In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Relief Certainty Act of 2011''.

                     TITLE I--PERMANENT TAX RELIEF

SEC. 101. REPEAL OF EGTRRA SUNSET.

    Section 901 of the Economic Growth and Tax Relief Reconciliation 
Act of 2001 is repealed.

SEC. 102. REPEAL OF JGTRRA SUNSET.

    Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 
2003 is repealed.

SEC. 103. TECHNICAL AND CONFORMING AMENDMENTS.

    The Secretary of the Treasury or the Secretary's delegate shall, 
not later than 90 days after the date of the enactment of this Act, 
submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a draft of 
any technical and conforming changes in the Internal Revenue Code of 
1986 which are necessary to reflect throughout such Code the purposes 
of the provisions of, and amendments made by, this Act.

               TITLE II--PERMANENT INDIVIDUAL AMT RELIEF

SEC. 201. PERMANENT INDIVIDUAL AMT RELIEF.

    (a) Modification of Alternative Minimum Tax Exemption Amount.--
            (1) In general.--Paragraph (1) of section 55(d) of the 
        Internal Revenue Code of 1986 (relating to exemption amount) is 
        amended to read as follows:
            ``(1) Exemption amount for taxpayers other than 
        corporations.--In the case of a taxpayer other than a 
        corporation, the term `exemption amount' means--
                    ``(A) the dollar amount for taxable years beginning 
                in the calendar year as specified in the table 
                contained in paragraph (4)(A) in the case of--
                            ``(i) a joint return, or
                            ``(ii) a surviving spouse,
                    ``(B) the dollar amount for taxable years beginning 
                in the calendar year as specified in the table 
                contained in paragraph (4)(B) in the case of an 
                individual who--
                            ``(i) is not a married individual, and
                            ``(ii) is not a surviving spouse,
                    ``(C) 50 percent of the dollar amount applicable 
                under paragraph (1)(A) in the case of a married 
                individual who files a separate return, and
                    ``(D) $22,500 in the case of an estate or trust.
        For purposes of this paragraph, the term `surviving spouse' has 
        the meaning given to such term by section 2(a), and marital 
        status shall be determined under section 7703.''.
            (2) Specified exemption amounts.--Section 55(d) of such 
        Code is amended by adding at the end the following new 
        paragraph:
            ``(4) Specified exemption amounts.--
                    ``(A) Taxpayers described in paragraph (1)(A).--For 
                purposes of paragraph (1))(A)--


------------------------------------------------------------------------
                                                                 The
             ``For taxable years beginning in--               exemption
                                                              amount is:
------------------------------------------------------------------------
2011.......................................................      $74,450
2012.......................................................      $78,250
2013.......................................................      $81,450
2014.......................................................      $85,050
2015.......................................................      $88,650
2016.......................................................      $92,650
2017.......................................................      $96,550
2018.......................................................     $100,950
2019.......................................................     $105,150
2020.......................................................     $109,950
2021.......................................................    $112,250.
------------------------------------------------------------------------

                    ``(B) Taxpayers described in paragraph (1)(B).--For 
                purposes of paragraph (1))(B)--


------------------------------------------------------------------------
                                                                 The
             ``For taxable years beginning in--               exemption
                                                              amount is:
------------------------------------------------------------------------
2011.......................................................      $48,450
2012.......................................................      $50,350
2013.......................................................      $51,950
2014.......................................................      $53,750
2015.......................................................      $55,550
2016.......................................................      $57,550
2017.......................................................      $59,500
2018.......................................................      $61,700
2019.......................................................      $63,800
2020.......................................................      $66,200
2021.......................................................  $68,200.''.
------------------------------------------------------------------------

