[Congressional Record (Bound Edition), Volume 154 (2008), Part 15]
[House]
[Pages 21040-21048]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    DISASTER TAX RELIEF ACT OF 2008

  Mr. RANGEL. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 7006) to amend the Internal Revenue Code of 1986 to provide 
disaster assistance relief.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 7006

       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) In General.--This Act may be cited as the ``Disaster 
     Tax Relief Act of 2008''.
       (b) Reference.--Except as otherwise expressly provided, 
     whenever in this Act an amendment or repeal is expressed in 
     terms of an amendment to, or repeal of, a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of the Internal Revenue Code of 
     1986.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title, etc.
Sec. 2. Losses attributable to federally declared disasters.
Sec. 3. Expensing of qualified disaster expenses.
Sec. 4. Net operating losses attributable to federally declared 
              disasters.
Sec. 5. Waiver of certain mortgage revenue bond requirements following 
              federally declared disasters.
Sec. 6. Determination of standard mileage rate for charitable 
              contributions deduction.
Sec. 7. Additional low income housing allocations.
Sec. 8. Private activity disaster bonds.
Sec. 9. Waiver of limitation on charitable contributions for disaster 
              relief.

     SEC. 2. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED DISASTERS.

       (a) Waiver of Adjusted Gross Income Limitation.--
       (1) In general.--Subsection (h) of section 165 is amended 
     by redesignating paragraphs (3) and (4) as paragraphs (4) and 
     (5), respectively, and by inserting after paragraph (2) the 
     following new paragraph:
       ``(3) Special rule for losses in federally declared 
     disasters.--
       ``(A) In general.--If an individual has a net disaster loss 
     for any taxable year, the amount determined under paragraph 
     (2)(A)(ii) shall be the sum of--
       ``(i) such net disaster loss, and
       ``(ii) so much of the excess referred to in the matter 
     preceding clause (i) of paragraph (2)(A) (reduced by the 
     amount in clause (i) of this subparagraph) as exceeds 10 
     percent of the adjusted gross income of the individual.
       ``(B) Net disaster loss.--For purposes of subparagraph (A), 
     the term `net disaster loss' means the excess of--
       ``(i) the personal casualty losses--

       ``(I) attributable to a federally declared disaster 
     occurring after December 31, 2007, and before January 1, 
     2012, and
       ``(II) occurring in a disaster area, over

       ``(ii) personal casualty gains.
       ``(C) Federally declared disaster.--For purposes of this 
     paragraph--
       ``(i) Federally declared disaster.--The term `federally 
     declared disaster' means any disaster subsequently determined 
     by the President of the United States to warrant assistance 
     by the Federal Government under the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act.
       ``(ii) Disaster area.--The term `disaster area' means the 
     area so determined to warrant such assistance.''.
       (2) Conforming amendments.--
       (A) Section 165(h)(4)(B) (as so redesignated) is amended by 
     striking ``paragraph (2)'' and inserting ``paragraphs (2) and 
     (3)''.
       (B) Section 165(i)(1) is amended by striking ``loss'' and 
     all that follows through ``Act''

[[Page 21041]]

     and inserting ``loss occurring in a disaster area (as defined 
     by clause (ii) of subsection (h)(3)(C)) and attributable to a 
     federally declared disaster (as defined by clause (i) of such 
     subsection)''.
       (C) Section 165(i)(4) is amended by striking 
     ``Presidentially declared disaster (as defined by section 
     1033(h)(3))'' and inserting ``federally declared disaster (as 
     defined by subsection (h)(3)(C)(i)''.
       (D)(i) So much of subsection (h) of section 1033 as 
     precedes subparagraph (A) of paragraph (1) thereof is amended 
     to read as follows:
       ``(h) Special Rules for Property Damaged by Federally 
     Declared Disasters.--
       ``(1) Principal residences.--If the taxpayer's principal 
     residence or any of its contents is located in a disaster 
     area and is compulsorily or involuntarily converted as a 
     result of a federally declared disaster--''.
       (ii) Paragraph (2) of section 1033(h) is amended by 
     striking ``investment'' and all that follows through 
     ``disaster'' and inserting ``investment is located in a 
     disaster area and is compulsorily or involuntarily converted 
     as a result of a federally declared disaster''.
       (iii) Paragraph (3) of section 1033(h) is amended to read 
     as follows:
       ``(3) Federally declared disaster; disaster area.--The 
     terms ``federally declared disaster'' and ``disaster area'' 
     shall have the respective meaning given such terms by section 
     165(h)(3)(C).''.
       (iv) Section 139(c)(2) is amended to read as follows:
       ``(2) federally declared disaster (as defined by section 
     165(h)(3)(C)(i)),''.
       (v) Subclause (II) of section 172(b)(1)(F)(ii) is amended 
     by striking ``Presidentially declared disasters (as defined 
     in section 1033(h)(3))'' and inserting ``federally declared 
     disasters (as defined by section 165(h)(3)(C)(i))''.
       (vi) Subclause (III) of section 172(b)(1)(F)(ii) is amended 
     by striking ``Presidentially declared disasters'' and 
     inserting ``federally declared disasters''.
       (vii) Subsection (a) of section 7508A is amended by 
     striking ``Presidentially declared disaster (as defined in 
     section 1033(h)(3))'' and inserting ``federally declared 
     disaster (as defined by section 165(h)(3)(C)(i))''.
       (b) Increase in Standard Deduction by Disaster Casualty 
     Loss.--
       (1) In general.--Paragraph (1) of section 63(c) is amended 
     by striking ``and'' at the end of subparagraph (B), by 
     striking the period at the end of subparagraph (C) and 
     inserting ``, and'', and by adding at the end the following 
     new subparagraph:
       ``(D) the disaster loss deduction.''.
       (2) Disaster loss deduction.--Subsection (c) of section 63 
     is amended by adding at the end the following new paragraph:
       ``(8) Disaster loss deduction.--For the purposes of 
     paragraph (1), the term `disaster loss deduction' means the 
     net disaster loss (as defined in section 165(h)(3)(B)).''.
       (3) Allowance in computing alternative minimum taxable 
     income.--Subparagraph (E) of section 56(b)(1) is amended by 
     adding at the end the following new sentence: ``The preceding 
     sentence shall not apply to so much of the standard deduction 
     as is determined under section 63(c)(1)(D).''.
       (c) Increase in Limitation on Individual Loss Per 
     Casualty.--Paragraph (1) of section 165(h) is amended by 
     striking ``$100'' and inserting ``$500 ($100 for taxable 
     years beginning after December 31, 2011)''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to--
       (A) taxable years beginning after December 31, 2007, and
       (B) the taxpayer's last taxable year beginning before 
     January 1, 2008, solely for purposes of determining the 
     amount allowable as a deduction with respect to any net 
     disaster loss (as defined in section 165(h)(3)(B) of the 
     Internal Revenue Code of 1986) for such year by reason of an 
     election under section 165(i) of such Code.
       (2) Increase in limitation on individual loss per 
     casualty.--The amendment made by subsection (c) shall apply 
     to taxable years beginning after December 31, 2008.

     SEC. 3. EXPENSING OF QUALIFIED DISASTER EXPENSES.

       (a) In General.--Part VI of subchapter B of chapter 1 is 
     amended by inserting after section 198 the following new 
     section:

     ``SEC. 198A. EXPENSING OF QUALIFIED DISASTER EXPENSES.

