Title: A bill to provide tax relief related to Hurricanes Harvey, Irma, and Maria.
Policy area: Taxation

Summary:
This bill amends the Internal Revenue Code to allow various tax credits, deductions, and modifications to existing rules for individuals and businesses affected by Hurricanes Harvey, Irma, and Maria.
With respect to individuals and businesses in the affected areas, the bill:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1892 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1892

  To provide tax relief related to Hurricanes Harvey, Irma, and Maria.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 28, 2017

   Mr. Cruz (for himself, Mr. Cornyn, and Mr. Rubio) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
  To provide tax relief related to Hurricanes Harvey, Irma, and Maria.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEFINITIONS.

    (a) Hurricane Harvey Disaster Zone and Disaster Area.--For purposes 
of this Act--
            (1) Hurricane harvey disaster zone.--The term ``Hurricane 
        Harvey disaster zone'' means that portion of the Hurricane 
        Harvey disaster area determined by the President to warrant 
        individual or individual and public assistance from the Federal 
        Government under the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act by reason of Hurricane Harvey.
            (2) Hurricane harvey disaster area.--The term ``Hurricane 
        Harvey disaster area'' means an area with respect to which a 
        major disaster has been declared by the President before 
        September 21, 2017, under section 401 of such Act by reason of 
        Hurricane Harvey.
    (b) Hurricane Irma Disaster Zone and Disaster Area.--For purposes 
of this Act--
            (1) Hurricane irma disaster zone.--The term ``Hurricane 
        Irma disaster zone'' means that portion of the Hurricane Irma 
        disaster area determined by the President to warrant individual 
        or individual and public assistance from the Federal Government 
        under such Act by reason of Hurricane Irma.
            (2) Hurricane irma disaster area.--The term ``Hurricane 
        Irma disaster area'' means an area with respect to which a 
        major disaster has been declared by the President before 
        September 21, 2017, under section 401 of such Act by reason of 
        Hurricane Irma.
    (c) Hurricane Maria Disaster Zone and Disaster Area.--For purposes 
of this Act--
            (1) Hurricane maria disaster zone.--The term ``Hurricane 
        Maria disaster zone'' means that portion of the Hurricane Maria 
        disaster area determined by the President to warrant individual 
        or individual and public assistance from the Federal Government 
        under such Act by reason of Hurricane Maria.
            (2) Hurricane maria disaster area.--The term ``Hurricane 
        Maria disaster area'' means an area with respect to which a 
        major disaster has been declared by the President before 
        September 21, 2017, under section 401 of such Act by reason of 
        Hurricane Maria.

SEC. 2. SPECIAL DISASTER-RELATED RULES FOR USE OF RETIREMENT FUNDS.

    (a) Tax-Favored Withdrawals From Retirement Plans.--
            (1) In general.--Section 72(t) of the Internal Revenue Code 
        of 1986 shall not apply to any qualified hurricane 
        distribution.
            (2) Aggregate dollar limitation.--
                    (A) In general.--For purposes of this subsection, 
                the aggregate amount of distributions received by an 
                individual which may be treated as qualified hurricane 
                distributions for any taxable year shall not exceed the 
                excess (if any) of--
                            (i) $100,000, over
                            (ii) the aggregate amounts treated as 
                        qualified hurricane distributions received by 
                        such individual for all prior taxable years.
                    (B) Treatment of plan distributions.--If a 
                distribution to an individual would (without regard to 
                subparagraph (A)) be a qualified hurricane 
                distribution, a plan shall not be treated as violating 
                any requirement of the Internal Revenue Code of 1986 
                merely because the plan treats such distribution as a 
                qualified hurricane distribution, unless the aggregate 
                amount of such distributions from all plans maintained 
                by the employer (and any member of any controlled group 
                which includes the employer) to such individual exceeds 
                $100,000.
                    (C) Controlled group.--For purposes of subparagraph 
                (B), the term ``controlled group'' means any group 
                treated as a single employer under subsection (b), (c), 
                (m), or (o) of section 414 of the Internal Revenue Code 
                of 1986.
            (3) Amount distributed may be repaid.--
                    (A) In general.--Any individual who receives a 
                qualified hurricane distribution may, at any time 
                during the 3-year period beginning on the day after the 
                date on which such distribution was received, make one 
                or more contributions in an aggregate amount not to 
                exceed the amount of such distribution to an eligible 
                retirement plan of which such individual is a 
                beneficiary and to which a rollover contribution of 
                such distribution could be made under section 402(c), 
                403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), of the 
                Internal Revenue Code of 1986, as the case may be.
