Title: A bill to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, to provide disaster tax relief, and for other purposes.
Policy area: Taxation

Summary:
Tax Extender and Disaster Relief Act of 2019
This bill extends certain tax credits and deductions expiring in 2018 and 2019, and provides disaster tax relief, including penalty-free withdrawal of retirement funds for disaster expenses.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 617 Placed on Calendar Senate (PCS)]

<DOC>





                                                        Calendar No. 28
116th CONGRESS
  1st Session
                                 S. 617

 To amend the Internal Revenue Code of 1986 to extend certain expiring 
  provisions, to provide disaster tax relief, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 28, 2019

Mr. Grassley (for himself and Mr. Wyden) introduced the following bill; 
                     which was read the first time

                             March 4, 2019

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to extend certain expiring 
  provisions, to provide disaster tax relief, and for other purposes.

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

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``Tax Extender and 
Disaster Relief Act of 2019''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title, etc.
               TITLE I--EXTENSION OF EXPIRING PROVISIONS

                Subtitle A--Provisions Expiring in 2018

Sec. 101. Nonbusiness energy property.
Sec. 102. Qualified fuel cell motor vehicles.
Sec. 103. Alternative fuel refueling property credit.
Sec. 104. 2-wheeled plug-in electric vehicle credit.
Sec. 105. Second generation biofuel producer credit.
Sec. 106. Biodiesel and renewable diesel incentives.
Sec. 107. Credit for electricity produced from certain renewable 
                            resources.
Sec. 108. Production credit for Indian coal facilities.
Sec. 109. Railroad track maintenance credit.
Sec. 110. Energy efficient homes credit.
Sec. 111. Classification of certain race horses as 3-year property.
Sec. 112. Special allowance for second generation biofuel plant 
                            property.
Sec. 113. Energy efficient commercial buildings deduction.
Sec. 114. Election to expense advanced mine safety equipment.
Sec. 115. Extension of special rule for sales or dispositions to 
                            implement FERC or State electric 
                            restructuring policy for qualified electric 
                            utilities.
Sec. 116. Extension and clarification of excise tax credits relating to 
                            alternative fuels.
Sec. 117. 7-year recovery period for motorsports entertainment 
                            complexes.
Sec. 118. Accelerated depreciation for business property on Indian 
                            reservation.
Sec. 119. Expensing rules for certain productions.
Sec. 120. Indian employment credit.
Sec. 121. Mine rescue team training credit.
Sec. 122. Exclusion from gross income of discharge of qualified 
                            principal residence indebtedness.
Sec. 123. Treatment of mortgage insurance premiums as qualified 
                            residence interest.
Sec. 124. Deduction of qualified tuition and related expenses.
Sec. 125. Extension of empowerment zone tax incentives.
Sec. 126. American Samoa economic development credit.
                Subtitle B--Provisions Expiring in 2019

Sec. 151. Temporary reduction in medical expense deduction floor.
Sec. 152. Extension of oil spill liability trust fund rate.
Sec. 153. Black lung liability trust fund excise tax.
                     TITLE II--DISASTER TAX RELIEF

Sec. 201. Definitions.
Sec. 202. Special disaster-related rules for use of retirement funds.
Sec. 203. Employee retention credit for employers affected by qualified 
                            disasters.
Sec. 204. Other disaster-related tax relief provisions.
Sec. 205. Treatment of certain possessions.

               TITLE I--EXTENSION OF EXPIRING PROVISIONS

                Subtitle A--Provisions Expiring in 2018

SEC. 101. NONBUSINESS ENERGY PROPERTY.

    (a) In General.--Section 25C(g)(2) is amended by striking 
``December 31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2017.

SEC. 102. QUALIFIED FUEL CELL MOTOR VEHICLES.

    (a) In General.--Section 30B(k)(1) is amended by striking 
``December 31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property purchased after December 31, 2017.

SEC. 103. ALTERNATIVE FUEL REFUELING PROPERTY CREDIT.

    (a) In General.--Section 30C(g) is amended by striking ``December 
31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2017.

SEC. 104. 2-WHEELED PLUG-IN ELECTRIC VEHICLE CREDIT.

    (a) In General.--Section 30D(g)(3)(E)(ii) is amended by striking 
``January 1, 2018'' and inserting ``January 1, 2020''.
    (b) Effective Date.--The amendment made by this section shall apply 
to vehicles acquired after December 31, 2017.

SEC. 105. SECOND GENERATION BIOFUEL PRODUCER CREDIT.

