,,ii  #aafth ,,congress  #b;d ,session  
,s4 #dfba  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #ag1
 #bjbj,mr4 ,wyden 7for himself1 ,mr4    
,merkley1 ,mrs4 ,feinstein1 ,mrs4       
,murray1 and ,ms4 ,harris7 introduced   
the following bill2 which was read twice
 and referred to the ,committee on      
,finance  ,a ,,bill  ,to provide tax    
relief for persons affected by certain  
#bjbj disasters4  #a4 ,short title ,this
 ,act may be cited as the #bjbj         
,disasters ,tax ,relief ,act4  #b4      
,definitions ,for purposes of this      
,act-- 7#a7 ,qualified disaster area    
,the term qualified disaster area means 
any area with respect to which a major  
disaster was declared1 during the period
 beginning on ,january #a1 #bjbj1 and   
ending on the date which is #fj days    
after the date of the enactment of this 
,act1 by the ,president under section   
#dja of the ,robert ,t4 ,stafford       
,disaster ,relief and ,emergency        
,assistance ,act if the incident period 

of the disaster with respect to which   
such declaration is made begins after   
the date of the enactment of the        
,taxpayer ,certainty and ,disaster ,tax 
,relief ,act of #bjai and on or before  
the date of the enactment of this ,act4 
7#b7 ,qualified disaster zone ,the term 
qualified disaster zone means that      
portion of any qualified disaster area  
which was determined by the ,president1 
during the period beginning on ,january 
#a1 #bjbj1 and ending on the date which 
is #fj days after the date of the       
enactment of this ,act1 to warrant      
individual or individual and public     
assistance from the ,federal ,government
 under the ,robert ,t4 ,stafford        
,disaster ,relief and ,emergency        
,assistance ,act by reason of the       
qualified disaster with respect to such 
disaster area4  7#c7 ,qualified disaster
  7,a7 ,in general ,the term qualified  
disaster means1 with respect to any     
qualified disaster area1 the disaster by
 reason of which a major disaster was   

declared with respect to such area4     
7,b7 ,exception ,such term shall not    
include any major disaster declared as a
 result of the ,coronavirus ,disease    
#bjai 7,,covid-#ai7 pandemic4  7#d7     
,incident period ,the term incident     
period means1 with respect to any       
qualified disaster1 the period specified
 by the ,federal ,emergency ,management 
,agency as the period during which such 
disaster occurred 7except that for      
purposes of this ,act such period shall 
not be treated as beginning before      
,january #a1 #bjbj1 or ending after the 
date which is #cj days after the date of
 the enactment of this ,act74  #c4      
,special disaster-related rules for use 
of retirement funds  7a7 ,tax-,favored  
withdrawals from retirement plans  7#a7 
,in general ,section #gb7t7 of the      
,internal ,revenue ,code of #aihf shall 
not apply to any qualified disaster     
distribution4  7#b7 ,aggregate dollar   
limitation  7,a7 ,in general ,for       
purposes of this subsection1 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 7if any7 of-- 7i7
 #ajj1jjj1 over  7ii7 the aggregate     
amounts treated as qualified disaster   
distributions received by such          
individual for all prior taxable years4 
7,b7 ,treatment of plan distributions   
,if a distribution to an individual     
would 7without regard to subparagraph   
7,a77 be a qualified disaster           
distribution1 a plan shall not be       
treated as violating any requirement of 
the ,internal ,revenue ,code of #aihf   
merely because the plan treats such     
distribution as a qualified disaster    
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,c7      
,controlled group ,for purposes of      