                    (B) Treatment of repayments of distributions from 
                eligible retirement plans other than iras.--For 
                purposes of the Internal Revenue Code of 1986, if a 
                contribution is made pursuant to subparagraph (A) with 
                respect to a qualified hurricane distribution from an 
                eligible retirement plan other than an individual 
                retirement plan, then the taxpayer shall, to the extent 
                of the amount of the contribution, be treated as having 
                received the qualified hurricane distribution in an 
                eligible rollover distribution (as defined in section 
                402(c)(4) of such Code) and as having transferred the 
                amount to the eligible retirement plan in a direct 
                trustee to trustee transfer within 60 days of the 
                distribution.
                    (C) Treatment of repayments for distributions from 
                iras.--For purposes of the Internal Revenue Code of 
                1986, if a contribution is made pursuant to 
                subparagraph (A) with respect to a qualified hurricane 
                distribution from an individual retirement plan (as 
                defined by section 7701(a)(37) of such Code), then, to 
                the extent of the amount of the contribution, the 
                qualified hurricane distribution shall be treated as a 
                distribution described in section 408(d)(3) of such 
                Code and as having been transferred to the eligible 
                retirement plan in a direct trustee to trustee transfer 
                within 60 days of the distribution.
            (4) Definitions.--For purposes of this subsection--
                    (A) Qualified hurricane distribution.--Except as 
                provided in paragraph (2), the term ``qualified 
                hurricane distribution'' means--
                            (i) any distribution from an eligible 
                        retirement plan made on or after August 23, 
                        2017, and before January 1, 2019, to an 
                        individual whose principal place of abode on 
                        August 23, 2017, is located in the Hurricane 
                        Harvey disaster area and who has sustained an 
                        economic loss by reason of Hurricane Harvey,
                            (ii) any distribution (which is not 
                        described in clause (i)) from an eligible 
                        retirement plan made on or after September 4, 
                        2017, and before January 1, 2019, to an 
                        individual whose principal place of abode on 
                        September 4, 2017, is located in the Hurricane 
                        Irma disaster area and who has sustained an 
                        economic loss by reason of Hurricane Irma, and
                            (iii) any distribution (which is not 
                        described in clause (i) or (ii)) from an 
                        eligible retirement plan made on or after 
                        September 16, 2017, and before January 1, 2019, 
                        to an individual whose principal place of abode 
                        on September 16, 2017, is located in the 
                        Hurricane Maria disaster area and who has 
                        sustained an economic loss by reason of 
                        Hurricane Maria.
                    (B) Eligible retirement plan.--The term ``eligible 
                retirement plan'' shall have the meaning given such 
                term by section 402(c)(8)(B) of the Internal Revenue 
                Code of 1986.
            (5) Income inclusion spread over 3-year period.--
                    (A) In general.--In the case of any qualified 
                hurricane distribution, unless the taxpayer elects not 
                to have this paragraph apply for any taxable year, any 
                amount required to be included in gross income for such 
                taxable year shall be so included ratably over the 3-
                taxable-year period beginning with such taxable year.
                    (B) Special rule.--For purposes of subparagraph 
                (A), rules similar to the rules of subparagraph (E) of 
                section 408A(d)(3) of the Internal Revenue Code of 1986 
                shall apply.
            (6) Special rules.--
                    (A) Exemption of distributions from trustee to 
                trustee transfer and withholding rules.--For purposes 
                of sections 401(a)(31), 402(f), and 3405 of the 
                Internal Revenue Code of 1986, qualified hurricane 
                distributions shall not be treated as eligible rollover 
                distributions.
                    (B) Qualified hurricane distributions treated as 
                meeting plan distribution requirements.--For purposes 
                the Internal Revenue Code of 1986, a qualified 
                hurricane distribution shall be treated as meeting the 
                requirements of sections 401(k)(2)(B)(i), 
                403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of such 
                Code.