    (a) In General.--Section 40(b)(6)(J)(i) is amended by striking 
``January 1, 2018'' and inserting ``January 1, 2020''.
    (b) Effective Date.--The amendment made by this section shall apply 
to qualified second generation biofuel production after December 31, 
2017.

SEC. 106. BIODIESEL AND RENEWABLE DIESEL INCENTIVES.

    (a) Income Tax Credit.--
            (1) In general.--Subsection (g) of section 40A is amended 
        by striking ``December 31, 2017'' and inserting ``December 31, 
        2019''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to fuel sold or used after December 31, 2017.
    (b) Excise Tax Incentives.--
            (1) In general.--Section 6426(c)(6) is amended by striking 
        ``December 31, 2017'' and inserting ``December 31, 2019''.
            (2) Payments.--Section 6427(e)(6)(B) is amended by striking 
        ``December 31, 2017'' and inserting ``December 31, 2019''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to fuel sold or used after December 31, 2017.
            (4) Special rule for 2018.--Notwithstanding any other 
        provision of law, in the case of any biodiesel mixture credit 
        properly determined under section 6426(c) of the Internal 
        Revenue Code of 1986 for the period beginning on January 1, 
        2018, and ending on December 31, 2018, such credit shall be 
        allowed, and any refund or payment attributable to such credit 
        (including any payment under section 6427(e) of such Code) 
        shall be made, only in such manner as the Secretary of the 
        Treasury (or the Secretary's delegate) shall provide. Such 
        Secretary shall issue guidance within 30 days after the date of 
        the enactment of this Act providing for a one-time submission 
        of claims covering periods described in the preceding sentence. 
        Such guidance shall provide for a 180-day period for the 
        submission of such claims (in such manner as prescribed by such 
        Secretary) to begin not later than 30 days after such guidance 
        is issued. Such claims shall be paid by such Secretary not 
        later than 60 days after receipt. If such Secretary has not 
        paid pursuant to a claim filed under this subsection within 60 
        days after the date of the filing of such claim, the claim 
        shall be paid with interest from such date determined by using 
        the overpayment rate and method under section 6621 of such 
        Code.

SEC. 107. CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE 
              RESOURCES.

    (a) In General.--The following provisions of section 45(d) are each 
amended by striking ``January 1, 2018'' each place it appears and 
inserting ``January 1, 2020'':
            (1) Paragraph (2)(A).
            (2) Paragraph (3)(A).
            (3) Paragraph (4)(B).
            (4) Paragraph (6).
            (5) Paragraph (7).
            (6) Paragraph (9).
            (7) Paragraph (11)(B).
    (b) Extension of Election to Treat Qualified Facilities as Energy 
Property.--Section 48(a)(5)(C)(ii) is amended by striking ``before 
January 1, 2018 (January 1, 2020, in the case of any facility which is 
described in paragraph (1) of section 45(d)), and'' and inserting 
``before--
                                    ``(I) January 1, 2020, in the case 
                                of any facility which is described in 
                                paragraph (1) of section 45(d), and
                                    ``(II) January 1, 2020, in the case 
                                of any other facility, and''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2018.

SEC. 108. PRODUCTION CREDIT FOR INDIAN COAL FACILITIES.

    (a) In General.--Section 45(e)(10)(A) is amended by striking ``12-
year period'' each place it appears and inserting ``14-year period''.
    (b) Effective Date.--The amendment made by this section shall apply 
to coal produced after December 31, 2017.

SEC. 109. RAILROAD TRACK MAINTENANCE CREDIT.

    (a) In General.--Section 45G((f) is amended by striking ``January 
1, 2018'' and inserting ``January 1, 2020''.
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to expenditures paid or incurred during taxable years 
        beginning after December 31, 2017.
            (2) Safe harbor assignments.--Assignments, including 
        related expenditures paid or incurred, under paragraph (2) of 
        section 45G(b) of the Internal Revenue Code of 1986 for any 
        taxable year beginning on or after January 1, 2018, and before 
        January 1, 2019, shall be treated as effective as of the close 
        of such taxable year if made pursuant to a written agreement 
        entered into no later than 90 days following the date of the 
        enactment of this Act.

SEC. 110. ENERGY EFFICIENT HOMES CREDIT.

    (a) In General.--Section 45L(g) is amended by striking ``December 
31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to homes acquired after December 31, 2017.

