†
HR 3768 EAS
(b) AMENDMENT OF 1986 CODE.—Except as otherwise
expressly provided, whenever in this Act an amendment or
repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Inter-
nal Revenue Code of 1986.
(c) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
Sec. 2. Hurricane Katrina disaster area.
TITLE I—PENALTY FREE USE OF RETIREMENT FUNDS IN THE
CASE OF NATURAL DISASTERS
Sec. 101. Penalty free withdrawals from retirement plans for victims of federally
declared natural disasters.
Sec. 102. Income averaging for disaster-relief distributions related to Hurricane
Katrina.
Sec. 103. Recontributions of withdrawals for home purchases cancelled due to
Hurricane Katrina.
Sec. 104. Loans from qualified plans to victims of Hurricane Katrina.
Sec. 105. Provisions relating to plan amendments.
TITLE II—EMPLOYMENT RELIEF
Sec. 201. Work opportunity tax credit for Hurricane Katrina employee survivors.
Sec. 202. Employee retention credit for employers affected by Hurricane Katrina.
TITLE III—CHARITABLE GIVING INCENTIVES
Sec. 301. Temporary suspension of limitations on charitable contributions.
Sec. 302. Charitable deduction for contributions of food inventories.
Sec. 303. Charitable deduction for contributions of book inventories.
Sec. 304. Additional exemption for housing Hurricane Katrina displaced individ-
uals.
Sec. 305. Increase in standard mileage rate for charitable use of passenger auto-
mobile.
Sec. 306. Mileage reimbursements to charitable volunteers excluded from gross in-
come.
TITLE IV—ADDITIONAL TAX RELIEF PROVISIONS
Sec. 401. Exclusions of certain cancellations of indebtedness for victims of Hurri-
cane Katrina.
Sec. 402. Suspension of certain limitations on personal casualty losses.
Sec. 403. Required exercise of authority under section 7508A for tax relief for vic-
tims of Hurricane Katrina.
†
HR 3768 EAS
Sec. 404. Special mortgage financing rules for residences located in Hurricane
Katrina disaster area.
Sec. 405. Extension of replacement period for nonrecognition of gain for property
located in Hurricane Katrina disaster area.
Sec. 406. Special rule for determining earned income.
Sec. 407. Secretarial authority to make adjustments regarding taxpayer and de-
pendency status.
TITLE V—EMERGENCY REQUIREMENT
Sec. 501. Emergency requirement.
SEC. 2. HURRICANE KATRINA DISASTER AREA.
For purposes of this Act, the term ‘‘Hurricane Katrina
disaster area’’ means an area—
(1) with respect to which a major disaster has
been declared by the President before September 14,
2005, under section 401 of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act in connec-
tion with Hurricane Katrina, and
(2) which—
(A) except as provided in subparagraph
(B), is determined by the President before such
date to warrant assistance from the Federal Gov-
ernment under such Act, and
(B) in the case of sections 201 and 202, is
determined by the President before such date to
warrant individual assistance, or individual and
public assistance, from the Federal Government
under such Act.
†
HR 3768 EAS
TITLE I—PENALTY FREE USE OF
RETIREMENT FUNDS IN THE
CASE 
OF 
NATURAL 
DISAS-
TERS
SEC. 101. PENALTY FREE WITHDRAWALS FROM RETIRE-
MENT PLANS FOR VICTIMS OF FEDERALLY
DECLARED NATURAL DISASTERS.
(a) IN GENERAL.—Paragraph (2) of section 72(t) (re-
lating to 10-percent additional tax on early distributions
from qualified retirement plans) is amended by adding at
the end the following new subparagraph:
‘‘(G) DISTRIBUTIONS
FROM
RETIREMENT
PLANS
TO
VICTIMS
OF
FEDERALLY
DECLARED
NATURAL DISASTERS.—
‘‘(i) DISTRIBUTION
ALLOWED.—Any
qualified disaster-relief distribution.
‘‘(ii) AMOUNT
DISTRIBUTED
MAY
BE
REPAID.—
‘‘(I) IN
GENERAL.—Any indi-
vidual who receives a qualified dis-
aster-relief distribution may, at any
time during the 3-year period begin-
ning on the day after the date on
which such distribution was made,
make one or more contributions in an
†
HR 3768 EAS
aggregate amount not to exceed the
amount of such distribution to an eli-
gible retirement plan (as defined in
section 402(c)(8)(B)) of which such in-
dividual is a beneficiary and to which
a rollover contribution of such dis-
tribution 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
REPAY-
MENTS FOR DISTRIBUTIONS FROM ELI-
GIBLE
RETIREMENT
PLANS
OTHER
THAN IRAS.—For purposes of this title,
if a contribution is made pursuant to
subclause (I) with respect to a quali-
fied disaster-relief distribution from an
eligible retirement plan (as so defined)
other than an individual retirement
plan, then the taxpayer shall, to the ex-
tent of the amount of the contribution,
be treated as having received the quali-
fied disaster-relief distribution in an
eligible rollover distribution (as defined
in section 402(c)(4)) and as having
transferred the amount to the eligible
†
HR 3768 EAS
retirement plan in a direct trustee to
trustee transfer within 60 days of the
distribution.
‘‘(III) TREATMENT
OF
REPAY-
MENTS
FOR
DISTRIBUTIONS
FROM
IRAS.—For purposes of this title, if a
contribution is made pursuant to sub-
clause (I) with respect to a qualified
disaster-relief distribution from an in-
dividual retirement plan, then, to the
extent of the amount of the contribu-
tion, the qualified disaster-relief dis-
tribution shall be treated as a distribu-
tion described in section 408(d)(3) and
as having been transferred to the eligi-
ble retirement plan in a direct trustee
to trustee transfer within 60 days of
the distribution.
‘‘(IV) APPLICATION
TO
GOVERN-
MENTAL SECTION 457 PLANS.—In deter-
mining whether any distribution is a
qualified disaster-relief distribution for
purposes of this clause, an eligible de-
ferred compensation plan (as defined
in section 457(b)) maintained by an