    (b) Recontributions of Withdrawals for Home Purchases.--
            (1) Recontributions.--
                    (A) In general.--Any individual who received a 
                qualified distribution may, during the period beginning 
                on August 23, 2017, and ending on February 28, 2018, 
                make one or more contributions in an aggregate amount 
                not to exceed the amount of such qualified distribution 
                to an eligible retirement plan (as defined in section 
                402(c)(8)(B) of the Internal Revenue Code of 1986) of 
                which such individual is a beneficiary and to which a 
                rollover contribution of such distribution could be 
                made under section 402(c), 403(a)(4), 403(b)(8), or 
                408(d)(3), of such Code, as the case may be.
                    (B) Treatment of repayments.--Rules similar to the 
                rules of subparagraphs (B) and (C) of subsection (a)(3) 
                shall apply for purposes of this subsection.
            (2) Qualified distribution.--For purposes of this 
        subsection, the term ``qualified distribution'' means any 
        distribution--
                    (A) described in section 401(k)(2)(B)(i)(IV), 
                403(b)(7)(A)(ii) (but only to the extent such 
                distribution relates to financial hardship), 
                403(b)(11)(B), or 72(t)(2)(F), of the Internal Revenue 
                Code of 1986,
                    (B) received after February 28, 2017, and before 
                September 21, 2017, and
                    (C) which was to be used to purchase or construct a 
                principal residence in the Hurricane Harvey disaster 
                area, the Hurricane Irma disaster area, or the 
                Hurricane Maria disaster area, but which was not so 
                purchased or constructed on account of Hurricane 
                Harvey, Hurricane Irma, or Hurricane Maria.
    (c) Loans From Qualified Plans.--
            (1) Increase in limit on loans not treated as 
        distributions.--In the case of any loan from a qualified 
        employer plan (as defined under section 72(p)(4) of the 
        Internal Revenue Code of 1986) to a qualified individual made 
        during the period beginning on the date of the enactment of 
        this Act and ending on December 31, 2018--
                    (A) clause (i) of section 72(p)(2)(A) of such Code 
                shall be applied by substituting ``$100,000'' for 
                ``$50,000'', and
                    (B) clause (ii) of such section shall be applied by 
                substituting ``the present value of the nonforfeitable 
                accrued benefit of the employee under the plan'' for 
                ``one-half of the present value of the nonforfeitable 
                accrued benefit of the employee under the plan''.
            (2) Delay of repayment.--In the case of a qualified 
        individual with an outstanding loan on or after the qualified 
        beginning date from a qualified employer plan (as defined in 
        section 72(p)(4) of the Internal Revenue Code of 1986)--
                    (A) if the due date pursuant to subparagraph (B) or 
                (C) of section 72(p)(2) of such Code for any repayment 
                with respect to such loan occurs during the period 
                beginning on the qualified beginning date and ending on 
                December 31, 2018, such due date shall be delayed for 1 
                year,
                    (B) any subsequent repayments with respect to any 
                such loan shall be appropriately adjusted to reflect 
                the delay in the due date under paragraph (1) and any 
                interest accruing during such delay, and
                    (C) in determining the 5-year period and the term 
                of a loan under subparagraph (B) or (C) of section 
                72(p)(2) of such Code, the period described in 
                subparagraph (A) shall be disregarded.
            (3) Qualified individual.--For purposes of this 
        subsection--
                    (A) In general.--The term ``qualified individual'' 
                means any qualified Hurricane Harvey individual, any 
                qualified Hurricane Irma individual, and any qualified 
                Hurricane Maria individual.
                    (B) Qualified hurricane harvey individual.--The 
                term ``qualified Hurricane Harvey individual'' means an 
                individual whose principal place of abode on August 23, 
                2017, is located in the Hurricane Harvey disaster area 
                and who has sustained an economic loss by reason of 
                Hurricane Harvey.
                    (C) Qualified hurricane irma individual.--The term 
                ``qualified Hurricane Irma individual'' means an 
                individual (other than a qualified Hurricane Harvey 
                individual) whose principal place of abode on September 
                4, 2017, is located in the Hurricane Irma disaster area 
                and who has sustained an economic loss by reason of 
                Hurricane Irma.
                    (D) Qualified hurricane maria individual.--The term 
                ``qualified Hurricane Maria individual'' means an 
                individual (other than a qualified Hurricane Harvey 
                individual or a qualified Hurricane Irma individual) 
                whose principal place of abode on September 16, 2017, 
                is located in the Hurricane Maria disaster area and who 
                has sustained an economic loss by reason of Hurricane 
                Maria.
