(4) EARNED
INCOME.—For purposes of this 
subsection, the term ‘‘earned income’’ has the mean-
ing given such term under section 32(c) of the Inter-
nal Revenue Code of 1986. 
(5) SPECIAL RULES.— 
(A) APPLICATION TO JOINT RETURNS.— 
For purposes of paragraph (1), in the case of 
a joint return for an applicable taxable year— 
(i) such paragraph shall apply if ei-
ther spouse is a qualified individual, and 
(ii) the earned income of the taxpayer 
for the preceding taxable year shall be the 
sum of the earned income of each spouse 
for such preceding taxable year. 
(B) UNIFORM
APPLICATION
OF
ELEC-
TION.—Any election made under paragraph (1) 
shall apply with respect to both sections 24(d) 
and 32 of the Internal Revenue Code of 1986. 
(C) ERRORS TREATED AS MATHEMATICAL 
ERROR.—For purposes of section 6213 of the 
Internal Revenue Code of 1986, an incorrect 
use on a return of earned income pursuant to 
paragraph (1) shall be treated as a mathe-
matical or clerical error. 
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(D) NO EFFECT ON DETERMINATION OF 
GROSS INCOME, ETC.—Except as otherwise pro-
vided in this subsection, the Internal Revenue 
Code of 1986 shall be applied without regard to 
any substitution under paragraph (1). 
(E) EXTENSION
OF
PERIOD
OF
LIMITA-
TION FOR CERTAIN INDIVIDUALS AFFECTED BY 
HURRICANE SANDY.— 
(i) IN GENERAL.—In the case of an 
individual described in paragraph (2)(B), 
the period of limitation prescribed by sec-
tion 6511(a) of the Internal Revenue Code 
of 1986 for any applicable taxable year 
shall be extended until the date prescribed 
by law (including extensions) for filing the 
return of tax for the taxable year that in-
cludes the date of the enactment of this 
Act, and section 6511(b)(2) of such Code 
shall not apply to any claim of credit or re-
fund with respect to the return for such 
applicable tax year. 
(ii) AMENDMENTS, ETC. RESTRICTED 
TO CHANGES TO EARNED INCOME.—Clause 
(i) shall apply only with respect to amend-
ments to the return of tax, and claims for 
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credit or refund, relating to a change in 
the earned income of the individual. 
SEC. 305. AUTOMATIC EXTENSION OF FILING DEADLINES 
IN CASE OF CERTAIN TAXPAYERS AFFECTED 
BY FEDERALLY DECLARED DISASTERS. 
(a) IN GENERAL.—Section 7508A is amended by 
adding at the end the following new subsection: 
‘‘(d) MANDATORY 60-DAY EXTENSION.— 
‘‘(1) IN GENERAL.—In the case of any qualified 
taxpayer, the period— 
‘‘(A) beginning on the earliest incident 
date specified in the declaration to which the 
disaster area referred to in paragraph (2) re-
lates, and 
‘‘(B) ending on the date which is 60 days 
after the latest incident date so specified, 
shall be disregarded in the same manner as a period 
specified under subsection (a). 
‘‘(2) QUALIFIED TAXPAYER.—For purposes of 
this subsection, the term ‘qualified taxpayer’ 
means— 
‘‘(A) any individual whose principal resi-
dence (for purposes of section 1033(h)(4)) is lo-
cated in a disaster area, 
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‘‘(B) any taxpayer if the taxpayer’s prin-
cipal place of business (other than the business 
of performing services as an employee) is lo-
cated in a disaster area, 
‘‘(C) any individual who is a relief worker 
affiliated with a recognized government or phil-
anthropic organization and who is assisting in 
a disaster area, 
‘‘(D) any taxpayer whose records necessary 
to meet a deadline for an act described in sec-
tion 7508(a)(1) are maintained in a disaster 
area, 
‘‘(E) any individual visiting a disaster area 
who was killed or injured as a result of the dis-
aster, and 
‘‘(F) solely with respect to a joint return, 
any spouse of an individual described in any 
preceding subparagraph of this paragraph. 
‘‘(3) DISASTER
AREA.—For purposes of this 
subsection, the term ‘disaster area’ has the meaning 
given such term under subparagraph (B) of section 
165(i)(5) with respect to a Federally declared dis-
aster (as defined in subparagraph (A) of such sec-
tion). 
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‘‘(4) APPLICATION TO RULES REGARDING PEN-
SIONS.—In the case of any person described in sub-
section (b), a rule similar to the rule of paragraph 
(1) shall apply for purposes of subsection (b) with 
respect to— 
‘‘(A) making contributions to a qualified 
retirement plan (within the meaning of section 
4974(c)) under section 219(f)(3), 404(a)(6), 
404(h)(1)(B), or 404(m)(2), 
‘‘(B) making distributions under section 
408(d)(4), 
‘‘(C) recharacterizing contributions under 
section 408A(d)(6), and 
‘‘(D) making a rollover under section 
402(c), 403(a)(4), 403(b)(8), or 408(d)(3). 