subparagraph 7,b71 the term controlled  
group means any group treated as a      
single employer under subsection 7b71   
7c71 7m71 or 7o7 of section #dad of the 
,internal ,revenue ,code of #aihf4  7,d7
 ,special rule for individuals affected 
by more than one disaster ,the          
limitation of subparagraph 7,a7 shall be
 applied separately with respect to     
distributions made with respect to each 
qualified disaster4  7#c7 ,amount       
distributed may be repaid  7,a7 ,in     
general ,any individual who receives a  
qualified disaster distribution may1 at 
any time during the #c-year period      
beginning on the day after the date on  
which such distribution was received1   
make #a 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 of the  
,internal ,revenue ,code of #aihf1 as   
the case may be4  7,b7 ,treatment of    
repayments of distributions from        
eligible retirement plans other than    
,i,r,as ,for purposes of the ,internal  
,revenue ,code of #aihf1 if a           
contribution is made pursuant to        
subparagraph 7,a7 with respect to a     
qualified disaster 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 qualified        
disaster distribution in an eligible    
rollover distribution 7as defined in    
section #djb7;c77#d7 of such ,code7 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,c7         
,treatment of repayments of             
distributions from ,i,r,as ,for purposes
 of the ,internal ,revenue ,code of     

#aihf1 if a contribution is made        
pursuant to subparagraph 7,a7 with      
respect to a qualified disaster         
distribution from an individual         
retirement plan 7as defined by section  
#ggja7;a77#cg7 of such ,code71 then1 to 
the extent of the amount of the         
contribution1 the qualified disaster    
distribution shall be treated as a      
distribution described in section       
#djh7;d77#c7 of such ,code and as having
 been transferred to the eligible       
retirement plan in a direct trustee to  
trustee transfer within #fj days of the 
distribution4  7#d7 ,definitions ,for   
purposes of this subsection-- 7,a7      
,qualified disaster distribution ,except
 as provided in paragraph 7#b71 the term
 qualified disaster distribution means  
any distribution from an eligible       
retirement plan made-- 7i7 on or after  
the first day of the incident period of 
a qualified disaster and before the date
 which is #ahj days after the date of   
the enactment of this ,act1 and  7ii7 to

 an individual whose principal place of 
abode at any time during the incident   
period of such qualified disaster is    
located in the qualified disaster area  
with respect to such qualified disaster 
and who has sustained an economic loss  
by reason of such qualified disaster4   
7,b7 ,eligible retirement plan ,the term
 eligible retirement plan shall have the
 meaning given such term by section     
#djb7;c77#h77;,b7 of the ,internal      
,revenue ,code of #aihf4  7#e7 ,income  
inclusion spread over #c-year period    
7,a7 ,in general ,in the case of any    
qualified disaster distribution1 unless 
the taxpayer elects not to have this    
paragraph 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,b7 ,special rule  
,for purposes of subparagraph 7,a71     
rules similar to the rules of           
subparagraph 7,e7 of section            

#djh;,a7d77#c7 of the ,internal ,revenue
 ,code of #aihf shall apply4  7#f7      
,special rules  7,a7 ,exemption of      
distributions from trustee to trustee   
transfer and withholding rules ,for     
purposes of sections #dja7;a77#ca71     
#djb7;f71 and #cdje of the ,internal    
,revenue ,code of #aihf1 qualified      
disaster distributions shall not be     
treated as eligible rollover            
distributions4  7,b7 ,qualified disaster
 distributions treated as meeting plan  
distribution requirements ,for purposes 
the ,internal ,revenue ,code of #aihf1 a
 qualified disaster distribution shall  
be treated as meeting the requirements  
of sections #dja7k77#b77;,b77i71        
#djc7;b77#g77;,a77i71 #djc7;b77#aa71 and
 #deg7;d77#a77;,a7 of such ,code and    
section #hdcc7;h77#a7 of title #e1      
,united ,states ,code1 and1 in the case 
of a money purchase pension plan1 a     
qualified disaster distribution which is
 an in-service withdrawal shall be      
treated as meeting the distribution     

rules of section #dja7;a7 of such ,code4
  7b7 ,recontributions of withdrawals   
for home purchases  7#a7                
,recontributions  7,a7 ,in general ,any 
individual who received a qualified     
distribution may1 during the applicable 
period1 make #a or more contributions in
 an aggregate amount not to exceed the  
amount of such qualified distribution to
 an eligible retirement plan 7as defined
 in section #djb7;c77#h77;,b7 of the    
,internal ,revenue ,code of #aihf7 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 of such  
,code1 as the case may be4  7,b7        
,treatment of repayments ,rules similar 
to the rules of subparagraphs 7,b7 and  
7,c7 of subsection 7a77#c7 shall apply  
for purposes of this subsection4  7#b7  
,qualified distribution ,for purposes of
 this subsection1 the term qualified    
distribution means any distribution--   

