Hurricanes Florence and Michael and California Wildfire Tax Relief Act
This bill provides for tax relief for individuals in areas affected by Hurricanes Florence and Michael and the California wildfires. Specifically, it
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2544 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 2544
To provide tax relief for the victims of Hurricane Florence, Hurricane
Michael, and certain California wildfires.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 25, 2019
Mr. Burr (for himself, Mr. Tillis, Mrs. Feinstein, Ms. Harris, Mr.
Isakson, Mr. Graham, and Mr. Rubio) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To provide tax relief for the victims of Hurricane Florence, Hurricane
Michael, and certain California wildfires.
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 ``Hurricanes Florence and Michael and
California Wildfire Tax Relief Act''.
SEC. 2. DEFINITIONS.
For purposes of this Act--
(1) Hurricane florence disaster zone.--The term ``Hurricane
Florence disaster zone'' means that portion of the Hurricane
Florence disaster area determined by the President to warrant
individual or individual and public assistance from the Federal
Government under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act by reason of Hurricane Florence.
(2) Hurricane florence disaster area.--The term ``Hurricane
Florence disaster area'' means an area with respect to which a
major disaster has been declared by the President before
November 26, 2018, under section 401 of such Act by reason of
Hurricane Florence.
(3) Hurricane michael disaster zone.--The term ``Hurricane
Michael disaster zone'' means that portion of the Hurricane
Michael disaster area determined by the President to warrant
individual or individual and public assistance from the Federal
Government under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act by reason of Hurricane Michael.
(4) Hurricane michael disaster area.--The term ``Hurricane
Michael disaster area'' means an area with respect to which a
major disaster has been declared by the President before
November 26, 2018, under section 401 of such Act by reason of
Hurricane Michael.
(5) Mendocino and carr wildfires.--
(A) Mendocino and carr wildfire disaster zone.--The
term ``Mendocino and Carr wildfire disaster zone''
means that portion of the Mendocino and Carr wildfire
disaster area determined by the President to warrant
individual or individual and public assistance from the
Federal Government under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act by reason
of the wildfires in California commonly known as the
Mendocino and Carr wildfires of 2018.
(B) Mendocino and carr wildfire disaster area.--The
term ``Mendocino and Carr wildfire disaster area''
means an area with respect to which between August 4,
2018, and November 26, 2018, a major disaster has been
declared by the President under section 401 of such Act
by reason of the wildfire in California commonly known
as the Mendocino and Carr wildfires of 2018.
(6) Camp, woolsey, and hill wildfires.--
(A) Camp, woolsey, and hill wildfire disaster
zone.--The term ``Camp, Woolsey, and Hill wildfire
disaster zone'' means that portion of the Camp,
Woolsey, and Hill wildfire disaster area determined by
the President to warrant individual or individual and
public assistance from the Federal Government under the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act by reason of the wildfires in California
commonly known as the Camp, Woolsey, and Hill wildfires
of 2018.
(B) Camp, woolsey, and hill wildfire disaster
area.--The term ``Camp, Woolsey, and Hill wildfire
disaster area'' means an area with respect to which
between November 12, 2018, and December 15, 2018, a
major disaster has been declared by the President under
section 401 of such Act by reason of the wildfires in
California commonly known as the Camp, Woolsey, and
Hill wildfires of 2018.
SEC. 3. SPECIAL DISASTER-RELATED RULES FOR USE OF RETIREMENT FUNDS.
(a) Tax-Favored Withdrawals From Retirement Plans.--
(1) In general.--Section 72(t) of the Internal Revenue Code
of 1986 shall not apply to any qualified disaster distribution.
(2) Aggregate dollar limitation.--
(A) In general.--For purposes of this subsection,
the aggregate amount of distributions received by an
individual which may be treated as qualified disaster
distributions for any taxable year shall not exceed the
excess (if any) of--
(i) $100,000, over
(ii) the aggregate amounts treated as
qualified disaster distributions received by
such individual for all prior taxable years.
(B) Treatment of plan distributions.--If a
distribution to an individual would (without regard to
subparagraph (A)) be a qualified disaster 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 disaster distribution, unless the aggregate
amount of such distributions from all plans maintained
by the employer (and any member of any controlled group
which includes the employer) to such individual exceeds
$100,000.