       ``(a) In General.--A taxpayer may elect to treat any 
     qualified disaster expenses which are paid or incurred by the 
     taxpayer as an expense which is not chargeable to capital 
     account. Any expense which is so treated shall be allowed as 
     a deduction for the taxable year in which it is paid or 
     incurred.
       ``(b) Qualified Disaster Expense.--For purposes of this 
     section, the term `qualified disaster expense' means any 
     expenditure--
       ``(1) which is paid or incurred in connection with a trade 
     or business or with business-related property,
       ``(2) which is--
       ``(A) for the abatement or control of hazardous substances 
     that were released on account of a federally declared 
     disaster,
       ``(B) for the removal of debris from, or the demolition of 
     structures on, real property which is business-related 
     property damaged or destroyed as a result of a federally 
     declared disaster, or
       ``(C) for the repair of business-related property damaged 
     as a result of a federally declared disaster, and
       ``(3) is otherwise chargeable to capital account.
       ``(c) Other Definitions.--For purposes of this section--
       ``(1) Business-related property.--The term `business-
     related property' means property--
       ``(A) held by the taxpayer for use in a trade or business 
     or for the production of income, or
       ``(B) described in section 1221(a)(1) in the hands of the 
     taxpayer.
       ``(2) Federally declared disaster.--The term `federally 
     declared disaster' has the meaning given such term by section 
     165(h)(3)(C)(i), except that such term shall not include any 
     disaster occurring before January 1, 2008, or after December 
     31, 2011.
       ``(d) Deduction Recaptured as Ordinary Income on Sale, 
     etc.--Solely for purposes of section 1245, in the case of 
     property to which a qualified disaster expense would have 
     been capitalized but for this section--
       ``(1) the deduction allowed by this section for such 
     expense shall be treated as a deduction for depreciation, and
       ``(2) such property (if not otherwise section 1245 
     property) shall be treated as section 1245 property solely 
     for purposes of applying section 1245 to such deduction.
       ``(e) Coordination With Other Provisions.--Sections 198, 
     280B, and 468 shall not apply to amounts which are treated as 
     expenses under this section.
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (b) Clerical Amendment.--The table of sections for part VI 
     of subchapter B of chapter 1 is amended by inserting after 
     the item relating to section 198 the following new item:

``Sec. 198A. Expensing of Qualified Disaster Expenses.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2007.

     SEC. 4. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY 
                   DECLARED DISASTERS.

       (a) In General.--Paragraph (1) of section 172(b) is amended 
     by adding at the end the following new subparagraph:
       ``(J) Certain losses attributable federally declared 
     disasters.--In the case of a taxpayer who has a qualified 
     disaster loss (as defined in subsection (j)), such loss shall 
     be a net operating loss carryback to each of the 5 taxable 
     years preceding the taxable year of such loss.''.
       (b) Qualified Disaster Loss.--Section 172 is amended by 
     redesignating subsections (j) and (k) as subsections (k) and 
     (l), respectively, and by inserting after subsection (i) the 
     following new subsection:
       ``(j) Rules Relating to Qualified Disaster Losses.--For 
     purposes of this section--
       ``(1) In general.--The term `qualified disaster loss' means 
     the lesser of--
       ``(A) the sum of--
       ``(i) the losses allowable under section 165 for the 
     taxable year--

       ``(I) attributable to a federally declared disaster (as 
     defined in section 165(h)(3)(C)(i)) occurring after December 
     31, 2007, and before January 1, 2012, and
       ``(II) occurring in a disaster area (as defined in section 
     165(h)(3)(C)(ii)), and

       ``(ii) the deduction for the taxable year for qualified 
     disaster expenses which is allowable under section 198A(a) or 
     which would be so allowable if not otherwise treated as an 
     expense, or
       ``(B) the net operating loss for such taxable year.
       ``(2) Coordination with subsection (b)(2).--For purposes of 
     applying subsection (b)(2), a qualified disaster loss for any 
     taxable year shall be treated in a manner similar to the 
     manner in which a specified liability loss is treated.
       ``(3) Election.--Any taxpayer entitled to a 5-year 
     carryback under subsection (b)(1)(J) from any loss year may 
     elect to have the carryback period with respect to such loss 
     year determined without regard to subsection (b)(1)(J). Such 
     election shall be made in such manner as may be prescribed by 
     the Secretary and shall be made by the due date (including 
     extensions of time) for filing the taxpayer's return for the 
     taxable year of the net operating loss. Such election, once 
     made for any taxable year, shall be irrevocable for such 
     taxable year.''.
       (c) Loss Deduction Allowed in Computing Alternative Minimum 
     Taxable Income.--Subsection (d) of section 56 is amended by 
     adding at the end the following new paragraph:
       ``(3) Net operating loss attributable to federally declared 
     disasters.--In the case of a taxpayer which has a qualified 
     disaster loss (as defined by section 172(b)(1)(J)) for the 
     taxable year, paragraph (1) shall be applied by increasing 
     the amount determined under subparagraph (A)(ii)(I) thereof 
     by the sum of the carrybacks and carryovers of such loss.''.

[[Page 21042]]

       (d) Conforming Amendments.--
       (1) Clause (ii) of section 172(b)(1)(F) is amended by 
     inserting ``or qualified disaster loss (as defined in 
     subsection (j))'' before the period at the end of the last 
     sentence.
       (2) Paragraph (1) of section 172(i) is amended by adding at 
     the end the following new flush sentence:
     ``Such term shall not include any qualified disaster loss (as 
     defined in subsection (j)).''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to net operating losses for taxable years 
     beginning after December 31, 2007.

     SEC. 5. WAIVER OF CERTAIN MORTGAGE REVENUE BOND REQUIREMENTS 
                   FOLLOWING FEDERALLY DECLARED DISASTERS.

       (a) In General.--Paragraph (11) of section 143(k) is 
     amended to read as follows:
       ``(11) Special rules for federally declared disasters.--
       ``(A) Principal residence destroyed.--If the principal 
     residence (within the meaning of section 121) of a taxpayer 
     is--
       ``(i) rendered unsafe for use as a residence by reason of a 
     federally declared disaster, or
       ``(ii) demolished or relocated by reason of an order of the 
     government of a State or political subdivision thereof on 
     account of a federally declared disaster, then for the 2-year 
     period beginning on the date of the disaster declaration, 
     subsection (d)(1) shall not apply with respect to such 
     taxpayer and subsection (e) shall be applied by substituting 
     `110' for `90' in paragraph (1) thereof.
       ``(B) Principal residence damaged.--
       ``(i) In general.--If the principal residence (within the 
     meaning of section 121) of a taxpayer resulting from a 
     federally declared disaster, was damaged, any owner-financing 
     provided in connection with the repair or reconstruction of 
     such residence shall be treated as a qualified rehabilitation 
     loan.
       ``(ii) Limitation.--The aggregate owner-financing to which 
     clause (i) applies shall not exceed the lesser of--

       ``(I) the cost of such repair or reconstruction, or
       ``(II) $150,000.

       ``(C) Federally declared disaster.--For purposes of this 
     paragraph, the term `federally declared disaster' has the 
     meaning given such term by section 165(h)(3)(C)(i), except 
     that such term shall not include any disaster occurring 
     before January 1, 2008, or after December 31, 2011.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 6. DETERMINATION OF STANDARD MILEAGE RATE FOR CHARITABLE 
                   CONTRIBUTIONS DEDUCTION.

