[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6137 Introduced in House (IH)]
<DOC>
114th CONGRESS
2d Session
H. R. 6137
To provide emergency tax relief for persons affected by severe storms
and flooding occurring in Louisiana.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 22, 2016
Mr. Boustany introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide emergency tax relief for persons affected by severe storms
and flooding occurring in Louisiana.
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 ``Louisiana Flood
and Storm Devastation Tax Relief Act of 2016''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title, etc.
Sec. 2. Louisiana storm and flood disaster area.
TITLE I--SPECIAL RULES FOR USE OF RETIREMENT FUNDS FOR RELIEF RELATING
TO 2016 LOUISIANA STORMS AND FLOODING
Sec. 101. Tax-favored withdrawals from retirement plans for relief
relating to 2016 Louisiana storms and
flooding.
Sec. 102. Recontributions of withdrawals for home purchases canceled
due to the 2016 Louisiana storms and
flooding.
Sec. 103. Loans from qualified plans for relief relating to 2016
Louisiana storms and flooding.
Sec. 104. Provisions relating to plan amendments.
TITLE II--EMPLOYMENT RELIEF
Sec. 201. Work opportunity tax credit for Louisiana storm and flood
employees.
Sec. 202. Employee retention credit for employers affected by 2016
Louisiana storms and flooding.
TITLE III--CHARITABLE GIVING INCENTIVES
Sec. 301. Temporary suspension of limitations on charitable
contributions.
Sec. 302. Additional exemption for housing Louisiana storm and flood
displaced individuals.
Sec. 303. Increase in standard mileage rate for charitable use of
vehicles.
Sec. 304. Mileage reimbursements to charitable volunteers excluded from
gross income.
Sec. 305. Charitable deduction for contributions of book inventories to
public schools.
TITLE IV--ADDITIONAL TAX RELIEF PROVISIONS
Sec. 401. Exclusions of certain cancellations of indebtedness by reason
of 2016 Louisiana storms and flooding.
Sec. 402. Suspension of certain limitations on personal casualty
losses.
Sec. 403. Required exercise of authority under section 7508A for tax
relief relating to 2016 Louisiana storms
and flooding.
Sec. 404. Special rules for mortgage revenue bonds relating to 2016
Louisiana storms and flooding.
Sec. 405. Extension of replacement period for nonrecognition of gain
for property located in Louisiana storm and
flood disaster area.
Sec. 406. Special rule for determining earned income.
Sec. 407. Secretarial authority to make adjustments regarding taxpayer
and dependency status.
Sec. 408. Low-income housing credit.
Sec. 409. Application of new markets tax credit to investments in
community development entities serving
Louisiana storm and flood disaster area.
Sec. 410. Tax-exempt bond financing.
Sec. 411. Expensing for certain demolition and clean-up costs.
Sec. 412. Extension of expensing for environmental remediation costs.
Sec. 413. Treatment of net operating losses attributable to Louisiana
storm and flood disaster area losses.
Sec. 414. Increased expensing for qualified timber property.
Sec. 415. Disaster loss carryback.
Sec. 416. Housing relief for individuals affected by Hurricane Katrina.
SEC. 2. LOUISIANA STORM AND FLOOD DISASTER AREA.
For purposes of this Act--
(1) Louisiana storm and flood disaster area.--The term
``Louisiana storm and flood disaster area'' means an area with
respect to which a major disaster has been declared by the
President under section 401 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act--
(A) before September 3, 2016, by reason of severe
storms and flooding occurring in Louisiana during
August of 2016, and
(B) before April 21, 2016, by reason of severe
storms and flooding occurring in Louisiana during March
and April of 2016.
(2) Core disaster area.--The term ``core disaster area''
means that portion of the Louisiana storm and flood disaster
area determined by the President to warrant individual or
individual and public assistance from the Federal Government
under such Act.
(3) Applicable disaster date.--The term ``applicable
disaster date'' means, with respect to any Louisiana storm and
flood disaster area, the date of the first day of the period
during which the severe storms and flooding giving rise to the
Presidential declaration described in paragraph (1) occurred.
TITLE I--SPECIAL RULES FOR USE OF RETIREMENT FUNDS FOR RELIEF RELATING
TO 2016 LOUISIANA STORMS AND FLOODING
SEC. 101. TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS FOR RELIEF
RELATING TO 2016 LOUISIANA STORMS AND FLOODING.
(a) In General.--Section 72(t) of the Internal Revenue Code of 1986
shall not apply to any qualified Louisiana storm and flood
distribution.
(b) Aggregate Dollar Limitation.--
(1) In general.--For purposes of this section, the
aggregate amount of distributions received by an individual
which may be treated as qualified Louisiana storm and flood
distributions for any taxable year shall not exceed the excess
(if any) of--
(A) $100,000, over
(B) the aggregate amounts treated as qualified
Louisiana storm and flood distributions received by
such individual for all prior taxable years.
(2) Treatment of plan distributions.--If a distribution to
an individual would (without regard to paragraph (1)) be a
qualified Louisiana storm and flood 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 Louisiana storm and flood
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.
(3) Controlled group.--For purposes of paragraph (2), the
term ``controlled group'' means any group treated as a single
employer under subsection (b), (c), (m), or (o) of section 414
of such Code.
(c) Amount Distributed May Be Repaid.--
(1) In general.--Any individual who receives a qualified
Louisiana storm and flood distribution may, at any time during
the 3-year period beginning on the day after the date on which
such distribution was received, make one or more contributions
in an aggregate amount not to exceed the amount of such
distribution to an eligible retirement plan of which such
individual is a beneficiary and to which a rollover
contribution of such distribution could be made under section
402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) of such
Code, as the case may be.
(2) Treatment of repayments of distributions from eligible
retirement plans other than iras.--For purposes of such Code,
if a contribution is made pursuant to paragraph (1) with
respect to a qualified Louisiana storm and flood 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 Louisiana storm and flood 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.
(3) Treatment of repayments for distributions from iras.--
For purposes of such Code, if a contribution is made pursuant
to paragraph (1) with respect to a qualified Louisiana storm
and flood 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
Louisiana storm and flood 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.
(d) Definitions.--For purposes of this section--
(1) Qualified louisiana storm and flooding distribution.--
Except as provided in subsection (b), the term ``qualified
Louisiana storm and flooding distribution'' means any
distribution from an eligible retirement plan made on or after
the applicable disaster date, to an individual whose principal
residence on or after such date, is located in the Louisiana
storm and flood disaster area and who has sustained an economic
loss by reason of the severe storms and flooding giving rise to
the Presidential declaration described in section 2(1).
