IN THE SENATE OF THE UNITED STATES
September 20, 2012
Mr. Vitter introduced the following bill; which was read twice and referred to the Committee on Finance
To provide tax relief with respect to the Hurricane Isaac disaster area.
This Act may be cited as the
Investment Savings Access After
Catastrophes Act of 2012.
Hurricane Isaac disaster area
For purposes of this Act, the term Hurricane Isaac disaster area means any parish or county of Louisiana or Mississippi which is (in whole or in part) in the area with respect to which a major disaster has been declared by the President before September 10, 2012, under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of Hurricane Isaac.
Suspension of personal casualty loss limitations
Paragraphs (1) and (2) 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 Isaac disaster area during the 2-year period beginning on August 26, 2012, and which are attributable to Hurricane Isaac. 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.
Treatment of net operating losses attributable to Hurricane Isaac
Extension of carryback period
During the 2-year period beginning on August 26, 2012, if a portion of any net operating loss of the taxpayer for any taxable year is a Hurricane Isaac loss, section 172(b)(1) of the Internal Revenue Code of 1986 shall be applied with respect to such portion—
5 taxable years for
2 taxable years in
subparagraph (A)(i) thereof, and
by not taking such portion into account in determining any eligible loss of the taxpayer under subparagraph (F) thereof for the taxable year.
Suspension of 90 percent AMT limitation
Section 56(d)(1) of such Code shall be applied by increasing the amount determined under subparagraph (A)(ii)(I) thereof by the sum of the carrybacks and carryovers of any net operating loss attributable to the portion described in subsection (a).
Hurricane Isaac loss
For purposes of this section—
The term Hurricane Isaac loss means the lesser of—
the excess of—
the net operating loss for such taxable year, over
the specified liability loss for such taxable year to which a 10-year carryback applies under section 172(b)(1)(C) of such Code, or
the amount of any deduction for any qualified Hurricane Isaac casualty loss to the extent taken into account in computing the net operating loss for such taxable year.
Qualified Hurricane Isaac casualty loss
The term qualified Hurricane Isaac casualty loss means any uncompensated section 1231 loss (as defined in section 1231(a)(3)(B) of such Code) of property located in the Hurricane Isaac disaster area if—
such loss is allowed as a deduction under section 165 of such Code for the taxable year, and
such loss is by reason of Hurricane Isaac.
For purposes of subparagraph (A), rules similar to the rules of subparagraphs (B) and (C) of paragraph (3), and paragraph (4), of section 1400N(k) of such Code and shall apply.
Tax-favored withdrawals from retirement plans
A qualified Hurricane Isaac distribution shall be treated as a qualified hurricane distribution for purposes of section 1400Q(a) of the Internal Revenue Code of 1986.
Qualified Hurricane Isaac distribution
For purposes of subsection (a), the term qualified Hurricane Isaac distribution means any distribution from an eligible retirement plan made on or after August 26, 2012, and before September 11, 2014, to an individual whose principal place of abode on August 26, 2012, is located in the Hurricane Isaac disaster area and who has sustained an economic loss by reason of Hurricane Isaac.
For purposes of this section, rules similar to the rules of section 1400Q(a) of such Code (other than paragraph (4)(A) thereof) shall apply.
Rescission of unspent and uncommitted Federal funds
Notwithstanding any other provision of law, of all available unobligated Federal funds, an amount in appropriated discretionary unexpired funds determined by the Director of the Office of Management and Budget to be equal to the reduction in Federal revenues by reason of the enactment of this Act is rescinded.
Not later than 60 days after the date of enactment of this Act, the Director of the Office of Management and Budget shall—
identify the accounts and amounts rescinded to implement subsection (a); and
submit a report to the Secretary of the Treasury and Congress of the accounts and amounts identified under paragraph (1) for rescission.
This section shall not apply to the unobligated Federal funds of the Department of Defense or the Department of Veterans Affairs.