            (4) Qualified beginning date.--For purposes of this 
        subsection, the qualified beginning date is--
                    (A) in the case of any qualified Hurricane Harvey 
                individual, August 23, 2017,
                    (B) in the case of any qualified Hurricane Irma 
                individual, September 4, 2017, and
                    (C) in the case of any qualified Hurricane Maria 
                individual, September 16, 2017.
    (d) Provisions Relating to Plan Amendments.--
            (1) In general.--If this subsection applies to any 
        amendment to any plan or annuity contract, such plan or 
        contract shall be treated as being operated in accordance with 
        the terms of the plan during the period described in paragraph 
        (2)(B)(i).
            (2) Amendments to which subsection applies.--
                    (A) In general.--This subsection shall apply to any 
                amendment to any plan or annuity contract which is 
                made--
                            (i) pursuant to any provision of this 
                        section, or pursuant to any regulation issued 
                        by the Secretary or the Secretary of Labor 
                        under any provision of this section, and
                            (ii) on or before the last day of the first 
                        plan year beginning on or after January 1, 
                        2019, or such later date as the Secretary may 
                        prescribe.
                In the case of a governmental plan (as defined in 
                section 414(d) of the Internal Revenue Code of 1986), 
                clause (ii) shall be applied by substituting the date 
                which is 2 years after the date otherwise applied under 
                clause (ii).
                    (B) Conditions.--This subsection shall not apply to 
                any amendment unless--
                            (i) during the period--
                                    (I) beginning on the date that this 
                                section or the regulation described in 
                                subparagraph (A)(i) takes effect (or in 
                                the case of a plan or contract 
                                amendment not required by this section 
                                or such regulation, the effective date 
                                specified by the plan), and
                                    (II) ending on the date described 
                                in subparagraph (A)(ii) (or, if 
                                earlier, the date the plan or contract 
                                amendment is adopted),
                the plan or contract is operated as if such plan or 
                contract amendment were in effect; and
                            (ii) such plan or contract amendment 
                        applies retroactively for such period.

SEC. 3. DISASTER-RELATED EMPLOYMENT RELIEF.

    (a) Employee Retention Credit for Employers Affected by Hurricane 
Harvey.--
            (1) In general.--For purposes of section 38 of the Internal 
        Revenue Code of 1986, in the case of an eligible employer, the 
        Hurricane Harvey employee retention credit shall be treated as 
        a credit listed in subsection (b) of such section. For purposes 
        of this subsection, the Hurricane Harvey employee retention 
        credit for any taxable year is an amount equal to 40 percent of 
        the qualified wages with respect to each eligible employee of 
        such employer for such taxable year. For purposes of the 
        preceding sentence, the amount of qualified wages which may be 
        taken into account with respect to any individual shall not 
        exceed $6,000.
            (2) Definitions.--For purposes of this subsection--
                    (A) Eligible employer.--The term ``eligible 
                employer'' means any employer--
                            (i) which conducted an active trade or 
                        business on August 23, 2017, in the Hurricane 
                        Harvey disaster zone, and
                            (ii) with respect to whom the trade or 
                        business described in clause (i) is inoperable 
                        on any day after August 23, 2017, and before 
                        January 1, 2018, as a result of damage 
                        sustained by reason of Hurricane Harvey.
                    (B) Eligible employee.--The term ``eligible 
                employee'' means with respect to an eligible employer 
                an employee whose principal place of employment on 
                August 23, 2017, with such eligible employer was in the 
                Hurricane Harvey disaster zone.
                    (C) Qualified wages.--The term ``qualified wages'' 
                means wages (as defined in section 51(c)(1) of the 
                Internal Revenue Code of 1986, but without regard to 
                section 3306(b)(2)(B) of such Code) paid or incurred by 
                an eligible employer with respect to an eligible 
                employee on any day after August 23, 2017, and before 
                January 1, 2018, which occurs during the period--
                            (i) beginning on the date on which the 
                        trade or business described in subparagraph (A) 
                        first became inoperable at the principal place 
                        of employment of the employee immediately 
                        before Hurricane Harvey, and
                            (ii) ending on the date on which such trade 
                        or business has resumed significant operations 
                        at such principal place of employment.
                Such term shall include wages paid without regard to 
                whether the employee performs no services, performs 
                services at a different place of employment than such 
                principal place of employment, or performs services at 
                such principal place of employment before significant 
                operations have resumed.
            (3) Certain rules to apply.--For purposes of this 
        subsection, rules similar to the rules of sections 51(i)(1) and 
        52, of the Internal Revenue Code of 1986, shall apply.