(2) Eligible retirement plan.--The term ``eligible
retirement plan'' shall have the meaning given such term by
section 402(c)(8)(B) of such Code.
(e) Income Inclusion Spread Over 3-Year Period for Qualified
Louisiana Storm and Flooding Distributions.--
(1) In general.--In the case of any qualified Louisiana
storm and flood distribution, unless the taxpayer elects not to
have this subsection 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.
(2) Special rule.--For purposes of paragraph (1), rules
similar to the rules of subparagraph (E) of section 408A(d)(3)
of such Code shall apply.
(f) Special Rules.--
(1) Exemption of distributions from trustee to trustee
transfer and withholding rules.--For purposes of sections
401(a)(31), 402(f), and 3405 of such Code, qualified Louisiana
storm and flood distributions shall not be treated as eligible
rollover distributions.
(2) Qualified louisiana storm and flooding distributions
treated as meeting plan distribution requirements.--For
purposes of such Code, a qualified Louisiana storm and flood
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.
SEC. 102. RECONTRIBUTIONS OF WITHDRAWALS FOR HOME PURCHASES CANCELED
DUE TO THE 2016 LOUISIANA STORMS AND FLOODING.
(a) Recontributions.--
(1) In general.--Any individual who received a qualified
distribution may, during the period beginning on the applicable
disaster date, and ending on February 28, 2017, make one or
more contributions in an aggregate amount not to exceed the
amount of such qualified distribution to an eligible retirement
plan (as defined in section 402(c)(8)(B) of the Internal
Revenue Code of 1986) of which such individual is a beneficiary
and to which a rollover contribution of such distribution could
be made under section 402(c), 403(a)(4), 403(b)(8), or
408(d)(3) of such Code, as the case may be.
(2) Treatment of repayments.--Rules similar to the rules of
paragraphs (2) and (3) of section 101(c) of this Act shall
apply for purposes of this section.
(b) Qualified Distribution Defined.--For purposes of this section,
the term ``qualified distribution'' means any distribution--
(1) 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 such Code,
(2) received after February 10, 2016, and before August 11,
2016, and
(3) which was to be used to purchase or construct a
principal residence in the Louisiana storm and flood disaster
area, but which was not so purchased or constructed on account
of the severe storms and flooding giving rise to the
Presidential declaration described in section 2(1).
SEC. 103. LOANS FROM QUALIFIED PLANS FOR RELIEF RELATING TO 2016
LOUISIANA STORMS AND FLOODING.
(a) 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 after the date of enactment of this Act and before
January 1, 2018--
(1) clause (i) of section 72(p)(2)(A) of such Code shall be
applied by substituting ``$100,000'' for ``$50,000'', and
(2) 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''.
(b) Delay of Repayment.--In the case of a qualified individual with
an outstanding loan on or after the date that is 5 days before the
applicable disaster date, from a qualified employer plan (as defined in
section 72(p)(4) of such Code)--
(1) 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 date that
is 5 days before the applicable disaster date, and ending on
December 31, 2017, such due date shall be delayed for 1 year,
(2) any subsequent repayments with respect to any such loan
shall be appropriately adjusted to reflect the delay in the due
date under paragraph (1) and any interest accruing during such
delay, and
(3) 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 paragraph (1) shall be disregarded.
(c) Qualified Individual.--For purposes of this section, the term
``qualified individual'' means an individual whose principal place of
abode on the date that is 5 days before the applicable disaster date,
is located in the Louisiana storm and flood disaster area and who has
sustained an economic loss by reason of the severe storms and flooding
giving rise to the Presidential declaration described in section 2(1).
SEC. 104. PROVISIONS RELATING TO PLAN AMENDMENTS.
(a) In General.--If this section 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 subsection (b)(2)(A).
(b) Amendments to Which Section Applies.--
(1) In general.--This section shall apply to any amendment
to any plan or annuity contract which is made--
(A) pursuant to any amendment made by this title,
or pursuant to any regulation issued by the Secretary
of the Treasury or the Secretary of Labor under this
title, and
(B) on or before the last day of the first plan
year beginning on or after January 1, 2018, or such
later date as the Secretary of the Treasury may
prescribe.
In the case of a governmental plan (as defined in section
414(d) of the Internal Revenue Code of 1986), subparagraph (B)
shall be applied by substituting the date which is 2 years
after the date otherwise applied under subparagraph (B).
(2) Conditions.--This section shall not apply to any
amendment unless--
(A) during the period--
(i) beginning on the date the legislative
or regulatory amendment described in paragraph
(1)(A) takes effect (or in the case of a plan
or contract amendment not required by such
legislative or regulatory amendment, the
effective date specified by the plan), and
(ii) ending on the date described in
paragraph (1)(B) (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
(B) such plan or contract amendment applies
retroactively for such period.
TITLE II--EMPLOYMENT RELIEF
SEC. 201. WORK OPPORTUNITY TAX CREDIT FOR LOUISIANA STORM AND FLOOD
EMPLOYEES.
(a) In General.--For purposes of section 51 of the Internal Revenue
Code of 1986, a Louisiana storm and flood employee shall be treated as
a member of a targeted group.
(b) Louisiana Storm and Flood Employee.--For purposes of this
section, the term ``Louisiana storm and flood employee'' means--
(1) any individual who on the applicable disaster date, had
a principal place of abode in the core disaster area and who is
hired during the 2-year period beginning on such date for a
position the principal place of employment of which is located
in the core disaster area, and
(2) any individual who on such date had a principal place
of abode in the core disaster area, who is displaced from such
abode by reason of the severe storms and flooding giving rise
to the Presidential declaration described in section 2(1), and
who is hired during the period beginning on such date and
ending on December 31, 2016.
(c) Reasonable Identification Acceptable.--In lieu of the
certification requirement under section 51(d)(12)(A) of such Code, an
individual may provide to the employer reasonable evidence that the
individual is a Louisiana storm and flood employee, and subparagraph
(B) of such section shall be applied as if such evidence were a
certification described in such subparagraph.