(C) Controlled group.--For purposes of subparagraph
(B), the term ``controlled group'' means any group
treated as a single employer under subsection (b), (c),
(m), or (o) of section 414 of the Internal Revenue Code
of 1986.
(D) Special rule for individuals affected by more
than one disaster.--The limitation of subparagraph (A)
shall be applied separately with respect to
distributions described in each clause of paragraph
(4)(A).
(3) Amount distributed may be repaid.--
(A) In general.--Any individual who receives a
qualified disaster 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 the
Internal Revenue Code of 1986, as the case may be.
(B) Treatment of repayments of distributions from
eligible retirement plans other than iras.--For
purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to subparagraph (A) with
respect to a qualified disaster 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 disaster 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.
(C) Treatment of repayments for distributions from
iras.--For purposes of the Internal Revenue Code of
1986, if a contribution is made pursuant to
subparagraph (A) with respect to a qualified disaster
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 disaster 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.
(4) Definitions.--For purposes of this subsection--
(A) Qualified disaster distribution.--Except as
provided in paragraph (2), the term ``qualified
disaster distribution'' means--
(i) any distribution from an eligible
retirement plan made on or after September 7,
2018, and before January 1, 2020, to an
individual whose principal place of abode on
September 7, 2018, is located in the Hurricane
Florence disaster area and who has sustained an
economic loss by reason of Hurricane Florence,
(ii) any distribution from an eligible
retirement plan made on or after October 7,
2018, and before January 1, 2020, to an
individual whose principal place of abode on
October 7, 2018, is located in the Hurricane
Michael disaster area and who has sustained an
economic loss by reason of Hurricane Michael,
(iii) any distribution from an eligible
retirement plan made on or after July 23, 2018,
and before January 1, 2020, to an individual
whose principal place of abode during any
portion of the period from July 23, 2018, to
September 19, 2018, is located in the Mendocino
and Carr wildfire disaster area and who has
sustained an economic loss by reason of the
wildfires to which the declaration of such area
relates, and
(iv) any distribution from an eligible
retirement plan made on or after November 8,
2018, and before January 1, 2020, to an
individual whose principal place of abode
during any portion of the period from November
8, 2018, to December 15, 2018, is located in
the Camp, Woolsey, and Hill wildfire disaster
area and who has sustained an economic loss by
reason of the wildfires to which the
declaration of such area relates.
(B) Eligible retirement plan.--The term ``eligible
retirement plan'' shall have the meaning given such
term by section 402(c)(8)(B) of the Internal Revenue
Code of 1986.
(5) Income inclusion spread over 3-year period.--
(A) In general.--In the case of any qualified
disaster distribution, unless the taxpayer elects not
to have this paragraph 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.
(B) Special rule.--For purposes of subparagraph
(A), rules similar to the rules of subparagraph (E) of
section 408A(d)(3) of the Internal Revenue Code of 1986
shall apply.
(6) Special rules.--
(A) Exemption of distributions from trustee to
trustee transfer and withholding rules.--For purposes
of sections 401(a)(31), 402(f), and 3405 of the
Internal Revenue Code of 1986, qualified disaster
distributions shall not be treated as eligible rollover
distributions.
(B) Qualified disaster distributions treated as
meeting plan distribution requirements.--For purposes
the Internal Revenue Code of 1986, a qualified disaster
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.
(b) Recontributions of Withdrawals for Home Purchases.--
(1) Recontributions.--
(A) In general.--Any individual who received a
qualified distribution may, during the applicable
period, 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.
(B) Treatment of repayments.--Rules similar to the
rules of subparagraphs (B) and (C) of subsection (a)(3)
shall apply for purposes of this subsection.
(2) Qualified distribution.--For purposes of this
subsection--
(A) In general.--The term ``qualified
distribution'' means any qualified Florence
distribution, any qualified Michael distribution, any
qualified Mendocino and Carr distribution, and any
qualified Camp, Woolsey, and Hill distribution.
(B) Qualified florence distribution.--The term
``qualified Florence distribution'' means any
distribution--
(i) 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 the Internal Revenue Code of
1986,
(ii) received after February 28, 2018, and
before November 8, 2018, and
(iii) which was to be used to purchase or
construct a principal residence in the
Hurricane Florence disaster area, but which was
not so purchased or constructed on account of
Hurricane Florence.