            (4) Employee not taken into account more than once.--An 
        employee shall not be treated as an eligible employee for 
        purposes of this subsection for any period with respect to any 
        employer if such employer is allowed a credit under section 51 
        of the Internal Revenue Code of 1986 with respect to such 
        employee for such period.
    (b) Employee Retention Credit for Employers Affected by Hurricane 
Irma.--
            (1) In general.--For purposes of section 38 of the Internal 
        Revenue Code of 1986, in the case of an eligible employer, the 
        Hurricane Irma employee retention credit shall be treated as a 
        credit listed in subsection (b) of such section. For purposes 
        of this subsection, the Hurricane Irma employee retention 
        credit for any taxable year is an amount equal to 40 percent of 
        the qualified wages with respect to each eligible employee of 
        such employer for such taxable year. For purposes of the 
        preceding sentence, the amount of qualified wages which may be 
        taken into account with respect to any individual shall not 
        exceed $6,000.
            (2) Definitions.--For purposes of this subsection--
                    (A) Eligible employer.--The term ``eligible 
                employer'' means any employer--
                            (i) which conducted an active trade or 
                        business on September 4, 2017, in the Hurricane 
                        Irma disaster zone, and
                            (ii) with respect to whom the trade or 
                        business described in clause (i) is inoperable 
                        on any day after September 4, 2017, and before 
                        January 1, 2018, as a result of damage 
                        sustained by reason of Hurricane Irma.
                    (B) Eligible employee.--The term ``eligible 
                employee'' means with respect to an eligible employer 
                an employee whose principal place of employment on 
                September 4, 2017, with such eligible employer was in 
                the Hurricane Irma disaster zone.
                    (C) Qualified wages.--The term ``qualified wages'' 
                means wages (as defined in section 51(c)(1) of the 
                Internal Revenue Code of 1986, but without regard to 
                section 3306(b)(2)(B) of such Code) paid or incurred by 
                an eligible employer with respect to an eligible 
                employee on any day after September 4, 2017, and before 
                January 1, 2018, which occurs during the period--
                            (i) beginning on the date on which the 
                        trade or business described in subparagraph (A) 
                        first became inoperable at the principal place 
                        of employment of the employee immediately 
                        before Hurricane Irma, and
                            (ii) ending on the date on which such trade 
                        or business has resumed significant operations 
                        at such principal place of employment.
                Such term shall include wages paid without regard to 
                whether the employee performs no services, performs 
                services at a different place of employment than such 
                principal place of employment, or performs services at 
                such principal place of employment before significant 
                operations have resumed.
            (3) Certain rules to apply.--For purposes of this 
        subsection, rules similar to the rules of sections 51(i)(1) and 
        52, of the Internal Revenue Code of 1986, shall apply.
            (4) Employee not taken into account more than once.--An 
        employee shall not be treated as an eligible employee for 
        purposes of this subsection for any period with respect to any 
        employer if such employer is allowed a credit under subsection 
        (a), or section 51 of the Internal Revenue Code of 1986, with 
        respect to such employee for such period.
    (c) Employee Retention Credit for Employers Affected by Hurricane 
Maria.--
            (1) In general.--For purposes of section 38 of the Internal 
        Revenue Code of 1986, in the case of an eligible employer, the 
        Hurricane Maria employee retention credit shall be treated as a 
        credit listed in subsection (b) of such section. For purposes 
        of this subsection, the Hurricane Maria employee retention 
        credit for any taxable year is an amount equal to 40 percent of 
        the qualified wages with respect to each eligible employee of 
        such employer for such taxable year. For purposes of the 
        preceding sentence, the amount of qualified wages which may be 
        taken into account with respect to any individual shall not 
        exceed $6,000.
            (2) Definitions.--For purposes of this subsection--
                    (A) Eligible employer.--The term ``eligible 
                employer'' means any employer--
                            (i) which conducted an active trade or 
                        business on September 16, 2017, in the 
                        Hurricane Maria disaster zone, and
                            (ii) with respect to whom the trade or 
                        business described in clause (i) is inoperable 
                        on any day after September 16, 2017, and before 
                        January 1, 2018, as a result of damage 
                        sustained by reason of Hurricane Maria.
                    (B) Eligible employee.--The term ``eligible 
                employee'' means with respect to an eligible employer 
                an employee whose principal place of employment on 
                September 16, 2017, with such eligible employer was in 
                the Hurricane Maria disaster zone.