       (a) In General.--Subsection (i) of section 170 (relating to 
     standard mileage rate for use of passenger automobile) is 
     amended by adding at the end the following new sentence: ``In 
     the case of the use of a passenger automobile after the date 
     of the enactment of this sentence and before January 1, 2012, 
     the standard mileage rate shall be the rate determined by the 
     Secretary, which rate shall not be less than the standard 
     mileage rate used for purposes of section 213.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

     SEC. 7. ADDITIONAL LOW INCOME HOUSING ALLOCATIONS.

       (a) In General.--Subsection (h) of section 42 of is amended 
     by redesignating paragraph (8) as paragraph (9) and by 
     inserting after paragraph (7) the following new paragraph:
       ``(8) Additional allocations for disasters.--
       ``(A) In general.--In addition to any other allocation made 
     under this subsection, the Secretary may, upon application by 
     any State, make allocations of housing credit dollar amounts 
     to such State for allocation to buildings in such State 
     consistent with the requirements of subparagraph (C).
       ``(B) Limitations.--The aggregate qualified disaster 
     allocations made by the Secretary under this paragraph may 
     not exceed $190,000,000. Any allocation which is terminated 
     by the Secretary (by reason of disuse or otherwise) shall not 
     be treated as having been allocated for purposes of the 
     preceding sentence.
       ``(C) Disaster housing allocations.--For purposes of this 
     section--
       ``(i) In general.--Allocations under this paragraph may be 
     made by the Secretary only to States which include a disaster 
     area.
       ``(ii) Priority for housing loss disaster areas.--In making 
     allocation under this paragraph, the Secretary shall give 
     priority to housing loss disaster areas.
       ``(iii) Limitation to buildings located in housing loss 
     disaster areas.--Any allocation of housing credit dollar 
     amounts under this paragraph may be allocated by such State 
     (or a housing credit agency of such State) only to--

       ``(I) buildings located in a disaster area, and
       ``(II) in the case of any allocation made by reason of a 
     priority under clause (ii), buildings located in the housing 
     loss disaster area with respect to which such priority was 
     given.

       ``(iv) Pro rata allocations.--The allocations made by the 
     Secretary under this paragraph shall be made ratably over the 
     period described in subparagraph (F) unless the Secretary 
     determines, on the basis of the severity or frequency of 
     disasters, that a different allocation is appropriate.
       ``(D) Housing loss disaster area.--For purposes of this 
     paragraph, the term `housing loss disaster area' means any 
     county or municipality--
       ``(i) with respect to which the Governor of the State in 
     which such county or municipality is located demonstrates to 
     the satisfaction of the Secretary that the lesser of--

       ``(I) 1,000 dwelling units, or
       ``(II) 10 percent of the dwelling units located in such 
     county or municipality,

     have been rendered uninhabitable by reason of damage to or 
     destruction of such units caused by a federally declared 
     disaster, and
       ``(ii) which is located in a disaster area.
       ``(E) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Federally declared disaster; disaster area.--The 
     terms ``federally declared disaster'' and ``disaster area'' 
     shall have the respective meaning given such terms by section 
     165(h)(3)(C).
       ``(ii) No effect on carryovers.--An allocation of housing 
     credit dollar amount to a State under this paragraph shall 
     not be taken into account under paragraph (3).
       ``(iii) Consultation with fema.--Any allocation made under 
     this paragraph by the Secretary shall be made after 
     consultation with the Director of the Federal Emergency 
     Management Agency.
       ``(F) Termination.--Allocations under this paragraph may be 
     made only with respect to disasters occurring during the 
     period beginning on January 1, 2008, and ending on December 
     31, 2011. No allocation under this paragraph may be made to 
     any building after December 31, 2012.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to allocations made after the date of the 
     enactment of this Act.

     SEC. 8. PRIVATE ACTIVITY DISASTER BONDS.

       (a) In General.--Section 144 is amended by adding at the 
     end the following new subsection:
       ``(d) Qualified Disaster Bond.--
       ``(1) In general.--For purposes of this part, the term 
     `qualified disaster bond' means any bond issued as part of an 
     issue if--
       ``(A) 95 percent or more of the net proceeds of the issue 
     are to be used for the replacement, repair, reconstruction, 
     or renovation of property of a character subject to the 
     allowance for depreciation which was damaged or destroyed as 
     a result of a federally declared disaster, and
       ``(B) such bond is designated by a State for purposes of 
     this subsection.
       ``(2) Designation of bonds.--
       ``(A) Designation by state.--The maximum aggregate face 
     amount of bonds designated under paragraph (1)(B) by any 
     State may not exceed the bond limitation allocated to such 
     State by the Secretary under subparagraph (B).
       ``(B) Allocation of bond limitation.--
       ``(i) In general.--The Secretary may, upon application by 
     any State, make allocation of bond limitation to such State 
     if such State includes a disaster area.
       ``(ii) Limitation.--The aggregate amount of bond limitation 
     allocated to the States by the Secretary under clause (i) may 
     not exceed $13,000,000,000. Any allocation which is 
     terminated by the Secretary (by reason of disuse or 
     otherwise) shall not be treated as having been allocated for 
     purposes of the preceding sentence.
       ``(iii) Priority for business loss disaster areas.--In 
     making allocation under this subsection, the Secretary shall 
     give priority to business loss disaster areas.
       ``(iv) Limitation to buildings located in business loss 
     disaster areas.--Any allocation of bond limitation under this 
     subsection may be used by such State only to issue bonds with 
     respect to--

       ``(I) property located in a disaster area, and
       ``(II) in the case of any allocation made by reason of a 
     priority under clause (iii), property located in the business 
     loss disaster area with respect to which such priority was 
     given.

       ``(v) Pro rata allocations.--The allocations made by the 
     Secretary under this subparagraph shall be made ratably over 
     the period described in paragraph (5) unless the Secretary 
     determines, on the basis of the severity or frequency of 
     disasters, that a different allocation is appropriate.
       ``(3) Business loss disaster area.--For purposes of this 
     subsection, the term `business loss disaster area' means any 
     county or municipality--
       ``(A) with respect to which the Governor of the State in 
     which such county or municipality is located demonstrates to 
     the satisfaction of the Secretary that business property 
     located in such county or municipality has sustained damages 
     by reason of a federally declared disaster of at least the 
     lesser of--
       ``(i) $50,000,000, or
       ``(ii) 5 percent of the value of all such business property 
     (determined immediately before such disaster on the basis of 
     property tax records or such other method as the Secretary 
     determines appropriate), and
       ``(B) which is located in a disaster area.