(C) Qualified michael distribution.--The term
``qualified Michael distribution'' means any
distribution--
(i) 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 the Internal Revenue Code of
1986,
(ii) received after February 28, 2018, and
before November 23, 2018, and
(iii) which was to be used to purchase or
construct a principal residence in the
Hurricane Michael disaster area, but which was
not so purchased or constructed on account of
Hurricane Michael.
(D) Qualified mendocino and carr distribution.--The
term ``qualified Mendocino and Carr distribution''
means any distribution--
(i) 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 the Internal Revenue Code of
1986,
(ii) received after February 28, 2018, and
before October 19, 2018, and
(iii) which was to be used to purchase or
construct a principal residence in the
Mendocino and Carr wildfire disaster area, but
which was not so purchased or constructed on
account of the wildfires to which the
declaration of such area relates.
(E) Qualified camp, woolsey, and hill
distribution.--The term ``qualified Camp, Woolsey, and
Hill distribution'' means any distribution--
(i) 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 the Internal Revenue Code of
1986,
(ii) received after February 28, 2018, and
before December 30, 2018, and
(iii) which was to be used to purchase or
construct a principal residence in the Camp,
Woolsey, and Hill wildfire disaster area, but
which was not so purchased or constructed on
account of the wildfires to which the
declaration of such area relates.
(3) Applicable period.--For purposes of this subsection,
the term ``applicable period'' means--
(A) with respect to any qualified Florence
distribution, the period beginning on September 7,
2018, and ending on February 28, 2019,
(B) with respect to any qualified Michael
distribution, the period beginning on October 7, 2018,
and ending on February 28, 2019,
(C) with respect to any qualified Mendocino and
Carr distribution, the period beginning on July 23,
2018, and ending on February 28, 2019, and
(D) with respect to any qualified Camp, Woolsey,
and Hill distribution, the period beginning on November
8, 2018, and ending on February 28, 2019.
(c) Loans From Qualified Plans.--
(1) 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
during the period beginning on the date of the enactment of
this Act and ending on December 31, 2019--
(A) clause (i) of section 72(p)(2)(A) of such Code
shall be applied by substituting ``$100,000'' for
``$50,000'', and
(B) 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''.
(2) Delay of repayment.--In the case of a qualified
individual with an outstanding loan on or after the qualified
beginning date from a qualified employer plan (as defined in
section 72(p)(4) of the Internal Revenue Code of 1986)--
(A) if the due date pursuant to subparagraph (B) or
(C) of section 72(p)(2) of such Code for any repayment
with respect to such loan occurs during the period
beginning on the qualified beginning date and ending on
December 31, 2019, such due date shall be delayed for 1
year,
(B) 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
(C) 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
subparagraph (A) shall be disregarded.
(3) Qualified individual.--For purposes of this
subsection--
(A) In general.--The term ``qualified individual''
means any qualified Hurricane Florence individual, any
qualified Hurricane Michael individual, any qualified
Mendocino and Carr individual, and any qualified Camp,
Woolsey, and Hill individual.
(B) Qualified hurricane florence individual.--The
term ``qualified Hurricane Florence individual'' means
any individual whose principal place of abode on
September 7, 2018, is located in the Hurricane Florence
disaster area and who has sustained an economic loss by
reason of Hurricane Florence.
(C) Qualified hurricane michael individual.--The
term ``qualified Hurricane Michael individual'' means
any individual whose principal place of abode on
October 7, 2018, is located in the Hurricane Michael
disaster area and who has sustained an economic loss by
reason of Hurricane Michael.
(D) Qualified mendocino and carr individual.--The
term ``qualified Mendocino and Carr individual'' means
any individual whose principal place of abode during
any portion of the period from July 23, 2018, to
September 19, 2018, is located in the Mendocino and
Carr wildfire disaster area and who has sustained an
economic loss by reason of wildfires to which the
declaration of such area relates.
(E) Qualified camp, woolsey, and hill individual.--
The term ``qualified Camp, Woolsey, and Hill
individual'' means any individual whose principal place
of abode during any portion of the period from November
8, 2018, to December 15, 2018, is located in the Camp,
Woolsey, and Hill wildfire disaster area and who has
sustained an economic loss by reason of wildfires to
which the declaration of such area relates.
(4) Qualified beginning date.--For purposes of this
subsection--
(A) Hurricane florence.--In the case of any
qualified Florence individual, the qualified beginning
date is September 7, 2018.