SEC. 111. CLASSIFICATION OF CERTAIN RACE HORSES AS 3-YEAR PROPERTY.

    (a) In General.--Section 168(e)(3)(A)(i) is amended--
            (1) by striking ``January 1, 2018'' in subclause (I) and 
        inserting ``January 1, 2020'', and
            (2) by striking ``December 31, 2017'' in subclause (II) and 
        inserting ``December 31, 2019''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2017.

SEC. 112. SPECIAL ALLOWANCE FOR SECOND GENERATION BIOFUEL PLANT 
              PROPERTY.

    (a) In General.--Section 168(l)(2)(D) is amended by striking 
``January 1, 2018'' and inserting ``January 1, 2020''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2017.

SEC. 113. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    (a) In General.--Section 179D(h) is amended by striking ``December 
31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2017.

SEC. 114. ELECTION TO EXPENSE ADVANCED MINE SAFETY EQUIPMENT.

    (a) In General.--Section 179E(g) is amended by striking ``December 
31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2017.

SEC. 115. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS TO 
              IMPLEMENT FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR 
              QUALIFIED ELECTRIC UTILITIES.

    (a) In General.--Section 451(k)(3) is amended by striking ``January 
1, 2018'' and inserting ``January 1, 2020''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dispositions after December 31, 2017.

SEC. 116. EXTENSION AND CLARIFICATION OF EXCISE TAX CREDITS RELATING TO 
              ALTERNATIVE FUELS.

    (a) Extension.--
            (1) In general.--Sections 6426(d)(5) and 6426(e)(3) are 
        each amended by striking ``December 31, 2017'' and inserting 
        ``December 31, 2019''.
            (2) Outlay payments for alternative fuels.--Section 
        6427(e)(6)(C) is amended by striking ``December 31, 2017'' and 
        inserting ``December 31, 2019''.
            (3) Effective date.--The amendments made by this section 
        shall apply to fuel sold or used after December 31, 2017.
    (b) Special Rule for 2018.--Notwithstanding any other provision of 
law, in the case of any alternative fuel credit properly determined 
under section 6426(d) of the Internal Revenue Code of 1986 for the 
period beginning on January 1, 2018, and ending on December 31, 2018, 
such credit shall be allowed, and any refund or payment attributable to 
such credit (including any payment under section 6427(e) of such Code) 
shall be made, only in such manner as the Secretary of the Treasury (or 
the Secretary's delegate) shall provide. Such Secretary shall issue 
guidance within 30 days after the date of the enactment of this Act 
providing for a one-time submission of claims covering periods 
described in the preceding sentence. Such guidance shall provide for a 
180-day period for the submission of such claims (in such manner as 
prescribed by such Secretary) to begin not later than 30 days after 
such guidance is issued. Such claims shall be paid by such Secretary 
not later than 60 days after receipt. If such Secretary has not paid 
pursuant to a claim filed under this subsection within 60 days after 
the date of the filing of such claim, the claim shall be paid with 
interest from such date determined by using the overpayment rate and 
method under section 6621 of such Code.
    (c) Clarification of Rules Regarding Alternative Fuel Mixture 
Credit.--
            (1) In general.--Paragraph (2) of section 6426(e) is 
        amended by striking ``mixture of alternative fuel'' and 
        inserting ``mixture of alternative fuel (other than a fuel 
        described in subparagraph (A), (C), or (F) of subsection 
        (d)(2))''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to--
                    (A) fuel sold or used on or after the date of the 
                enactment of this Act, and
                    (B) fuel sold or used before such date of 
                enactment, but only to the extent that credits and 
                claims of credit under section 6426(e) of the Internal 
                Revenue Code of 1986 with respect to such sale or use 
                have not been paid or allowed as of such date.

SEC. 117. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS ENTERTAINMENT 
              COMPLEXES.

    (a) In General.--Section 168(i)(15)(D) is amended by striking 
``December 31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2017.

SEC. 118. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON INDIAN 
              RESERVATION.

    (a) In General.--Section 168(j)(9) is amended by striking 
``December 31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2017.

SEC. 119. EXPENSING RULES FOR CERTAIN PRODUCTIONS.

    (a) In General.--Section 181(g) is amended by striking ``December 
31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to productions commencing after December 31, 2017.

SEC. 120. INDIAN EMPLOYMENT CREDIT.

    (a) In General.--Section 45A(f) is amended by striking ``December 
31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2017.

SEC. 121. MINE RESCUE TEAM TRAINING CREDIT.