    (b) Alternative Minimum Tax Relief for Nonrefundable Credits.--
            (1) In general.--Subsection (a) of section 26 of the 
        Internal Revenue Code of 1986 is amended to read as follows:
    ``(a) Limitation Based on Amount of Tax.--The aggregate amount of 
credits allowed by this subpart for the taxable year shall not exceed 
the sum of--
            ``(1) the taxpayer's regular tax liability for the taxable 
        year reduced by the foreign tax credit allowable under section 
        27(a), and
            ``(2) the tax imposed by section 55(a) for the taxable 
        year.''.
            (2) Conforming amendments.--
                    (A) Child tax credit.--
                            (i) Section 24(b) of such Code is amended 
                        by striking paragraph (3).
                            (ii) Section 24(d)(1) of such Code is 
                        amended--
                                    (I) by striking ``section 26(a)(2) 
                                or subsection (b)(3), as the case may 
                                be,'' each place it appears in 
                                subparagraphs (A) and (B) and inserting 
                                ``section 26(a)'', and
                                    (II) by striking ``section 26(a)(2) 
                                or subsection (b)(3), as the case may 
                                be'' in the second last sentence and 
                                inserting ``section 26(a)''.
                    (B) Credit for interest on certain home 
                mortgages.--Section 25(e)(1)(C) of such Code is amended 
                to read as follows:
                    ``(C) Applicable tax limit.--For purposes of this 
                paragraph, the term `applicable tax limit' means the 
                limitation imposed by section 26(a) for the taxable 
                year reduced by the sum of the credits allowable under 
                this subpart (other than this section and sections 23, 
                25D, and 1400C).''.
                    (C) Savers' credit.--Section 25B of such Code is 
                amended by striking subsection (g).
                    (D) Residential energy efficient property.--Section 
                25D(c) of such Code is amended to read as follows:
    ``(c) Carryforward of Unused Credit.--If the credit allowable under 
subsection (a) exceeds the limitation imposed by section 26(a) for such 
taxable year reduced by the sum of the credits allowable under this 
subpart (other than this section), such excess shall be carried to the 
succeeding taxable year and added to the credit allowable under 
subsection (a) for such succeeding taxable year.''.
                    (E) Certain plug-in electric vehicles.--Section 
                30(c)(2) of such Code is amended to read as follows:
            ``(2) Personal credit.--For purposes of this title, the 
        credit allowed under subsection (a) for any taxable year 
        (determined after application of paragraph (1)) shall be 
        treated as a credit allowable under subpart A for such taxable 
        year.''.
                    (F) Alternative motor vehicle credit.--Section 
                30B(g)(2) of such Code is amended to read as follows:
            ``(2) Personal credit.--For purposes of this title, the 
        credit allowed under subsection (a) for any taxable year 
        (determined after application of paragraph (1)) shall be 
        treated as a credit allowable under subpart A for such taxable 
        year.''.
                    (G) New qualified plug-in electric vehicle 
                credit.--Section 30D(c)(2) of such Code is amended to 
                read as follows:
            ``(2) Personal credit.--For purposes of this title, the 
        credit allowed under subsection (a) for any taxable year 
        (determined after application of paragraph (1)) shall be 
        treated as a credit allowable under subpart A for such taxable 
        year.''.
                    (H) Cross references.--Section 55(c)(3) of such 
                Code is amended by striking ``26(a), 30C(d)(2),'' and 
                inserting ``30C(d)(2)''.
                    (I) Foreign tax credit.--Section 904 of such Code 
                is amended by striking subsection (i) and by 
                redesignating subsections (j), (k), and (l) as 
                subsections (i), (j), and (k), respectively.
                    (J) First-time home buyer credit for the district 
                of columbia.--Section 1400C(d) of such Code is amended 
                to read as follows:
    ``(d) Carryforward of Unused Credit.--If the credit allowable under 
subsection (a) exceeds the limitation imposed by section 26(a) for such 
taxable year reduced by the sum of the credits allowable under subpart 
A of part IV of subchapter A (other than this section and section 25D), 
such excess shall be carried to the succeeding taxable year and added 
to the credit allowable under subsection (a) for such taxable year.''.
            (3) Adoption credit.--
                    (A) In general.--Section 10909 of the Patient 
                Protection and Affordable Care Act, and the amendments 
                made thereby, are repealed; and the Internal Revenue 
                Code of 1986 shall be applied as if such section, and 
                amendments, had never been enacted.
                    (B) Conforming amendments.--
                            (i) Section 23(b) of the Internal Revenue 
                        Code of 1986, as in effect on December 31, 
                        2009, is amended by striking paragraph (4).
                            (ii) Section 23(c) of such Code, as in 
                        effect on December 31, 2009, is amended by 
                        striking paragraphs (1) and (2) and inserting 
                        before paragraph (3) the following:
            ``(1) In general.--If the credit allowable under subsection 
        (a) for any taxable year exceeds the limitation imposed by 
        section 26(a) for such taxable year, reduced by the sum of the 
        credits allowable under this subpart (other than this section 
        and sections 25D and 1400C), such excess shall be carried to 
        the succeeding taxable year and added to the credit allowable 
        under subsection (a) for such taxable year.''.
                            (iii) Section 23(c) of such Code, as in 
                        effect on December 31, 2009, is amended by 
                        redesignating paragraph (3) as paragraph (2).
    (c) Effective Date.--The amendments and the repeal made by this 
section shall apply to taxable years beginning after December 31, 2010.