                    (C) Qualified wages.--The term ``qualified wages'' 
                means wages (as defined in section 51(c)(1) of the 
                Internal Revenue Code of 1986, but without regard to 
                section 3306(b)(2)(B) of such Code) paid or incurred by 
                an eligible employer with respect to an eligible 
                employee on any day after September 16, 2017, and 
                before January 1, 2018, which occurs during the 
                period--
                            (i) beginning on the date on which the 
                        trade or business described in subparagraph (A) 
                        first became inoperable at the principal place 
                        of employment of the employee immediately 
                        before Hurricane Maria, and
                            (ii) ending on the date on which such trade 
                        or business has resumed significant operations 
                        at such principal place of employment.
                Such term shall include wages paid without regard to 
                whether the employee performs no services, performs 
                services at a different place of employment than such 
                principal place of employment, or performs services at 
                such principal place of employment before significant 
                operations have resumed.
            (3) Certain rules to apply.--For purposes of this 
        subsection, rules similar to the rules of sections 51(i)(1) and 
        52, of the Internal Revenue Code of 1986, shall apply.
            (4) Employee not taken into account more than once.--An 
        employee shall not be treated as an eligible employee for 
        purposes of this subsection for any period with respect to any 
        employer if such employer is allowed a credit under subsection 
        (a) or (b), or section 51 of the Internal Revenue Code of 1986, 
        with respect to such employee for such period.

SEC. 4. ADDITIONAL DISASTER-RELATED TAX RELIEF PROVISIONS.

    (a) Temporary Suspension of Limitations on Charitable 
Contributions.--
            (1) In general.--Except as otherwise provided in paragraph 
        (2), subsection (b) of section 170 of the Internal Revenue Code 
        of 1986 shall not apply to qualified contributions and such 
        contributions shall not be taken into account for purposes of 
        applying subsections (b) and (d) of such section to other 
        contributions.
            (2) Treatment of excess contributions.--For purposes of 
        section 170 of the Internal Revenue Code of 1986--
                    (A) Individuals.--In the case of an individual--
                            (i) Limitation.--Any qualified contribution 
                        shall be allowed only to the extent that the 
                        aggregate of such contributions does not exceed 
                        the excess of the taxpayer's contribution base 
                        (as defined in subparagraph (G) of section 
                        170(b)(1) of such Code) over the amount of all 
                        other charitable contributions allowed under 
                        section 170(b)(1) of such Code.
                            (ii) Carryover.--If the aggregate amount of 
                        qualified contributions made in the 
                        contribution year (within the meaning of 
                        section 170(d)(1) of such Code) exceeds the 
                        limitation of clause (i), such excess shall be 
                        added to the excess described in the portion of 
                        subparagraph (A) of such section which precedes 
                        clause (i) thereof for purposes of applying 
                        such section.
                    (B) Corporations.--In the case of a corporation--
                            (i) Limitation.--Any qualified contribution 
                        shall be allowed only to the extent that the 
                        aggregate of such contributions does not exceed 
                        the excess of the taxpayer's taxable income (as 
                        determined under paragraph (2) of section 
                        170(b) of such Code) over the amount of all 
                        other charitable contributions allowed under 
                        such paragraph.
                            (ii) Carryover.--Rules similar to the rules 
                        of subparagraph (A)(ii) shall apply for 
                        purposes of this subparagraph.
            (3) Exception to overall limitation on itemized 
        deductions.--So much of any deduction allowed under section 170 
        of the Internal Revenue Code of 1986 as does not exceed the 
        qualified contributions paid during the taxable year shall not 
        be treated as an itemized deduction for purposes of section 68 
        of such Code.
            (4) Qualified contributions.--
                    (A) In general.--For purposes of this subsection, 
                the term ``qualified contribution'' means any 
                charitable contribution (as defined in section 170(c) 
                of the Internal Revenue Code of 1986) if--
                            (i) such contribution--
                                    (I) is paid during the period 
                                beginning on August 23, 2017, and 
                                ending on December 31, 2017, in cash to 
                                an organization described in section 
                                170(b)(1)(A) of such Code, and
                                    (II) is made for relief efforts in 
                                the Hurricane Harvey disaster area, the 
                                Hurricane Irma disaster area, or the 
                                Hurricane Maria disaster area,
                            (ii) the taxpayer obtains from such 
                        organization contemporaneous written 
                        acknowledgment (within the meaning of section 
                        170(f)(8) of such Code) that such contribution 
                        was used (or is to be used) for relief efforts 
                        described in clause (i)(II), and
                            (iii) the taxpayer has elected the 
                        application of this subsection with respect to 
                        such contribution.
