Title: Hurricanes Florence and Michael and California Wildfire Tax Relief Act
Policy area: Taxation

Summary:
Hurricanes Florence and Michael and California Wildfire Tax Relief Act
This bill provides for tax relief for individuals in areas affected by Hurricanes Florence and Michael and the California wildfires. Specifically, it

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2544 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 2544

To provide tax relief for the victims of Hurricane Florence, Hurricane 
               Michael, and certain California wildfires.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2019

  Mr. Burr (for himself, Mr. Tillis, Mrs. Feinstein, Ms. Harris, Mr. 
  Isakson, Mr. Graham, and Mr. Rubio) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide tax relief for the victims of Hurricane Florence, Hurricane 
               Michael, and certain California wildfires.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hurricanes Florence and Michael and 
California Wildfire Tax Relief Act''.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
            (1) Hurricane florence disaster zone.--The term ``Hurricane 
        Florence disaster zone'' means that portion of the Hurricane 
        Florence 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 Florence.
            (2) Hurricane florence disaster area.--The term ``Hurricane 
        Florence disaster area'' means an area with respect to which a 
        major disaster has been declared by the President before 
        November 26, 2018, under section 401 of such Act by reason of 
        Hurricane Florence.
            (3) Hurricane michael disaster zone.--The term ``Hurricane 
        Michael disaster zone'' means that portion of the Hurricane 
        Michael 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 Michael.
            (4) Hurricane michael disaster area.--The term ``Hurricane 
        Michael disaster area'' means an area with respect to which a 
        major disaster has been declared by the President before 
        November 26, 2018, under section 401 of such Act by reason of 
        Hurricane Michael.
            (5) Mendocino and carr wildfires.--
                    (A) Mendocino and carr wildfire disaster zone.--The 
                term ``Mendocino and Carr wildfire disaster zone'' 
                means that portion of the Mendocino and Carr wildfire 
                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 the wildfires in California commonly known as the 
                Mendocino and Carr wildfires of 2018.
                    (B) Mendocino and carr wildfire disaster area.--The 
                term ``Mendocino and Carr wildfire disaster area'' 
                means an area with respect to which between August 4, 
                2018, and November 26, 2018, a major disaster has been 
                declared by the President under section 401 of such Act 
                by reason of the wildfire in California commonly known 
                as the Mendocino and Carr wildfires of 2018.
            (6) Camp, woolsey, and hill wildfires.--
                    (A) Camp, woolsey, and hill wildfire disaster 
                zone.--The term ``Camp, Woolsey, and Hill wildfire 
                disaster zone'' means that portion of the Camp, 
                Woolsey, and Hill wildfire 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 the wildfires in California 
                commonly known as the Camp, Woolsey, and Hill wildfires 
                of 2018.
                    (B) Camp, woolsey, and hill wildfire disaster 
                area.--The term ``Camp, Woolsey, and Hill wildfire 
                disaster area'' means an area with respect to which 
                between November 12, 2018, and December 15, 2018, a 
                major disaster has been declared by the President under 
                section 401 of such Act by reason of the wildfires in 
                California commonly known as the Camp, Woolsey, and 
                Hill wildfires of 2018.

SEC. 3. 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 disaster 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 disaster 
                distributions for any taxable year shall not exceed the 
                excess (if any) of--
                            (i) $100,000, over
                            (ii) the aggregate amounts treated as 
                        qualified disaster 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 disaster 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 disaster 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.
                    (D) Special rule for individuals affected by more 
                than one disaster.--The limitation of subparagraph (A) 
                shall be applied separately with respect to 
                distributions described in each clause of paragraph 
                (4)(A).