(B) Hurricane michael.--In the case of any
qualified Michael individual, the qualified beginning
date is October 7, 2018.
(C) Mendocino and carr wildfire.--In the case of
any qualified Mendocino and Carr individual, the
qualified beginning date is July 23, 2018.
(D) Camp, woolsey, and hill wildfire.--In the case
of any qualified Camp, Woolsey, and Hill individual,
the qualified beginning date is November 8, 2018.
(d) Provisions Relating to Plan Amendments.--
(1) In general.--If this subsection 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 paragraph
(2)(B)(i).
(2) Amendments to which subsection applies.--
(A) In general.--This subsection shall apply to any
amendment to any plan or annuity contract which is
made--
(i) pursuant to any provision of this
section, or pursuant to any regulation issued
by the Secretary or the Secretary of Labor
under any provision of this section, and
(ii) on or before the last day of the first
plan year beginning on or after January 1,
2020, or such later date as the Secretary may
prescribe.
In the case of a governmental plan (as defined in
section 414(d) of the Internal Revenue Code of 1986),
clause (ii) shall be applied by substituting the date
which is 2 years after the date otherwise applied under
clause (ii).
(B) Conditions.--This subsection shall not apply to
any amendment unless--
(i) during the period--
(I) beginning on the date that this
section or the regulation described in
subparagraph (A)(i) takes effect (or in
the case of a plan or contract
amendment not required by this section
or such regulation, the effective date
specified by the plan), and
(II) ending on the date described
in subparagraph (A)(ii) (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
(ii) such plan or contract amendment
applies retroactively for such period.
SEC. 4. EMPLOYMENT RELIEF.
(a) Employee Retention Credit for Employers Affected by Hurricane
Florence.--
(1) In general.--For purposes of section 38 of the Internal
Revenue Code of 1986, in the case of an eligible employer, the
Hurricane Florence employee retention credit shall be treated
as a credit listed in subsection (b) of such section. For
purposes of this subsection, the Hurricane Florence employee
retention credit for any taxable year is an amount equal to 40
percent of the qualified wages with respect to each eligible
employee of such employer for such taxable year. For purposes
of the preceding sentence, the amount of qualified wages which
may be taken into account with respect to any individual shall
not exceed $6,000.
(2) Definitions.--For purposes of this subsection--
(A) Eligible employer.--The term ``eligible
employer'' means any employer--
(i) which conducted an active trade or
business on September 7, 2018, in the Hurricane
Florence disaster zone, and
(ii) with respect to whom the trade or
business described in clause (i) is inoperable
on any day after September 7, 2018, and before
January 1, 2019, as a result of damage
sustained by reason of Hurricane Florence.
(B) Eligible employee.--The term ``eligible
employee'' means with respect to an eligible employer
an employee whose principal place of employment on
September 7, 2018, with such eligible employer was in
the Hurricane Florence disaster zone.
(C) Qualified wages.--The term ``qualified wages''
means wages (as defined in section 51(c)(1) of the
Internal Revenue Code of 1986, but without regard to
section 3306(b)(2)(B) of such Code) paid or incurred by
an eligible employer with respect to an eligible
employee on any day after September 7, 2018, and before
January 1, 2019, which occurs during the period--
(i) beginning on the date on which the
trade or business described in subparagraph (A)
first became inoperable at the principal place
of employment of the employee immediately
before Hurricane Florence, and
(ii) ending on the date on which such trade
or business has resumed significant operations
at such principal place of employment.
Such term shall include wages paid without regard to
whether the employee performs no services, performs
services at a different place of employment than such
principal place of employment, or performs services at
such principal place of employment before significant
operations have resumed.
(3) Certain rules to apply.--For purposes of this
subsection, rules similar to the rules of sections 51(i)(1),
52, and 280C(a), of the Internal Revenue Code of 1986, shall
apply.
(4) Employee not taken into account more than once.--An
employee shall not be treated as an eligible employee for
purposes of this subsection for any period with respect to any
employer if such employer is allowed a credit under section 51
of the Internal Revenue Code of 1986 with respect to such
employee for such period.