                    (B) Exception.--Such term shall not include a 
                contribution by a donor if the contribution is--
                            (i) to an organization described in section 
                        509(a)(3) of the Internal Revenue Code of 1986, 
                        or
                            (ii) for the establishment of a new, or 
                        maintenance of an existing, donor advised fund 
                        (as defined in section 4966(d)(2) of such 
                        Code).
                    (C) Application of election to partnerships and s 
                corporations.--In the case of a partnership or S 
                corporation, the election under subparagraph (A)(iii) 
                shall be made separately by each partner or 
                shareholder.
    (b) Special Rules for Qualified Disaster-Related Personal Casualty 
Losses.--
            (1) In general.--If an individual has a net disaster loss 
        for any taxable year--
                    (A) the amount determined under section 
                165(h)(2)(A)(ii) of the Internal Revenue Code of 1986 
                shall be equal to the sum of--
                            (i) such net disaster loss, and
                            (ii) so much of the excess referred to in 
                        the matter preceding clause (i) of section 
                        165(h)(2)(A) of such Code (reduced by the 
                        amount in clause (i) of this subparagraph) as 
                        exceeds 10 percent of the adjusted gross income 
                        of the individual,
                    (B) section 165(h)(1) of such Code shall be applied 
                by substituting ``$500'' for ``$500 ($100 for taxable 
                years beginning after December 31, 2009)'',
                    (C) the standard deduction determined under section 
                63(c) of such Code shall be increased by the net 
                disaster loss, and
                    (D) section 56(b)(1)(E) of such Code shall not 
                apply to so much of the standard deduction as is 
                attributable to the increase under subparagraph (C) of 
                this paragraph.
            (2) Net disaster loss.--For purposes of this subsection, 
        the term ``net disaster loss'' means the excess of qualified 
        disaster-related personal casualty losses over personal 
        casualty gains (as defined in section 165(h)(3)(A) of the 
        Internal Revenue Code of 1986).
            (3) Qualified disaster-related personal casualty losses.--
        For purposes of this subsection, the term ``qualified disaster-
        related personal casualty losses'' means losses described in 
        section 165(c)(3) of the Internal Revenue Code of 1986--
                    (A) which arise in the Hurricane Harvey disaster 
                area on or after August 23, 2017, and which are 
                attributable to Hurricane Harvey,
                    (B) which arise in the Hurricane Irma disaster area 
                on or after September 4, 2017, and which are 
                attributable to Hurricane Irma, or
                    (C) which arise in the Hurricane Maria disaster 
                area on or after September 16, 2017, and which are 
                attributable to Hurricane Maria.
    (c) Special Rule for Determining Earned Income.--
            (1) In general.--In the case of a qualified individual, if 
        the earned income of the taxpayer for the taxable year which 
        includes the applicable date is less than the earned income of 
        the taxpayer for the preceding taxable year, the credits 
        allowed under sections 24(d) and 32 of the Internal Revenue 
        Code of 1986 may, at the election of the taxpayer, be 
        determined by substituting--
                    (A) such earned income for the preceding taxable 
                year, for
                    (B) such earned income for the taxable year which 
                includes the applicable date.
        In the case of a resident of Puerto Rico determining the credit 
        allowed under section 24(d)(1)(B)(ii) of such Code, the 
        preceding sentence shall be applied by substituting ``social 
        security taxes (as defined in section 24(d)(2)(A) of the 
        Internal Revenue Code of 1986)'' for ``earned income'' each 
        place it appears.
            (2) Qualified individual.--For purposes of this 
        subsection--
                    (A) In general.--The term ``qualified individual'' 
                means any qualified Hurricane Harvey individual, any 
                qualified Hurricane Irma individual, and any qualified 
                Hurricane Maria individual.
                    (B) Qualified hurricane harvey individual.--The 
                term ``qualified Hurricane Harvey individual'' means 
                any individual whose principal place of abode on August 
                23, 2017, was located--
                            (i) in the Hurricane Harvey disaster zone, 
                        or
                            (ii) in the Hurricane Harvey disaster area 
                        (but outside the Hurricane Harvey disaster 
                        zone) and such individual was displaced from 
                        such principal place of abode by reason of 
                        Hurricane Harvey.