    (a) In General.--Section 45N(e) is amended by striking ``December 
31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2017.

SEC. 122. EXCLUSION FROM GROSS INCOME OF DISCHARGE OF QUALIFIED 
              PRINCIPAL RESIDENCE INDEBTEDNESS.

    (a) In General.--Section 108(a)(1)(E) is amended by striking 
``January 1, 2018'' each place it appears and inserting ``January 1, 
2020''.
    (b) Effective Date.--The amendment made by this section shall apply 
to discharges of indebtedness after December 31, 2017.

SEC. 123. TREATMENT OF MORTGAGE INSURANCE PREMIUMS AS QUALIFIED 
              RESIDENCE INTEREST.

    (a) In General.--Section 163(h)(3)(E)(iv)(I) is amended by striking 
``December 31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or accrued after December 31, 2017.

SEC. 124. DEDUCTION OF QUALIFIED TUITION AND RELATED EXPENSES.

    (a) In General.--Section 222(e) is amended by striking ``December 
31, 2017'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2017.

SEC. 125. EXTENSION OF EMPOWERMENT ZONE TAX INCENTIVES.

    (a) In General.--Section 1391(d)(1)(A)(i) is amended by striking 
``December 31, 2017'' and inserting ``December 31, 2019''.
    (b) Treatment of Certain Termination Dates Specified in 
Nominations.--In the case of a designation of an empowerment zone the 
nomination for which included a termination date which is 
contemporaneous with the date specified in subparagraph (A)(i) of 
section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect 
before the enactment of this Act), subparagraph (B) of such section 
shall not apply with respect to such designation if, after the date of 
the enactment of this section, the entity which made such nomination 
amends the nomination to provide for a new termination date in such 
manner as the Secretary of the Treasury (or the Secretary's designee) 
may provide.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2017.

SEC. 126. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

    (a) In General.--Section 119(d) of division A of the Tax Relief and 
Health Care Act of 2006 is amended--
            (1) by striking ``January 1, 2018'' each place it appears 
        and inserting ``January 1, 2020'',
            (2) by striking ``first 12 taxable years'' in paragraph (1) 
        and inserting ``first 14 taxable years'',
            (3) by striking ``first 6 taxable years'' in paragraph (2) 
        and inserting ``first 8 taxable years'', and
            (4) by adding at the end the following flush sentence:
``In the case of a corporation described in subsection (a)(2), the 
Internal Revenue Code of 1986 shall be applied and administered without 
regard to the amendments made by section 401(d)(1) of the Tax Technical 
Corrections Act of 2018.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

                Subtitle B--Provisions Expiring in 2019

SEC. 151. TEMPORARY REDUCTION IN MEDICAL EXPENSE DEDUCTION FLOOR.

    (a) In General.--Section 213(f) is amended to read as follows:
    ``(f) Special Rule.--In the case of taxable years beginning before 
January 1, 2020, subsection (a) shall be applied by substituting `7.5 
percent' for `10 percent'.''.
    (b) Alternative Minimum Tax.--Section 56(b)(1)(B) is amended by 
striking ``January 1, 2019'' and inserting ``January 1, 2020''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2018.

SEC. 152. EXTENSION OF OIL SPILL LIABILITY TRUST FUND RATE.

    (a) In General.--Section 4611(f)(2) is amended by striking 
``December 31, 2018'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
on and after the first day of the first calendar month beginning after 
the date of the enactment of this Act.

SEC. 153. BLACK LUNG LIABILITY TRUST FUND EXCISE TAX.

    (a) In General.--Section 4121(e)(2)(A) is amended by striking 
``December 31, 2018'' and inserting ``December 31, 2019''.
    (b) Effective Date.--The amendment made by this section shall apply 
on and after the first day of the first calendar month beginning after 
the date of the enactment of this Act.

                     TITLE II--DISASTER TAX RELIEF

SEC. 201. DEFINITIONS.

