,i #aacth ,,congress #ast ,session ,h4 ,r4 #bacg ,,in ,,the ,,house ,,of ,,representatives ,may #bc1 #bjac ,mr4 ,pascrell 7for himself1 ,mr4 ,runyan1 ,mr4 ,grimm1 ,mr4 ,lance1 ,mr4 ,king of ,new ,york1 ,mr4 ,reed1 ,mr4 ,frelinghuysen1 ,mr4 ,lo,biondo1 ,mr4 ,smith of ,new ,jersey1 ,mr4 ,rangel1 ,mr4 ,crowley1 ,mr4 ,larson of ,connecticut1 ,mr4 ,meeks1 ,mr4 ,courtney1 ,ms4 ,de,lauro1 ,mr4 ,bishop of ,new ,york1 ,mrs4 ,mc,carthy of ,new ,york1 ,mr4 ,langevin1 ,mr4 ,payne1 ,mr4 ,serrano1 ,mr4 ,pallone1 ,mr4 ,nadler1 ,mr4 ,sires1 ,mr4 ,andrews1 ,mr4 ,engel1 ,mr4 ,cicilline1 ,mr4 ,israel1 ,ms4 ,meng1 and ,mr4 ,holt7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide tax relief for damages relating to ,hurricane ,sandy1 and for other purposes4 #a4 ,short title1 etc 7a7 ,short title ,this ,act may be cited as the ,hurricane ,sandy ,tax ,relief ,act of #bjac4 7b7 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 7c7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title1 etc4 ,sec4 #b4 ,waiver of adjusted gross income limitation for losses and increase in standard deduction by disaster casualty losses attributable to ,hurricane ,sandy4 ,sec4 #c4 ,expensing of qualified disaster expenses4 ,sec4 #d4 ,net operating losses attributable to federally declared disasters4 ,sec4 #e4 ,waiver of certain mortgage revenue bond requirements following federally declared disasters4 ,sec4 #f4 ,increased expensing for ,hurricane ,sandy qualified disaster assistance property4 ,sec4 #g4 ,increased limitation on charitable contributions for disaster relief4 ,sec4 #h4 ,increase in new markets tax credit for investments in community development entities serving ,hurricane ,sandy disaster areas4 ,sec4 #i4 ,extension of expensing for environmental remediation costs4 ,sec4 #aj4 ,special rule for public utility casualty losses4 ,sec4 #aa4 ,determination of earned income for purposes of earned income credit and child tax credit4 ,sec4 #ab4 ,work ,opportunity ,credit4 ,sec4 #ac4 ,hurricane ,sandy ,bonds4 ,sec4 #ad4 ,additional low-income housing credit may be allocated in ,states damaged by ,hurricane ,sandy4 ,sec4 #ae4 ,special rules for use of retirement funds4 #b4 ,waiver of adjusted gross income limitation for losses and increase in standard deduction by disaster casualty losses attributable to ,hurricane ,sandy 7a7 ,in general ,subclause 7,i7 of section #afe7;h77#c77;,b77i7 is amended by striking ,january #a1 #bjaj and inserting ,january #a1 #bjaj1 or the ,hurricane ,sandy federally declared disaster4 7b7 ,hurricane ,sandy federally declared disaster ,paragraph 7#c7 of section #afe7;h7 is amended by adding at the end the following new subparagraph3 7,d7 ,application to ,hurricane ,sandy 7i7 ,in general ,personal casualty losses shall be treated as described in subparagraph 7,b77i7 if such losses-- 7,i7 are attributable to the ,hurricane ,sandy federally declared disaster1 and 7,,ii7 occur in the ,hurricane ,sandy disaster area4 7ii7 ,hurricane ,sandy federally declared disaster ,for purposes of clause 7i71 the term ,hurricane ,sandy federally declared disaster means the disaster occurring by reason of ,hurricane ,sandy and determined by the ,president before ,november #d1 #bjab1 to warrant individual or individual and public assistance from the ,federal ,government under the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act4 7iii7 ,hurricane ,sandy disaster area ,the term ,hurricane ,sandy disaster area means the area so determined to warrant such assistance4 4 7c7 ,effective date ,the amendments made by this subsection shall apply to taxable years ending after ,october #bh1 #bjab4 #c4 ,expensing of qualified disaster expenses 7a7 ,in general ,paragraph 7#b7 of #aih;,a7b7 is amended-- 7#a7 in subparagraph 7,a7 by striking ,january #a1 #bjaj and inserting ,january #a1 #bjaj1 or released in the ,hurricane ,sandy disaster area on account of the ,hurricane ,sandy federally declared disaster1 as defined by section #afe7;h77#c77;,d71 7#b7 in subparagraph 7,b7 by striking such date and inserting such date or which is business-related property in the ,hurricane ,sandy disaster area that is damaged or destroyed as a result of the ,hurricane ,sandy federally declared disaster 7as so defined71 and 7#c7 in subparagraph 7,c7 by striking such date and inserting such date or which is business-related property in the ,hurricane ,sandy disaster area that is damaged as a result of the ,hurricane ,sandy federally declared disaster 7as so defined74 7b7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred after ,october #bh1 #bjab4 #d4 ,net operating losses attributable to federally declared disasters 7a7 ,in general ,subsection 7j7 of section #agb is amended by adding at the end the following new paragraph3 7#e7 ,application to ,hurricane ,sandy 7,a7 ,in general ,losses shall be treated as described in paragraph 7#a77;,a77i7 if such losses are attributable to the ,hurricane ,sandy federally declared disaster 7as defined in section #afe7;h77#c77;,d77 and occur in the ,hurricane ,sandy disaster area 7as so defined74 7,b7 ,special rule ,for purposes of subparagraph 7,a71 paragraph 7#d7 shall not apply4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years ending after ,october #bh1 #bjab4 #e4 ,waiver of certain mortgage revenue bond requirements following federally declared disasters 7a7 ,in general ,subparagraphs 7,a77i7 and 7,b77i7 of section #adc7k77#ab71 as added by the ,tax ,extenders and ,alternative ,minimum ,tax ,relief ,act of #bjjh1 are each