(b) Employee Retention Credit for Employers Affected by Hurricane
Michael.--
(1) In general.--For purposes of section 38 of the Internal
Revenue Code of 1986, in the case of an eligible employer, the
Hurricane Michael employee retention credit shall be treated as
a credit listed in subsection (b) of such section. For purposes
of this subsection, the Hurricane Michael employee retention
credit for any taxable year is an amount equal to 40 percent of
the qualified wages with respect to each eligible employee of
such employer for such taxable year. For purposes of the
preceding sentence, the amount of qualified wages which may be
taken into account with respect to any individual shall not
exceed $6,000.
(2) Definitions.--For purposes of this subsection--
(A) Eligible employer.--The term ``eligible
employer'' means any employer--
(i) which conducted an active trade or
business on October 7, 2018, in the Hurricane
Michael disaster zone, and
(ii) with respect to whom the trade or
business described in clause (i) is inoperable
on any day after October 7, 2018, and before
January 1, 2019, as a result of damage
sustained by reason of Hurricane Michael.
(B) Eligible employee.--The term ``eligible
employee'' means with respect to an eligible employer
an employee whose principal place of employment on
October 7, 2018, with such eligible employer was in the
Hurricane Michael disaster zone.
(C) Qualified wages.--The term ``qualified wages''
means wages (as defined in section 51(c)(1) of the
Internal Revenue Code of 1986, but without regard to
section 3306(b)(2)(B) of such Code) paid or incurred by
an eligible employer with respect to an eligible
employee on any day after October 7, 2018, and before
January 1, 2019, which occurs during the period--
(i) beginning on the date on which the
trade or business described in subparagraph (A)
first became inoperable at the principal place
of employment of the employee immediately
before Hurricane Michael, and
(ii) ending on the date on which such trade
or business has resumed significant operations
at such principal place of employment.
Such term shall include wages paid without regard to
whether the employee performs no services, performs
services at a different place of employment than such
principal place of employment, or performs services at
such principal place of employment before significant
operations have resumed.
(3) Certain rules to apply.--For purposes of this
subsection, rules similar to the rules of sections 51(i)(1),
52, and 280C(a), of the Internal Revenue Code of 1986, shall
apply.
(4) Employee not taken into account more than once.--An
employee shall not be treated as an eligible employee for
purposes of this subsection for any period with respect to any
employer if such employer is allowed a credit under section 51
of the Internal Revenue Code of 1986 with respect to such
employee for such period.
(c) Employee Retention Credit for Employers Affected by Mendocino
and Carr Wildfires.--
(1) In general.--For purposes of section 38 of the Internal
Revenue Code of 1986, in the case of an eligible employer, the
Mendocino and Carr wildfire employee retention credit shall be
treated as a credit listed in subsection (b) of such section.
For purposes of this subsection, the Mendocino and Carr
wildfire employee retention credit for any taxable year is an
amount equal to 40 percent of the qualified wages with respect
to each eligible employee of such employer for such taxable
year. For purposes of the preceding sentence, the amount of
qualified wages which may be taken into account with respect to
any individual shall not exceed $6,000.
(2) Definitions.--For purposes of this subsection--
(A) Eligible employer.--The term ``eligible
employer'' means any employer--
(i) which conducted an active trade or
business for any portion of the period from
July 23, 2018, to September 19, 2018, in the
Mendocino and Carr wildfire disaster zone, and
(ii) with respect to whom the trade or
business described in clause (i) is inoperable
on any day after July 23, 2018, and before
January 1, 2019, as a result of damage
sustained by reason of the wildfires to which
the declaration of the Mendocino and Carr
wildfire disaster area relates.
(B) Eligible employee.--The term ``eligible
employee'' means with respect to an eligible employer
an employee whose principal place of employment for any
portion of the period from July 23, 2018, to September
19, 2018, with such eligible employer was in the
Mendocino and Carr wildfire disaster zone.
(C) Qualified wages.--The term ``qualified wages''
means wages (as defined in section 51(c)(1) of the
Internal Revenue Code of 1986, but without regard to
section 3306(b)(2)(B) of such Code) paid or incurred by
an eligible employer with respect to an eligible
employee on any day after July 23, 2018, and before
January 1, 2019, which occurs during the period--
(i) beginning on the date on which the
trade or business described in subparagraph (A)
first became inoperable at the principal place
of employment of the employee immediately
before the wildfires to which the declaration
of the Mendocino and Carr wildfire disaster
area relates, and
(ii) ending on the date on which such trade
or business has resumed significant operations
at such principal place of employment.