[[Page 21043]]

       ``(4) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Federally declared disaster; disaster area.--The 
     terms ``federally declared disaster'' and ``disaster area'' 
     shall have the respective meaning given such terms by section 
     165(h)(3)(C).
       ``(B) Certain uses prohibited.--A bond which is part of an 
     issue shall not be treated as a qualified disaster bond if 
     any proceeds of such issue are to be used for any property 
     described in section 1400N(p)(3).
       ``(C) Consultation with fema.--Any allocation made under 
     this subsection by the Secretary shall be made after 
     consultation with the Director of the Federal Emergency 
     Management Agency.
       ``(5) Termination.--Allocations under this subsection may 
     be made only--
       ``(A) before December 31, 2012, and
       ``(B) with respect to disasters occurring during the period 
     beginning on January 1, 2008, and ending on December 31, 
     2011.''.
       (b) Exemption From Alternative Minimum Tax.--
       (1) Subparagraph (C) of section 57(a)(5) is amended by 
     redesignating clauses (iv) and (v) as clauses (v) and (vi) 
     and by inserting after clause (iii) the following new clause:
       ``(iv) Exception for qualified disaster bonds.--For 
     purposes of clause (i), the term `private activity bond' 
     shall not include any qualified disaster bond (as defined in 
     section 144(d)).''.
       (2) Clause (iii) of section 56(g)(4)(B) is amended--
       (A) by striking ``section 57(a)(5)(C)(iii)'' and inserting 
     ``clause (iii) or (iv) of section 57(a)(5)(C)'', and
       (B) by striking ``housing'' in the heading thereof.
       (c) Conforming Amendments.--
       (1) Section 141(e)(1) is amended by striking ``or'' at the 
     end of subparagraph (F), by striking the period at the end of 
     subparagraph (G) and inserting ``, or'', and by adding at the 
     end the following new subparagraph:
       ``(H) qualified disaster bond.''.
       (2) Section 146(g) is amended by striking ``and'' at the 
     end of paragraph (3), by striking the period at the end of 
     paragraph (4) and inserting ``, and'', and by inserting after 
     paragraph (4) the following new paragraph:
       ``(5) any qualified disaster bond.''.
       (3) The heading of section 144 is amended by inserting ``; 
     QUALIFIED DISASTER BOND'' after ``QUALIFIED REDEVELOPMENT 
     BOND''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 9. WAIVER OF LIMITATION ON CHARITABLE CONTRIBUTIONS FOR 
                   DISASTER RELIEF.

       (a) In General.--Section 170(b) is amended by adding at the 
     end the following new paragraph:
       ``(3) Waiver of limitation in case of disaster relief.--
       ``(A) In general.--Except as otherwise provided in 
     subparagraph (B), paragraphs (1) and (2) shall not apply to 
     qualified disaster contributions and such contributions shall 
     not be taken into account for purposes of applying such 
     paragraphs or subsection (d) to other contributions.
       ``(B) Treatment of excess contributions.--For purposes of 
     this section--
       ``(i) Individuals.--In the case of an individual--

       ``(I) Limitation.--Any qualified disaster 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 over the amount of all other 
     charitable contributions allowable under paragraph (1).
       ``(II) Carryover.--If the aggregate amount of qualified 
     disaster contributions made in the contribution year (within 
     the meaning of subsection (d)(1)) exceeds the limitation of 
     subclause (I), such excess shall be added to the excess 
     described in the portion of subparagraph (A) of such 
     subsection which precedes clause (i) thereof for purposes of 
     applying such subsection.

       ``(ii) Corporations.--In the case of a corporation--

       ``(I) Limitation.--Any qualified disaster 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)) 
     over the amount of all other charitable contributions 
     allowable under such paragraph.
       ``(II) Carryover.--Rules similar to the rules of clause 
     (i)(II) shall apply for purposes of this clause.

       ``(C) Exception to overall limitation on itemized 
     deductions.--So much of any deduction allowed under this 
     section as does not exceed the qualified disaster 
     contributions paid during the taxable year shall not be 
     treated as an itemized deduction for purposes of section 68.
       ``(D) Qualified disaster contributions.--
       ``(i) In general.--For purposes of this subsection, the 
     term `qualified disaster contribution' means any charitable 
     contribution if--

       ``(I) such contribution is paid during the period beginning 
     on the date of the enactment of this paragraph, and ending on 
     December 31, 2009, in cash to an organization described in 
     paragraph (1)(A) (other than an organization described in 
     section 509(a)(3)),
       ``(II) such contribution is for relief efforts related to a 
     federally declared disaster (as defined in section 
     165(h)(3)(C)(i)), and
       ``(III) the taxpayer has elected the application of this 
     subsection with respect to such contribution.

       ``(ii) Exception.--Such term shall not include a 
     contribution if the contribution is for establishment of a 
     new, or maintenance in a donor advised fund (as defined in 
     section 4966(d)(2)).
       ``(iii) Application of election to partnerships and s 
     corporations.--In the case of a partnership or S corporation, 
     the election under clause (i)(III) shall be made separately 
     by each partner or shareholder.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. Rangel) and the gentleman from Texas (Mr. Brady) each will 
control 20 minutes.
  The Chair recognizes the gentleman from New York.


                             General Leave

  Mr. RANGEL. Madam Speaker, I ask that all Members have 5 legislative 
days to revise and extend their remarks and insert extraneous material 
in the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  Mr. RANGEL. Madam Speaker, the provisions of H.R. 7006, the Disaster 
Tax Relief Act of 2008, provide tax relief for victims of disasters. I, 
along with Ways and Means Committee Ranking Member James McCrery, have 
asked the nonpartisan Joint Committee on Taxation to make available to 
the public a technical explanation of the bill, JCX-73-08. The 
technical explanation expresses the committee understanding and the 
legislative intent behind this important piece of legislation. It is 
available on the Joint Committee's Web site www.jct.gov.
  Madam Speaker, the United States as a Nation has experienced a 
terrible number of natural disasters. We started early this year with 
tornadoes in Georgia and Tennessee. We saw wildfires consume parts of 
these great United States, millions of acres in California. We saw the 
mighty rivers of the Midwest overflow their banks and damage the homes 
and businesses of so many Americans. And most recently, we saw the 
tremendous power of hurricanes Ike and Gustav devastate parts of Texas 
and the gulf coast.
  I don't think anyone in this Chamber would disagree with me when I 
say unfortunately, we probably haven't seen the end of these horrible 
events this year. The hurricane season does not end until November 30.
  The individuals hit by these natural disasters all shared one thing 
in common: they are victims of Mother Nature's strength, and they are 
looking for assistance from their Federal Government.
  The bill before us today, H.R. 7006, the Disaster Tax Relief Act of 
2008, provides a framework for the Congress to be able to provide all 
Americans that they be able to count on us in the unfortunate event 
that they get hit by a natural disaster. The Congress for years has 
been forced to negotiate between individual Representatives and 
Senators to decide which victims deserve Federal relief and which ones 
do not. It is a process that not one single one of us enjoys being a 
part of.
  My bill today makes certain that every victim of a natural disaster 
gets the relief they need when they are trying to rebuild their homes 
and businesses, and trying to rebuild their lives. It does not pick 
winners and losers. It does not leave the recovery of these victims to 
a handful involved in political control.
  My bill offers a variety of relief to victims of natural disasters, 
and the bill would first waive the income limitations on personal loss 
deductions. It would allow businesses to write off certain qualified 
disaster cleanup expenses. It would permit a 5-year carryback for 
certain losses. It waives certain mortgage revenue bond requirements to 
allow bond proceeds to be used for this rebuilding. It provides for 
additional low-income housing tax credits for communities with housing 
losses to build $2 billion in affordable

