Hurricane Wilma Taxpayer Relief Act of 2005 - Amends the Internal Revenue to provide tax relief for victims of Hurricane Wilma, including by: (1) exempting retirement plan distributions for Hurricane Wilma relief made after October 23, 2005, and before January 1, 2007, from the penalty for premature retirement plan distributions. (2) allowing three-year income averaging, for income tax purposes, of retirement plan distributions for Hurricane Wilma relief; (3) allowing the recontribution of retirement plan distributions intended for home purchases that were canceled due to Hurricane Wilma; (4) allowing tax-free loans from retirement plans for Hurricane Wilma relief; (5) suspending limitations on the tax deduction for the charitable contributions of corporations for Hurricane Wilma relief; (6) increasing the standard mileage rate for the charitable use of a vehicle for Hurricane Wilma relief; (7) excluding from the gross income of charitable volunteers reimbursements for the use of automobiles to provide Hurricane Wilma relief; (8) suspending limitations on the tax deduction for personal casualty losses attributable to Hurricane Wilma; and (9) extending from two to five years the mandatory replacement period for property compulsorily or involuntarily converted due to Hurricane Wilma.
Declares that any provision of this Act causing an effect on receipts, budget authority, or outlays is designated as an emergency requirement (pursuant to section 402 of H. Con. Res. 95 [109th Congress]).
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4334 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 4334
To provide emergency tax relief for persons affected by Hurricane
Wilma.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 15, 2005
Mr. Shaw (for himself, Mr. Foley, Ms. Ros-Lehtinen, Mr. Hastings of
Florida, Mr. Lincoln Diaz-Balart of Florida, Mr. Mario Diaz-Balart of
Florida, Mr. Wexler, Ms. Harris, Ms. Ginny Brown-Waite of Florida, Mr.
Mack, Mr. Bilirakis, Mr. Miller of Florida, Ms. Wasserman Schultz, Ms.
Corrine Brown of Florida, Mr. Crenshaw, Mr. Putnam, and Mr. Davis of
Florida) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on the
Budget, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide emergency tax relief for persons affected by Hurricane
Wilma.
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 ``Hurricane Wilma
Taxpayer Relief Act of 2005''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title, etc.
Sec. 2. Hurricane Wilma disaster area.
TITLE I--SPECIAL RULES FOR USE OF RETIREMENT FUNDS FOR RELIEF RELATING
TO HURRICANE WILMA
Sec. 101. Tax-favored withdrawals from retirement plans for relief
relating to Hurricane Wilma.
Sec. 102. Recontributions of withdrawals for home purchases cancelled
due to Hurricane Wilma.
Sec. 103. Loans from qualified plans for relief relating to Hurricane
Wilma.
Sec. 104. Provisions relating to plan amendments.
TITLE II--CHARITABLE GIVING INCENTIVES
Sec. 201. Temporary suspension of limitations on charitable
contributions.
Sec. 202. Increase in standard mileage rate for charitable use of
vehicles.
Sec. 203. Mileage reimbursements to charitable volunteers excluded from
gross income.
TITLE III--ADDITIONAL TAX RELIEF PROVISIONS
Sec. 301. Suspension of certain limitations on personal casualty
losses.
Sec. 302. Extension of replacement period for nonrecognition of gain
for property located in Hurricane Wilma
disaster area.
TITLE IV--EMERGENCY REQUIREMENT
Sec. 401. Emergency requirement.
SEC. 2. HURRICANE WILMA DISASTER AREA.
For purposes of this Act--
(1) Hurricane wilma disaster area.--The term ``Hurricane
Wilma 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 by reason of Hurricane Wilma.
(2) Core disaster area.--The term ``core disaster area''
means that portion of the Hurricane Wilma disaster area
determined by the President to warrant individual or individual
and public assistance from the Federal Government under such
Act.
TITLE I--SPECIAL RULES FOR USE OF RETIREMENT FUNDS FOR RELIEF RELATING
TO HURRICANE WILMA
SEC. 101. TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS FOR RELIEF
RELATING TO HURRICANE WILMA.
(a) In General.--Section 72(t) of the Internal Revenue Code of 1986
shall not apply to any qualified Hurricane Wilma 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 Hurricane Wilma distributions
for any taxable year shall not exceed the excess (if any) of--
(A) $100,000, over
(B) the sum of--
(i) the aggregate amounts treated as
qualified Hurricane Wilma distributions
received by such individual for all prior
taxable years, and
(ii) the aggregate amounts treated as
qualified Hurricane Katrina distributions (as
defined in section 101 of the Katrina Emergency
Relief Act of 2005) received by such individual
for such taxable year and all prior taxable
years.