            (3) Amount distributed may be repaid.--
                    (A) In general.--Any individual who receives a 
                qualified disaster 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 disaster 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 disaster 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 disaster 
                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 disaster 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 disaster distribution.--Except as 
                provided in paragraph (2), the term ``qualified 
                disaster distribution'' means--
                            (i) any distribution from an eligible 
                        retirement plan made on or after September 7, 
                        2018, and before January 1, 2020, to an 
                        individual whose principal place of abode on 
                        September 7, 2018, is located in the Hurricane 
                        Florence disaster area and who has sustained an 
                        economic loss by reason of Hurricane Florence,
                            (ii) any distribution from an eligible 
                        retirement plan made on or after October 7, 
                        2018, and before January 1, 2020, to an 
                        individual whose principal place of abode on 
                        October 7, 2018, is located in the Hurricane 
                        Michael disaster area and who has sustained an 
                        economic loss by reason of Hurricane Michael,
                            (iii) any distribution from an eligible 
                        retirement plan made on or after July 23, 2018, 
                        and before January 1, 2020, to an individual 
                        whose principal place of abode during any 
                        portion of the period from July 23, 2018, to 
                        September 19, 2018, is located in the Mendocino 
                        and Carr wildfire disaster area and who has 
                        sustained an economic loss by reason of the 
                        wildfires to which the declaration of such area 
                        relates, and
                            (iv) any distribution from an eligible 
                        retirement plan made on or after November 8, 
                        2018, and before January 1, 2020, to an 
                        individual whose principal place of abode 
                        during any portion of the period from November 
                        8, 2018, to December 15, 2018, is located in 
                        the Camp, Woolsey, and Hill wildfire disaster 
                        area and who has sustained an economic loss by 
                        reason of the wildfires to which the 
                        declaration of such area relates.
                    (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 
                disaster 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 disaster 
                distributions shall not be treated as eligible rollover 
                distributions.
                    (B) Qualified disaster distributions treated as 
                meeting plan distribution requirements.--For purposes 
                the Internal Revenue Code of 1986, a qualified disaster 
                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 applicable 
                period, 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--
                    (A) In general.--The term ``qualified 
                distribution'' means any qualified Florence 
                distribution, any qualified Michael distribution, any 
                qualified Mendocino and Carr distribution, and any 
                qualified Camp, Woolsey, and Hill distribution.
                    (B) Qualified florence distribution.--The term 
                ``qualified Florence distribution'' means any 
                distribution--
                            (i) 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,
                            (ii) received after February 28, 2018, and 
                        before November 8, 2018, and
                            (iii) which was to be used to purchase or 
                        construct a principal residence in the 
                        Hurricane Florence disaster area, but which was 
                        not so purchased or constructed on account of 
                        Hurricane Florence.
                    (C) Qualified michael distribution.--The term 
                ``qualified Michael distribution'' means any 
                distribution--
                            (i) 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,
                            (ii) received after February 28, 2018, and 
                        before November 23, 2018, and
                            (iii) which was to be used to purchase or 
                        construct a principal residence in the 
                        Hurricane Michael disaster area, but which was 
                        not so purchased or constructed on account of 
                        Hurricane Michael.
                    (D) Qualified mendocino and carr distribution.--The 
                term ``qualified Mendocino and Carr distribution'' 
                means any distribution--
                            (i) 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,
                            (ii) received after February 28, 2018, and 
                        before October 19, 2018, and
                            (iii) which was to be used to purchase or 
                        construct a principal residence in the 
                        Mendocino and Carr wildfire disaster area, but 
                        which was not so purchased or constructed on 
                        account of the wildfires to which the 
                        declaration of such area relates.
                    (E) Qualified camp, woolsey, and hill 
                distribution.--The term ``qualified Camp, Woolsey, and 
                Hill distribution'' means any distribution--
                            (i) 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,
                            (ii) received after February 28, 2018, and 
                        before December 30, 2018, and
                            (iii) which was to be used to purchase or 
                        construct a principal residence in the Camp, 
                        Woolsey, and Hill wildfire disaster area, but 
                        which was not so purchased or constructed on 
                        account of the wildfires to which the 
                        declaration of such area relates.