                 TITLE III--PERMANENT ESTATE TAX RELIEF

SEC. 301. PERMANENT ESTATE TAX RELIEF.

    (a) In General.--Title III of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010, and the 
amendments made thereby, are repealed; and the Internal Revenue Code of 
1986 shall be applied as if such title, and amendments, had never been 
enacted.
    (b) Effective Date.--The repeal made by this section shall apply to 
estates of decedents dying, gifts made, and generation skipping 
transfers after December 31, 2009.
Tax Relief Certainty Act of 2011 - Eliminates: (1) the terminating date of the Economic Growth and Tax Relief Reconciliation Act of 2001, thus making the tax relief provisions of such Act permanent; and (2) the terminating date of the Jobs and Growth Tax Relief Reconciliation Act of 2003 applicable to reductions in the tax rate for dividend and capital gain income.

Amends the Internal Revenue Code to: (1) phase-in between 2011 through 2021increases in the exemption amount for the alternative minimum tax (AMT); and (2) make permanent offsets against the AMT for certain nonrefundable tax credits.

Makes permanent the repeal of the estate, gift, and generation-skipping transfer taxes for decedents dying, gifts made, and generation skipping transfers after December 31, 2009.

SECTION 1. SHORT TITLE: TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Port Authority of 
New York/New Jersey Port Security Task Force Implementation Act of 
2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Secure systems of international intermodal transportation. 
Sec. 3. Regional recovery plans. 
Sec. 4. National tactical plans.
Sec. 5. Risk based resource allocation. 
Sec. 6. Use of maritime security risk assessment model.
Sec. 7. Maritime and cargo security integrated project teams.
Sec. 8. Integration of security plans and systems with local port 
                            authority and law enforcement agencies.
Sec. 9. Standardized policy for advanced notice of Coast Guard boarding 
                            for security or port state control 
                            inspections.
Sec. 10. Fraudulent or tampered with transportation worker 
                            identification cards.
Sec. 11. Federal licensing of ship agents.
Sec. 12. Establishment of a security individual.
Sec. 13. Certification of maritime security guards.
Sec. 14. Grants to tier 1 and tier 2 ports require regional strategic 
                            risk management assessment.
Sec. 15. Vessel security plans for supply and similar vessels.

SEC. 2. SECURE SYSTEMS OF INTERNATIONAL INTERMODAL TRANSPORTATION.

    Section 70116 of title 46, United States Code, is amended--
            (1) by striking ``transportation.'' in subsection (a) and 
        inserting ``transportation--
            ``(1) to ensure the security and integrity of shipments of 
        goods to the United States from the point at which such goods 
        are initially packed or loaded into a cargo container for 
        international shipment until they reach their ultimate 
        destination; and
            ``(2) to facilitate the movement of such goods through the 
        entire supply chain through an expedited security and clearance 
        program.''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Program Elements.--Within one year after the date of 
enactment of the Port Authority of New York/New Jersey Port Security 
Task Force Implementation Act of 2008, the Secretary, acting through 
the Commissioner of Customs and Border Protection, shall--
            ``(1) establish minimum standards and procedures for 
        verifying, at the point at which goods are placed in a cargo 
        container for shipping, that the container is free of 
        unauthorized contents, including hazardous chemical, 
        biological, radiological, or nuclear material and for securely 
        sealing such containers after the contents are so verified;
            ``(2) establish standards and procedures for securing cargo 
        and monitoring that security while in transit;
            ``(3) develop performance standards to enhance the physical 
        security of shipping containers, including performance 
        standards for seals and locks and protocols and procedures to 
        address anomalies;
            ``(4) establish standards and procedures for screening and 
        evaluating cargo prior to loading in a foreign port for 
        shipment to the United States either directly or via a foreign 
        port;
            ``(5) establish standards and procedures that will enable 
        the United States Government to ensure and validate compliance 
        with those standards and procedures; and
            ``(6) incorporate any other measures the Secretary 
        considers necessary to ensure the security and integrity of 
        international intermodal transport movements.
    ``(c) Requirements for Entry of Containers.--Beginning 1 year after 
the date on which the Secretary determines that the standards and 
procedures under subsection (b)(5) have been established and are in 
effect, the Commissioner of Customs and Border Protection shall refuse 
entry into the customs territory of the United States to any container, 
arriving directly or via a foreign port, unless the entity shipping the 
container has complied with those standards and procedures with respect 
to that container.''.