(d) Special Rules for Determining Credit.--For purposes of applying
subpart F of part IV of subchapter A of chapter 1 of such Code to wages
paid or incurred to any Louisiana storm and flood employee--
(1) section 51(c)(4) of such Code shall not apply, and
(2) section 51(i)(2) of such Code shall not apply with
respect to the first hire of such employee as a Louisiana storm
and flood employee, unless such employee was an employee of the
employer on the applicable disaster date.
SEC. 202. EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY 2016
LOUISIANA STORMS AND FLOODING.
(a) In General.--In the case of an eligible employer, there shall
be allowed as a credit against the tax imposed by chapter 1 of the
Internal Revenue Code of 1986 for the taxable year an amount equal to
40 percent of the qualified wages with respect to each eligible
employee of such employer for such taxable year. For purposes of the
preceding sentence, the amount of qualified wages which may be taken
into account with respect to any individual shall not exceed $6,000.
(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 on
the applicable disaster date, in a core disaster area,
and
(B) with respect to whom the trade or business
described in subparagraph (A) is inoperable on or after
the applicable disaster date, and before January 1,
2017, as a result of damage sustained by reason of the
severe storms and flooding giving rise to the
Presidential declaration described in section 2(1).
(2) Eligible employee.--The term ``eligible employee''
means with respect to an eligible employer an employee whose
principal place of employment on the applicable disaster date,
with such eligible employer was in a core disaster area.
(3) Qualified wages.--The term ``qualified wages'' means
wages (as defined in section 51(c)(1) of such Code, but without
regard to section 3306(b)(2)(B) of such Code) paid or incurred
by an eligible employer with respect to an eligible employee on
or after the applicable disaster date, and before January 1,
2017, which occurs during the period--
(A) beginning on the date on which the trade or
business described in paragraph (1) first became
inoperable at the principal place of employment of the
employee immediately before the severe storms and
flooding giving rise to the Presidential declaration
described in section 2(1), and
(B) ending on the date on which such trade or
business has resumed significant operations at such
principal place of employment.
Such term shall include wages paid without regard to whether
the employee performs no services, performs services at a
different place of employment than such principal place of
employment, or performs services at such principal place of
employment before significant operations have resumed.
(c) Credit Not Allowed for Large Businesses.--The term ``eligible
employer'' shall not include any trade or business for any taxable year
if such trade or business employed an average of more than 200
employees on business days during the taxable year.
(d) Certain Rules To Apply.--For purposes of this section, rules
similar to the rules of sections 51(i)(1), 52, and 280C(a) of such Code
shall apply.
(e) 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 such Code with respect to such
employee for such period.
(f) Credit To Be Part of General Business Credit.--The credit
allowed under this section shall be added to the current year business
credit under section 38(b) of such Code and shall be treated as a
credit allowed under subpart D of part IV of subchapter A of chapter 1
of such Code.
TITLE III--CHARITABLE GIVING INCENTIVES
SEC. 301. TEMPORARY SUSPENSION OF LIMITATIONS ON CHARITABLE
CONTRIBUTIONS.
(a) In General.--Except as otherwise provided in subsection (b),
section 170(b) of the Internal Revenue Code of 1986 shall not apply to
qualified contributions and such contributions shall not be taken into
account for purposes of applying subsections (b) and (d) of section 170
of such Code to other contributions.
(b) Treatment of Excess Contributions.--For purposes of section 170
of such Code--
(1) Individuals.--In the case of an individual--
(A) Limitation.--Any qualified contribution shall
be allowed only to the extent that the aggregate of
such contributions does not exceed the excess of the
taxpayer's contribution base (as defined in
subparagraph (F) of section 170(b)(1) of such Code)
over the amount of all other charitable contributions
allowed under such section 170(b)(1).
(B) 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 subparagraph (A), such excess
shall be added to the excess described in the portion
of subparagraph (A) of such section which precedes
clause (i) thereof for purposes of applying such
section.
(2) Corporations.--In the case of a corporation--
(A) Limitation.--Any qualified contribution shall
be allowed only to the extent that the aggregate of
such contributions does not exceed the excess of the
taxpayer's taxable income (as determined under
paragraph (2) of section 170(b) of such Code) over the
amount of all other charitable contributions allowed
under such paragraph.
(B) Carryover.--Rules similar to the rules of
paragraph (1)(B) shall apply for purposes of this
paragraph.
(c) Exception to Overall Limitation on Itemized Deductions.--So
much of any deduction allowed under section 170 of such Code as does
not exceed the qualified contributions paid during the taxable year
shall not be treated as an itemized deduction for purposes of section
68 of such Code.
(d) Qualified Contributions.--
(1) In general.--For purposes of this section, the term
``qualified contribution'' means any charitable contribution
(as defined in section 170(c) of such Code)--
(A) paid during the period beginning on the
applicable disaster date, and ending on December 31,
2016, in cash to an organization described in section
170(b)(1)(A) of such Code (other than an organization
described in section 509(a)(3) of such Code),
(B) in the case of a contribution paid by a
corporation, such contribution is for relief efforts
related to the severe storms and flooding giving rise
to the Presidential declaration described in section
2(1), and
(C) with respect to which the taxpayer has elected
the application of this section.
(2) Exception.--Such term shall not include a contribution
if the contribution is for establishment of a new, or
maintenance in an existing, segregated fund or account with
respect to which the donor (or any person appointed or
designated by such donor) has, or reasonably expects to have,
advisory privileges with respect to distributions or
investments by reason of the donor's status as a donor.
(3) Application of election to partnerships and s
corporations.--In the case of a partnership or S corporation,
the election under paragraph (1)(C) shall be made separately by
each partner or shareholder.
SEC. 302. ADDITIONAL EXEMPTION FOR HOUSING LOUISIANA STORM AND FLOOD
DISPLACED INDIVIDUALS.
(a) In General.--In the case of taxable years of a natural person
beginning in 2016 or 2017, for purposes of the Internal Revenue Code of
1986, taxable income shall be reduced by $600 for each Louisiana storm
and flood displaced individual of the taxpayer for the taxable year.
(b) Limitations.--
(1) Dollar limitation.--The reduction under subsection (a)
shall not exceed $2,500, reduced by the amount of the reduction
under this section for all prior taxable years.
(2) Individuals taken into account only once.--An
individual shall not be taken into account under subsection (a)
if such individual was taken into account under such subsection
by the taxpayer for any prior taxable year.
(3) Identifying information required.--An individual shall
not be taken into account under subsection (a) for a taxable
year unless the taxpayer identification number of such
individual is included on the return of the taxpayer for such
taxable year.