            (3) Applicable period.--For purposes of this subsection, 
        the term ``applicable period'' means--
                    (A) with respect to any qualified Florence 
                distribution, the period beginning on September 7, 
                2018, and ending on February 28, 2019,
                    (B) with respect to any qualified Michael 
                distribution, the period beginning on October 7, 2018, 
                and ending on February 28, 2019,
                    (C) with respect to any qualified Mendocino and 
                Carr distribution, the period beginning on July 23, 
                2018, and ending on February 28, 2019, and
                    (D) with respect to any qualified Camp, Woolsey, 
                and Hill distribution, the period beginning on November 
                8, 2018, and ending on February 28, 2019.
    (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, 2019--
                    (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, 2019, 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 Florence individual, any 
                qualified Hurricane Michael individual, any qualified 
                Mendocino and Carr individual, and any qualified Camp, 
                Woolsey, and Hill individual.
                    (B) Qualified hurricane florence individual.--The 
                term ``qualified Hurricane Florence individual'' means 
                any individual whose principal place of abode on 
                September 7, 2018, is located in the Hurricane Florence 
                disaster area and who has sustained an economic loss by 
                reason of Hurricane Florence.
                    (C) Qualified hurricane michael individual.--The 
                term ``qualified Hurricane Michael individual'' means 
                any individual whose principal place of abode on 
                October 7, 2018, is located in the Hurricane Michael 
                disaster area and who has sustained an economic loss by 
                reason of Hurricane Michael.
                    (D) Qualified mendocino and carr individual.--The 
                term ``qualified Mendocino and Carr individual'' means 
                any individual whose principal place of abode during 
                any portion of the period from July 23, 2018, to 
                September 19, 2018, is located in the Mendocino and 
                Carr wildfire disaster area and who has sustained an 
                economic loss by reason of wildfires to which the 
                declaration of such area relates.
                    (E) Qualified camp, woolsey, and hill individual.--
                The term ``qualified Camp, Woolsey, and Hill 
                individual'' means any individual whose principal place 
                of abode during any portion of the period from November 
                8, 2018, to December 15, 2018, is located in the Camp, 
                Woolsey, and Hill wildfire disaster area and who has 
                sustained an economic loss by reason of wildfires to 
                which the declaration of such area relates.
            (4) Qualified beginning date.--For purposes of this 
        subsection--
                    (A) Hurricane florence.--In the case of any 
                qualified Florence individual, the qualified beginning 
                date is September 7, 2018.
                    (B) Hurricane michael.--In the case of any 
                qualified Michael individual, the qualified beginning 
                date is October 7, 2018.
                    (C) Mendocino and carr wildfire.--In the case of 
                any qualified Mendocino and Carr individual, the 
                qualified beginning date is July 23, 2018.
                    (D) Camp, woolsey, and hill wildfire.--In the case 
                of any qualified Camp, Woolsey, and Hill individual, 
                the qualified beginning date is November 8, 2018.
    (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, 
                        2020, 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. 4. EMPLOYMENT RELIEF.

    (a) Employee Retention Credit for Employers Affected by Hurricane 
Florence.--
            (1) In general.--For purposes of section 38 of the Internal 
        Revenue Code of 1986, in the case of an eligible employer, the 
        Hurricane Florence employee retention credit shall be treated 
        as a credit listed in subsection (b) of such section. For 
        purposes of this subsection, the Hurricane Florence 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 7, 2018, in the Hurricane 
                        Florence disaster zone, and
                            (ii) with respect to whom the trade or 
                        business described in clause (i) is inoperable 
                        on any day after September 7, 2018, and before 
                        January 1, 2019, as a result of damage 
                        sustained by reason of Hurricane Florence.
                    (B) Eligible employee.--The term ``eligible 
                employee'' means with respect to an eligible employer 
                an employee whose principal place of employment on 
                September 7, 2018, with such eligible employer was in 
                the Hurricane Florence 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 7, 2018, and before 
                January 1, 2019, 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 Florence, 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), 
        52, and 280C(a), 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 
Michael.--
            (1) In general.--For purposes of section 38 of the Internal 
        Revenue Code of 1986, in the case of an eligible employer, the 
        Hurricane Michael employee retention credit shall be treated as 
        a credit listed in subsection (b) of such section. For purposes 
        of this subsection, the Hurricane Michael 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 October 7, 2018, in the Hurricane 
                        Michael disaster zone, and
                            (ii) with respect to whom the trade or 
                        business described in clause (i) is inoperable 
                        on any day after October 7, 2018, and before 
                        January 1, 2019, as a result of damage 
                        sustained by reason of Hurricane Michael.
