Katrina Aftermath Relief Effort Tax Credit Act - Amends the Internal Revenue Code to allow individual taxpayers a refundable tax credit for certain housing support expenses (e.g., food, clothing, and school supplies) paid or incurred between August 29, 2005, and December 31, 2006, to help individuals displaced by Hurricane Katrina. Limits the amount of such credit to $1,000 for any taxable year.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3744 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3744
To amend the Internal Revenue Code of 1986 to provide incentives for
Americans to open their homes to fellow Americans from the Gulf Coast
who were devastated by Hurricane Katrina, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 13, 2005
Mr. Gonzalez (for himself and Mr. Reyes) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide incentives for
Americans to open their homes to fellow Americans from the Gulf Coast
who were devastated by Hurricane Katrina, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Katrina Aftermath Relief Effort Tax
Credit Act''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds the following:
(1) Hurricane Katrina devastated the Gulf Coast States of
Louisiana, Mississippi, and Alabama on August 29, 2005.
(2) An estimated 1,000,000 Americans from the Gulf Coast
were forced to flee their homes as a result of Hurricane
Katrina.
(3) Many of the displaced victims of Hurricane Katrina are
currently residing in shelters across the country, including in
Texas, Louisiana, Mississippi, Alabama, Wisconsin, Arkansas,
Florida, Tennessee, Georgia, and other States.
(4) Many of these shelters, including Kelly USA in San
Antonio and the Astrodome in Houston, are only intended to
serve as temporary homes for the victims of Hurricane Katrina.
(5) In addition to the temporary shelters, Americans have
opened their homes to welcome the victims of Hurricane Katrina.
Many Americans who have opened their homes also pay expenses
such as food, clothing, school supplies, transportation, or
personal items for the benefit of those victims of Hurricane
Katrina residing with them.
(6) Due to the devastation of Hurricane Katrina, many
Americans from the Gulf Coast cannot return to their homes for
many months. As a result, it is necessary to find intermediate-
term and long-term housing for the victims of Hurricane
Katrina.
(7) Long-term housing can be difficult to locate in certain
areas. In addition, locating long-term housing can be a lengthy
process.
(8) Intermediate-term housing is appropriate for the
victims of Hurricane Katrina until long-term housing can be
located.
(9) Opening private homes to victims of Hurricane Katrina
is vital to the overall effort to find intermediate-term
housing for the victims of Hurricane Katrina.
(b) Purposes.--The purposes of this Act are as follows:
(1) To provide incentives for Americans to open their homes
to fellow Americans from the Gulf Coast who were devastated by
Hurricane Katrina.
(2) To partially offset expenses paid by Americans who open
their homes to victims of Hurricane Katrina.
(3) To amend the Internal Revenue Code of 1986 to provide a
tax credit to partially offset the costs of food, clothing,
school supplies, transportation, or personal items paid by
Americans who house victims of Hurricane Katrina for the
benefit of such victims of Hurricane Katrina.
SEC. 3. KATRINA AFTERMATH RELIEF EFFORT CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by redesignating section 36 as section 37 and by inserting
after section 35 the following new section:
``SEC. 36. KATRINA AFTERMATH RELIEF EFFORT CREDIT.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the qualified housing support
expenses paid or incurred by the taxpayer during the taxable year for
the benefit of a qualified individual who resides in housing provided
by the taxpayer.
``(b) Limitation.--The credit allowable under subsection (a) for
any taxable year shall not exceed $1,000.
``(c) Definitions.--For purposes of this section--
``(1) Qualified individual.--The term `qualified
individual' means any individual who is displaced by reason of
Hurricane Katrina.
``(2) Qualified housing support expenses.--The term
`qualified housing support expenses' means any expenses paid or
incurred for food, clothing, school supplies, transportation,
or personal items of a qualified individual during the period
that such qualified individual resides in housing provided by
the taxpayer.
``(d) Substantiation Required.--No credit shall be allowed under
this section unless the taxpayer substantiates by adequate records or
by sufficient evidence corroborating the taxpayer's own statement--
``(1) the amount of the expense,
``(2) the time and place of the expense,
``(3) the purpose of the expense, and
``(4) the name of the qualified individual to which the
expense relates.
``(e) Application.--Subsection (a) shall apply only to amounts paid
or incurred during the period beginning on August 29, 2005, and ending
on December 31, 2006.''.
(b) Conforming Amendments.--
(1) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by redesignating the item relating to section 36 as
an item relating to section 37 and by inserting before such
item the following new item:
``Sec. 36. Katrina aftermath relief effort credit.''.
(2) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``or 36'' after ``section 35''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred on or after August 29, 2005.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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