(c) Louisiana Storm and Flood Displaced Individual.--For purposes
of this section, the term ``Louisiana storm and flood displaced
individual'' means, with respect to any taxpayer for any taxable year,
any natural person if--
(1) such person's principal place of abode on the
applicable disaster date, was in the Louisiana storm and flood
disaster area,
(2)(A) in the case of such an abode located in the core
disaster area, such person is displaced from such abode, or
(B) in the case of such an abode located outside of the
core disaster area, such person is displaced from such abode,
and--
(i) such abode was damaged by the severe storms and
flooding giving rise to the Presidential declaration
described in section 2(1), or
(ii) such person was evacuated from such abode by
reason of such storms and flooding, and
(3) such person is provided housing free of charge by the
taxpayer in the principal residence of the taxpayer for a
period of 60 consecutive days which ends in such taxable year.
Such term shall not include the spouse or any dependent of the
taxpayer.
(d) Compensation for Housing.--No deduction shall be allowed under
this section if the taxpayer receives any rent or other amount (from
any source) in connection with the providing of such housing.
SEC. 303. INCREASE IN STANDARD MILEAGE RATE FOR CHARITABLE USE OF
VEHICLES.
Notwithstanding section 170(i) of the Internal Revenue Code of
1986, for purposes of computing the deduction under section 170 of such
Code for use of a vehicle described in subsection (f)(12)(E)(i) of such
section for provision of relief during the period beginning on the
applicable disaster date, and ending on December 31, 2017, and related
to the severe storms and flooding giving rise to the Presidential
declaration described in section 2(1), the standard mileage rate shall
be 70 percent of the standard mileage rate in effect under section
162(a) of such Code at the time of such use. Any increase under this
section shall be rounded to the next highest cent.
SEC. 304. MILEAGE REIMBURSEMENTS TO CHARITABLE VOLUNTEERS EXCLUDED FROM
GROSS INCOME.
(a) In General.--For purposes of the Internal Revenue Code of 1986,
gross income of an individual for taxable years ending on or after the
applicable disaster date, does not include amounts received, from an
organization described in section 170(c) of such Code, as reimbursement
of operating expenses with respect to use of a passenger automobile for
the benefit of such organization in connection with providing relief
during the period beginning on the applicable disaster date, and ending
on December 31, 2017, and relating to the severe storms and flooding
giving rise to the Presidential declaration described in section 2(1).
The preceding sentence shall apply only to the extent that the expenses
which are reimbursed would be deductible under chapter 1 of such Code
if section 274(d) of such Code were applied--
(1) by using the standard business mileage rate in effect
under section 162(a) at the time of such use, and
(2) as if the individual were an employee of an
organization not described in section 170(c) of such Code.
(b) Application To Volunteer Services Only.--Subsection (a) shall
not apply with respect to any expenses relating to the performance of
services for compensation.
(c) No Double Benefit.--No deduction or credit shall be allowed
under any other provision of such Code with respect to the expenses
excludable from gross income under subsection (a).
SEC. 305. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK INVENTORIES TO
PUBLIC SCHOOLS.
(a) In General.--Section 170(e)(3)(D)(iv) of the Internal Revenue
Code of 1986 is amended to read as follows:
``(i) Termination.--This subparagraph shall
not apply to contributions made--
``(I) after December 31, 2016, and
before the applicable disaster date (as
defined in section 2(3) of the
Louisiana Flood and Storm Devastation
Tax Relief Act of 2016), or
``(II) after December 31, 2016.''.
(b) Effective Date.--The amendments made by this section shall
apply to contributions made on or after the applicable disaster date,
in taxable years ending after such date.
TITLE IV--ADDITIONAL TAX RELIEF PROVISIONS
SEC. 401. EXCLUSIONS OF CERTAIN CANCELLATIONS OF INDEBTEDNESS BY REASON
OF 2016 LOUISIANA STORMS AND FLOODING.
(a) In General.--For purposes of the Internal Revenue Code of 1986,
gross income shall not include any amount which (but for this section)
would be includible in gross income by reason of the discharge (in
whole or in part) of indebtedness of a natural person described in
subsection (b) by an applicable entity (as defined in section
6050P(c)(1) of such Code).
(b) Persons Described.--A natural person is described in this
subsection if the principal place of abode of such person on the
applicable disaster date, was located--
(1) in the core disaster area, or
(2) in the Louisiana storm and flood disaster area (but
outside the core disaster area) and such person suffered
economic loss by reason of the severe storms and flooding
giving rise to the Presidential declaration described in
section 2(1).
(c) Exceptions.--
(1) Business indebtedness.--Subsection (a) shall not apply
to any indebtedness incurred in connection with a trade or
business.
(2) Real property outside core disaster area.--Subsection
(a) shall not apply to any discharge of indebtedness to the
extent that real property constituting security for such
indebtedness is located outside of the Louisiana storm and
flood disaster area.
(d) Denial of Double Benefit.--For purposes of the Internal Revenue
Code of 1986, the amount excluded from gross income under subsection
(a) shall be treated in the same manner as an amount excluded under
section 108(a) of such Code.
(e) Effective Date.--This section shall apply to discharges made on
or after the applicable disaster date, and before January 1, 2018.
SEC. 402. SUSPENSION OF CERTAIN LIMITATIONS ON PERSONAL CASUALTY
LOSSES.
Paragraphs (1) and (2)(A) of section 165(h) of the Internal Revenue
Code of 1986 shall not apply to losses described in section 165(c)(3)
of such Code which arise in the Louisiana storm and flood disaster area
on or after the applicable disaster date, and which are attributable to
the severe storms and flooding giving rise to the Presidential
declaration described in section 2(1). In the case of any other losses,
section 165(h)(2)(A) of such Code shall be applied without regard to
the losses referred to in the preceding sentence.
SEC. 403. REQUIRED EXERCISE OF AUTHORITY UNDER SECTION 7508A FOR TAX
RELIEF RELATING TO 2016 LOUISIANA STORMS AND FLOODING.
(a) In General.--In the case of any taxpayer determined by the
Secretary of the Treasury to be affected by the Presidentially declared
disaster relating to the severe storms and flooding giving rise to the
Presidential declaration described in section 2(1), any relief provided
by the Secretary of the Treasury under section 7508A of the Internal
Revenue Code of 1986 shall be for a period ending not earlier than
February 10, 2017, and shall be treated as applying to the filing of
returns relating to, and the payment of, employment and excise taxes.