SEC. 3. REGIONAL RECOVERY PLANS.

    (a) Establishment.--Section 70103(b)(2) of title 46, United States 
Code, is amended--
            (1) by redesignating subparagraphs (E) through (G) as 
        subparagraphs (F) through (H), respectively; and
            (2) by inserting after subparagraph (D) the following:
                    ``(E) establish regional response and recovery 
                protocols to prepare for, respond to, mitigate against, 
                and recover from a transportation security incident 
                consistent with section 202 of the Security and 
                Accountability for Every Port Act of 2006 (6 U.S.C. 
                942) and section 70103(a) of title 46, United States 
                Code;''.
    (b) Coordination of Plans.--Section 70103(b)(1) of title 46, United 
States Code, is amended--
            (1) by striking ``and'' after the semicolon in subparagraph 
        (F);
            (2) by redesignating subparagraph (G) as subparagraph (H); 
        and
            (3) by inserting after subparagraph (F) the following:
            ``(G) be consistent with, and support implementation of, 
        the National Incident Management System, the National Response 
        Plan, the National Infrastructure Protection Plan, the National 
        Preparedness Guidance, the National Preparedness Goal, the 
        National Transportation Security Plan, National Tactical Plans, 
        and other similar initiatives; and''.
    (c) Use of Area Maritime Transportation Security Plans in 
Exercises.--Section 114(b)(1) of the SAFE Port Act (6 U.S.C. 912(b)) is 
amended--
            (1) by striking ``and'' after the semicolon in paragraph 
        (1);
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following:
            ``(2) utilizes the Area Maritime Transportation Security 
        Plans established under section 70103(b) of title 46, United 
        States Code, in conducting such exercises; and''.

SEC. 4. NATIONAL TACTICAL PLANS.

    The Secretary of the department in which the Coast Guard is 
operating shall ensure that the National Tactical Plan is shared with 
the Area Maritime Security Committees established under section 70112 
of title 46, United States Code. The Area Maritime Security Committees 
shall use the plan in developing regional and local plans and for 
exercises.

SEC. 5. RISK BASED RESOURCE ALLOCATION.

    (a) National Standard.--Within 1 year after the date of enactment 
of this Act, in carrying out chapter 701 of title 46, United States 
Code, the Homeland Security Act of 2002, and the Security and 
Accountability for Every Port Act of 2006 the Secretary of the 
department in which the Coast Guard is operating shall develop and 
utilize a national standard and formula for prioritizing and addressing 
assessed security risks at United States ports, such as the Maritime 
Assessment Strategy Tool that has been tested by the Department of 
Homeland Security.
    (b) Use by Maritime Security Committees.--Within 2 years after the 
date of enactment of this Act, the Secretary shall require each Area 
Maritime Security Committee to use this standard to regularly evaluate 
each port's assessed risk and prioritize how to mitigate the most 
significant risks.
    (c) Other Uses of Standard.--The Secretary shall utilize the 
standard when considering departmental resource allocations and grant-
making decisions.

SEC. 6. USE OF MARITIME SECURITY RISK ASSESSMENT MODEL.