Such term shall include wages paid without regard to
whether the employee performs no services, performs
services at a different place of employment than such
principal place of employment, or performs services at
such principal place of employment before significant
operations have resumed.
(3) Certain rules to apply.--For purposes of this
subsection, rules similar to the rules of sections 51(i)(1),
52, and 280C(a), of the Internal Revenue Code of 1986, shall
apply.
(4) Employee not taken into account more than once.--An
employee shall not be treated as an eligible employee for
purposes of this subsection for any period with respect to any
employer if such employer is allowed a credit under section 51
of the Internal Revenue Code of 1986 with respect to such
employee for such period.
(d) Employee Retention Credit for Employers Affected by Camp,
Woolsey, and Hill Wildfires.--
(1) In general.--For purposes of section 38 of the Internal
Revenue Code of 1986, in the case of an eligible employer, the
Camp, Woolsey, and Hill wildfire employee retention credit
shall be treated as a credit listed in subsection (b) of such
section. For purposes of this subsection, the Camp, Woolsey,
and Hill wildfire employee retention credit for any taxable
year is an amount equal to 40 percent of the qualified wages
with respect to each eligible employee of such employer for
such taxable year. For purposes of the preceding sentence, the
amount of qualified wages which may be taken into account with
respect to any individual shall not exceed $6,000.
(2) Definitions.--For purposes of this subsection--
(A) Eligible employer.--The term ``eligible
employer'' means any employer--
(i) which conducted an active trade or
business for any portion of the period from
November 8, 2018, to December 15, 2018, in the
Camp, Woolsey, and Hill wildfire disaster zone,
and
(ii) with respect to whom the trade or
business described in clause (i) is inoperable
on any day after November 8, 2018, and before
January 1, 2019, as a result of damage
sustained by reason of the wildfires to which
the declaration of the Camp, Woolsey, and Hill
wildfire disaster area relates.
(B) Eligible employee.--The term ``eligible
employee'' means with respect to an eligible employer
an employee whose principal place of employment for any
portion of the period from November 8, 2018, to
December 15, 2018, with such eligible employer was in
the Camp, Woolsey, and Hill wildfire disaster zone.
(C) Qualified wages.--The term ``qualified wages''
means wages (as defined in section 51(c)(1) of the
Internal Revenue Code of 1986, but without regard to
section 3306(b)(2)(B) of such Code) paid or incurred by
an eligible employer with respect to an eligible
employee on any day after November 8, 2018, and before
January 1, 2019, which occurs during the period--
(i) beginning on the date on which the
trade or business described in subparagraph (A)
first became inoperable at the principal place
of employment of the employee immediately
before the wildfires to which the declaration
of the Camp, Woolsey, and Hill wildfire
disaster area relates, and
(ii) ending on the date on which such trade
or business has resumed significant operations
at such principal place of employment.
Such term shall include wages paid without regard to
whether the employee performs no services, performs
services at a different place of employment than such
principal place of employment, or performs services at
such principal place of employment before significant
operations have resumed.
(3) Certain rules to apply.--For purposes of this
subsection, rules similar to the rules of sections 51(i)(1),
52, and 280C(a), of the Internal Revenue Code of 1986, shall
apply.
(4) Employee not taken into account more than once.--An
employee shall not be treated as an eligible employee for
purposes of this subsection for any period with respect to any
employer if such employer is allowed a credit under section 51
of the Internal Revenue Code of 1986 with respect to such
employee for such period.
SEC. 5. ADDITIONAL DISASTER-RELATED TAX RELIEF PROVISIONS.
(a) Temporary Suspension of Limitations on Charitable
Contributions.--
(1) In general.--Except as otherwise provided in paragraph
(2), subsection (b) of section 170 of the Internal Revenue Code
of 1986 shall not apply to qualified contributions and such
contributions shall not be taken into account for purposes of
applying subsections (b) and (d) of such section to other
contributions.
(2) Treatment of excess contributions.--For purposes of
section 170 of the Internal Revenue Code of 1986--
(A) Individuals.--In the case of an individual--
(i) Limitation.--Any qualified contribution
shall be allowed only to the extent that the
aggregate of such contributions does not exceed
the excess of the taxpayer's contribution base
(as defined in subparagraph (H) of section
170(b)(1) of such Code) over the amount of all
other charitable contributions allowed under
section 170(b)(1) of such Code.