(b) Effective Date.--The amendment made by subsection (a) shall
apply for any period for performing an act which has not expired before
the applicable disaster date.
SEC. 404. SPECIAL RULES FOR MORTGAGE REVENUE BONDS RELATING TO 2016
LOUISIANA STORMS AND FLOODING.
(a) In General.--In the case of financing provided with respect to
a qualified Louisiana storm and flood recovery residence, section
143(d) of the Internal Revenue Code of 1986 shall be applied as if such
residence were a targeted area residence.
(b) Qualified Louisiana Storms and Flooding Recovery Residence.--
For purposes of this section, the term ``qualified Louisiana storm and
flood recovery residence'' means--
(1) any residence in the core disaster area, and
(2) any other residence if--
(A) such other residence is located in the same
State as the principal residence referred to in
subparagraph (B), and
(B) the mortgagor with respect to such other
residence owned a principal residence on the applicable
disaster date, which--
(i) was located in the Louisiana storm and
flood disaster area, and
(ii) was rendered uninhabitable by reason
of the severe storms and flooding giving rise
to the Presidential declaration described in
section 2(1).
(c) Special Rule for Home Improvement Loans.--In the case of any
loan with respect to a residence in the Louisiana storm and flood
disaster area, section 143(k)(4) of such Code shall be applied by
substituting $150,000 for the dollar amount contained therein to the
extent such loan is for the repair of damage by reason of the severe
storms and flooding giving rise to the Presidential declaration
described in section 2(1).
(d) Application.--Subsection (a) shall not apply to financing
provided after December 31, 2018.
SEC. 405. EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNITION OF GAIN
FOR PROPERTY LOCATED IN LOUISIANA STORM AND FLOOD
DISASTER AREA.
Section 1033(a)(2)(B)(i) of the Internal Revenue Code of 1986 shall
be applied by substituting ``5 years'' for ``2 years'' with respect to
property in the Louisiana storm and flood disaster area which is
compulsorily or involuntarily converted on or after the applicable
disaster date, by reason of the severe storms and flooding giving rise
to the Presidential declaration described in section 2(1), but only if
substantially all of the use of the replacement property is in such
area.
SEC. 406. SPECIAL RULE FOR DETERMINING EARNED INCOME.
(a) In General.--In the case of a qualified individual, if the
earned income of the taxpayer for the taxable year which includes the
applicable disaster date, is less than the earned income of the
taxpayer for the preceding taxable year, the credits allowed under
sections 24(d) and 32 of the Internal Revenue Code of 1986 may, at the
election of the taxpayer, be determined by substituting--
(1) such earned income for the preceding taxable year, for
(2) such earned income for the taxable year which includes
the applicable disaster date.
(b) Qualified Individual.--For purposes of this section, the term
``qualified individual'' means any individual whose principal place of
abode on the applicable disaster date, was located--
(1) in the core disaster area, or
(2) in the Louisiana storm and flood disaster area (but
outside the core disaster area) and such individual was
displaced from such principal place of abode by reason of the
severe storms and flooding giving rise to the Presidential
declaration described in section 2(1).
(c) Earned Income.--For purposes of this section, the term ``earned
income'' has the meaning given such term under section 32(c) of such
Code.
(d) Special Rules.--
(1) Application to joint returns.--For purposes of
subsection (a), in the case of a joint return for a taxable
year which includes the applicable disaster date--
(A) such subsection shall apply if either spouse is
a qualified individual, and
(B) 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.
(2) Uniform application of election.--Any election made
under subsection (a) shall apply with respect to both section
24(d) and section 32 of such Code.
(3) Errors treated as mathematical error.--For purposes of
section 6213 of such Code, an incorrect use on a return of
earned income pursuant to subsection (a) shall be treated as a
mathematical or clerical error.
(4) No effect on determination of gross income, etc.--
Except as otherwise provided in this section, the Internal
Revenue Code of 1986 shall be applied without regard to any
substitution under subsection (a).
SEC. 407. SECRETARIAL AUTHORITY TO MAKE ADJUSTMENTS REGARDING TAXPAYER
AND DEPENDENCY STATUS.
With respect to taxable years beginning in 2016 or 2017, the
Secretary of the Treasury or the Secretary's delegate may make such
adjustments in the application of the internal revenue laws as may be
necessary to ensure that taxpayers do not lose any deduction or credit
or experience a change of filing status by reason of temporary
relocations by reason of the severe storms and flooding giving rise to
the Presidential declaration described in section 2(1). Any adjustments
made under the preceding sentence shall ensure that an individual is
not taken into account by more than one taxpayer with respect to the
same tax benefit.
SEC. 408. LOW-INCOME HOUSING CREDIT.
(a) Additional Housing Credit Dollar Amount.--
(1) In general.--For purposes of section 42 of the Internal
Revenue Code of 1986, in the case of calendar years 2017, 2018,
and 2019, the State housing credit ceiling of Louisiana shall
be increased by the lesser of--
(A) the aggregate housing credit dollar amount
allocated by the State housing credit agency of
Louisiana to buildings located in the Louisiana storm
and flood disaster area for such calendar year, or
(B) the Louisiana storm and flood housing amount
for such State for such calendar year.
(2) Louisiana storm and flood housing amount.--For purposes
of paragraph (1), the term ``Louisiana storm and flood housing
amount'' means, for any calendar year, the amount equal to the
product of $18.00 multiplied by the portion of the Louisiana
population which is in the Louisiana storm and flood disaster
area (as determined on the basis of the most recent census
estimate of resident population released by the Bureau of the
Census before August 28, 2016).
(3) Allocations treated as made first from additional
allocation amount for purposes of determining carryover.--For
purposes of determining the unused State housing credit ceiling
under section 42(h)(3)(C) of such Code for any calendar year,
any increase in the State housing credit ceiling under
paragraph (1) shall be treated as an amount described in clause
(ii) of such section.
(b) Additional Housing Credit Dollar Amount for Louisiana.--For
purposes of section 42 of such Code, in the case of calendar year 2017,
the State housing credit ceiling of Louisiana shall each be increased
by $3,500,000.
(c) Difficult Development Area.--
(1) In general.--For purposes of section 42 of such Code,
in the case of property placed in service during the period
beginning on January 1, 2017, and ending on December 31, 2021,
the Louisiana storm and flood disaster area--
(A) shall be treated as difficult development areas
designated under subclause (I) of section
42(d)(5)(B)(iii) of such Code, and
(B) shall not be taken into account for purposes of
applying the limitation under subclause (II) of such
section.