    Within 180 days after the date of enactment of this Act, the 
Secretary of the department in which the Coast Guard is operating shall 
make the United States Coast Guard's Maritime Security Risk Assessment 
Model tool available, in an unclassified version, on a limited basis to 
regulated vessels and facilities to conduct true risk assessments of 
their own facilities and vessels using the same criteria employed by 
the United States Coast Guard when evaluating a port area.

SEC. 7. MARITIME AND CARGO SECURITY INTEGRATED PROJECT TEAMS.

    The Secretary of Homeland Security shall--
            (1) establish integrated project teams within the science 
        and technology directorate to assist the Department of Homeland 
        Security in product research, development, transition, and 
        acquisition activities for cargo security; and
            (2) provide for participation by port authorities or the 
        appropriate State agency responsible for oversight of port 
        areas in such activities.

SEC. 8. INTEGRATION OF SECURITY PLANS AND SYSTEMS WITH LOCAL PORT 
              AUTHORITY AND LAW ENFORCEMENT AGENCIES.

    Section 70102 of title 46, United States Code, is amended by adding 
at the end thereof the following:
    ``(c) Sharing of Assessment; Integration of Plans and Equipment.--
The owner or operator of a facility shall--
            ``(1) make a current copy of the vulnerability assessment 
        conducted under subsection (b) available to the port authority 
        with jurisdiction of the facility and appropriate State or 
        local law enforcement agencies; and
            ``(2) integrate, to the maximum feasible extent, any 
        security system for the facility with compatible systems 
        operated or maintained by the port authority or such law 
        enforcement agencies.''.

SEC. 9. STANDARDIZED POLICY FOR ADVANCED NOTICE OF COAST GUARD BOARDING 
              FOR SECURITY OR PORT STATE CONTROL INSPECTIONS.

    Within 90 days after the date of enactment of this Act, the 
Commandant of the Coast Guard shall establish, and publish in the 
Federal Register, a policy governing how much advance notice is to be 
provided by the Coast Guard to the owner or operator of a vessel before 
the vessel is boarded by the Coast Guard for ISPS compliance or Port 
State Control inspection.

SEC. 10. FRAUDULENT OR TAMPERED WITH TRANSPORTATION WORKER 
              IDENTIFICATION CARDS.

    Section 70105 of title 46, United States Code, is amended by adding 
at the end thereof the following:
    ``(n) Confiscation of Fraudulent TWICs.--If any Federal, State, or 
local government law enforcement officer, or any member of the United 
States Coast Guard in the execution of such officer's duties, has 
reasonable cause to believe that a transportation security card issued 
under this section is fraudulent, has been unlawfully modified, or is 
otherwise invalid, the officer may confiscate the card, notify the 
Department of Homeland Security, and hold the bearer of the card in 
custody for a reasonable period of time for relinquishment to 
appropriate law enforcement authorities.''.

SEC. 11. FEDERAL LICENSING OF SHIP AGENTS.

    (a) In General.--Within 1 year after the date of enactment of this 
Act, the Federal Maritime Commission shall establish and implement a 
procedure for the training, certification, and licensing of steamship 
agents and agencies operating in the United States.
    (b) TWIC Required.--An individual may not receive a license under 
the procedure established by the Federal Maritime Commission under 
subsection (a) unless that individual holds a valid transportation 
security card issued under section 70105 of title 46, United States 
Code.
    (c) License Requirement.--Beginning 1 year after the date on which 
the Federal Maritime Commission establishes the licensing procedure, or 
after such date as the Federal Maritime Commission may establish, it 
shall be unlawful for any person to act as a vessel agent in the United 
States without a valid license issued by the Federal Maritime 
Commission and a valid transportation security card issued under 
section 70105 of title 46, United States Code.
    (d) Enforcement.--Violation of subsection (c) is punishable by 
imprisonment for not more than 1 year and a fine under title 18, United 
States Code.

SEC. 12. ESTABLISHMENT OF A SECURITY INDIVIDUAL.

    Under regulations prescribed by the Secretary of Homeland Security, 
each vessel documented under chapter 121 of title 46, United States 
Code, and each foreign vessel entering a United States port, engaged in 
the commercial transportation of goods or passengers shall--
            (1) designate a United States person that is responsible 
        for responding to a transportation security incident involving 
        the vessel while in a United States port by notifying 
        appropriate emergency response entities and facilitating vessel 
        response activities; and
            (2) provide notice to the Secretary of Homeland Security, 
        the Commandant of the Coast Guard, and the captain of the port 
        of the identity and contact information for such person.

