To extend tax relief to the residents and businesses of an area with respect to which a major disaster has been declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (FEMA-1699-DR) by reason of severe storms and tornados beginning on May 4, 2007, and determined by the President to warrant individual or individual and public assistance from the Federal Government under such Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as ``Kansas Disaster Tax Relief Assistance 
Act''.

SEC. 2. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, KANSAS AND SURROUNDING 
              AREA.

    The following provisions of or relating to the Internal Revenue 
Code of 1986 shall apply, in addition to the areas described in such 
provisions, to an area with respect to which a major disaster has been 
declared by the President under section 401 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (FEMA-1699-DR, as in 
effect on the date of the enactment of this Act) by reason of severe 
storms and tornados beginning on May 4, 2007, and determined by the 
President to warrant individual or individual and public assistance 
from the Federal Government under such Act with respect to damages 
attributed to such storms and tornados:
            (1) Suspension of certain limitations on personal casualty 
        losses.--Section 1400S(b)(1) of the Internal Revenue Code of 
        1986, by substituting ``May 4, 2007'' for ``August 25, 2005''.
            (2) Extension of replacement period for nonrecognition of 
        gain.--Section 405 of the Katrina Emergency Tax Relief Act of 
        2005, by substituting ``on or after May 4, 2007, by reason of 
        the May 4, 2007, storms and tornados'' for ``on or after August 
        25, 2005, by reason of Hurricane Katrina''.
            (3) Employee retention credit for employers affected by may 
        4 storms and tornados.--Section 1400R(a) of the Internal 
        Revenue Code of 1986--
                    (A) by substituting ``May 4, 2007'' for ``August 
                28, 2005'' each place it appears,
                    (B) by substituting ``January 1, 2008'' for 
                ``January 1, 2006'' both places it appears, and
                    (C) only with respect to eligible employers who 
                employed an average of not more than 200 employees on 
                business days during the taxable year before May 4, 
                2007.
            (4) Special allowance for certain property acquired on or 
        after may 5, 2007.--Section 1400N(d) of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                property'' for ``qualified Gulf Opportunity Zone 
                property'' each place it appears,
                    (B) by substituting ``May 5, 2007'' for ``August 
                28, 2005'' each place it appears,
                    (C) by substituting ``December 31, 2008'' for 
                ``December 31, 2007'' in paragraph (2)(A)(v),
                    (D) by substituting ``December 31, 2009'' for 
                ``December 31, 2008'' in paragraph (2)(A)(v),
                    (E) by substituting ``May 4, 2007'' for ``August 
                27, 2005'' in paragraph (3)(A),
                    (F) by substituting ``January 1, 2009'' for 
                ``January 1, 2008'' in paragraph (3)(B), and
                    (G) determined without regard to paragraph (6) 
                thereof.
            (5) Increase in expensing under section 179.--Section 
        1400N(e) of such Code, by substituting ``qualified section 179 
        Recovery Assistance property'' for ``qualified section 179 Gulf 
        Opportunity Zone property'' each place it appears.
            (6) Expensing for certain demolition and clean-up costs.--
        Section 1400N(f) of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                clean-up cost'' for ``qualified Gulf Opportunity Zone 
                clean-up cost'' each place it appears, and
                    (B) by substituting ``beginning on May 4, 2007, and 
                ending on December 31, 2009'' for ``beginning on August 
                28, 2005, and ending on December 31, 2007'' in 
                paragraph (2) thereof.
            (7) Treatment of public utility property disaster losses.--
        Section 1400N(o) of such Code.
            (8) Treatment of net operating losses attributable to storm 
        losses.--Section 1400N(k) of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                loss'' for ``qualified Gulf Opportunity Zone loss'' 
                each place it appears,
                    (B) by substituting ``after May 3, 2007, and before 
                January 1, 2010'' for ``after August 27, 2005, and 
                before January 1, 2008'' each place it appears,
                    (C) by substituting ``May 4, 2007'' for ``August 
                28, 2005'' in paragraph (2)(B)(ii)(I) thereof,
                    (D) by substituting ``qualified Recovery Assistance 
                property'' for ``qualified Gulf Opportunity Zone 
                property'' in paragraph (2)(B)(iv) thereof, and
                    (E) by substituting ``qualified Recovery Assistance 
                casualty loss'' for ``qualified Gulf Opportunity Zone 
                casualty loss'' each place it appears.
            (9) Treatment of representations regarding income 
        eligibility for purposes of qualified rental project 
        requirements.--Section 1400N(n) of such Code.
            (10) Special rules for use of retirement funds.--Section 
        1400Q of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                distribution'' for ``qualified hurricane distribution'' 
                each place it appears,
                    (B) by substituting ``on or after May 4, 2007, and 
                before January 1, 2009'' for ``on or after August 25, 
                2005, and before January 1, 2007'' in subsection 
                (a)(4)(A)(i),
                    (C) by substituting ``qualified storm 
                distribution'' for ``qualified Katrina distribution'' 
                each place it appears,
                    (D) by substituting ``after November 4, 2006, and 
                before May 5, 2007'' for ``after February 28, 2005, and 
                before August 29, 2005'' in subsection (b)(2)(B)(ii),
                    (E) by substituting ``beginning on May 4, 2007, and 
                ending on November 5, 2007'' for ``beginning on August 
                25, 2005, and ending on February 28, 2006'' in 
                subsection (b)(3)(A),
                    (F) by substituting ``qualified storm individual'' 
                for ``qualified Hurricane Katrina individual'' each 
                place it appears,
                    (G) by substituting ``December 31, 2007'' for 
                ``December 31, 2006'' in subsection (c)(2)(A),
                    (H) by substituting ``beginning on June 4, 2007, 
                and ending on December 31, 2007'' for ``beginning on 
                September 24, 2005, and ending on December 31, 2006'' 
                in subsection (c)(4)(A)(i),
                    (I) by substituting ``May 4, 2007'' for ``August 
                25, 2005'' in subsection (c)(4)(A)(ii), and
                    (J) by substituting ``January 1, 2008'' for 
                ``January 1, 2007'' in subsection (d)(2)(A)(ii).

Summary: Kansas Disaster Tax Relief Assistance Act - Extends to businesses and individuals in certain Kansas counties declared by the President as major disaster areas under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (FEMA-1699-DR, as in effect on the date of enactment of this Act) by reason of severe storms and tornados beginning on May 4, 2007, provisions of the Internal Revenue Code allowing: (1) suspension of certain limitations on personal casualty losses; (2) an extension of the period for replacing damaged property without recognizing gain; (3) an employee retention tax credit for affected businesses through 2007; (4) 50% bonus depreciation for affected businesses; (5) increased expensing of small business assets; (6) increased expensing of demolition and cleanup costs; (7) extended net operating loss carryback periods for losses attributable to storms and tornadoes and for public utility property disaster losses; (8) relaxed income verification requirements for tenants in low-income rental projects; and (9) penalty-free withdrawals and loans from individual retirement accounts and other tax-exempt pension plans.