[[Page 21044]]

housing. It adds a new set of disaster private activity bonds for 
business reconstruction, and it waives certain limitations on 
charitable contributions for disaster relief.
  The bill would also increase the standard mileage rate for the 
charitable use of a vehicle whether they are involved in the disaster 
or not. And most importantly, the relief will be in place for disasters 
that may occur for years to come. The provisions are in place through 
2011.
  That means that when hurricanes like Ike and Gustav come back next 
year, albeit with different names, the Federal Government will have 
relief in place for the victims of these terrible storms.
  I urge my colleagues to work to protect their constituents and hope 
and pray that they are never hit. But if they are suffering, that we 
will be able to swiftly pass this legislation so that we can provide 
some security for these victims.
  I hope that you will listen to two of my fellow Democrats, 
Representative Lampson and Representative Cazayoux, who know all too 
well the pain which these disasters have done to their constituents. 
And I hope you appreciate, those who have yet to be hit, that this 
Congress has provided the need and support for their constituents.
  At this time I ask unanimous consent to yield the balance of my time 
to an outstanding member of the Ways and Means Committee, Ron Kind, who 
has drafted the outlines of this not for his district, not for his 
region, but so that this great country of ours would have the type of 
relief that all of us wish we had done before, but we are now doing it 
today.
  The SPEAKER pro tempore. Without objection, the balance of the time 
is yielded.
  There was no objection.
  Mr. BRADY of Texas. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I rise today in support in H.R. 7006, the Disaster Tax 
Relief Act of 2008, a bill that provides targeted tax benefits to 
victims of federally declared natural disasters.
  As the chairman and gentleman from New York said, we have had a tough 
year here in the United States for disasters across this country; most 
recently, Hurricane Ike which hit the gulf coast and Texas especially. 
Ike will likely be the worst storm to hit Texas in 50 years. Ike 
damaged or destroyed about $52 billion worth of homes and businesses. 
It was far worse than Hurricane Rita that just hit us 3 years ago. And 
this is the region of Texas that was so quick to open their homes and 
their hearts and their churches to those victims of Hurricane Katrina, 
so it feels a bit like we are being piled on.
  We look to areas like Galveston and Bolivar, and Orange and Bridge 
City where the storm surge destroyed thousands of homes and damaged 
businesses and left people homeless. Today, 11 days after Hurricane 
Ike, despite heroic efforts, 250,000 people are still without running 
water and many more are still without power as the Texas heat continues 
to bear down on them.
  So these folks are suffering. They need our help now. Damage from the 
hurricane was widespread, and lives were disrupted and destroyed. Yet 
here it is 11 days after Hurricane Ike, and to its credit, this 
Congress, which I have criticized at times as not moving quickly enough 
or substantively enough, has moved quickly to respond to the needs of 
not just Texas, but Louisiana, the Midwest and throughout this country. 
I am grateful to them for that.
  I am encouraged that Congress responded so quickly, and I urge my 
colleagues to support this assistance.
  I, along with my friend and colleague from Houston, Al Green, along 
with the Texas delegation, introduced a bill much like Congressman 
Kind's to provide even more expansive tax benefits to Hurricane Ike 
victims. While we hope that Congress will consider it in the future 
because it has some key provisions important to our recovery, this 
legislation today is a very good step forward, especially coming so 
quickly after the hurricane.
  This bill will provide Texans and others much-needed help through a 
variety of tax relief measures. One provision is enhanced casualty loss 
deductions, which in plain English just allows families to write off 
more of the property loss from Hurricane Ike and other disasters 
without regard to their adjusted gross income.
  We have increased low income housing tax credits by $2 billion under 
this bill. That is important to help those who most need housing.
  Another provision is the ability to allow States to use mortgage 
revenue bonds to provide loans to repair or reconstruct homes and 
rental housing units that are now unsafe for use as residences because 
of hurricane damage.
  In addition, we all must recognize that the business community, those 
who provide our jobs, experienced severe disruption and damage from 
Hurricane Ike. To help businesses recover quickly, this legislation 
will allow them to write off and immediately expense costs for disaster 
recovery, including demolition, repair, cleanup and environmental 
remediation.
  Any business with net operating losses from the disaster, and there 
are many, will be allowed to carry back those losses for 5 years, which 
means they will be able to put more money back into recovery and put 
workers back to work and getting back into business which is important 
for property values and sale tax values in our affected communities.

                              {time}  1645

  Also, the Treasury Department is authorized under this bill to permit 
States to issue $13 billion of tax-exempt bonds to finance the 
replacement, the repair, the reconstruction and renovation of business 
property damaged or destroyed by a federally declared disaster like 
Hurricane Ike. I believe these private activity bonds are a critical 
tool to help damaged businesses through these hard times.
  And we should not forget the remarkable charitable work that people 
and businesses provided to their friends and neighbors in hard times. I 
witnessed this myself throughout our district that was hit so hard. 
We've seen this in past disasters. To assist those who come selflessly 
to work so that they do not get hit so hard by the high price of 
gasoline, the mileage reimbursement rate for charitable work will be 
increased and, moreover, limits for charitable relief contributions in 
response to a federal disaster are waived.
  This is a very important bill. And while I strongly believe and hope 
that Congress might take a look at additional measures in the future, 
this bill is a crucial first step, and I strongly support it.
  With that, I reserve the balance of my time.
  Mr. KIND. Madam Speaker, I rise, obviously, in support of the 
legislation. I do want to take a moment and thank my good friend from 
Texas for being an original sponsor of the legislation that we had 
introduced earlier this year in regards to disaster relief.
  Madam Speaker, as you know all too well, it's always bittersweet to 
be before the Congress promoting a disaster relief bill; bitter because 
of the disastrous effect that disasters have on so many families and 
businesses throughout the country, and certainly we have received our 
fair share this year alone. But also sweet, given the bipartisan 
cooperation that we're seeing from the leadership, the leadership on 
the committee, and I thank Chairman Rangel and Ranking Member McCrery 
for their help and assistance with this package, and the urgency in 
order to get this done so that we can get the assistance out and the 
help provided, so we can start rebuilding our communities again, 
getting people back in their homes, getting businesses up and 
functioning, hiring people and restoring people's lives.
  And we believe this Disaster Tax Relief Act is the right approach. It 
has three major features to it that I think merits attention. One is, 
by using the Tax Code, you build in some predictability and certainty 
for anyone throughout the country who's affected by disaster. Doing it 
this way, we don't

[[Page 21045]]