SEC. 13. CERTIFICATION OF MARITIME SECURITY GUARDS.

    (a) In General.--Chapter 701 of title 46, United States Code, is 
amended by adding at the end thereof the following:
``Sec. 70122. Incident command system training
    ``The Secretary shall ensure that all maritime security guards meet 
minimum training and performance standards in the Department of 
Homeland Security's security awareness and response procedures and in 
the handling of hazardous materials.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 701 of 
title 46, United States Code, is amended by inserting after the item 
relating to section 70121 the following:

``70122. Incident command system training.''.

SEC. 14. GRANTS TO TIER 1 AND TIER 2 PORTS REQUIRE REGIONAL STRATEGIC 
              RISK MANAGEMENT ASSESSMENT.

    Section 70107(a) of title 46, United States Code, is amended by 
adding at the end ``The Secretary shall establish regional strategic 
risk management priorities for tier 1 and tier 2 ports and take such 
priorities into account in awarding grants under this section.''.

SEC. 15. VESSEL SECURITY PLANS FOR SUPPLY AND SIMILAR VESSELS.

    (a) In General.--Section 70103(c)(2)(A) of title 46, United States 
Code, is amended by striking ``incident;'' and inserting ``incident 
(including supply vessels, bunker and fuel deliver and launch vessels 
conducting activities or providing services to other vessels at 
anchorage;''.
    (b) TWICs Required for Crew.--Section 70105(b)(2)(F) of title 46, 
United States Code, is amended by inserting ``personnel working on 
board vessels described in section 70103(c)(2)(A) of this title and'' 
after ``(F)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect 1 year after the date of enactment of this Act.
Port Authority of New York/New Jersey Port Security Task Force Implementation Act of 2008 - Amends federal port security law to revise mandatory elements of the secure system of transportation program.

Directs the Secretary of the department in which the Coast Guard is operating, acting through the Commissioner of Customs and Border Protection, to establish minimum program standards and procedures for verifying, at the point goods are placed in a cargo container for shipping, that such container is free of unauthorized contents, including hazardous chemical, biological, radiological, or nuclear material, and is securely sealed after verification of its contents. Prohibits the entry of any container that has not complied with such standards and procedures.

Requires Area Maritime Transportation Security Plans to establish regional response and recovery protocols for transportation security incidents.

Amends the SAFE Port Act to require the Secretary of Homeland Security to ensure that the Port Security Exercise Program utilizes Area Maritime Transportation Security Plans in conducting port security exercises.

Requires the Secretary of the department in which the Coast Guard is operating to develop and utilize a national standard for prioritizing and assessing security risks at U.S. ports, such as the Maritime Assessment Strategy Tool.

Sets forth requirements regarding: (1) use of the U.S. Coast Guard's Maritime Security Risk Assessment Model tool to conduct vessel and port facility security risk assessments; (2) establishment of maritime and cargo security integrated project teams; (3) sharing of port facility vulnerability assessments and integration of port security plans and systems with local port authority and law enforcement agencies; (4) policy for advanced notice of Coast Guard boarding of vessels for security or Port State Control inspections; (5) confiscation of fraudulent transportation worker identification cards (TWICs); (6) Federal Maritime Commission training and licensing of steamship agents; (7) designation of a U.S. person to be responsible for notifying emergency response entities in the event of a transportation security incident involving a U.S. or foreign vessel; (8) minimum incident command system training and performance standards for maritime security guards; (9) consideration of regional strategic risk management priorities for tier 1 and tier 2 ports in grant awards; and (10) the submission of security plans for supply, bunker, and fuel deliver and launch vessels conducting activities or providing services to other vessels at anchorage.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Relief for Gulf Coast 
Families and Businesses Act''.

SEC. 2. TAX BENEFITS RELATED TO HURRICANE KATRINA DISASTER AREA.

    (a) In General.--Subchapter Y of chapter 1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 1400M. TAX BENEFITS RELATED TO HURRICANE KATRINA DISASTER AREA.