    For purposes of this title--
            (1) Qualified disaster area.--
                    (A) In general.--The term ``qualified disaster 
                area'' means any area with respect to which a major 
                disaster was declared after January 1, 2018, and before 
                March 1, 2019, by the President under section 401 of 
                the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act if the incident period of the disaster 
                with respect to which such declaration is made begins 
                before January 1, 2019.
                    (B) Exception.--Such term shall not include the 
                California wildfire disaster area (as defined in 
                section 20101 of subdivision 2 of division B of the 
                Bipartisan Budget Act of 2018).
            (2) Qualified disaster zone.--The term ``qualified disaster 
        zone'' means that portion of any qualified disaster area which 
        was determined by the President after January 1, 2018, and 
        before March 1, 2019, 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 qualified disaster with respect to such disaster 
        area.
            (3) Qualified disaster.--The term ``qualified disaster'' 
        means, with respect to any qualified disaster area, the 
        disaster by reason of which a major disaster was declared with 
        respect to such area.
            (4) Incident period.--The term ``incident period'' means, 
        with respect to any qualified disaster, the period specified by 
        the Federal Emergency Management Agency as the period during 
        which such disaster occurred (except that for purposes of this 
        title such period shall not be treated as beginning before 
        January 1, 2018, or ending after December 31, 2018).

SEC. 202. 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 made with respect to each qualified 
                disaster.
            (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 1 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 of 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 any distribution from an 
                eligible retirement plan made--
                            (i) on or after the first day of the 
                        incident period of a qualified disaster and 
                        before the date which is 180 days after the 
                        date of the enactment of this Act, and
                            (ii) to an individual whose principal place 
                        of abode at any time during the incident period 
                        of such qualified disaster is located in the 
                        qualified disaster area with respect to such 
                        qualified disaster and who has sustained an 
                        economic loss by reason of such qualified 
                        disaster.
                    (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 1 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) which was to be used to purchase or construct a 
                principal residence in a qualified disaster area, but 
                which was not so used on account of the qualified 
                disaster with respect to such area, and
                    (C) which was received during the period beginning 
                on the date which is 180 days before the first day of 
                the incident period of such qualified disaster and 
                ending on the date which is 30 days after the last day 
                of such incident period.
            (3) Applicable period.--For purposes of this subsection, 
        the term ``applicable period'' means, in the case of a 
        principal residence in a qualified disaster area with respect 
        to any qualified disaster, the period beginning on the first 
        day of the incident period of such qualified disaster and 
        ending on the date which is 180 days after the date of the 
        enactment of this Act.
    (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 180-day period beginning on the date of the 
        enactment of this Act--
                    (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 respect to any qualified disaster) with an 
        outstanding loan (on or after the first day of the incident 
        period of such qualified disaster) 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 first day of the incident period of 
                such qualified disaster and ending on the date which is 
                180 days after the last day of such incident period, 
                such due date shall be delayed for 1 year (or, if 
                later, until the date which is 180 days after the date 
                of the enactment of this Act),
                    (B) any subsequent repayments with respect to any 
                such loan shall be appropriately adjusted to reflect 
                the delay in the due date under subparagraph (A) 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) of this paragraph shall be 
                disregarded.
            (3) Qualified individual.--For purposes of this subsection, 
        the term ``qualified individual'' means any individual--
                    (A) whose principal place of abode at any time 
                during the incident period of any qualified disaster is 
                located in the qualified disaster area with respect to 
                such qualified disaster, and
                    (B) who has sustained an economic loss by reason of 
                such qualified disaster.
    (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. 203. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY QUALIFIED 
              DISASTERS.

    (a) In General.--For purposes of section 38 of the Internal Revenue 
Code of 1986, in the case of an eligible employer, the 2018 qualified 
disaster employee retention credit shall be treated as a credit listed 
at the end of subsection (b) of such section. For purposes of this 
section, the 2018 qualified disaster 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. The amount of qualified wages with respect to any 
employee which may be taken into account under this section by the 
employer for any taxable year shall not exceed $6,000 (reduced by the 
amount of qualified wages with respect to such employee which may be so 
taken into account for any prior taxable year).
    (b) Definitions.--For purposes of this section--
            (1) Eligible employer.--The term ``eligible employer'' 
        means any employer--
                    (A) which conducted an active trade or business in 
                a qualified disaster zone at any time during the 
                incident period of the qualified disaster with respect 
                to such qualified disaster zone, and
                    (B) with respect to whom the trade or business 
                described in subparagraph (A) is inoperable at any time 
                on or after the first day of the incident period of 
                such qualified disaster, and before January 1, 2019, as 
                a result of damage sustained by reason of such 
                qualified disaster.
            (2) Eligible employee.--The term ``eligible employee'' 
        means with respect to an eligible employer an employee whose 
        principal place of employment with such eligible employer 
        (determined immediately before the qualified disaster referred 
        to in paragraph (1)) was in the qualified disaster zone 
        referred to in such paragraph.
            (3) 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 at any time on or after the 
        date on which the trade or business described in paragraph (1) 
        first became inoperable at the principal place of employment of 
        the employee (determined immediately before the qualified 
        disaster referred to in such paragraph) and before the earlier 
        of--
                    (A) the date on which such trade or business has 
                resumed significant operations at such principal place 
                of employment, or
                    (B) the date which is 150 days after the last day 
                of the incident period of the qualified disaster 
                referred to in paragraph (1).
        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.
    (c) Certain Rules to Apply.--For purposes of this section, rules 
similar to the rules of sections 51(i)(1), 52, and 280C(a), of the 
Internal Revenue Code of 1986, shall apply.
    (d) Employee Not Taken Into Account More Than Once.--An employee 
shall not be treated as an eligible employee for purposes of this 
section 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. 204. OTHER DISASTER-RELATED TAX RELIEF PROVISIONS.