(2) Application.--Paragraph (1) shall apply only to--
(A) housing credit dollar amounts allocated during
the period beginning on January 1, 2017, and ending on
December 31, 2019, and
(B) buildings placed in service during the period
described in paragraph (1) to the extent that paragraph
(1) of section 42(h) does not apply to any building by
reason of paragraph (4) thereof, but only with respect
to bonds issued after December 31, 2016.
(d) Special Rule for Applying Income Tests.--In the case of
property placed in service--
(1) during 2017, 2018, or 2019,
(2) in the Louisiana storm and flood disaster area, and
(3) in a nonmetropolitan area (as defined in section
42(d)(5)(B)(iv)(IV)),
section 42 of such Code shall be applied by substituting ``national
nonmetropolitan median gross income (determined under rules similar to
the rules of section 142(d)(2)(B))'' for ``area median gross income''
in subparagraphs (A) and (B) of section 42(g)(1) of such Code.
(e) Definitions.--Any term used in this section which is also used
in section 42 shall have the same meaning as when used in such section.
SEC. 409. APPLICATION OF NEW MARKETS TAX CREDIT TO INVESTMENTS IN
COMMUNITY DEVELOPMENT ENTITIES SERVING LOUISIANA STORM
AND FLOOD DISASTER AREA.
For purposes of section 45D of the Internal Revenue Code of 1986--
(1) a qualified community development entity shall be
eligible for an allocation under subsection (f)(2) thereof of
the increase in the new markets tax credit limitation described
in paragraph (2) only if a significant mission of such entity
is the recovery and redevelopment of the Louisiana storm and
flood disaster area,
(2) the new markets tax credit limitation otherwise
determined under subsection (f)(1) thereof shall be increased
by an amount equal to--
(A) $300,000,000 for 2016 and 2017, to be allocated
among qualified community development entities to make
qualified low-income community investments within the
Louisiana storm and flood disaster area, and
(B) $400,000,000 for 2018, to be so allocated, and
(3) subsection (f)(3) thereof shall be applied separately
with respect to the amount of the increase under paragraph (2).
SEC. 410. TAX-EXEMPT BOND FINANCING.
(a) In General.--For purposes of the Internal Revenue Code of
1986--
(1) any qualified Louisiana storm and flood disaster area
bond described in paragraph (2)(A)(i) shall be treated as an
exempt facility bond, and
(2) any qualified Louisiana storm and flood disaster area
bond described in paragraph (2)(A)(ii) shall be treated as a
qualified mortgage bond.
(b) Qualified Louisiana Storm and Flood Disaster Area Bond.--For
purposes of this subsection, the term ``qualified Louisiana storm and
flood disaster area bond'' means any bond issued as part of an issue
if--
(1)(A) 95 percent or more of the net proceeds (as defined
in section 150(a)(3) of such Code) of such issue are to be used
for qualified project costs, or
(B) such issue meets the requirements of a qualified
mortgage issue, except as otherwise provided in this
subsection,
(2) such bond is issued by Louisiana, or any political
subdivision thereof,
(3) such bond is designated for purposes of this section
by--
(A) in the case of a bond which is required under
State law to be approved by the bond commission of
Louisiana, such bond commission, and
(B) in the case of any other bond, the Governor of
Louisiana,
(4) such bond is issued after the date of the enactment of
this section and before January 1, 2023, and
(5) no portion of the proceeds of such issue is to be used
to provide any property described in section 144(c)(6)(B) of
such Code.
(c) Limitation on Bonds.--
(1) Aggregate amount designated.--The maximum aggregate
face amount of bonds which may be designated under this
subsection with respect to any State shall not exceed the
product of $2,500 multiplied by the portion of the Louisiana
population which is in the Louisiana storm and flood disaster
area (as determined on the basis of the most recent census
estimate of resident population released by the Bureau of the
Census before August 28, 2016).
(2) Movable property.--No bonds shall be issued which are
to be used for movable fixtures and equipment.
(d) Qualified Project Costs.--For purposes of this subsection, the
term ``qualified project costs'' means--
(1) the cost of any qualified residential rental project
(as defined in section 142(d) of such Code) located in the
Louisiana storm and flood disaster area, and
(2) the cost of acquisition, construction, reconstruction,
and renovation of--
(A) nonresidential real property (including fixed
improvements associated with such property) located in
the Louisiana storm and flood disaster area, and
(B) public utility property (as defined in section
168(i)(10) of such Code) located in the Louisiana storm
and flood disaster area.
(e) Special Rules.--In applying this title to any qualified
Louisiana storm and flood disaster area bond, the following
modifications shall apply:
(1) Section 142(d)(1) of such Code (defining qualified
residential rental project) shall be applied--
(A) by substituting ``60 percent'' for ``50
percent'' in subparagraph (A) thereof, and
(B) by substituting ``70 percent'' for ``60
percent'' in subparagraph (B) thereof.
(2) Section 143 of such Code (relating to mortgage revenue
bonds: qualified mortgage bond and qualified veterans' mortgage
bond) shall be applied--
(A) only with respect to owner-occupied residences
in the Louisiana storm and flood disaster area,
(B) by treating any such residence in the Louisiana
storm and flood disaster area as a targeted area
residence,
(C) by applying subsection (f)(3) thereof without
regard to subparagraph (A) thereof, and
(D) by substituting ``$150,000'' for ``$15,000'' in
subsection (k)(4) thereof.
(3) Except as provided in section 143 of such Code,
repayments of principal on financing provided by the issue of
which such bond is a part may not be used to provide financing.
(4) Section 146 of such Code (relating to volume cap) shall
not apply.
(5) Section 147(d)(2) of such Code (relating to acquisition
of existing property not permitted) shall be applied by
substituting ``50 percent'' for ``15 percent'' each place it
appears.
(6) Section 148(f)(4)(C) of such Code (relating to
exception from rebate for certain proceeds to be used to
finance construction expenditures) shall apply to the available
construction proceeds of bonds which are part of an issue
described in subsection (b)(1)(A).
(7) Section 57(a)(5) of such Code (relating to tax-exempt
interest) shall not apply.