    ``(a) Zero Percent Capital Gains Rate.--
            ``(1) Exclusion.--Gross income shall not include qualified 
        capital gain from the sale or exchange of any Katrina Zone 
        asset held for more than 5 years.
            ``(2) Katrina zone.--For purposes of this subsection, the 
        term `Katrina Zone asset' means--
                    ``(A) any Katrina Zone business stock,
                    ``(B) any Katrina Zone partnership interest, and
                    ``(C) any Katrina Zone business property.
            ``(3) Katrina zone business stock.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `Katrina Zone business 
                stock' means any stock in a domestic corporation which 
                is originally issued after August 28, 2005, if--
                            ``(i) such stock is acquired by the 
                        taxpayer, before January 1, 2007, at its 
                        original issue (directly or through an 
                        underwriter) solely in exchange for cash,
                            ``(ii) as of the time such stock was 
                        issued, such corporation was a Katrina Zone 
                        business (or, in the case of a new corporation, 
                        such corporation was being organized for 
                        purposes of being a Katrina Zone business), and
                            ``(iii) during substantially all of the 
                        taxpayer's holding period for such stock, such 
                        corporation qualified as a Katrina Zone 
                        business.
                    ``(B) Redemptions.--A rule similar to the rule of 
                section 1202(c)(3) shall apply for purposes of this 
                paragraph.
            ``(4) Katrina zone partnership interest.--For purposes of 
        this subsection, the term `Katrina Zone partnership interest' 
        means any capital or profits interest in a domestic partnership 
        which is originally issued after August 28, 2005, if--
                    ``(A) such interest is acquired by the taxpayer, 
                before January 1, 2007, from the partnership solely in 
                exchange for cash,
                    ``(B) as of the time such interest was acquired, 
                such partnership was a Katrina Zone business (or, in 
                the case of a new partnership, such partnership was 
                being organized for purposes of being a Katrina Zone 
                business), and
                    ``(C) during substantially all of the taxpayer's 
                holding period for such interest, such partnership 
                qualified as a Katrina Zone business.
        A rule similar to the rule of subparagraph (B)(ii) shall apply 
        for purposes of this paragraph.
            ``(5) Katrina zone business property.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `Katrina Zone business 
                property' means tangible property if--
                            ``(i) such property was acquired by the 
                        taxpayer by purchase (as defined in section 
                        179(d)(2)) after August 28, 2005, and before 
                        January 1, 2007,
                            ``(ii) the original use of such property in 
                        the Katrina Zone commences with the taxpayer, 
                        and
                            ``(iii) during substantially all of the 
                        taxpayer's holding period for such property, 
                        substantially all of the use of such property 
                        was in a Katrina Zone business of the taxpayer.
                    ``(B) Special rule for buildings which are 
                substantially improved.--
                            ``(i) In general.--The requirements of 
                        clauses (i) and (ii) of subparagraph (A) shall 
                        be treated as met with respect to--
                                    ``(I) property which is 
                                substantially improved by the taxpayer 
                                before January 1, 2007, and
                                    ``(II) any land on which such 
                                property is located.
                            ``(ii) Substantial improvement.--For 
                        purposes of clause (i), property shall be 
                        treated as substantially improved by the 
                        taxpayer only if, during any 24-month period 
                        beginning after August 28, 2005, additions to 
                        basis with respect to such property in the 
                        hands of the taxpayer exceed the greater of--
                                    ``(I) an amount equal to the 
                                adjusted basis of such property at the 
                                beginning of such 24-month period in 
                                the hands of the taxpayer, or
                                    ``(II) $5,000.
            ``(6) Katrina zone business.--For purposes of this 
        subsection, the term `Katrina Zone business' means any 
        corporation, partnership, or business which would be an 
        enterprise zone business (as defined in section 1397C) if such 
        section were applied by substituting `Katrina Zone' for 
        `empowerment zone' each place it appears.
            ``(7) Special rules related to katrina zone assets.--For 
        purposes of this subsection--
                    ``(A) Treatment of subsequent purchasers, etc.--For 