(2) Treatment of plan distributions.--If a distribution to
an individual would (without regard to paragraph (1)) be a
qualified Hurricane Wilma 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 Hurricane Wilma distribution, unless the
aggregate amount of such distributions and qualified Hurricane
Katrina distributions (as defined in section 101 of the Katrina
Emergency Tax Relief Act of 2005) 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
Hurricane Wilma 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 Hurricane Wilma 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
Hurricane Wilma 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 Hurricane Wilma
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 Hurricane Wilma
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 hurricane wilma distribution.--Except as
provided in subsection (b), the term ``qualified Hurricane
Wilma distribution'' means any distribution from an eligible
retirement plan made on or after October 23, 2005, and before
January 1, 2007, to an individual whose principal place of
abode on October 23, 2005, is located in the Hurricane Wilma
disaster area and who has sustained an economic loss by reason
of Hurricane Wilma.
(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
Hurricane Wilma Distributions.--
(1) In general.--In the case of any qualified Hurricane
Wilma 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 Hurricane
Wilma distributions shall not be treated as eligible rollover
distributions.
(2) Qualified hurricane wilma distributions treated as
meeting plan distribution requirements.--For purposes of such
Code, a qualified Hurricane Wilma 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 CANCELLED
DUE TO HURRICANE WILMA.
(a) Recontributions.--
(1) In general.--Any individual who received a qualified
distribution may, during the period beginning on October 23,
2005, and ending on February 28, 2006, 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 28, 2005, and before October
24, 2005, and
(3) which was to be used to purchase or construct a
principal residence in the Hurricane Wilma disaster area, but
which was not so purchased or constructed on account of
Hurricane Wilma.
(c) Coordination With Recontributions Due to Hurricane Katrina.--In
the case of any distribution which is a qualified distribution under
this section and under section 102 of the Katrina Emergency Tax Relief
Act of 2005, the amount of the contributions that may be made under
paragraph (1) with respect to such distribution shall be reduced by the
amount of any contributions taking into account section 102 of such
Act.
SEC. 103. LOANS FROM QUALIFIED PLANS FOR RELIEF RELATING TO HURRICANE
WILMA.
(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, 2007--
(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 October 23, 2005, 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 October 23,
2005, and ending on December 31, 2006, 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 October 23, 2005, is located in the Hurricane Wilma disaster
area and who has sustained an economic loss by reason of Hurricane
Wilma.
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, 2007, 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--CHARITABLE GIVING INCENTIVES
SEC. 201. TEMPORARY SUSPENSION OF LIMITATIONS ON CHARITABLE
CONTRIBUTIONS.
For purposes of section 301 of the Katrina Emergency Tax Relief Act
of 2005, a charitable contribution (as defined in section 170(c) of the
Internal Revenue Code of 1986) paid by a corporation for relief efforts
related to Hurricane Wilma shall be treated as though such contribution
were paid for relief efforts related to Hurricane Katrina.
SEC. 202. 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 related to Hurricane Wilma during the
period beginning on October 23, 2005, and ending on December 31, 2006,
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. 203. 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
October 23, 2005, 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
relating to Hurricane Wilma during the period beginning on October 23,
2005, and ending on December 31, 2006. 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) of such Code 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).
TITLE III--ADDITIONAL TAX RELIEF PROVISIONS
SEC. 301. 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 Hurricane Wilma disaster area on or
after October 23, 2005, and which are attributable to Hurricane Wilma.
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. 302. EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNITION OF GAIN
FOR PROPERTY LOCATED IN HURRICANE WILMA DISASTER AREA.
Clause (i) of section 1033(a)(2)(B) of the Internal Revenue Code of
1986 shall be applied by substituting ``5 years'' for ``2 years'' with
respect to property in the Hurricane Wilma disaster area which is
compulsorily or involuntarily converted on or after October 23, 2005,
by reason of Hurricane Wilma, but only if substantially all of the use
of the replacement property is in such area.
TITLE IV--EMERGENCY REQUIREMENT
SEC. 401. EMERGENCY REQUIREMENT.
Any provision of this Act causing an effect on receipts, budget
authority, or outlays is designated as an emergency requirement
pursuant to section 402 of H. Con. Res. 95 (109th Congress).
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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