,,ii  #aacth ,,congress  #ast ,session  
,s4 #ic  ,,in ,,the ,,senate ,,of ,,the 
,,united ,,states  ,january #bc         
7legislative day1 ,january #c71 #bjac   
,mr4 ,vitter introduced the following   
bill2 which was read twice and referred 
to the ,committee on ,finance  ,a ,,bill
  ,to provide tax relief with respect to
 the ,hurricane ,isaac disaster area4   
#a4 ,short title ,this ,act may be cited
 as the ,investment ,savings ,access    
,after ,catastrophes ,act of #bjac4  #b4
 ,hurricane ,isaac disaster area ,for   
purposes of this ,act1 the term         
,hurricane ,isaac disaster area means   
any parish or county of ,louisiana or   
,mississippi which is 7in whole or in   
part7 in the area with respect to which 
a major disaster has been declared by   
the ,president before ,september #aj1   
#bjab1 under section #dja of the ,robert
 ,t4 ,stafford ,disaster ,relief and    
,emergency ,assistance ,act by reason of
 ,hurricane ,isaac4  #c4 ,suspension of 
personal casualty loss limitations      

,paragraphs 7#a7 and 7#b7 of section    
#afe7;h7 of the ,internal ,revenue ,code
 of #aihf shall not apply to losses     
described in section #afe7;c77#c7 of    
such ,code which arise in the ,hurricane
 ,isaac disaster area during the #b-year
 period beginning on ,august #bf1 #bjab1
 and which are attributable to          
,hurricane ,isaac4 ,in the case of any  
other losses1 section #afe7;h77#b77;,a7 
of such ,code shall be applied without  
regard to the losses referred to in the 
preceding sentence4  #d4 ,treatment of  
net operating losses attributable to    
,hurricane ,isaac  7a7 ,extension of    
carryback period ,during the #b-year    
period beginning on ,august #bf1 #bjab1 
if a portion of any net operating loss  
of the taxpayer for any taxable year is 
a ,hurricane ,isaac loss1 section       
#agb7;b77#a7 of the ,internal ,revenue  
,code of #aihf shall be applied with    
respect to such portion--  7#a7 by      
substituting #e taxable years for #b    
taxable years in subparagraph 7,a77i7   

thereof1 and  7#b7 by not taking such   
portion into account in determining any 
eligible loss of the taxpayer under     
subparagraph 7,f7 thereof for the       
taxable year4  7b7 ,suspension of #ij   
percent ,,amt limitation ,section       
#ef7;d77#a7 of such ,code shall be      
applied by increasing the amount        
determined under subparagraph           
7,a77ii77,i7 thereof by the sum of the  
carrybacks and carryovers of any net    
operating loss attributable to the      
portion described in subsection 7a74    
7c7 ,hurricane ,isaac loss ,for purposes
 of this section--  7#a7 ,in general    
,the term ,hurricane ,isaac loss means  
the lesser of--  7,a7 the excess of--   
7i7 the net operating loss for such     
taxable year1 over  7ii7 the specified  
liability loss for such taxable year to 
which a #aj-year carryback applies under
 section #agb7;b77#a77;,c7 of such      
,code1 or  7,b7 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 year4   
7#b7 ,qualified ,hurricane ,isaac       
casualty loss  7,a7 ,in general ,the    
term qualified ,hurricane ,isaac        
casualty loss means any uncompensated   
section #abca loss 7as defined in       
section #abca7;a77#c77;,b7 of such      
,code7 of property located in the       
,hurricane ,isaac disaster area if--    
7i7 such loss is allowed as a deduction 
under section #afe of such ,code for the
 taxable year1 and  7ii7 such loss is by
 reason of ,hurricane ,isaac4  7,b7     
,applicable rules ,for purposes of      
subparagraph 7,a71 rules similar to the 
rules of subparagraphs 7,b7 and 7,c7 of 
paragraph 7#c71 and paragraph 7#d71 of  
section #adjj,n7k7 of such ,code and    
shall apply4  #e4 ,tax-favored          
withdrawals from retirement plans  7a7  
,in general ,a qualified ,hurricane     
,isaac distribution shall be treated as 
a qualified hurricane distribution for  
purposes of section #adjj,q7a7 of the   

,internal ,revenue ,code of #aihf4  7b7 
,qualified ,hurricane ,isaac            
distribution ,for purposes of subsection
 7a71 the term qualified ,hurricane     
,isaac distribution means any           
distribution from an eligible retirement
 plan made on or after ,august #bf1     
#bjab1 and before ,september #aa1 #bjad1
 to an individual whose principal place 
of abode on ,august #bf1 #bjab1 is      
located in the ,hurricane ,isaac        
disaster area and who has sustained an  
economic loss by reason of ,hurricane   
,isaac4  7c7 ,applicable rules ,for     
purposes of this section1 rules similar 
to the rules of section #adjj,q7a7 of   
such ,code 7other than paragraph        
7#d77;,a7 thereof7 shall apply4  #f4    
,rescission of unspent and uncommitted  
,federal funds  7a7 ,in general         
,notwithstanding any other provision of 
law1 of all available unobligated       
,federal funds1 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 rescinded4  7b7            
,implementation ,not later than #fj days
 after the date of enactment of this    
,act1 the ,director of the ,office of   
,management and ,budget shall--  7#a7   
identify the accounts and amounts       
rescinded to implement subsection 7a72  
and  7#b7 submit a report to the        
,secretary of the ,treasury and         
,congress of the accounts and amounts   
identified under paragraph 7#a7 for     
rescission4  7c7 ,exception ,this       
section shall not apply to the          
unobligated ,federal funds of the       
,department of ,defense or the          
,department of ,veterans ,affairs4