(ii) Carryover.--If the aggregate amount of
qualified contributions made in the
contribution year (within the meaning of
section 170(d)(1) of such Code) exceeds the
limitation of clause (i), such excess shall be
added to the excess described in the portion of
subparagraph (A) of such section which precedes
clause (i) thereof for purposes of applying
such section.
(B) Corporations.--In the case of a corporation--
(i) Limitation.--Any qualified contribution
shall be allowed only to the extent that the
aggregate of such contributions does not exceed
the excess of the taxpayer's taxable income (as
determined under paragraph (2) of section
170(b) of such Code) over the amount of all
other charitable contributions allowed under
such paragraph.
(ii) Carryover.--Rules similar to the rules
of subparagraph (A)(ii) shall apply for
purposes of this subparagraph.
(3) Qualified contributions.--
(A) In general.--For purposes of this subsection,
the term ``qualified contribution'' means any
charitable contribution (as defined in section 170(c)
of the Internal Revenue Code of 1986) if--
(i) such contribution--
(I) is paid during the period
beginning on July 23, 2018, and ending
on December 31, 2018, in cash to an
organization described in section
170(b)(1)(A) of such Code, and
(II) is made for relief efforts in
the Hurricane Florence disaster area,
the Hurricane Michael disaster area,
the Mendocino and Carr wildfire
disaster area, or the Camp, Woolsey,
and Hill wildfire disaster area,
(ii) the taxpayer obtains from such
organization contemporaneous written
acknowledgment (within the meaning of section
170(f)(8) of such Code) that such contribution
was used (or is to be used) for relief efforts
described in clause (i)(II), and
(iii) the taxpayer has elected the
application of this subsection with respect to
such contribution.
(B) Exception.--Such term shall not include a
contribution by a donor if the contribution is--
(i) to an organization described in section
509(a)(3) of the Internal Revenue Code of 1986,
or
(ii) for the establishment of a new, or
maintenance of an existing, donor advised fund
(as defined in section 4966(d)(2) of such
Code).
(C) Application of election to partnerships and s
corporations.--In the case of a partnership or S
corporation, the election under subparagraph (A)(iii)
shall be made separately by each partner or
shareholder.
(b) Special Rules for Qualified Disaster-Related Personal Casualty
Losses.--
(1) In general.--If an individual has a net disaster loss
for any taxable year--
(A) the amount determined under section
165(h)(2)(A)(ii) of the Internal Revenue Code of 1986
shall be equal to the sum of--
(i) such net disaster loss, and
(ii) so much of the excess referred to in
the matter preceding clause (i) of section
165(h)(2)(A) of such Code (reduced by the
amount in clause (i) of this subparagraph) as
exceeds 10 percent of the adjusted gross income
of the individual,
(B) section 165(h)(1) of such Code shall be applied
by substituting ``$500'' for ``$500 ($100 for taxable
years beginning after December 31, 2009)'',
(C) the standard deduction determined under section
63(c) of such Code shall be increased by the net
disaster loss, and
(D) section 56(b)(1)(E) of such Code shall not
apply to so much of the standard deduction as is
attributable to the increase under subparagraph (C) of
this paragraph.
(2) Net disaster loss.--For purposes of this subsection,
the term ``net disaster loss'' means the excess of qualified
disaster-related personal casualty losses over personal
casualty gains (as defined in section 165(h)(3)(A) of the
Internal Revenue Code of 1986).
(3) Qualified disaster-related personal casualty losses.--
For purposes of this subsection, the term ``qualified disaster-
related personal casualty losses'' means--
(A) losses described in section 165(c)(3) of the
Internal Revenue Code of 1986 which arise in the
Hurricane Florence disaster area on or after September
7, 2018, and which are attributable to Hurricane
Florence,
(B) losses described in section 165(c)(3) of the
Internal Revenue Code of 1986 which arise in the
Hurricane Michael disaster area on or after October 7,
2018, and which are attributable to Hurricane Michael,
(C) losses described in section 165(c)(3) of the
Internal Revenue Code of 1986 which arise in the
Mendocino and Carr wildfire disaster area on or after
July 23, 2018, and which are attributable to the
wildfires to which the declaration of such area
relates, and
(D) losses described in section 165(c)(3) of the
Internal Revenue Code of 1986 which arise in the Camp,
Woolsey, and Hill wildfire disaster area on or after
November 8, 2018, and which are attributable to the
wildfires to which the declaration of such area
relates.