                purposes of this subsection, the term `Katrina Zone 
                asset' includes any property which would be a Katrina 
                Zone asset but for paragraph (3)(A)(i), (4)(A), or 
                (5)(A)(i) or (ii) in the hands of the taxpayer if such 
                property was a Katrina Zone asset in the hands of a 
                prior holder.
                    ``(B) 5-year safe harbor.--If any property ceases 
                to be a Katrina Zone asset by reason of paragraph 
                (3)(A)(iii), (4)(C), or (5)(A)(iii) after the 5-year 
                period beginning on the date the taxpayer acquired such 
                property, such property shall continue to be treated as 
                meeting the requirements of such paragraph; except that 
                the amount of gain to which paragraph (1) applies on 
                any sale or exchange of such property shall not exceed 
                the amount which would be qualified capital gain had 
                such property been sold on the date of such cessation.
            ``(8) Qualified capital gain.--For purposes of this 
        subsection--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, the term `qualified capital gain' means 
                any gain recognized on the sale or exchange of--
                            ``(i) a capital asset, or
                            ``(ii) property used in the trade or 
                        business (as defined in section 1231(b).
                    ``(B) Gain before hurricane or after 2011 not 
                qualified.--The term `qualified capital gain' shall not 
                include any gain attributable to periods before August 
                29, 2005, or after December 31, 2011.
                    ``(C) Certain ordinary income gain not qualified.--
                The term `qualified capital gain' shall not include any 
                gain which would be treated as ordinary income under 
                section 1245 or under section 1250 if section 1250 
                applied to all depreciation rather than the additional 
                depreciation.
                    ``(D) Intangibles and land not integral part of 
                katrina zone business.--The term `qualified capital 
                gain' shall not include any gain which is attributable 
                to real property, or an intangible asset, which is not 
                an integral part of a Katrina Zone business.
                    ``(E) Related party transactions.--The term 
                `qualified capital gain' shall not include any gain 
                attributable, directly or indirectly, in whole or in 
                part, to a transaction with a related person. For 
                purposes of this subparagraph, persons are related to 
                each other if such persons are described in section 
                267(b) or 707(b)(1).
            ``(9) Certain other rules to apply.--Rules similar to the 
        rules of subsections (g), (h), (i)(2), and (j) of section 1202 
        shall apply for purposes of this subsection.
            ``(10) Sales and exchanges of interests in partnerships and 
        s corporations which are katrina zone businesses.--In the case 
        of the sale or exchange of an interest in a partnership, or of 
        stock in an S corporation, which was a Katrina Zone business 
        during substantially all of the period the taxpayer held such 
        interest or stock, the amount of qualified capital gain shall 
        be determined without regard to--
                    ``(A) any gain which is attributable to real 
                property, or an intangible asset, which is not an 
                integral part of a Katrina Zone business, and
                    ``(B) any gain attributable to periods before 
                August 29, 2005, or after December 31, 2011.
    ``(b) Estate Tax Reduction for Hurricane Katrina Victims.--
            ``(1) In general.-- For purposes of this title, a Hurricane 
        Katrina victim shall be treated as a qualified decedent within 
        the meaning of section 2201(b).
            ``(2) Hurricane katrina victim.--For purposes of this 
        section, the term `Hurricane Katrina victim' means any decedent 
        who dies after August 28, 2005, as a result of wounds or 
        injuries incurred in the Katrina Zone as a result of Hurricane 
        Katrina.
    ``(c) Katrina Zone.--For purposes of this section, the term 
`Katrina Zone' means an 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 Katrina.''.
    (b) Conforming Amendments.--
            (1) The heading for subchapter Y of chapter 1 of such Code 
        is amended to read as follows:

            ``Subchapter Y--Short-term Regional Benefits''.

            (2) The table of sections for such subchapter is amended by 
        adding at the end the following new item:

``Sec. 1400M. Tax benefits related to Hurricane Katrina disaster 
                            area.''.

Economic Relief for Gulf Coast Families and Businesses Act - Amends the Internal Revenue Code to: (1) exclude from gross income gain from the sale or exchange of Hurricane Katrina Zone assets held for more than five years; and (2) allow reduced estate tax rates for Hurricane Katrina victims. Includes as such assets: (1) Katrina Zone business stock or principal interests issued after August 28, 2005, and acquired by the taxpayer before January 1, 2007; and (2) Katrina Zone business property acquired between such dates, provided its original use in the Zone commences with the taxpayer.