs (2) and (3)’’. 
(B) Section 165(i)(1) is amended by strik-
ing ‘‘loss’’ and all that follows through ‘‘Act’’ 
and inserting ‘‘loss occurring in a disaster area 
(as defined by clause (ii) of subsection (h)(3)(C)) 
and attributable to a federally declared disaster 
(as defined by clause (i) of such subsection)’’. 
(C) Section 165(i)(4) is amended by strik-
ing ‘‘Presidentially declared disaster (as defined 
by section 1033(h)(3))’’ and inserting ‘‘federally 
declared disaster (as defined by subsection 
(h)(3)(C)(i)’’. 
(D)(i) So much of subsection (h) of section 
1033 as precedes subparagraph (A) of paragraph 
(1) thereof is amended to read as follows: 
‘‘(h) SPECIAL RULES FOR PROPERTY DAMAGED BY 
FEDERALLY DECLARED DISASTERS.— 
‘‘(1) PRINCIPAL RESIDENCES.—If the taxpayer’s 
principal residence or any of its contents is located 
in a disaster area and is compulsorily or involun-
tarily converted as a result of a federally declared dis-
aster—’’.
413 
(ii) Paragraph (2) of section 1033(h) is 
amended by striking ‘‘investment’’ and all that 
follows through ‘‘disaster’’ and inserting ‘‘invest-
ment located in a disaster area and compulsorily 
or involuntarily converted as a result of a feder-
ally declared disaster’’. 
(iii) Paragraph (3) of section 1033(h) is 
amended to read as follows: 
‘‘(3) FEDERALLY
DECLARED
DISASTER; DIS-
ASTER AREA.—The terms ‘‘federally declared disaster’’ 
and ‘‘disaster area’’ shall have the respective meaning 
given such terms by section 165(h)(3)(C).’’. 
(iv) Section 139(c)(2) is amended to read as 
follows: 
‘‘(2) federally declared disaster (as defined by 
section 165(h)(3)(C)(i)),’’. 
(v) 
Subclause 
(II) 
of 
section 
172(b)(1)(F)(ii) is amended by striking ‘‘Presi-
dentially declared disasters (as defined in section 
1033(h)(3))’’ and inserting ‘‘federally declared 
disasters (as defined by subsection (h)(3)(C)(i))’’. 
(vi) 
Subclause 
(III) 
of 
section 
172(b)(1)(F)(ii) is amended by striking ‘‘Presi-
dentially declared disasters’’ and inserting ‘‘fed-
erally declared disasters’’.
414 
(vii) Subsection (a) of section 7508A is 
amended by striking ‘‘Presidentially declared 
disaster (as defined in section 1033(h)(3))’’ and 
inserting ‘‘federally declared disaster (as defined 
by section 165(h)(3)(C)(i))’’. 
(b) INCREASE IN STANDARD DEDUCTION BY DISASTER 
CASUALTY LOSS.— 
(1) IN
GENERAL.—Paragraph (1) of section 
63(c), as amended by the Housing Assistance Tax Act 
of 2008, is amended by striking ‘‘and’’ at the end of 
subparagraph (B), by striking the period at the end 
of subparagraph (C) and inserting ‘‘, and’’, and by 
adding at the end the following new subparagraph: 
‘‘(D) the disaster loss deduction.’’. 
(2) DISASTER LOSS DEDUCTION.—Subsection (c) 
of section 63, as amended by the Housing Assistance 
Tax Act of 2008, is amended by adding at the end 
the following new paragraph: 
‘‘(8) DISASTER LOSS DEDUCTION.—For the pur-
poses of paragraph (1), the term ‘disaster loss deduc-
tion’ means the net disaster loss (as defined in section 
165(h)(3)(B)).’’. 
(3) ALLOWANCE
IN
COMPUTING
ALTERNATIVE 
MINIMUM
TAXABLE
INCOME.—Subparagraph (E) of 
section 56(b)(1) is amended by adding at the end the
415 
following new sentence: ‘‘The preceding sentence shall 
not apply to so much of the standard deduction as is 
determined under section 63(c)(1)(D).’’. 
(c) INCREASE IN LIMITATION ON INDIVIDUAL LOSS 
PER CASUALTY.—Paragraph (1) of section 165(h) is 
amended by striking ‘‘$100’’ and inserting ‘‘$500 ($100 for 
taxable years beginning after December 31, 2009)’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided by para-
graph (2), the amendments made by this section shall 
apply to disasters declared in taxable years beginning 
after December 31, 2007. 
(2) INCREASE
IN
LIMITATION
ON
INDIVIDUAL 
LOSS PER CASUALTY.—The amendment made by sub-
section (c) shall apply to taxable years beginning 
after December 31, 2008. 
SEC. 707. EXPENSING OF QUALIFIED DISASTER EXPENSES. 
(a) IN GENERAL.—Part VI of subchapter B of chapter 
1 is amended by inserting after section 198 the following 
new section: 
‘‘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 cap-