(c) Special Rule for Determining Earned Income.--
(1) In general.--In the case of a qualified individual, if
the earned income of the taxpayer for the applicable taxable
year is less than the earned income of the taxpayer for the
preceding taxable year, the credits allowed under sections
24(d) and 32 of the Internal Revenue Code of 1986 may, at the
election of the taxpayer, be determined by substituting--
(A) such earned income for the preceding taxable
year, for
(B) such earned income for the applicable taxable
year.
(2) Qualified individual.--For purposes of this
subsection--
(A) In general.--The term ``qualified individual''
means any qualified Hurricane Florence individual, any
qualified Hurricane Michael individual, any qualified
Mendocino and Carr individual, and any qualified Camp,
Woolsey, and Hill individual.
(B) Qualified hurricane florence individual.--The
term ``qualified Hurricane Florence individual'' means
any individual whose principal place of abode on
September 7, 2018, was located--
(i) in the Hurricane Florence disaster
zone, or
(ii) in the Hurricane Florence disaster
area (but outside the Hurricane Florence
disaster zone) and such individual was
displaced from such principal place of abode by
reason of Hurricane Florence.
(C) Qualified hurricane michael individual.--The
term ``qualified Hurricane Michael individual'' means
any individual whose principal place of abode on
October 7, 2018, was located--
(i) in the Hurricane Michael disaster zone,
or
(ii) in the Hurricane Michael disaster area
(but outside the Hurricane Michael disaster
zone) and such individual was displaced from
such principal place of abode by reason of
Hurricane Michael.
(D) Qualified mendocino and carr individual.--The
term ``qualified Mendocino and Carr individual'' means
any individual whose principal place of abode during
any portion of the period from July 23, 2018, to
September 19, 2018, was located--
(i) in the Mendocino and Carr wildfire
disaster zone, or
(ii) in the Mendocino and Carr wildfire
disaster area (but outside the Mendocino and
Carr wildfire disaster zone) and such
individual was displaced from such principal
place of abode by reason of the wildfires to
which the declaration of such area relates.
(E) Qualified camp, woolsey, and hill individual.--
The term ``qualified Camp, Woolsey, and Hill
individual'' means any individual whose principal place
of abode during any portion of the period from November
8, 2018, to December 15, 2018, was located--
(i) in the Camp, Woolsey, and Hill wildfire
disaster zone, or
(ii) in the Camp, Woolsey, and Hill
wildfire disaster area (but outside the Camp,
Woolsey, and Hill disaster zone) and such
individual was displaced from such principal
place of abode by reason of the wildfires to
which the declaration of such area relates.
(3) Applicable taxable year.--The term ``applicable taxable
year'' means the taxable year which includes--
(A) in the case of a qualified Hurricane Florence
individual, September 7, 2018,
(B) in the case of a qualified Hurricane Michael
individual, October 7, 2018,
(C) in the case of a qualified Mendocino and Carr
individual, any portion of the period from July 23,
2018, to September 19, 2018, and
(D) in the case of a qualified Camp, Woolsey, and
Hill individual, any portion of the period from
November 8, 2018, to December 15, 2018.
(4) Earned income.--For purposes of this subsection, the
term ``earned income'' has the meaning given such term under
section 32(c) of the Internal Revenue Code of 1986.
(5) Special rules.--
(A) Application to joint returns.--For purposes of
paragraph (1), in the case of a joint return for an
applicable taxable year--
(i) such paragraph shall apply if either
spouse is a qualified individual, and
(ii) the earned income of the taxpayer for
the preceding taxable year shall be the sum of
the earned income of each spouse for such
preceding taxable year.
(B) Uniform application of election.--Any election
made under paragraph (1) shall apply with respect to
both sections 24(d) and 32, of the Internal Revenue
Code of 1986.
(C) Errors treated as mathematical error.--For
purposes of section 6213 of the Internal Revenue Code
of 1986, an incorrect use on a return of earned income
pursuant to paragraph (1) shall be treated as a
mathematical or clerical error.
(D) No effect on determination of gross income,
etc.--Except as otherwise provided in this subsection,
the Internal Revenue Code of 1986 shall be applied
without regard to any substitution under paragraph (1).
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line