                    (C) Qualified hurricane irma individual.--The term 
                ``qualified Hurricane Irma individual'' means any 
                individual (other than a qualified Hurricane Harvey 
                individual) whose principal place of abode on September 
                4, 2017, was located--
                            (i) in the Hurricane Irma disaster zone, or
                            (ii) in the Hurricane Irma disaster area 
                        (but outside the Hurricane Irma disaster zone) 
                        and such individual was displaced from such 
                        principal place of abode by reason of Hurricane 
                        Irma.
                    (D) Qualified hurricane maria individual.--The term 
                ``qualified Hurricane Maria individual'' means any 
                individual (other than a qualified Hurricane Harvey 
                individual or a qualified Hurricane Irma individual) 
                whose principal place of abode on September 16, 2017, 
                was located--
                            (i) in the Hurricane Maria disaster zone, 
                        or
                            (ii) in the Hurricane Maria disaster area 
                        (but outside the Hurricane Maria disaster zone) 
                        and such individual was displaced from such 
                        principal place of abode by reason of Hurricane 
                        Maria.
            (3) Applicable date.--For purposes of this subsection, the 
        term ``applicable date'' means--
                    (A) in the case of a qualified Hurricane Harvey 
                individual, August 23, 2017,
                    (B) in the case of a qualified Hurricane Irma 
                individual, September 4, 2017, and
                    (C) in the case of a qualified Hurricane Maria 
                individual, September 16, 2017.
            (4) Earned income.--For purposes of this subsection, the 
        term ``earned income'' has the meaning given such term under 
        section 32(c) of the Internal 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 a 
                taxable year which includes the applicable date--
                            (i) such paragraph shall apply if either 
                        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 election.--Any election 
                made under paragraph (1) shall apply with respect to 
                both sections 24(d) and section 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 
                mathematical or clerical error.
                    (D) No effect on determination of gross income, 
                etc.--Except as otherwise provided in this subsection, 
                the Internal Revenue Code of 1986 shall be applied 
                without regard to any substitution under paragraph (1).
    (d) Application of Disaster-Related Tax Relief to Possessions of 
the United States.--
            (1) Payments to united states virgin islands and puerto 
        rico.--
                    (A) United states virgin islands.--The Secretary of 
                the Treasury shall pay to the United States Virgin 
                Islands amounts equal to the loss in revenues to the 
                United States Virgin Islands by reason of the 
                provisions of this Act. Such amounts shall be 
                determined by the Secretary of the Treasury based on 
                information provided by the government of the United 
                States Virgin Islands.
                    (B) Puerto rico.--The Secretary of the Treasury 
                shall pay to Puerto Rico amounts estimated by the 
                Secretary of the Treasury as being equal to the 
                aggregate benefits that would have been provided to 
                residents of Puerto Rico by reason of the provisions of 
                this Act if a mirror code tax system had been in effect 
                in Puerto Rico. The preceding sentence shall not apply 
                with respect to Puerto Rico unless Puerto Rico has a 
                plan, which has been approved by the Secretary of the 
                Treasury, under which Puerto Rico will promptly 
                distribute such payments to its residents.
            (2) Definition and special rules.--
                    (A) Mirror code tax system.--For purposes of this 
                subsection, 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 system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (B) Treatment of payments.--For purposes of section 
                1324 of title 31, United States Code, the payments 
                under this subsection shall be treated in the same 
                manner as a refund due from a credit provision referred 
                to in subsection (b)(2) of such section.
                    (C) Coordination with united states income taxes.--
                In the case of any person with respect to whom a tax 
                benefit is taken into account with respect to the taxes 
                imposed by any possession of the United States by 
                reason of this Act, the Internal Revenue Code of 1986 
                shall be applied with respect to such person without 
                regard to the provisions of this Act which provide such 
                benefit.

SEC. 5. BUDGETARY EFFECTS.

    (a) Emergency Designation.--This Act is designated as an emergency 
requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go Act 
of 2010 (2 U.S.C. 933(g)).
    (b) Designation in Senate.--In the Senate, this Act is designated 
as an emergency requirement pursuant to section 403(a) of S. Con. Res. 
13 (111th Congress), the concurrent resolution on the budget for fiscal 
year 2010.
                                 <all>