To amend the Internal Revenue Code of 1986 to allow individuals a credit against income tax for expenses paid or incurred by reason of a mandatory evacuation.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Evacuees Assistance Act of 2008''.

SEC. 2. CREDIT FOR EVACUATION EXPENSES IN MANDATORY EVACUATION.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25D the 
following new section:

``SEC. 25E. EVACUATION EXPENSES IN MANDATORY EVACUATION.

    ``(a) Allowance of Credit.--In the case of an individual, 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 taxpayer during the taxable year, but 
only to the extent not otherwise compensated for by insurance or 
otherwise.
    ``(b) Dollar Limitation.--The aggregate amount of qualified 
evacuation expenses which may be taken into account under subsection 
(a) for a taxable year shall not exceed $2,000.
    ``(c) Qualified Evacuation Expenses.--For purposes of this 
section--
            ``(1) In general.--The term `qualified evacuation expenses' 
        means the sum of all travel expenses (including meals and 
        lodging) paid or incurred by the taxpayer during the taxable 
        year by reason of a qualified evacuation.
            ``(2) Qualified evacuation.--With respect to an individual, 
        the term `qualified evacuation' means a mandatory evacuation of 
        an area in which such individual resides on the date of a 
        qualified disaster (as defined in section 139(c)) in any 
        portion of such area.
    ``(d) Portion of Credit Refundable.--
            ``(1) In general.--The aggregate credits allowed to an 
        individual under subpart C shall be increased by the lesser 
        of--
                    ``(A) the credit which would be allowed under this 
                section without regard to this subsection, or
                    ``(B) the amount by which the aggregate amount of 
                credits allowed by this subpart (determined without 
                regard to this subsection) would increase if the 
                limitation imposed by section 26(a) were increased by 
                the individual's social security taxes for the taxable 
                year.
        The amount of the credit allowed under this subsection 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 security 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 calendar year in which 
                        the taxable year begins,
                            ``(ii) 50 percent of the taxes imposed by 
                        section 1401 on the self-employment income 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 refund of social 
                security taxes.--The term `social security taxes' shall 
                not include any 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 American 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 an exclusion, deduction, or 
credit is allowed under any other provision of this chapter.
    ``(f) Election Not to Have Section Apply.--A taxpayer may elect not 
to have this section apply with respect to the qualified evacuation 
expenses of the taxpayer for any taxable year.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25D the following new 
item:

``Sec. 25E. Evacuation expenses in mandatory evacuation.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after August 29, 2008.

Summary: Evacuees Assistance Act of 2008 - Amends the Internal Revenue Code to allow individual taxpayers a tax credit, up to $2,000, for uncompensated travel expenses (including meals and lodging) incurred due to a mandatory evacuation of a disaster area.