    (a) Temporary Increase in Limitation on Qualified Contributions.--
            (1) Suspension of current limitation.--Except as otherwise 
        provided in paragraph (2), qualified contributions shall be 
        disregarded in applying subsections (b) and (d) of section 170 
        of the Internal Revenue Code of 1986.
            (2) Application of increased limitation.--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 as a deduction 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 section 
                        170(b)(1)(G)(ii).
                    (B) Corporations.--In the case of a corporation--
                            (i) Limitation.--Any qualified contribution 
                        shall be allowed as a deduction 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.--If the aggregate amount of 
                        qualified contributions made in the 
                        contribution year (within the meaning of 
                        section 170(d)(2) of such Code) exceeds the 
                        limitation of clause (i), such excess shall be 
                        appropriately taken into account under section 
                        170(d)(2) subject to the limitations thereof.
            (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 2018 in cash to 
                                an organization described in section 
                                170(b)(1)(A) of such Code, and
                                    (II) is made for relief efforts in 
                                one or more qualified disaster areas,
                            (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 which 
        arise in a qualified disaster area on or after the first day of 
        the incident period of the qualified disaster to which such 
        area relates, and which are attributable to such qualified 
        disaster.
    (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, 
        the term ``qualified individual'' means any individual whose 
        principal place of abode at any time during the incident period 
        of any qualified disaster was located--
                    (A) in the qualified disaster zone with respect to 
                such qualified disaster, or
                    (B) in the qualified disaster area with respect to 
                such qualified disaster (but outside the qualified 
                disaster zone with respect to such qualified disaster) 
                and such individual was displaced from such principal 
                place of abode by reason of such qualified disaster.
            (3) Applicable taxable year.--The term ``applicable taxable 
        year'' means, with respect to any qualified individual, any 
        taxable year which includes any portion of the incident period 
        of the qualified disaster to which the qualified disaster area 
        referred to in paragraph (2) relates.
            (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).

SEC. 205. TREATMENT OF CERTAIN POSSESSIONS.

    (a) Payments to Guam and the Commonwealth of the Northern Mariana 
Islands.--In the case of Guam and the Commonwealth of the Northern 
Mariana Islands, the Secretary of the Treasury shall pay to each such 
possession amounts equal to the loss in revenues (if any) to that 
possession by reason of the application of the provisions of this 
title. Such amounts shall be determined by the Secretary of the 
Treasury based on information provided by the government of the 
respective possession.
    (b) Payments to American Samoa.--The Secretary of the Treasury 
shall pay to American Samoa amounts estimated by the Secretary of the 
Treasury as being equal to the aggregate benefits (if any) that would 
have been provided to residents of American Samoa by reason of the 
provisions of this title if American Samoa had in effect a tax system 
under which the income tax liability of residents of American Samoa 
were determined by reference to the income tax laws of the United 
States. The preceding sentence shall not apply unless American Samoa 
has a plan, which has been approved by the Secretary of the Treasury, 
under which it will promptly distribute such payments to its residents.
    (c) Treatment of Payments.--For purposes of section 1324 of title 
31, United States Code, the payments under this section shall be 
treated in the same manner as a refund due from a credit provision 
referred to in subsection (b)(2) of such section.
                                                        Calendar No. 28

116th CONGRESS

  1st Session

                                 S. 617

_______________________________________________________________________

                                 A BILL

 To amend the Internal Revenue Code of 1986 to extend certain expiring 
  provisions, to provide disaster tax relief, and for other purposes.

_______________________________________________________________________

                             March 4, 2019

            Read the second time and placed on the calendar