have to wait for Congress to take an action on an appropriation bill or 
provide FEMA with more funding in order to get help out there.
  Another important feature is that it is a nationwide, consistent and 
fair approach; so that Members, given their seniority or position on 
certain committees, don't have increased leverage in providing 
assistance to their area while neglecting other areas throughout 
country. By dealing with these tax provisions, it applies uniformly 
throughout the Nation in every district, every State, they qualify 
merely based on a Federal disaster declaration in that area.
  Then, finally, I believe it provides additional assistance to 
businesses. Over the last year in dealing with the floods that have 
devastated the upper Midwest and talking to community leaders, but 
especially business owners, I was struck by the frustration business 
owners had in what little disaster assistance is out there for them to 
get their businesses up and going. About their only recourse, since 
they don't qualify for direct FEMA grants, was for them to go to the 
Small Business Administration and negotiate a loan at a rate that's 
typically not even competitive with local bank rates in their area. By 
revising these tax provisions this is, I think, a direct response of 
the need for providing more help to businesses, large and small, that 
are also affected by these disasters.
  Real quickly, to highlight some of the provisions, the measure 
changes limitations to the deduction of personal casualty losses. It 
waives limits on charitable deductions for relief associated with 
federally declared disasters. Businesses can write off or deduct 
qualified disaster expenses through 2011. Businesses hurt by disasters 
can carry back now net losses for up to 5 years.
  And two more provisions that I have to commend the Iowa delegation 
especially in promoting and getting including in this legislation, from 
Mr. Boswell to Mr. Loebsack and Mr. Braley, the additional low-income 
housing credits that's in this bill, and the private activity bond 
provisions for housing bonds and for business property projects.
  As Mr. Brady also indicated, there is an increase in the charitable 
mileage rate that Mr. Lewis from Georgia has been advocating for some 
time in order to help those who are incurring travel expenses for 
charitable purposes to keep pace with the increased energy costs that 
they're facing. This will make it a little bit more affordable for them 
to continue these activities.
  About a little over a year ago, Madam Speaker, the rains came, the 
waters rose, and the flooding occurred in the upper Midwest. And just 
when so many people were returning to their homes and getting back into 
their business, early in June this year we suffered the same type of 
flooding phenomena. It was a double whammy within a 10-month period of 
time.
  To go through it once is one thing. People have this rallying effect 
and this collective responsibility to one another, and it's truly 
inspirational seeing how complete strangers show up on people's 
doorsteps to help. Seeing how the local community leaders and the first 
responders are the first ones out there battling the devastating 
effects of these disasters.
  But to get hit within a 10-month period of time with the same type of 
disaster really takes the wind out of the sails. People have been 
looking for the government, the Federal Government, along with State 
and local agencies and all the help that they're getting from the 
private sector to enable them to get back up on their feet.
  The floods in the upper Midwest over the past year that devastated 
the State of Iowa, northern Illinois, southern Minnesota and southern 
Wisconsin and portions of my district were tough enough. And then to 
see Hurricanes Gustav and Ike and the devastating effect that that has 
caused to so many lives in the southern part of our country, the 
wildfires out west, there is a great urgency and need in order to move 
this disaster relief package forward.
  This is one aspect of it. There will still be an emergency 
supplemental appropriation bill to provide disaster assistance as well. 
But again, given the outlines and the contours of this legislation, we 
think it's a uniform, fair approach with built-in predictability, so 
that if a disaster declaration is declared, people know what they can 
expect and what type of relief they can have. And then coupled with the 
assistance that FEMA is able to provide.
  Let me just conclude by thanking FEMA for the assistance that they've 
provided, at least in the upper Midwest that I personally witnessed. 
They brought teams in that were the height of professionalism, very 
sensitive to the needs. They tried to expedite the process as quickly 
as possible while staying true and responsible to taxpayer funds. We 
appreciated that assistance as well as the coordination that they 
provided at the State and local level.
  With that, Madam Speaker, I would encourage my colleagues to support 
the legislation.
  I will reserve the balance of my time.
  Mr. BRADY of Texas. Madam Speaker, I reserve the balance of my time.
  Mr. KIND. Madam Speaker, at this time I would like to yield 2 minutes 
to my good friend and colleague from the great State of Texas who 
obviously has suffered greatly under the effects of Hurricane Ike, Mr. 
Lampson.
  Mr. LAMPSON. Thank you, Mr. Kind, for allowing me to have a little 
bit of time to talk.
  I come to the floor in strong support of H.R. 7006, the Disaster 
Relief Act of 2008.
  Last Saturday, September 13, Hurricane Ike barreled through southeast 
Texas and in its wake left some of the worst destruction in U.S. 
history.
  I had the pleasure of working closely with my friend, Congressman 
Brady, and other colleagues in the Houston area, in trying to put our 
pieces back together again for so many people.
  Hurricane Ike inflicted massive wind and flood damage, leaving many 
residents without a home, others in homes without power. Texans endured 
the largest power outage in our State's history, leaving millions 
without electricity and with limited access to water, food and fuel. 
People like my own daughter, who, thank goodness, had evacuated to some 
300 miles away from her home, and when they returned, found that a tree 
had crashed through their house, left a 3-foot by 5-foot hole which 
flooded their home. Thank goodness, that tree, unfortunately, had 
fallen into the bed where my 2-year-old granddaughter sleeps. But even 
in the face of devastation, we can find mighty blessings for which we 
can be most thankful.
  Last week I spent every waking moment helping my constituents recover 
and rebound from this storm. I worked with House Chief Administrative 
Officer Dan Beard to establish a mobile congressional office with some 
225 laptop computers and telephones. The mobile office allowed 
displaced residents with nowhere to turn to have an opportunity to 
quickly get information and to get in touch. Texans used that office 
for everything from registering for FEMA assistance, finding a hotel, 
to finding a loved one, or just getting in touch with someone to talk 
to.
  After witnessing the expansive destruction and devastation left by 
Hurricane Ike, I am determined to make certain that essential Federal 
tax relief flows quickly to our communities. It is absolutely critical 
that the Disaster Tax Relief Act of 2008 pass this Chamber and be 
signed into law without delay.
  By removing income limitations on personal loss deductions, this bill 
helps hardworking Texans affected by the storm get back on their feet 
more quickly. This bill also helps Texans rebuild by waiving mortgage 
revenue bond requirements to allow bond proceeds to be used for 
rebuilding purposes.
  The storm left thousands of businesses shuttered and closed, unable 
to operate without power or with significant property destruction and 
flood damage.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. KIND. I yield the gentleman 1 additional minute.
  Mr. LAMPSON. This bill helps businesses recover by allowing them to

[[Page 21046]]