                    (B) Eligible employee.--The term ``eligible 
                employee'' means with respect to an eligible employer 
                an employee whose principal place of employment on 
                October 7, 2018, with such eligible employer was in the 
                Hurricane Michael 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 October 7, 2018, and before 
                January 1, 2019, 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 Michael, 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), 
        52, and 280C(a), 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.
    (c) Employee Retention Credit for Employers Affected by Mendocino 
and Carr Wildfires.--
            (1) In general.--For purposes of section 38 of the Internal 
        Revenue Code of 1986, in the case of an eligible employer, the 
        Mendocino and Carr wildfire employee retention credit shall be 
        treated as a credit listed in subsection (b) of such section. 
        For purposes of this subsection, the Mendocino and Carr 
        wildfire 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 for any portion of the period from 
                        July 23, 2018, to September 19, 2018, in the 
                        Mendocino and Carr wildfire disaster zone, and
                            (ii) with respect to whom the trade or 
                        business described in clause (i) is inoperable 
                        on any day after July 23, 2018, and before 
                        January 1, 2019, as a result of damage 
                        sustained by reason of the wildfires to which 
                        the declaration of the Mendocino and Carr 
                        wildfire disaster area relates.
                    (B) Eligible employee.--The term ``eligible 
                employee'' means with respect to an eligible employer 
                an employee whose principal place of employment for any 
                portion of the period from July 23, 2018, to September 
                19, 2018, with such eligible employer was in the 
                Mendocino and Carr wildfire 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 July 23, 2018, and before 
                January 1, 2019, 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 the wildfires to which the declaration 
                        of the Mendocino and Carr wildfire disaster 
                        area relates, 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), 
        52, and 280C(a), 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.
    (d) Employee Retention Credit for Employers Affected by Camp, 
Woolsey, and Hill Wildfires.--
            (1) In general.--For purposes of section 38 of the Internal 
        Revenue Code of 1986, in the case of an eligible employer, the 
        Camp, Woolsey, and Hill wildfire employee retention credit 
        shall be treated as a credit listed in subsection (b) of such 
        section. For purposes of this subsection, the Camp, Woolsey, 
        and Hill wildfire 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 for any portion of the period from 
                        November 8, 2018, to December 15, 2018, in the 
                        Camp, Woolsey, and Hill wildfire disaster zone, 
                        and
                            (ii) with respect to whom the trade or 
                        business described in clause (i) is inoperable 
                        on any day after November 8, 2018, and before 
                        January 1, 2019, as a result of damage 
                        sustained by reason of the wildfires to which 
                        the declaration of the Camp, Woolsey, and Hill 
                        wildfire disaster area relates.
                    (B) Eligible employee.--The term ``eligible 
                employee'' means with respect to an eligible employer 
                an employee whose principal place of employment for any 
                portion of the period from November 8, 2018, to 
                December 15, 2018, with such eligible employer was in 
                the Camp, Woolsey, and Hill wildfire 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 November 8, 2018, and before 
                January 1, 2019, 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 the wildfires to which the declaration 
                        of the Camp, Woolsey, and Hill wildfire 
                        disaster area relates, 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), 
        52, and 280C(a), 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.