amended by striking ,january #a1 #bjaj and inserting ,january #a1 #bjaj1 or in the case of a residence located in the ,hurricane ,sandy disaster area on ,october #bi1 #bjab1 by reason of the ,hurricane ,sandy federally declared disaster1 as defined by section #afe7;h77#c77;,d74 7b7 ,conforming amendments ,subparagraph 7,a77ii7 of such section is amended by striking such date and inserting such date or by reason of the ,hurricane ,sandy federally declared disaster 7as so defined74 7c7 ,effective date ,the amendments made by this section shall apply to disasters occurring after ,october #bh1 #bjab4 #f4 ,increased expensing for ,hurricane ,sandy qualified disaster assistance property 7a7 ,in general ,subsection 7e7 of section #agi is amended to read as follows3 7e7 ,special rules for ,hurricane ,sandy 7#a7 ,in general ,if a taxpayer elects the application of this subsection for a taxable year and places in service during the taxable year any ,hurricane ,sandy qualified disaster assistance property-- 7,a7 the dollar amount in effect under subsection 7b77#a7 for the taxable year shall be increased by the qualified disaster limitation amount1 and 7,b7 the dollar amount in effect under subsection 7b77#b7 for the taxable year shall be increased by the qualified disaster limitation reduction amount4 7#b7 ,qualified disaster limitation amount ,for purposes of paragraph 7#a71 the term qualified disaster limitation amount means the lesser of-- 7,a7 #ejj1jjj1 or 7,b7 the cost of ,hurricane ,sandy qualified disaster assistance property placed in service during the taxable year4 7#c7 ,qualified disaster limitation reduction amount ,for purposes of paragraph 7#a71 the term qualified disaster limitation amount means the lesser of-- 7,a7 #b1jjj1jjj1 or 7,b7 the cost of ,hurricane ,sandy qualified disaster assistance property placed in service during the taxable year4 7#d7 ,hurricane ,sandy qualified disaster assistance property ,for purposes of this subsection-- 7,a7 ,in general ,the term ,hurricane ,sandy qualified disaster assistance property means section #agi property 7as defined in subsection 7d77 and qualified property-- 7i7 the original use of which in the ,hurricane ,sandy disaster area commences with the taxpayer on or after ,october #bi1 #bjab1 7ii7 substantially all of the use of which is in the ,hurricane ,sandy disaster area1 and 7iii7 which-- 7,i7 rehabilitates property damaged1 or replaces property destroyed or condemned1 as a result of the ,hurricane ,sandy federally declared disaster1 except that1 for purposes of this clause1 property shall be treated as replacing property destroyed or condemned if1 as part of an integrated plan1 such property replaces property which is included in a continuous area which includes real property destroyed or condemned1 and 7,,ii7 is located in the same county as the property being rehabilitated or replaced1 7iv7 which is placed in service or acquired by the taxpayer by purchase 7as defined in subsection 7d77 on or after ,october #bi1 #bjab1 but only if no written binding contract for the acquisition was in effect before such date1 and 7v7 which is placed in service by the taxpayer on or after ,october #bi1 #bjab1 and before ,december #ca1 #bjae 7,december #ca1 #bjaf1 in the case of nonresidential real property and residential rental property74 7,b7 ,qualified property ,the term qualified property means property which is-- 7i7 tangible property to which section #afh applies and which has a recovery period of #ci years or less1 or 7ii7 computer software 7as defined in section #afg7;f77#a77;,b77 for which a deduction is allowable under section #afg7;a74 7,c7 ,exceptions 7i7 ,alternative depreciation property ,such term shall not include any property to which the alternative depreciation system under section #afh7;g7 applies1 determined without regard to paragraph 7#g7 thereof 7relating to election to have system apply74 7ii7 ,tax-exempt bond financed property ,such term shall not include any property any portion of which is financed with the proceeds of any obligation the interest on which is exempt from tax under section #ajc4 7,d7 ,election ,an election under this subsection for any taxable year shall-- 7i7 specify the items of ,hurricane ,sandy qualified disaster assistance property to which the election applies and the portion of the cost of each of such items which is to be taken into account under paragraph 7#a71 and 7ii7 be made on the taxpayer's return of the tax imposed by this chapter for the taxable year4 7,e7 ,special rules ,for purposes of this subsection1 rules similar to the rules of subparagraph 7,e7 of section #afh7k77#b7 shall apply1 except that such subparagraph shall be applied-- 7i7 by substituting the date of the ,hurricane ,sandy federally declared disaster for ,december #ca1 #bjjg each place it appears therein1 7ii7 by substituting ,january #a1 #bjaf for ,january #a1 #bjad in clause 7i7 thereof1 and 7iii7 by substituting ,hurricane ,sandy qualified section #agi disaster assistance property for qualified property in clause 7iv7 thereof4 7#e7 ,terms relating to ,hurricane ,sandy ,for purposes of this subsection1 the terms ,hurricane ,sandy federally declared disaster and ,hurricane ,sandy disaster area have the meanings given such terms by section #afe7;h77#c77;,d74 7#f7 ,recapture ,for purposes of this subsection1 rules similar to the rules under subsection 7d77#aj7 shall apply with respect to any qualified section #agi disaster assistance property which ceases to be