‘‘(5) COORDINATION WITH PERIODS SPECIFIED 
BY THE SECRETARY.—Any period described in para-
graph (1) with respect to any person (including by 
reason of the application of paragraph (4)) shall be 
in addition to (or concurrent with, as the case may 
be) any period specified under subsection (a) or (b) 
with respect to such person.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to federally declared disasters de-
clared after the date of the enactment of this Act. 
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SEC. 306. MODIFICATION OF THE TAX RATE FOR THE EX-
CISE TAX ON INVESTMENT INCOME OF PRI-
VATE FOUNDATIONS. 
(a) IN GENERAL.—Section 4940(a) is amended by 
striking ‘‘2 percent’’ and inserting ‘‘1.39 percent’’. 
(b) ELIMINATION OF REDUCED TAX WHERE FOUN-
DATION
MEETS
CERTAIN
DISTRIBUTION
REQUIRE-
MENTS.—Section 4940 of such Code is amended by strik-
ing subsection (e). 
(c) EFFECTIVE DATE.—The amendments made by 
this subsection shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 307. ADDITIONAL LOW-INCOME HOUSING CREDIT AL-
LOCATIONS FOR QUALIFIED 2017 AND 2018 
CALIFORNIA DISASTER AREAS. 
(a) IN GENERAL.—For purposes of section 42 of the 
Internal Revenue Code of 1986, the State housing credit 
ceiling for California for calendar year 2019 shall be in-
creased by the lesser of— 
(1) the aggregate housing credit dollar amount 
allocated by the State housing credit agencies of 
California for such calendar year to buildings located 
in qualified 2017 and 2018 California disaster areas, 
or 
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(2) 50 percent of the sum of the State housing 
credit ceilings for California for calendar years 2017 
and 2018. 
(b) ALLOCATIONS TREATED AS MADE FIRST FROM 
ADDITIONAL ALLOCATION
FOR PURPOSES
OF DETER-
MINING CARRYOVER.—For purposes of determining the 
unused State housing credit ceiling for any calendar year 
under section 42(h)(3)(C) of the Internal Revenue Code 
of 1986, any increase in the State housing credit ceiling 
under subsection (a) shall be treated as an amount de-
scribed in clause (ii) of such section. 
(c) DEFINITIONS.—For purposes of this section— 
(1) QUALIFIED 2017 AND 2018 CALIFORNIA DIS-
ASTER AREAS.—The term ‘‘qualified 2017 and 2018 
California disaster areas’’ means any area in Cali-
fornia which was determined by the President (be-
fore January 1, 2019) to warrant individual or indi-
vidual and public assistance from the Federal Gov-
ernment under the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act by reason of a 
major disaster the incident period of which begins or 
ends in calendar year 2017 or 2018. Notwith-
standing section 301, for purposes of the preceding 
sentence, the term ‘‘incident period’’ means the pe-
riod specified by the Federal Emergency Manage-
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ment Agency as the period during which the disaster 
occurred. 
(2) OTHER DEFINITIONS.—Terms used in this 
section which are also used in section 42 of the In-
ternal Revenue Code of 1986 shall have the same 
meaning in this section as in such section 42. 
SEC. 308. TREATMENT OF CERTAIN POSSESSIONS. 
(a) PAYMENTS
TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treasury 
shall pay to each possession of the United States which 
has a mirror code tax system amounts equal to the loss 
(if any) to that possession by reason of the application 
of the provisions of this title. Such amounts shall be deter-
mined by the Secretary of the Treasury based on informa-
tion provided by the government of the respective posses-
sion. 
(b) PAYMENTS TO OTHER POSSESSIONS.—The Sec-
retary of the Treasury shall pay to each possession of the 
United States which does not have a mirror code tax sys-
tem amounts estimated by the Secretary of the Treasury 
as being equal to the aggregate benefits (if any) that 
would have been provided to residents of such possession 
by reason of the provisions of this title if a mirror code 
tax system had been in effect in such possession. The pre-
ceding sentence shall not apply unless the respective pos-
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session has a plan, which has been approved by the Sec-
retary of the Treasury, under which such possession will 
promptly distribute such payments to its residents. 
(c) MIRROR CODE TAX SYSTEM.—For purposes of 
this section, the term ‘‘mirror code tax system’’ means, 
with respect to any possession of the United States, the 
income tax system of such possession if the income tax 
liability of the residents of such possession under such sys-
tem is determined by reference to the income tax laws of 
the United States as if such possession were the United 
States. 
(d) TREATMENT OF PAYMENTS.—For purposes of 
section 1324 of title 31, United States Code, the payments 
under this section shall be treated in the same manner 
as a refund due from a credit provision referred to in sub-
section (b)(2) of such section. 
Æ 
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