SEC. 5. 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 (H) 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) 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 July 23, 2018, and ending 
                                on December 31, 2018, 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 Florence disaster area, 
                                the Hurricane Michael disaster area, 
                                the Mendocino and Carr wildfire 
                                disaster area, or the Camp, Woolsey, 
                                and Hill wildfire 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--
                    (A) losses described in section 165(c)(3) of the 
                Internal Revenue Code of 1986 which arise in the 
                Hurricane Florence disaster area on or after September 
                7, 2018, and which are attributable to Hurricane 
                Florence,
                    (B) losses described in section 165(c)(3) of the 
                Internal Revenue Code of 1986 which arise in the 
                Hurricane Michael disaster area on or after October 7, 
                2018, and which are attributable to Hurricane Michael,
                    (C) losses described in section 165(c)(3) of the 
                Internal Revenue Code of 1986 which arise in the 
                Mendocino and Carr wildfire disaster area on or after 
                July 23, 2018, and which are attributable to the 
                wildfires to which the declaration of such area 
                relates, and
                    (D) losses described in section 165(c)(3) of the 
                Internal Revenue Code of 1986 which arise in the Camp, 
                Woolsey, and Hill wildfire disaster area on or after 
                November 8, 2018, and which are attributable to the 
                wildfires to which the declaration of such area 
                relates.
    (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 applicable taxable 
        year 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 applicable taxable 
                year.
            (2) Qualified individual.--For purposes of this 
        subsection--
                    (A) In general.--The term ``qualified individual'' 
                means any qualified Hurricane Florence individual, any 
                qualified Hurricane Michael individual, any qualified 
                Mendocino and Carr individual, and any qualified Camp, 
                Woolsey, and Hill individual.
                    (B) Qualified hurricane florence individual.--The 
                term ``qualified Hurricane Florence individual'' means 
                any individual whose principal place of abode on 
                September 7, 2018, was located--
                            (i) in the Hurricane Florence disaster 
                        zone, or
                            (ii) in the Hurricane Florence disaster 
                        area (but outside the Hurricane Florence 
                        disaster zone) and such individual was 
                        displaced from such principal place of abode by 
                        reason of Hurricane Florence.
                    (C) Qualified hurricane michael individual.--The 
                term ``qualified Hurricane Michael individual'' means 
                any individual whose principal place of abode on 
                October 7, 2018, was located--
                            (i) in the Hurricane Michael disaster zone, 
                        or
                            (ii) in the Hurricane Michael disaster area 
                        (but outside the Hurricane Michael disaster 
                        zone) and such individual was displaced from 
                        such principal place of abode by reason of 
                        Hurricane Michael.
                    (D) Qualified mendocino and carr individual.--The 
                term ``qualified Mendocino and Carr individual'' means 
                any individual whose principal place of abode during 
                any portion of the period from July 23, 2018, to 
                September 19, 2018, was located--
                            (i) in the Mendocino and Carr wildfire 
                        disaster zone, or
                            (ii) in the Mendocino and Carr wildfire 
                        disaster area (but outside the Mendocino and 
                        Carr wildfire disaster zone) and such 
                        individual was displaced from such principal 
                        place of abode by reason of the wildfires to 
                        which the declaration of such area relates.
                    (E) Qualified camp, woolsey, and hill individual.--
                The term ``qualified Camp, Woolsey, and Hill 
                individual'' means any individual whose principal place 
                of abode during any portion of the period from November 
                8, 2018, to December 15, 2018, was located--
                            (i) in the Camp, Woolsey, and Hill wildfire 
                        disaster zone, or
                            (ii) in the Camp, Woolsey, and Hill 
                        wildfire disaster area (but outside the Camp, 
                        Woolsey, and Hill disaster zone) and such 
                        individual was displaced from such principal 
                        place of abode by reason of the wildfires to 
                        which the declaration of such area relates.
            (3) Applicable taxable year.--The term ``applicable taxable 
        year'' means the taxable year which includes--
                    (A) in the case of a qualified Hurricane Florence 
                individual, September 7, 2018,
                    (B) in the case of a qualified Hurricane Michael 
                individual, October 7, 2018,
                    (C) in the case of a qualified Mendocino and Carr 
                individual, any portion of the period from July 23, 
                2018, to September 19, 2018, and
                    (D) in the case of a qualified Camp, Woolsey, and 
                Hill individual, any portion of the period from 
                November 8, 2018, to December 15, 2018.
            (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 an 
                applicable taxable year--
                            (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 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).
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