qualified section #agi disaster assistance property4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years ending after ,october #bh1 #bjab4 #g4 ,increased limitation on charitable contributions for disaster relief 7a7 ,individuals ,paragraph 7#a7 of section #agj7;b7 is amended by redesignating subparagraphs 7,f7 and 7,g7 as subparagraphs 7,g7 and 7,h71 respectively1 and by inserting after subparagraph 7,e7 the following new subparagraph3 7,f7 ,qualified ,hurricane ,sandy disaster contributions 7i7 ,in general ,any qualified ,hurricane ,sandy disaster contribution shall be allowed to the extent that the aggregate of such contributions does not exceed the excess of #hj percent of the taxpayer's contribution base over the amount of all other charitable contributions allowable under this paragraph4 7ii7 ,qualified ,hurricane ,sandy disaster contribution ,for purposes of this subparagraph1 the term qualified ,hurricane ,sandy disaster contribution means any charitable contribution if-- 7,i7 such contribution-- 7aa7 is paid during the period beginning on ,october #bi1 #bjab1 and ending on ,december #ca1 #bjac1 in cash to an organization described in subparagraph 7,a71 and 7bb7 is made for relief efforts in the ,hurricane ,sandy disaster area related to the ,hurricane ,sandy federally declared disaster1 7,,ii7 the taxpayer obtains from such organization contemporaneous written acknowledgment 7within the meaning of subsection 7f77#h77 that such contribution was used 7or is to be used7 for relief efforts in the ,hurricane ,sandy disaster area related to the ,hurricane ,sandy federally declared disaster1 and 7,,iii7 the taxpayer has elected the application of this subparagraph with respect to such contribution4 7iii7 ,exception ,a qualified ,hurricane ,sandy disaster contribution shall not include a contribution by a donor if the contribution is-- 7,i7 to an organization described in section #eji7;a77#c71 or 7,,ii7 for establishment of a new1 or maintenance of an existing1 donor advised fund 7as defined in section #diff7;d77#b774 7iv7 ,carryover 7,i7 ,in general ,if the aggregate amount of contributions described in clause 7i7 exceeds the limitation under clause 7i71 such excess shall be treated 7in a manner consistent with the rules of subsection 7d77#a77 as a charitable contribution to which clause 7i7 applies in each of the #e succeeding years in order of time4 7,,ii7 ,coordination with other subparagraphs ,for purposes of applying this subparagraph and subsection 7d77#a71 contributions described in clause 7i7 shall not be treated as described in subparagraph 7,a7 and such subparagraph shall be applied without regard to such contributions4 7v7 ,application of election to partnerships and ,s corporations ,in the case of a partnership or ,s corporation1 the election under subparagraph 7,f77ii77,,iii7 shall be made separately by each partner or shareholder4 7vi7 ,hurricane ,sandy federally declared disaster and disaster area ,for purposes of this subparagraph1 the terms ,hurricane ,sandy federally declared disaster and ,hurricane ,sandy disaster area have the meanings given such terms by section #afe7;h77#c77;,d74 4 7b7 ,corporations 7#a7 ,in general ,paragraph 7#b7 of section #agj7;b7 is amended by redesignating subparagraph 7,c7 as subparagraph 7,d7 and by inserting after subparagraph 7,b7 the following new subparagraph3 7,c7 ,qualified disaster contributions 7i7 ,in general ,any qualified ,hurricane ,sandy disaster contribution shall be allowed to the extent that the aggregate of such contributions does not exceed the excess of #bj percent of the taxpayer's taxable income over the amount of charitable contributions allowed under subparagraph 7,a74 7ii7 ,carryover ,if the aggregate amount of contributions described in clause 7i7 exceeds the limitation under clause 7i71 such excess shall be treated 7in a manner consistent with the rules of subsection 7d77#a77 as a charitable contribution to which clause 7i7 applies in each of the #e succeeding years in order of time4 7iii7 ,qualified disaster contribution ,the term qualified ,hurricane ,sandy disaster contribution has the meaning given such term under paragraph 7#a77;,f74 4 7#b7 ,conforming amendments 7,a7 ,subparagraph 7,a7 of section #agj7;b77#b7 is amended by striking subparagraph 7,b7 applies and inserting subparagraphs 7,b7 and 7,c7 apply4 7,b7 ,subparagraph 7,b7 of section #agj7;b77#b7 is amended by striking subparagraph 7,a7 and inserting subparagraphs 7,a7 and 7,c74 7c7 ,effective date ,the amendments made by this section shall apply to taxable years ending after the date of the enactment of this ,act4 #h4 ,increase in new markets tax credit for investments in community development entities serving ,hurricane ,sandy disaster areas 7a7 ,in general ,paragraph 7#a7 of section #de;,d7f7 is amended by striking the period at the end of subparagraph 7,g7 and inserting 1 and and by adding at the end the following3 7,h7 in the case of the ,hurricane ,sandy ,federal disaster area1 #bej1jjj1jjj4 4 7b7 ,rules relating to ,hurricane ,sandy ,subsection 7f7 of section #de;,d is amended by adding at the end the following new paragraph3 7#d7 ,increased special allocation for community development entities serving ,hurricane ,sandy ,federal disaster areas 7,a7 ,in general ,the limitation under paragraph 7#a77;,h7 shall be allocated among qualified community development entities to make qualified low-income community investments within the ,hurricane ,sandy disaster area 7as defined in section #afe7;h77#c77;,d774 7,b7 ,allocation of increase ,the limitation under subparagraph 7,a7 shall be allocated by the ,secretary under paragraph 7#b7 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 ,hurricane ,sandy disaster area4 7,c7 ,separate carryover of unused limitation ,paragraph 7#c7 shall be applied separately with respect to the limitation under paragraph 7#a77;,h74 4 7c7 ,effective date ,the amendments made by this section shall apply to calendar years beginning after #bjaa4 #i4 ,extension of expensing for environmental remediation costs 7a7 ,in general ,section #aih is amended by adding at the end the following3 7i7 ,extension relating to ,hurricane ,sandy ,subsection 7h7 shall not apply in the case of any qualified environmental remediation expenditure paid or incurred after the date of the ,hurricane ,sandy federally declared disaster 7as defined in section #afe7;h77#c77;,d77 and before ,january #a1 #bjae1 by reason of such disaster at a qualified contaminated site located in the ,hurricane ,sandy disaster area 7as so defined74 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to expenditures paid or incurred after ,october #bh1 #bjab4 #aj4 ,special rule for public utility casualty losses 7a7 ,in general ,subsection 7f7 of section #agb is amended by adding at the end the following3 7#g7 ,hurricane ,sandy public utility casualty losses 7,a7 ,in general ,the amount described in paragraph 7#a77;,a7 for any taxable year shall be increased by the ,hurricane ,sandy public utility casualty loss for such taxable year4 7,b7 ,hurricane ,sandy public utility casualty loss ,for purposes of this paragraph1 the term ,hurricane ,sandy public utility casualty loss means any casualty loss of public utility property 7as defined in section #afh7;i77#aj77 located in the ,hurricane ,sandy disaster area if-- 7i7 such loss is allowed as a deduction under section #afe for the taxable year1 7ii7 such loss is by reason of ,hurricane ,sandy1 and 7iii7 the taxpayer elects the application of this paragraph with respect to such loss4 7,c7 ,reduction for gains from involuntary conversion ,the amount of any ,hurricane ,sandy public utility casualty loss which would 7but for this subparagraph7 be taken into account under subparagraph 7,a7 for any taxable year shall be reduced by the amount of any gain recognized by the taxpayer for such year from the involuntary conversion by reason of ,hurricane ,sandy of public utility property 7as so defined7 located in the ,hurricane ,sandy disaster area4 7,d7 ,hurricane ,sandy disaster area ,for purposes of this paragraph1 the term ,hurricane ,sandy disaster area has the meaning given such term by section #afe7;h77#c77;,d74 7,e7 ,coordination with general disaster loss rules ,section #afh7k7 and section #afe7;i7 shall not apply to any ,hurricane ,sandy public utility casualty loss to the extent such loss is taken into account under subparagraph 7,a74 7,f7 ,election ,any election under subparagraph 7,b77iii7 shall be made in such manner as may be prescribed by the ,secretary and shall be made by the due date 7including extensions of time7 for filing the taxpayer's return for the taxable year of the loss4 ,such election1 once made for any taxable year1 shall be irrevocable for such taxable year4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to losses arising in taxable years ending after ,october #bh1 #bjab4 #aa4 ,determination of earned income for purposes of earned income credit and child tax credit 7a7 ,earned income credit ,section #cb is amended by adding at the end the following new subsection3 7n7 ,special rule relating to ,hurricane ,sandy ,for purposes of this section and section #bd7;d7-- 7#a7 ,in general ,in the case of a qualified individual1 if the earned income of the taxpayer for the taxable year which includes the applicable date is less than the earned income of the taxpayer for the preceding taxable year1 the credit allowed under subsection 7a7 may1 at the election of the taxpayer1 be determined by substituting-- 7,a7 such earned income for the preceding taxable year1 for 7,b7 such earned income for the taxable year which includes the applicable date4 7#b7 ,qualified individual ,for purposes of this subsection1 the term qualified individual means any individual-- 7,a7 whose principal place of abode on the applicable date was located in the ,hurricane ,sandy disaster area and such individual was displaced from such principal place of abode by reason of the ,hurricane ,sandy federally declared disaster1 or 7,b7 who performed substantially all employment services in the disaster area and was so employed on the applicable date4 7#c7 ,other definitions ,for purposes of this subsection-- 7,a7 ,applicable date ,the term applicable date means any day on or after ,october #bi1 #bjab1 and on or before ,november #c1 #bjab4 7,b7 ,hurricane ,sandy federally declared disaster and disaster area ,the terms ,hurricane ,sandy federally declared disaster and ,hurricane ,sandy disaster area have the meanings given such terms by section #afe7;h77#c77;,d74 7#d7 ,special rules 7,a7 ,application to joint returns ,for purposes of paragraph 7#a71 in the case of a joint return for a taxable year which includes the applicable date-- 7i7 such paragraph shall apply if either spouse is a qualified individual1 and 7ii7 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 year4 7,b7 ,uniform application of election ,any election made under paragraph 7#a7 shall apply with respect to both this section and