(f) Special Rule for Repairs and Reconstructions.--
(1) In general.--For purposes of section 143 of the
Internal Revenue Code of 1986 and this section, any qualified
Louisiana storm and flood disaster area repair or
reconstruction shall be treated as a qualified rehabilitation.
(2) Qualified louisiana storm and flood disaster area
repair or reconstruction.--For purposes of subparagraph (A),
the term ``qualified Louisiana storm and flood disaster area
repair or reconstruction'' means any repair of damage caused by
the severe storms and flooding giving rise to the Presidential
declaration described in section 2(1) (or reconstruction of
such building in the case of damage constituting destruction)
if the expenditures for such repair or reconstruction are 25
percent or more of the mortgagor's adjusted basis in the
residence. For purposes of the preceding sentence, the
mortgagor's adjusted basis shall be determined as of the
completion of the repair or reconstruction or, if later, the
date on which the mortgagor acquires the residence.
(3) Termination.--This paragraph shall apply only to owner-
financing provided after the date of the enactment of this
subsection and before January 1, 2023.
SEC. 411. EXPENSING FOR CERTAIN DEMOLITION AND CLEAN-UP COSTS.
(a) In General.--A taxpayer may elect to treat 50 percent of any
qualified Louisiana storm and flood disaster area clean-up cost as an
expense which is not chargeable to capital account. Any cost so treated
shall be allowed as a deduction for the taxable year in which such cost
is paid or incurred.
(b) Qualified Louisiana Storm and Flood Disaster Area Clean-Up
Cost.--For purposes of this subsection, the term ``qualified Louisiana
storm and flood disaster area clean-up cost'' means any amount paid or
incurred during the period beginning on the applicable disaster date,
and ending on December 31, 2018, for the removal of debris from, or the
demolition of structures on, real property which is located in the
Louisiana storm and flood disaster area and which is--
(1) held by the taxpayer for use in a trade or business or
for the production of income, or
(2) property described in section 1221(a)(1) in the hands
of the taxpayer.
For purposes of the preceding sentence, amounts paid or incurred shall
be taken into account only to the extent that such amount would (but
for subsection (a)) be chargeable to capital account.
SEC. 412. EXTENSION OF EXPENSING FOR ENVIRONMENTAL REMEDIATION COSTS.
With respect to any qualified environmental remediation expenditure
(as defined in section 198(b)) paid or incurred on or after the
applicable disaster date, in connection with a qualified contaminated
site located in the Louisiana storm and flood disaster area, section
198 (relating to expensing of environmental remediation costs) shall be
applied--
(1) in the case of expenditures paid or incurred on or
after the applicable disaster date, and before January 1, 2019,
by substituting ``December 31, 2018'' for the date contained in
section 198(h), and
(2) except as provided in section 198(d)(2), by treating
petroleum products (as defined in section 4612(a)(3)) as a
hazardous substance.
SEC. 413. TREATMENT OF NET OPERATING LOSSES ATTRIBUTABLE TO LOUISIANA
STORM AND FLOOD DISASTER AREA LOSSES.
(a) In General.--If a portion of any net operating loss of the
taxpayer for any taxable year is a qualified Louisiana storm and flood
disaster area loss, the following rules shall apply:
(1) Extension of carryback period.--Section 172(b)(1) of
the Internal Revenue Code of 1986 shall be applied with respect
to such portion--
(A) by substituting ``5 taxable years'' for ``2
taxable years'' in subparagraph (A)(i) thereof, and
(B) by not taking such portion into account in
determining any eligible loss of the taxpayer under
subparagraph (F) thereof for the taxable year.
(2) Suspension of 90 percent amt limitation.--Section
56(d)(1) of such Code shall be applied by increasing the amount
determined under subparagraph (A)(ii)(I) thereof by the sum of
the carrybacks and carryovers of any net operating loss
attributable to such portion.
(b) Qualified Louisiana Storm and Flood Disaster Area Loss.--
(1) In general.--For purposes of subsection (a), the term
``qualified Louisiana storm and flood disaster area loss''
means the lesser of--
(A) the excess of--
(i) the net operating loss for such taxable
year, over
(ii) the specified liability loss for such
taxable year to which a 10-year carryback
applies under section 172(b)(1)(C) of such
Code, or
(B) the aggregate amount of the following
deductions to the extent taken into account in
computing the net operating loss for such taxable year:
(i) Any deduction for any qualified
Louisiana storm and flood disaster area
casualty loss.
(ii) Any deduction for moving expenses paid
or incurred after the applicable disaster date,
and before January 1, 2019, and allowable under
this chapter to any taxpayer in connection with
the employment of any individual--
(I) whose principal place of abode
was located in the Louisiana storm and
flood disaster area before the
applicable disaster date,
(II) who was unable to remain in
such abode as the result of the severe
storms and flooding giving rise to the
Presidential declaration described in
section 2(1), and
(III) whose principal place of
employment with the taxpayer after such
expense is located in the Louisiana
storm and flood disaster area.
For purposes of this subparagraph, the term
``moving expenses'' has the meaning given such
term by section 217(b) of such Code, except
that the taxpayer's former residence and new
residence may be the same residence if the
initial vacating of the residence was as the
result of the severe storms and flooding giving
rise to the Presidential declaration described
in section 2(1).
(iii) Any deduction allowable under this
chapter for expenses paid or incurred on or
after the applicable disaster date, and before
January 1, 2019, to temporarily house any
employee of the taxpayer whose principal place
of employment is in the Louisiana storm and
flood disaster area.
(iv) Any deduction for depreciation (or
amortization in lieu of depreciation) allowable
under this chapter with respect to any
qualified Louisiana storm and flood disaster
area property for the taxable year such
property is placed in service.
(v) Any deduction allowable under this
chapter for repair expenses (including expenses
for removal of debris) paid or incurred on or
after the applicable disaster date, and before
January 1, 2019, with respect to any damage
attributable to the severe storms and flooding
giving rise to the Presidential declaration
described in section 2(1) and in connection
with property which is located in the Louisiana
storm and flood disaster area.