write off disaster clean-up expenses. The act's 5-year carry-back 
provision will help businesses that sustained disaster-related losses, 
and the new disaster private activity bonds will greatly aid business 
reconstruction.
  Every Texan lent a helping hand during this crisis. I was amazed at 
how many neighbors welcomed neighbors into their homes, how many 
churches and hospitals and businesses and military facilities opened 
their doors to evacuees, how many volunteers showed up on our doorstep 
from around the State and around the country. Now it is important that 
the Federal Government lend a helping hand to Texas.
  Thank you, Mr. Kind, for the time. I encourage my colleagues to pass 
H.R. 7006 with dispatch.
  Mr. BRADY of Texas. Madam Speaker, at this time I reserve the balance 
of my time.
  Mr. KIND. Mr. Speaker, at this time I would like to yield 3 minutes 
to our good friend and colleague from Louisiana (Mr. Cazayoux) who has 
been instrumental in helping to shape and put this disaster package 
together and ushering it through the Congress.
  Mr. CAZAYOUX. Thank you, Mr. Kind, for your great leadership on this 
important issue.
  I rise in strong support of H.R. 7006, the Disaster Tax Relief Act of 
2008. It's a good bill that deserves passage so citizens in disaster 
ravaged areas across the country have the assurances they need to 
rebuild their lives.
  On Labor Day of this year, Hurricane Gustav tore across the Sixth 
District of Louisiana, packing winds of up to 90 miles per hour, while 
downing trees and power lines across the district and destroying and 
damaging homes and farms and businesses in its wake. It was, as nearly 
everyone has concurred, the worst storm that has ever hit the Baton 
Rouge area.
  We are now facing the challenge of rebuilding. One problem that has 
become glaringly apparent is the named storm deductible issue. Instead 
of paying normal insurance deductibles to rebuild, constituents in 
Louisiana are now faced with a deductible of up to 5 percent of the 
value of their homes, sometimes thousands more than they had paid in 
the past.
  This has been one of the most important issues to me after Hurricane 
Gustav, and we have asked the House to act and provide relief to these 
homeowners. I am proud to say that the legislation before us today will 
do that by expanding tax deductions for people who incurred damages 
during hurricanes such as Gustav and Ike. By waiving the minimum 10 
percent adjusted gross income requirement for deducting losses, this 
will provide homeowners with much needed relief.
  We will also continue to push FEMA on this issue that FEMA recognize 
these losses as covered by its individual disaster assistance programs.
  In addition to expanding tax deductions for disaster-related losses, 
the bill also contains important tax provisions for businesses 
recovering from disasters across the country, such as extending the net 
operating loss carry-back period from 3 to 5 years, and allowing 
businesses to immediately write off certain expenses relating to 
Federal disasters. It also increases private activity bond financing 
for States to issue to businesses following a disaster.
  Furthermore, it allows States to use their tax-exempt housing bonds 
to provide loans to repair or reconstruct homes and rental housing 
units damaged by storms. It also allocates additional low-income 
housing tax credits for States suffering a loss of affordable housing 
as a result of a Federal disaster.
  This is a solid start to the long-term recovery for regions trying to 
rebuild. This year should be a wake-up call for everyone around the 
country, from Florida to Louisiana to Iowa and California, that we 
cannot avoid natural disasters but we can hope to mitigate their 
effects.
  This bill shows that Congress is committed to helping our citizens 
recover, and it deserves our support.
  Mr. BRADY of Texas. Madam Speaker, I would reserve the balance of my 
time.
  Mr. KIND. Madam Speaker, may I inquire as to the time remaining on 
our side?
  The SPEAKER pro tempore. The gentleman has 3\1/2\ minutes remaining.
  Mr. KIND. At this time I would like to yield 2 minutes to my good 
friend from Iowa, who has been in the front lines of battling the 
flooding that his State unfortunately incurred, Mr. Boswell.

                              {time}  1700

  Mr. BOSWELL. Madam Speaker, I appreciate the time and effort you have 
put into this and all the people of Iowa do, across the Nation in fact, 
because I know that when Congressman Braley and Congressman Loebsack 
and I took it upon ourselves to visit with the Speaker about this 
before we were on the work period last July, there was assurance that 
something would happen. And I felt that she could give us that 
assurance because we are a United States and we stand together when 
things happen that we have no control over, natural disaster.
  Some parts of Iowa were hit by windstorms, tornado, and then almost 
immediately followed with flood. So we were hit pretty hard.
  Our Speaker stopped and spent a day with us on the way back after the 
work period and went to all three of the areas that were hit the worst, 
and how much it was appreciated by the people of Iowa and, of course, 
as people were watching across the Nation. We appreciate it very much, 
and she was able to say, because of the confidence that I'm sure she 
has in not only her leadership but in this institution, that we do 
stand together when it comes to natural disasters, and that's been our 
history.
  So I'm very appreciative of this. It will be a great help to 
homeowners, small businesses, getting levees put back in place, and 
preparing for whatever Mother Nature may bring us next.
  I thank you again for the time. I appreciate again your good, hard 
work.
  Mr. BRADY of Texas. Madam Speaker, at this time, I yield 2 minutes to 
my colleague from Houston, the gentlelady from Texas, Congresswoman 
Sheila Jackson-Lee. 
  Ms. JACKSON-LEE of Texas. Let me thank the managing member, Mr. Kind 
of the Ways and Means Committee, for his leadership and the leadership 
of Chairman Rangel. And as well, let me thank my colleague Congressman 
Kevin Brady who over the last 10 days we have traveled throughout our 
respective districts, along with Congressman Lampson and Congressmen Al 
Green, Gene Green and Ron Paul, and we've worked together in a 
bipartisan effort to obviously respond to the devastation and needs of 
our constituents.
  People are suffering through the impact of Hurricane Ike. We've been 
told that there will be billions and billions of dollars of damage, 
40,000 to 35,000 people still evacuated, many of them coming back to 
devastated housing and loss of housing.
  This is an important initiative. I think one of the most important 
aspects of it is the ability to increase low-income housing tax credits 
to States that contain Federal disaster areas. That is particularly 
important because we've seen the damage to our multiple family housing 
units. I've also seen the damage that comes about through our regular 
housing.
  Mortgage revenue bond financing for individuals suffering home damage 
as a result of Federal disaster, there's a limit to the annual amount 
of taxing housing bonds that each State may issue. This bill allows an 
increase, a very important part of recovery.
  In addition, a business is allowed a 5-year carryback period for 
certain losses related to the disaster. Of course, the State of Texas 
has Federal disaster counties, and we have an enormous impact in our 
business communities, particularly small businesses in our 
neighborhoods and in our cities.
  So this legislation is an important tax relief bill that I believe 
responds to the crux of the need for recovery, and that's what we want 
to do in the gulf region. We want to recover. Galveston wants to 
recover. The southeast part of Harris County wants to recover, and the 
inner city neighborhoods that I represent such as southeast, such as 
Acres Home, South Park, Sunny Side, northeast Houston, all of those 
want to recover.

[[Page 21047]]