section #bd7;d74 7,c7 ,errors treated as mathematical error ,for purposes of section #fbac1 an incorrect use on a return of earned income pursuant to paragraph 7#a7 shall be treated as a mathematical or clerical error4 7,d7 ,no effect on determination of gross income1 etc ,except as otherwise provided in this subsection1 this title shall be applied without regard to any substitution under paragraph 7#a74 4 7b7 ,child tax credit ,subsection 7d7 of section #bd is amended by adding at the end the following new paragraph3 7#e7 ,special rule relating to ,hurricane ,sandy ,see section #cb7n7 for determination of earned income with respect to the ,hurricane ,sandy federally declared disaster4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years ending after ,october #bh1 #bjab4 #ab4 ,work ,opportunity ,credit 7a7 ,in general ,paragraph 7#a7 of section #ea7;d7 is amended by striking or at the end of subparagraph 7,h71 by striking the period at the end of subparagraph 7,i7 and inserting 1 or1 and by inserting after subparagraph 7,i7 the following new subparagraph3 7,j7 a ,hurricane ,sandy employee4 4 7b7 ,hurricane ,sandy employee ,subsection 7d7 of section #ea is amended by adding at the end the following3 7#ae7 ,hurricane ,sandy employee 7,a7 ,in general ,the term ,hurricane ,sandy employee means any individual-- 7i7 who1 on or after ,october #bi1 #bjab1 and on or before ,november #c1 #bjab1 had a principal place of abode in the ,hurricane ,sandy disaster area1 7ii7 who did not apply for or receive unemployment compensation under ,state or ,federal law in #bjab before ,october #bi1 #bjab1 but first applied for or received such compensation after such date and before ,february #ae1 #bjac1 7iii7 who receives such compensation without a break until the earlier of exhausting such compensation under ,federal or ,state law or the hiring date1 and 7iv7 whose hiring date for a position the principal place of employment of which is located in the ,hurricane ,sandy disaster area 7as defined in section #afe7;h77#c77;,d77 is before ,january #a1 #bjad4 7,b7 ,reasonable identification acceptable ,in lieu of the certification requirement under subparagraph 7,a7 of paragraph 7#ac71 an individual may provide to the employer reasonable evidence that the individual is a ,hurricane ,sandy employee1 and subparagraph 7,b7 of such paragraph shall be applied as if such evidence were a certification described in such subparagraph4 7,c7 ,special rules ,for purposes of this paragraph-- 7i7 subsection 7c77#d7 shall not apply1 and 7ii7 subsection 7i77#b7 shall not apply with respect to the first hire of such employee as a ,hurricane ,sandy employee1 unless such employee was an employee of the employer on ,october #bh1 #bjab4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years ending after ,october #bh1 #bjab4 #ac4 ,hurricane ,sandy ,bonds 7a7 ,in general ,subpart ,a of part ,,iv of subchapter ,b of chapter #a is amended by inserting after section #adf the following new section3 #adf;,a4 ,hurricane ,sandy ,bonds 7a7 ,in general ,for purposes of this title1 any qualified ,hurricane ,sandy ,bond shall-- 7#a7 be treated as an exempt facility bond1 and 7#b7 not be subject to section #adf4 7b7 ,qualified ,hurricane ,sandy ,bond ,for purposes of this section1 the term qualified ,hurricane ,sandy bond means any bond issued as part of an issue if-- 7#a7 #ie percent or more of the net proceeds of such issue are to be used for qualified project costs1 7#b7 such bond is issued by a ,state or any political subdivision thereof any part of which is in the ,hurricane ,sandy disaster area1 7#c7 the ,governor of the issuing ,state designates such bond for purposes of this section1 and 7#d7 such bond is issued after the date of the enactment of this section and before ,january #a1 #bjaf4 7c7 ,limitation on amount of bonds 7#a7 ,in general ,the maximum aggregate face amount of bonds which may be designated under this section shall not exceed-- 7,a7 #c1bjj1jjj1jjj in the case of ,connecticut1 7,b7 #i1bjj1jjj1jjj in the case of ,new ,jersey1 and 7,c7 #i1bjj1jjj1jjj in the case of ,new ,york4 7#b7 ,reduction for failure to issue bonds 7,a7 #bjac ,if after the date of enactment of this section and before ,january #a1 #bjad1 less than #aj percent of the face amount of the bond limitation for a ,state has been issued1 the authorized limitation for such ,state under paragraph 7#a7 shall be reduced by the amount by which #aj percent of the face amount of the bond limitation for such ,state exceeds the face amount of issued bonds4 7,b7 #bjad ,if after the date of enactment of this section and before ,january #a1 #bjae1 less than #cj percent of the face amount of the bond limitation for a ,state has been issued1 the authorized limitation for such ,state shall be reduced by the amount by which #aj percent of the face amount of the bond limitation for such ,state exceeds the face amount of issued bonds4 7#c7 ,movable property ,no bonds shall be issued which are to be used for movable fixtures and equipment4 7#d7 ,treatment of current refunding bonds ,paragraph 7#a7 shall not apply to any bond 7or series of bonds7 issued to refund a qualified ,hurricane ,sandy bond1 if-- 7,a7 the average maturity date of the issue of which the refunding bond is a part is not later than the average maturity date of the bonds to be refunded by such issue1 7,b7 the amount of the refunding bond does not exceed the outstanding amount of the refunded bond1 and 7,c7 the net proceeds of the refunding