H.R. 2718 (112th): Disaster Tax Act of 2011

112th Congress, 2011–2013. Text as of Aug 01, 2011 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

1st Session

H. R. 2718

IN THE HOUSE OF REPRESENTATIVES

August 1, 2011

(for himself, Mr. Neal, Mr. Bachus, and Ms. Sewell) 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 extend and expand tax relief for national disasters.

1.

Short title

This Act may be cited as the Disaster Tax Act of 2011.

2.

Losses attributable to federally declared disasters

(a)

Waiver of adjusted gross income limitation; increase in standard deduction by disaster casualty loss

(1)

In general

Subclause (I) of section 165(h)(3)(B)(i) of the Internal Revenue Code of 1986 is amended by striking before January 1, 2010 and inserting after December 31, 2010.

(2)

Effective date

The amendment made by this subsection shall apply to disasters declared in taxable years beginning after December 31, 2010.

(b)

Increase in limitation on individual loss per casualty

(1)

In general

Paragraph (1) of section 165(h) of the Internal Revenue Code of 1986 is amended by striking ($100 for taxable years beginning after December 31, 2009).

(2)

Effective date

The amendment made by this subsection shall apply to taxable years beginning after December 31, 2010.

(c)

Technical amendment

Clause (i) of section 165(h)(3)(C) of the Internal Revenue Code of 1986 is amended by inserting major after means any.

3.

Expensing of qualified disaster expenses

(a)

In general

Subparagraph (A) of section 198A(b)(2) of the Internal Revenue Code of 1986 is amended by striking before January 1, 2010 and inserting after December 31, 2010.

(b)

Effective date

The amendment made by this section shall apply to amounts paid or incurred after December 31, 2010, in connection with disasters declared after such date.

4.

Net operating losses attributable to federally declared disasters

(a)

In general

Subclause (I) of section 172(j)(1)(A)(i) of the Internal Revenue Code of 1986 is amended by striking before January 1, 2010 and inserting after December 31, 2010.

(b)

Elimination of exclusion

Section 172(j) of the Internal Revenue Code of 1986 is amended by striking paragraph (4).

(c)

Effective date

The amendments made by this section shall apply to losses arising in taxable years beginning after December 31, 2010, in connection with disasters declared after such date.

5.

Waiver of certain mortgage revenue bond requirements following federally declared disasters

(a)

In general

Subparagraphs (A)(i) and (B)(i) of section 143(k)(12) of the Internal Revenue Code of 1986, as added by the Tax Extenders and Alternative Minimum Tax Relief Act of 2008, are each amended by striking before January 1, 2010 and inserting after December 31, 2010.

(b)

Effective date

The amendments made by this section shall apply to disasters occurring after December 31, 2010.

6.

Increased expensing for qualified disaster assistance property

(a)

In general

Paragraph (2) of section 179(e) of the Internal Revenue Code of 1986 is amended by inserting , except that after December 31, 2010 shall be substituted for before January 1, 2010 in subparagraph (A)(ii)(I) thereof after as defined in section 168(n)(2).

(b)

Elimination of exclusion

Section 168(n)(2)(B) of the Internal Revenue Code of 1986 is amended by inserting and at the end of clause (i), by striking , and at the end of clause (ii) and inserting a period, and by striking clause (iii).

(c)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2010, with respect to disasters declared after such date.

7.

Increased limitation on charitable contributions for disaster relief

(a)

Individuals

Paragraph (1) of section 170(b) of the Internal Revenue Code of 1986 is amended by redesignating subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively, and by inserting after subparagraph (E) the following new subparagraph:

(F)

Qualified disaster contributions

(i)

In general

Any qualified disaster contribution shall be allowed to the extent that the aggregate of such contributions does not exceed the excess of 80 percent of the taxpayer's contribution base over the amount of all other charitable contributions allowable under this paragraph.

(ii)

Carryover

If the aggregate amount of contributions described in clause (i) exceeds the limitation under clause (i), such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution to which clause (i) applies in each of the 5 succeeding years in order of time.

(iii)

Coordination with other subparagraphs

For purposes of applying this subsection and subsection (d)(1), contributions described in clause (i) shall not be treated as described in subparagraphs (A) and such subparagraph shall be applied without regard to such contributions.

(iv)

Qualified disaster contributions

For purposes of this subparagraph, the term qualified disaster contribution means any charitable contribution if—

(I)

such contribution is made after the date of the enactment of this paragraph,

(II)

such contribution is made in cash to an organization described in subparagraph (A) (other than an organization described in section 509(a)(3)), and

(III)

such contribution is for relief efforts related to a federally declared disaster (as defined in section 165(h)(3)(C)(i)).

Such term shall not include a contribution if the contribution is for establishment of a new, or maintenance in an existing, donor advised fund (as defined in section 4966(d)(2)).
(v)

Substantiation requirement

This paragraph shall not apply to any qualified disaster contribution unless the taxpayer obtains from such organization to which the contribution was made a contemporaneous written acknowledgment (within the meaning of subsection (f)(8)) that such contribution was used (or is to be used) for a purpose described in clause (iv)(III).

.

(b)

Corporations

(1)

In general

Paragraph (2) of section 170(b) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph:

(C)

Qualified disaster contributions

(i)

In general

Any qualified disaster contribution shall be allowed to the extent that the aggregate of such contributions does not exceed the excess of 20 percent of the taxpayer's taxable income over the amount of charitable contributions allowed under subparagraph (A).

(ii)

Carryover

If the aggregate amount of contributions described in clause (i) exceeds the limitation under clause (i), such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution to which clause (i) applies in each of the 5 succeeding years in order of time.

(iii)

Qualified disaster contribution

The term qualified disaster contribution has the meaning given such term under paragraph (2)(F)(iv).

(iv)

Substantiation requirement

This paragraph shall not apply to any qualified disaster contribution unless the taxpayer obtains from such organization to which the contribution was made a contemporaneous written acknowledgment (within the meaning of subsection (f)(8)) that such contribution was used (or is to be used) for a purpose described in paragraph (1)(F)(iv)(III).

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(2)

Conforming amendments

(A)

Subparagraph (A) of section 170(b)(2) of such Code is amended by striking subparagraph (B) applies and inserting subparagraphs (B) and (C) apply.

(B)

Subparagraph (B) of section 170(b)(2) of such Code is amended by striking subparagraph (A) and inserting subparagraphs (A) and (C).

(c)

Effective date

The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

8.

Increase in new markets tax credit for investments in community development entities serving disaster areas

(a)

In general

Subsection (f) of section 45D of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(4)

Increased special allocation for community development entities serving federal disaster areas

(A)

In general

In the case of any calendar year which begins after 2010, the limitation under paragraph (1) shall be increased by an amount equal to $250,000,000, to be allocated among qualified community development entities to make qualified low-income community investments within a federally declared disaster area.

(B)

Allocation of increase

The amount of the increase in limitation under subparagraph (A) shall be allocated by the Secretary under paragraph (2) to qualified community development entities and shall give priority to such entities with a record of having successfully provided capital or technical assistance to businesses or communities within the federally declared disaster area or areas for which the allocation is requested.

(C)

Denial of carryforward

Paragraph (3) shall not apply with respect to the amount of any increase under subparagraph (A).

(D)

Federally declared disaster area

For purposes of this paragraph, the term Federally declared disaster area means an area determined to warrant assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act pursuant to a federally declared disaster (as defined in section 165(h)(3)(C)).

.

(b)

Effective date

The amendments made by this section shall apply to calendar years beginning after 2010.