(2) Qualified louisiana storm and flood disaster area
property.--For purposes of this subsection--
(A) In general.--The term ``qualified Louisiana
storm and flood disaster area property'' means
property--
(i)(I) which is described in section
168(k)(2)(A)(i) of the Internal Revenue Code of
1986, or
(II) which is nonresidential real property
or residential rental property,
(ii) substantially all of the use of which
is in the Louisiana storm and flood disaster
area and is in the active conduct of a trade or
business by the taxpayer in such area,
(iii) the original use of which in the
Louisiana storm and flood disaster area
commences with the taxpayer on or after the
applicable disaster date,
(iv) which is acquired by the taxpayer by
purchase (as defined in section 179(d) of such
Code) on or after the applicable disaster date,
but only if no written binding contract for the
acquisition was in effect before the applicable
disaster date, and
(v) which is placed in service by the
taxpayer on or before December 31, 2018
(December 31, 2019, in the case of
nonresidential real property and residential
rental property).
(B) Exceptions.--
(i) Alternative depreciation property.--
Such term shall not include any property
described in section 168(k)(2)(D) of such Code.
(ii) Tax-exempt bond-financed property.--
Such term shall not include any property any
portion of which is financed with the proceeds
of any obligation the interest on which is
exempt from tax under section 103 of such Code.
(iii) Qualified revitalization buildings.--
Such term shall not include any qualified
revitalization building with respect to which
the taxpayer has elected the application of
paragraph (1) or (2) of section 1400I(a) of
such Code.
(c) Qualified Louisiana Storm and Flood Area Casualty Loss.--
(1) In general.--For purposes of paragraph (1)(B)(i), the
term ``qualified Louisiana storm and flood area casualty loss''
means any uncompensated section 1231 loss (as defined in
section 1231(a)(3)(B) of such Code) of property located in the
Louisiana storm and flood disaster area, if--
(A) such loss is allowed as a deduction under
section 165 of such Code for the taxable year, and
(B) such loss is by reason of the storms and
flooding giving rise to the Presidential declaration
described in section 2(1).
(2) Reduction for gains from involuntary conversion.--The
amount of qualified Louisiana storm and flood area casualty
loss which would (but for this paragraph) be taken into account
under paragraph (1) for any taxable year shall be reduced by
the amount of any gain recognized by the taxpayer for such year
from the involuntary conversion by reason of the storms and
flooding giving rise to the Presidential declaration described
in section 2(1) of property located in the Louisiana storm and
flood disaster area.
(3) Coordination with general disaster loss rules.--Section
165(i) of such Code shall not apply to any qualified Louisiana
storm and flood disaster area casualty loss to the extent such
loss is taken into account under this subsection.
(4) Special rules.--For purposes of paragraph (1), rules
similar to the rules of paragraphs (2) and (3) of section
172(i) of such Code shall apply with respect to such portion.
SEC. 414. INCREASED EXPENSING FOR QUALIFIED TIMBER PROPERTY.
(a) In General.--In the case of qualified timber property any
portion of which is located in the Louisiana storm and flood disaster
area, the limitation under subparagraph (B) of section 194(b)(1) of
such Code shall be increased by the lesser of--
(1) the limitation which would (but for this section) apply
under such subparagraph, or
(2) the amount of reforestation expenditures (as defined in
section 194(c)(3) of such Code) paid or incurred by the
taxpayer with respect to such qualified timber property during
the specified portion of the taxable year.
(b) Definitions.--For purposes of this subsection--
(1) Specified portion.--The term ``specified portion''
means that portion of the taxable year which is on or after the
applicable disaster date, and before January 1, 2019.
(2) Qualified timber property.--The term ``qualified timber
property'' has the meaning given such term in section 194(c)(1)
of such Code.
SEC. 415. DISASTER LOSS CARRYBACK.
(a) In General.--In the case of a loss occurring in the Louisiana
storm and flood disaster area and attributable to the severe storms and
flooding giving rise to the Presidential declaration described in
section 2(1), at the election of the taxpayer, section 165(i)(1) of the
Internal Revenue Code of 1986 shall be applied by substituting ``any of
the 3 taxable years preceding'' for ``the taxable year immediately
preceding''.
(b) Special Rules.--
(1) Determined without regard to adjusted gross income.--
Any loss described in subsection (a) shall be determined for
the taxable year without regard to section 165(h)(2)(A) of such
Code.
(2) Treated as sale or exchange.--Notwithstanding section
165(h)(2)(B) of such Code, any loss described in subsection (a)
shall be treated as a loss from a sale or exchange of a capital
asset.
SEC. 416. HOUSING RELIEF FOR INDIVIDUALS AFFECTED BY HURRICANE KATRINA.
(a) Exclusion of Employer-Provided Housing for Individual Affected
by Louisiana Storms and Flooding.--
(1) In general.--Gross income of a qualified employee shall
not include the value of any lodging furnished in kind to such
employee (and such employee's spouse or any of such employee's
dependents) by or on behalf of a qualified employer for any
month during the taxable year.
(2) Limitation.--The amount which may be excluded under
paragraph (1) for any month for which lodging is furnished
during the taxable year shall not exceed $600.
(3) Treatment of exclusion.--The exclusion under paragraph
(1) shall be treated as an exclusion under section 119 of such
Code (other than for purposes of sections 3121(a)(19) and
3306(b)(14) of such Code).
(b) Employer Credit for Housing Employees Affected by Louisiana
Storms and Flooding.--For purposes of section 38, in the case of a
qualified employer, the Louisiana storm and flood housing credit for
any month during the taxable year is an amount equal to 30 percent of
any amount which is excludable from the gross income of a qualified
employee of such employer under subsection (a) and not otherwise
excludable under section 119 of such Code.
(c) Qualified Employee.--For purposes of this section, the term
``qualified employee'' means, with respect to any month, an
individual--
(1) who had a principal residence (as defined in section
121 of such Code) in the Louisiana storm and flood disaster
area on the applicable disaster date, and
(2) who performs substantially all employment services--
(A) in the Louisiana storm and flood disaster area,
and
(B) for the qualified employer which furnishes
lodging to such individual.
(d) Qualified Employer.--For purposes of this section, the term
``qualified employer'' means any employer with a trade or business
located in the Louisiana storm and flood disaster area.
(e) Certain Rules To Apply.--For purposes of this subsection, rules
similar to the rules of sections 51(i)(1) and 52 of such Code shall
apply.
(f) Application of Section.--This section shall apply to lodging
furnished during the period--
(1) beginning on the first day of the first month beginning
after the date of the enactment of this section, and
(2) ending on the date which is 6 months after the first
day described in paragraph (1).
(g) Treated as Part of General Business Credit.--The Louisiana
storm and flood housing credit determined under subsection (b) shall be
treated as listed in section 38(b) of the Internal Revenue Code of
1986.
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