I 
110TH CONGRESS 
2D SESSION 
H. R. 7055 
To amend the Internal Revenue Code of 1986 to allow individuals either 
a credit against income tax or a deduction for expenses paid or incurred 
by reason of a voluntary or mandatory evacuation. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 24, 2008 
Mr. PAUL introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow indi-
viduals either a credit against income tax or a deduction 
for expenses paid or incurred by reason of a voluntary 
or mandatory evacuation. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Evacuees Tax Relief 
Act of 2008’’. 
SEC. 2. EVACUATION EXPENSES. 
(a) CREDIT FOR EVACUATION EXPENSES.—Subpart 
A of part IV of subchapter A of chapter 1 of the Internal 
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Revenue Code of 1986 (relating to nonrefundable personal 
credits) is amended by inserting after section 25D the fol-
lowing new section: 
‘‘SEC. 25E. EVACUATION EXPENSES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this subtitle for the taxable year an amount 
equal to the qualified evacuation expenses paid or incurred 
by the individual during the taxable year. 
‘‘(b) DOLLAR LIMITATION.—With respect to an indi-
vidual, the aggregate amount of qualified evacuation ex-
penses which may be taken into account under subsection 
(a) for all taxable years during the credit allowance period 
shall not exceed $5,000. 
‘‘(c) QUALIFIED EVACUATION EXPENSES.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified evacu-
ation expenses’ means, with respect to any taxable 
year during the credit allowance period, the sum of 
all expenses paid or incurred by the individual dur-
ing such taxable year by reason of a qualified evacu-
ation. Such expenses shall include travel and lodging 
expenses as do not exceed $1,000, lost wages, and 
any property damage not compensated for by insur-
ance or otherwise. 
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‘‘(2) QUALIFIED EVACUATION.—With respect to 
an individual, the term ‘qualified evacuation’ means 
a voluntary or mandatory evacuation ordered by rea-
son of a qualified disaster (as defined in section 
139(c)) of an area in which such individual resides 
on the date of such disaster. 
‘‘(3) CREDIT
ALLOWANCE
PERIOD.—With re-
spect to a qualified evacuation, the term ‘credit al-
lowance period’ means the taxable year or years dur-
ing which the evacuation occurred and each of the 
3 succeeding taxable years. 
‘‘(d) PORTION OF CREDIT REFUNDABLE.— 
‘‘(1) IN GENERAL.—The aggregate credits al-
lowed to an individual under subpart C shall be in-
creased by the lesser of— 
‘‘(A) the credit which would be allowed 
under this section without regard to this sub-
section, or 
‘‘(B) the amount by which the aggregate 
amount of credits allowed by this subpart (de-
termined without regard to this subsection) 
would increase if the limitation imposed by sec-
tion 26(a) were increased by the individual’s so-
cial security taxes for the taxable year. 
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The amount of the credit allowed under this sub-
section shall not be treated as a credit allowed under 
this subpart and shall reduce the amount of credit 
otherwise allowable under subsection (a). 
‘‘(2) SOCIAL SECURITY TAXES.—For purposes 
of paragraph (1)— 
‘‘(A) IN GENERAL.—The term ‘social secu-
rity taxes’ means, with respect to any taxpayer 
for any taxable year— 
‘‘(i) the amount of the taxes imposed 
by section 3101 and 3201(a) on amounts 
received by the taxpayer during the cal-
endar year in which the taxable year be-
gins, 
‘‘(ii) 50 percent of the taxes imposed 
by section 1401 on the self-employment in-
come of the taxpayer for the taxable year, 
and 
‘‘(iii) 50 percent of the taxes imposed 
by section 3211(a)(1) on amounts received 
by the taxpayer during the calendar year 
in which the taxable year begins. 
‘‘(B) COORDINATION
WITH
SPECIAL
RE-
FUND OF SOCIAL SECURITY TAXES.—The term 
‘social security taxes’ shall not include any 
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taxes to the extent the taxpayer is entitled to 
a special refund of such taxes under section 
6413(c). 
‘‘(C) SPECIAL RULE.—Any amounts paid 
pursuant to an agreement under section 3121(l) 
(relating to agreements entered into by Amer-
ican employers with respect to foreign affiliates) 
which are equivalent to the taxes referred to in 
subparagraph (A)(i) shall be treated as taxes 
referred to in such paragraph. 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—No credit shall 
be allowed under subsection (a) for any expense for which 
a deduction or credit is allowed under any other provision 
of this chapter. 
‘‘(f) ELECTION NOT TO HAVE SECTION APPLY.—An 
individual may elect not to have this section apply with 
respect to the qualified evacuation expenses of the indi-
vidual for any taxable year.’’. 
(b) DEDUCTION FOR EVACUATION EXPENSES.— 
(1) IN GENERAL.—Part VII of subchapter B of 
chapter 1 of the Internal Revenue Code of 1986 (re-
lating to additional itemized deductions for individ-
uals) is amended by redesignating section 224 as 
section 225 and by inserting after section 223 the 
following new section: 
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139(c)) of an area in which such individual resides 
on the date of such disaster. 
‘‘(3) DEDUCTION ALLOWANCE PERIOD.—With 
respect to a qualified evacuation, the term ‘deduc-
tion allowance period’ means the taxable year or 
years during which the evacuation occurred and each 
of the 3 succeeding taxable years. 
‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction 
shall be allowed under subsection (a) for any expense for 
which a deduction or credit is allowed under any other 
provision of this chapter. 
‘‘(e) ELECTION NOT TO HAVE SECTION APPLY.—An 
individual may elect not to have this section apply with 
respect to the qualified evacuation expenses of the indi-
vidual for any taxable year.’’. 
(2) DEDUCTION ALLOWED WHETHER OR NOT 
INDIVIDUAL
ITEMIZES
OTHER
DEDUCTIONS.—Sub-
section (a) of section 62 of such Code is amended 
by inserting after paragraph (21) the following new 
paragraph: 
‘‘(22) 
DEDUCTION
FOR
EVACUATION
EX-
PENSES.—The deduction allowed by section 224.’’. 
(c) CLERICAL AMENDMENTS.— 
(1) The table of sections for subpart A of part 
IV of subchapter A of chapter 1 of such Code is 
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amended by inserting after the item relating to sec-
tion 25D the following new item: 
‘‘Sec. 25E. Evacuation expenses.’’. 
(2) The table of sections for part VII of sub-
chapter B of chapter 1 of such Code is amended by 
striking the last item and inserting the following 
new items: 
‘‘Sec. 224. Deduction for evacuation expenses. 
‘‘Sec. 225. Cross reference.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
Æ 
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