  For that reason, I rise to support The Disaster Tax Relief Act of 
2008, H.R. 7006, and I ask my colleagues to support it.
  Mr. KIND. Madam Speaker, we have no further requests for time, and I 
am prepared to yield, if my friend from Texas is.
  Mr. BRADY of Texas. I yield myself, for closing, as much time as I 
may consume.
  Disasters are so hard on families and especially on small businesses 
and on communities as they try to recover, whether it is the flooding 
in the Midwest or wildfires in the West or Hurricane Ike, Hurricane 
Gustav or hurricanes that have hit Florida. It is just a terrible time.
  And I know in our case, you always know your own communities best, 
and we saw 8- to 10-foot storm surge in Orange County that went over 
the levees, flooded one-third of that town and most of its historic 
district. It completely flooded about 6 feet up in every home in Bridge 
City. I think out of almost 4,000 homes, 15 were left untouched.
  And when I was there touring the area, we toured it the day after by 
boat, and these are land cities. We could see the devastation, and 
today, those communities are trying to recover and those families are 
trying to repair their homes.
  The problem we have is that Hurricane Rita, which had just come 
through 3 years ago, wiped out all the hotel-motels, had wiped out all 
available rental housing. So our workers in our energy refineries and 
shipbuilding and chemical refineries are staying 90, 100 miles away in 
available hotels, driving each day an hour-and-a-half each way to try 
to pull the carpet and the sheetrock out of their homes. They have all 
their possessions in the world piled in the front yard for insurance 
adjusters to appraise or for others to just simply take away.
  And to give them hope that they can recover, it's important Congress 
do all that we can, and these tax provisions help those families and 
small businesses try to take those first steps, which is why not only 
do I strongly support this, I appreciate the gentleman from Wisconsin's 
long effort to provide disaster relief throughout this country.
  I appreciate Chairman Rangel and the Ways and Means Committee taking 
a leadership role to move this bill to the floor before the session is 
over. I appreciate the support of our Texas delegation, Republicans and 
Democrats, as we move forward.
  I strongly support this and appreciate the responsiveness of this 
Congress.
  I yield back.
  Mr. KIND. Madam Speaker, I yield myself the remainder of my time.
  Again, Madam Speaker, I do want to thank and commend the leadership 
of this Congress, from Speaker Pelosi to Minority Leader Boehner, as 
well as the leadership on the House Ways and Means Committee, to Mr. 
Rangel, to Mr. McCrery, and my colleagues on the committee.
  I also want to thank all the hard work and effort that our staff on 
the committee and off the committee have put in to putting this 
legislation in order.
  And disasters, as my friend from Texas so eloquently stated, is not 
fun. It is not fun seeing the effect that it has on families, on little 
children, on businesses and the spirit of the communities. But they 
also are a time of great inspiration, and it really tests the true 
character of any community.
  And we've unfortunately seen that in a span of 10 months twice in the 
State of Wisconsin. We still have communities there that are wrestling 
with some very important decisions about possibly relocating whole 
towns into higher ground or to different locations where there have 
been businesses and homes for generations there, and it's not an easy 
decision.
  At times like that, it's inspirational seeing how people come 
together and rally from the agencies, to local leaders, to first 
responders, to volunteer organizations, and complete strangers just 
showing up because of their concern and compassion for their fellow 
citizens.
  Now, it's the country's time, and this Nation has always shown that 
compassionate streak, that when one area has been hit by a disaster, we 
all rally and collectively respond. And no one, no matter where they 
live, is immune from this, and that's been demonstrated again over the 
course of this last year.
  We think this is an appropriate direction. We think the provisions in 
here are the right way to go, and I would encourage my colleagues to 
support this legislation.
  Mr. BRADY of Texas. Would the gentleman yield?
  Mr. KIND. I would be happy to yield.
  Mr. BRADY of Texas. Again, I want to thank you for your leadership, 
and this is a great piece of legislation.
  I was remiss in not recognizing my colleague, Congressman Al Green 
from Houston. He's the lead Democrat cosponsor with me on the Texas 
portion of disaster relief. He is tied up in Financial Services today 
working on issues. I know he is here in spirit, and I just wanted to 
publicly thank him for his role as well.
  Ms. JACKSON-LEE of Texas. Madam Speaker, I rise today to speak on a 
very important issue to me, House Resolution 7006, the Disaster Tax 
Relief Act of 2008. Right now, over 800,000 people in the greater 
Houston area are without power; this is not acceptable. We must pass 
responsible legislation to make it easier for people to get back on 
their feet after natural disasters ravage their communities. It is time 
to show the Nation that we learned the lessons of Katrina and Rita and 
now Ike as well as the other natural disasters we have faced in recent 
memory.
  Katrina and Rita taught FEMA quite a lot on how to recover from 
natural disasters that destroy thousands of people's homes and 
livelihood. We now have more advanced warning systems in place, a 
better plan to evacuate those in the storm's path and our first 
responders are better trained to deal with the medical crisis for those 
whose best option is to stay. All these things helped save countless 
lives in my district, but now we face the true test of how a nation 
responds to a natural disaster.
  While we have plenty to praise about the response, sadly, we also 
have plenty to criticize. The utility companies were told to improve 
their infrastructure so that a disaster like this would not cripple the 
region; however, more than a week after Hurricane Ike, these utility 
companies left my constituents to clean up with flashlights and 
candles. Power still has not been restored to almost a million people, 
and we face an emerging health crisis because of it.
  I have taken every opportunity to talk to people facing this crisis 
and to find out what the Government can do to help them rebuild their 
shattered lives. A number of stories that I have heard have been 
inspirational, they want, more than anything, to help their friends, 
family and neighbors. My staff has received hundreds of calls from 
people begging to be of any assistance. These brave souls look at the 
devastation and refuse to sit by and watch as people they don't know, 
as well as their loved ones, suffer.
  This bill will honor those wonderful human beings by helping ease the 
burden they have willingly placed on themselves to help. They will get 
a higher reimbursement for the miles they drive in the service of 
others. The limit that corporations are allowed to write off on their 
taxes would be waived. This will allow companies to help the 
communities they support and still remain responsible officers for the 
employees who work for them.
  Madam Speaker, this legislation would also help people's way of life 
remain protected during Federal disasters. Being able to deduct a 
greater cost for their damaged property help keep homes in the affected 
areas instead of them not being rebuilt and relocating. Allowing small 
businesses to write off expenses relating to these disasters assures 
that the jobs for those who return still exist. Businesses would also 
be able to focus on healing before they focus on gathering what is owed 
to them. Moving the carry-back period, the statue of limitations on 
claiming damages from natural disasters, from 2 years to 5 years would 
provide financial assistance as well as peace of mind.
  Since the time of the founding of our country, the Government has 
been helping out towns and cities affected by disasters. In 1803 a 
small fire ravaged the town of Portsmouth, New Hampshire, and the 
Congress reacted. This is widely considered the first use of any type 
of disaster relief.
  Today, a lot of my constituents are no better off than they were a 
week ago; this must be remedied. This bill is a great step forward to

[[Page 21048]]

help communities recover, and we must pass this bill. With that, I am 
also pleased to be an original cosponsor of this legislation with my 
Texas colleagues, Congressman Al Green and Congressman Kevin Brady.
  Mr. LEWIS of Georgia. Madam Speaker, I support this Disaster Tax 
Relief Act, and I want to thank my colleagues on the Ways and Means 
Committee, Congressman Kind and Chairman Rangel, for working to bring 
this bill to the floor today.
  The Disaster Tax Relief Act addresses deep concerns I had after 
tornadoes struck Atlanta. Tornadoes touched down right in the heart of 
Atlanta. They blew the windows out of my very own office. They 
destroyed sections of neighborhoods and damaged businesses in our city 
and across Georgia.
  The damage caused by these tornadoes and storms was no different than 
the damage caused anywhere else in America this year. If you lose your 
home or business, a loss is a loss and damage is damage. Yes, some 
disasters are more severe than others. But when it comes to rebuilding 
homes and businesses, when it comes to recovery, the tax code should be 
fair.
  Some think when floods, hurricanes, and tornadoes strike it means 
States deserve special treatment based on old politics. Some can 
overlook natural disasters that have occurred all over our country and 
try to provide specific disaster tax recovery assistance for just one 
State and just one tragedy. This is wrong. It is not right. It is not 
just.
  This Disaster Tax Relief Act provides fair tax relief and recognizes 
all disasters, like those in Atlanta, Iowa, Wisconsin, Florida, Kansas, 
and other places. It also recognizes the role of volunteers performing 
charity work every day but often in the wake of a disaster.
  On September 10th I introduced with my good friend and colleague, Jim 
Ramstad, H.R. 6854, the Fair Deal for Volunteers Act of 2008. Among 
other things, this bill will increase the standard mileage rate tax 
deduction from 14 cents a mile to an amount determined by the Secretary 
of Treasury that is not less than the standard rate used for medical 
purposes. It is currently 27 cents a mile.
  With the cost of gas and the precious need for volunteers to keep 
delivering meals and blankets and supplies, this is the very least we 
can do. I am proud that so many members of the House and Senate have 
pushed for this kind of change. I hope we can push harder and pass the 
entire Fair Deal for Volunteers Act.
  I thank the staff on the Ways and Means Committee and the Oversight 
Subcommittee for their good work on this measure.
  Mr. KIND. Madam Speaker, I yield back.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New York (Mr. Rangel) that the House suspend the rules 
and pass the bill, H.R. 7006.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. KIND. Madam Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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