bond are used to redeem the refunded bond not later than #ij days after the date of the issuance of the refunding bond4 ,for purposes of subparagraph 7,a71 average maturity shall be determined in accordance with section #adg7;b77#b77;,a74 7d7 ,qualified project costs ,for purposes of this section1 the term qualified project costs means the cost of acquisition1 construction1 reconstruction1 and renovation of-- 7#a7 residential rental property 7as defined in section #adb7;d771 7#b7 nonresidential real property 7including fixed improvements associated with such property71 7#c7 a facility described in paragraph 7#b7 or 7#c7 of section #adb7;a71 or 7#d7 public utility property 7as defined in section #afh7;i77#aj771 which is located in the ,hurricane ,sandy ,disaster area and was damaged or destroyed by reason of the ,hurricane ,sandy federally declared disaster4 7e7 ,special rules ,in applying this title to any qualified ,hurricane ,sandy ,bond1 the following modifications shall apply3 7#a7 ,section #adg7;d7 7relating to acquisition of existing property not permitted7 shall be applied by substituting #ej percent for #ae percent each place it appears4 7#b7 ,section #adh7;f77#d77;,c7 7relating to exception from rebate for certain proceeds to be used to finance construction expenditures7 shall apply to the available construction proceeds of bonds issued under this section4 ,for purposes of the preceding sentence1 the following spending requirements shall apply in lieu of the requirements in clause 7ii7 of such section3 7,a7 #dj percent of such available construction proceeds are spent for the governmental purposes of the issue within the #b-year period beginning on the date the bonds are issued1 7,b7 #fj percent of such proceeds are spent for such purposes within the #c-year period beginning on such date1 7,c7 #hj percent of such proceeds are spent for such purposes within the #d-year period beginning on such date1 and 7,d7 #ajj percent of such proceeds are spent for such purposes within the #e-year period beginning on such date4 7#c7 ,repayments of principal on financing provided by the issue-- 7,a7 may not be used to provide financing1 and 7,b7 must be used not later than the close of the #ast semiannual period beginning after the date of the repayment to redeem bonds which are part of such issue4 ,the requirement of subparagraph 7,b7 shall be treated as met with respect to amounts received within #e years after the date of issuance of the issue 7or1 in the case of a refunding bond1 the date of issuance of the original bond7 if such amounts are used by the close of such #e years to redeem bonds which are part of such issue4 7#d7 ,section #eg7;a77#e7 shall not apply4 7f7 ,separate issue treatment of portions of an issue ,this section shall not apply to the portion of an issue which 7if issued as a separate issue7 would be treated as a qualified bond or as a bond that is not a private activity bond 7determined without regard to paragraph 7#a771 if the issuer elects to so treat such portion4 7g7 ,hurricane ,sandy federally declared disaster and disaster area ,the terms ,hurricane ,sandy federally declared disaster and ,hurricane ,sandy disaster area have the meanings given such terms by section #afe7;h77#c77;,d74 4 7b7 ,clerical amendment ,the table of sections for subpart ,a of part ,,iv of subchapter ,b of chapter #a is amended by inserting after the item relating to section #adf the following new item3 ,sec4 #adf;,a4 ,hurricane ,sandy ,bonds4 4 7c7 ,effective date ,the amendments made by this section shall apply to obligations issued after the date of the enactment of this ,act4 #ad4 ,additional low-income housing credit may be allocated in ,states damaged by ,hurricane ,sandy 7a7 ,in general ,paragraph 7#c7 of section #db7;h7 7relating to limitation on aggregate credit allowable with respect to projects located in a ,state7 is amended by adding at the end the following new subparagraph3 7,j7 ,increase in ,state housing credit for ,states damaged by ,hurricane ,sandy 7i7 ,in general ,in the case of calendar year #bjac1 the ,state housing credit ceiling of each ,state any portion of which includes any portion of the ,hurricane ,sandy disaster area shall be increased by so much of the aggregate housing credit dollar amount as does not exceed the applicable limitation allocated by the ,state housing credit agency of such ,state for such calendar year to buildings located in such disaster area4 7ii7 ,applicable limitation ,for purposes of clause 7i71 the applicable limitation is the greater of-- 7,i7 #h multiplied by the population of the area described in clause 7vii77,i71 or 7,,ii7 #ej percent of the ,state housing credit ceiling 7determined without regard to this subparagraph7 for #bjac4 7iii7 ,applicable percentage ,for purposes of this section1 the applicable percentage with respect to any building to which amounts allocated under clause 7i7 shall be determined under subsection 7b77#b71 except that subparagraph 7,a7 thereof shall be applied by substituting ,december #ca1 #bjae for ,december #ca1 #bjac4 7iv7 ,allocations treated as made first from additional allocation amount for purposes of determining carryover ,for purposes of determining the unused ,state housing credit ceiling under subparagraph 7,c7 for any calendar year1 any increase in the ,state housing credit ceiling under clause 7i7 shall be treated as an amount described in clause 7ii7 of such subparagraph4 7v7 ,difficult development area 7,i7 ,in general ,in the case of property placed in service during #bjac1 #bjad1 or #bjae1 the ,hurricane ,sandy disaster area shall be treated as a difficult development area designated under subclause 7,i7 of subsection 7d77#e77;,b77iii71 and shall not be taken into account for purposes of applying the limitation under subclause 7,,ii7 of such subsection4 7,,ii7 ,application of clause ,subclause 7,i7 shall apply only to-- 7aa7 housing credit dollar amounts allocated during #bjac1 and 7bb7 to the extent that paragraph 7#a7 does not apply to any building by reason of paragraph 7#d71 only with respect to bonds issued after ,december #ca1 #bjab4 7vi7 ,hurricane ,sandy disaster area and ,hurricane ,sandy federally declared disaster ,for purposes of this subparagraph-- 7,i7 ,disaster area ,the term ,hurricane ,sandy disaster area means each county included in the geographical area covered by the ,hurricane ,sandy federally declared disaster4 7,,ii7 ,hurricane ,sandy federally declared disaster and disaster area ,the term ,hurricane ,sandy federally declared disaster has the meaning given such term by section #afe7;h77#c77;,d74 4 7b7 ,effective date ,the amendment made by this section shall take effect on the date of the enactment of this ,act4 #ae4 ,special rules for use of retirement funds 7a7 ,early withdrawal from retirement plans ,paragraph 7#b7 of section #gb7t7 is amended by adding at the end the following new subparagraph3 7,h7 ,hurricane ,sandy distributions ,distributions to an individual which are ,hurricane ,sandy distributions 7as defined in paragraph 7#aa774 4 7b7 ,special rules ,subsection 7t7 of section #gb is amended by adding at the end the following3 7#aa7 ,special rules relating to use of retirement funds relating to ,hurricane ,sandy 7,a7 ,distributions ,for purposes of this paragraph-- 7i7 ,in general ,the term ,hurricane ,sandy distribution means any distribution from an eligible retirement plan 7as defined by section #djb7;c77#h77;,b77 made on or after ,october #bi1 #bjab1 and before ,january #a1 #bjad1 to an individual whose principal place of abode on ,october #bi1 #bjab1 is located in the ,hurricane ,sandy disaster area 7as defined in section #afe7;h77#c77;,d77 and who has sustained an economic loss by reason of ,hurricane ,sandy4 7ii7 ,aggregate dollar limitation 7,i7 ,in general ,for purposes of this paragraph1 the aggregate amount of distributions received by an individual which may be treated as ,hurricane ,sandy distributions for any taxable year shall not exceed the excess 7if any7 of-- 7aa7 #ajj1jjj1 over 7bb7 the aggregate amounts treated as ,hurricane ,sandy distributions received by such individual for all prior taxable years4 7,,ii7 ,treatment of plan distributions ,if a distribution to an individual would 7without regard to subclause 7,i77 be a ,hurricane ,sandy distribution1 a plan shall not be treated as violating any requirement of this title merely because the plan treats such distribution as a ,hurricane ,sandy distribution1 unless the aggregate amount of such distributions from all plans maintained by the employer 7and any member of any controlled group which includes the employer7 to such individual exceeds #ajj1jjj4 7,,iii7 ,controlled group ,for purposes of subclause 7,,ii71 the term controlled group means any group treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad4 7iii7 ,amount distributed may be repaid 7,i7 ,in general ,any individual who receives a ,hurricane ,sandy distribution may1 at any time during the #c-year period beginning on the day after the date on which such distribution was received1 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 #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 or #deg7;e77#af71 as the case may be4 7,,ii7 ,treatment of repayments of distributions from eligible retirement plans other than ,i,r,as ,for purposes of this title1 if a contribution is made pursuant to subclause 7,i7 with respect to a ,hurricane ,sandy distribution from an eligible retirement plan other than an individual retirement plan1 then the taxpayer shall1 to the extent of the amount of the contribution1 be treated as having received the ,hurricane ,sandy distribution in an eligible rollover distribution 7as defined in section #djb7;c77#d77 and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within #fj days of the distribution4 7,,iii7 ,treatment of repayments for distributions from ,i,r,as ,for purposes of this title1 if a contribution is made pursuant to subclause 7,i7 with respect to a ,hurricane ,sandy distribution from an individual retirement plan 7as defined by section #ggja7;a77#cg771 then1 to the extent of the amount of the contribution1 the ,hurricane ,sandy distribution shall be treated as a distribution described in section #djh7;d77#c7 and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within #fj days of the distribution4 7iv7 ,income inclusion spread over #c-year period 7,i7 ,in general ,in the case of any ,hurricane ,sandy distribution1 unless the taxpayer elects not to have this clause apply for any taxable year1 any amount required to be included in gross income for such taxable year shall be so included ratably over the #c-taxable year period beginning with such taxable year4 7,,ii7 ,special rule ,for purposes of subclause 7,i71 rules similar to the rules of subparagraph 7,e7 of section #djh;,a7d77#c7 shall apply4 7v7 ,special rules 7,i7 ,exemption of distributions from trustee to trustee transfer and withholding rules ,for purposes of sections #dja7;a77#ca71 #djb7;f71 and #cdje1 ,hurricane ,sandy distributions shall not be treated as eligible rollover distributions4 7,,ii7 ,hurricane ,sandy distributions treated as meeting plan distribution requirements ,for purposes this title1 a ,hurricane ,sandy distribution shall be treated as meeting the requirements of sections #dja7k77#b77;,b77i71 #djc7;b77#g77;,a77ii71 #djc7;b77#aa71 and #deg7;d77#a77;,a74 7,b7 ,recontributions of withdrawals for home purchases 7i7 ,in general ,any individual who received a distribution described in clause 7ii7 may1 during the applicable period1 make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an eligible retirement plan 7as defined in section #djb7;c77#h77;,b77 of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 or #djh7;d77#c71 as the case may be4 7ii7 ,distribution described ,for purposes of clause 7i71 a distribution is described in this clause if the distribution-- 7,i7 is described in paragraph 7#b77;,f7 or section #dja7k77#b77;,b77i77,,iv71 #djc7;b77#g77;,a77ii7 7but only to the extent such distribution relates to financial hardship71 or #djc7;b77#aa77;,b71 7,,ii7 is received after ,april #bi1 #bjab1 and before ,october #cj1 #bjab1 and 7,,iii7 was to be used to purchase or construct a principal residence in the ,hurricane ,sandy disaster area 7as defined in section #afe7;h77#c77;,d771 but which was not so purchased or constructed on account of ,hurricane ,sandy4 7iii7 ,applicable period ,for purposes of this subparagraph1 the term applicable period means the period beginning on ,october #bi1 #bjab1 and ending five months after the date of enactment of the ,hurricane ,sandy ,tax ,relief ,act of #bjac4 7iv7 ,treatment of repayments ,rules similar to the rules of subclauses 7,,ii7 and 7,,iii7 of subparagraph 7,a77iii7 shall apply for purposes of this subparagraph4 4 7c7 ,loans from qualified plans ,subsection 7p7 of section #gb is amended by adding at the end the following3 7#f7 ,special rules relating to ,hurricane ,sandy 7,a7 ,increase in limit on loans not treated as distributions ,in the case of any loan from a qualified employer plan to a qualified individual made during the applicable period-- 7i7 paragraph 7#b77;,a77i7 shall be applied by substituting #ajj1jjj for #ej1jjj1 and 7ii7 paragraph 7#b77;,a77ii7 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 plan4 7,b7 ,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-- 7i7 if the due date pursuant to subparagraph 7,b7 or 7,c7 of paragraph 7#b7 for any repayment with respect to such loan occurs during the period beginning on the qualified beginning date and ending on ,december #ca1 #bjac1 such due date shall be delayed for #a year1 7ii7 any subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date under clause 7i7 and any interest accruing during such delay1 and 7iii7 in determining the #e-year period and the term of a loan under subparagraph 7,b7 or 7,c7 of paragraph 7#b71 the period described in clause 7i7 shall be disregarded4 7,c7 ,qualified individual ,for purposes of this paragraph-- 7i7 ,in general ,the term qualified individual means any qualified ,hurricane ,sandy individual4 7ii7 ,qualified ,hurricane ,sandy individual ,the term qualified ,hurricane ,sandy individual means an individual whose principal place of abode on ,october #bi1 #bjab1 is located in the ,hurricane ,sandy disaster area 7as defined in section #afe7;h77#c77;,d77 and who has sustained an economic loss by reason of ,hurricane ,sandy4 7,d7 ,other definitions ,for purposes of this paragraph-- 7i7 ,applicable period ,the applicable period is the period beginning on the date of enactment of the ,hurricane ,sandy ,tax ,relief ,act of #bjac and ending on ,december #ca1 #bjac4 7ii7 ,qualified beginning date ,the qualified beginning date is ,october #bi1 #bjab4 4 7d7 ,effective date ,the amendments made by this section shall apply to years ending after ,october #bh1 #bjab4 7e7 ,provisions relating to plan amendments 7#a7 ,in general ,if this subsection applies to any amendment to any plan or annuity contract1 such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph 7#b77;,b77i74 7#b7 ,amendments to which subsection applies 7,a7 ,in general ,this subsection shall apply to any amendment to any plan or annuity contract which is made-- 7i7 pursuant to any provision of1 or amendment made by4 this section1 or pursuant to any regulation issued by the ,secretary of the ,treasury or the ,secretary of ,labor under any provision of1 or amendment made by1 this section1 and 7ii7 on or before the last day of the first plan year beginning on or after ,january #a1 #bjad1 or such later date as the ,secretary of the ,treasury may prescribe4 ,in the case of a governmental plan 7as defined in section #dad7;d771 clause 7ii7 shall be applied by substituting the date which is #b years after the date otherwise applied under clause 7ii74 7,b7 ,conditions ,this subsection shall not apply to any amendment unless-- 7i7 during the period-- 7,i7 beginning on the date that this section or the regulation described in subparagraph 7,a77i7 takes effect 7or in the case of a plan or contract amendment not required by this section or such regulation1 the effective date specified by the plan71 and 7,,ii7 ending on the date described in subparagraph 7,a77ii7 7or1 if earlier1 the date the plan or contract amendment is adopted71 the plan or contract is operated as if such plan or contract amendment were in effect2 and 7ii7 such plan or contract amendment applies retroactively for such period4