7,a7 described in section               
#dja7k77#b77;,b77i77,,iv71              
#djc7;b77#g77;,a77i7 7but only to the   
extent such distribution relates to     
financial hardship71 #djc7;b77#aa77;,b71
 or #gb7t77#b77;,f71 of the ,internal   
,revenue ,code of #aihf1  7,b7 which was
 to be used to purchase or construct a  
principal residence in a qualified      
disaster area1 but which was not so used
 on account of the qualified disaster   
with respect to such area1 and  7,c7    
which was received during the period    
beginning on the date which is #ahj days
 before the first day of the incident   
period of such qualified disaster and   
ending on the date which is #cj days    
after the last day of such incident     
period4  7#c7 ,applicable period ,for   
purposes of this subsection1 the term   
applicable period means1 in the case of 
a principal residence in a qualified    
disaster area with respect to any       
qualified disaster1 the period beginning
 on the first day of the incident period

 of such qualified disaster and ending  
on the date which is #ahj days after the
 date of the enactment of this ,act4    
7c7 ,loans from qualified plans  7#a7   
,increase in limit on loans not treated 
as distributions ,in the case of any    
loan from a qualified employer plan 7as 
defined under section #gb7p77#d7 of the 
,internal ,revenue ,code of #aihf7 to a 
qualified individual made during the    
#ahj-;day period beginning on the date  
of the enactment of this ,act-- 7,a7    
clause 7i7 of section #gb7p77#b77;,a7 of
 such ,code shall be applied by         
substituting #ajj1jjj for #ej1jjj1 and  
7,b7 clause 7ii7 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 plan4  7#b7 ,delay of
 repayment ,in the case of a qualified  
individual 7with respect to any         
qualified disaster7 with an outstanding 

loan 7on or after the first day of the  
incident period of such qualified       
disaster7 from a qualified employer plan
 7as defined in section #gb7p77#d7 of   
the ,internal ,revenue ,code of #aihf7--
 7,a7 if the due date pursuant to       
subparagraph 7,b7 or 7,c7 of section    
#gb7p77#b7 of such ,code for any        
repayment with respect to such loan     
occurs during the period beginning on   
the first day of the incident period of 
such qualified disaster and ending on   
the date which is #ahj days after the   
last day of such incident period1 such  
due date shall be delayed for #a year   
7or1 if later1 until the date which is  
#ahj days after the date of the         
enactment of this ,act71  7,b7 any      
subsequent repayments with respect to   
any such loan shall be appropriately    
adjusted to reflect the delay in the due
 date under subparagraph 7,a7 and any   
interest accruing during such delay1 and
  7,c7 in determining the #e-year period
 and the term of a loan under           

subparagraph 7,b7 or 7,c7 of section    
#gb7p77#b7 of such ,code1 the period    
described in subparagraph 7,a7 of this  
paragraph shall be disregarded4  7#c7   
,qualified individual ,for purposes of  
this subsection1 the term qualified     
individual means any individual-- 7,a7  
whose principal place of abode at any   
time during the incident period of any  
qualified disaster is located in the    
qualified disaster area with respect to 
such qualified disaster1 and  7,b7 who  
has sustained an economic loss by reason
 of such qualified disaster4  7d7       
,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 of this section1 or      
pursuant to any regulation issued by the
 ,secretary or the ,secretary of ,labor 
under any provision of this section1 and
  7ii7 on or before the last day of the 
first plan year beginning on or after   
,january #a1 #bjbb1 or such later date  
as the ,secretary may prescribe4  ,in   
the case of a governmental plan 7as     
defined in section #dad7;d7 of the      
,internal ,revenue ,code of #aihf71     
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 effect1 and  
7ii7 such plan or contract amendment    
applies retroactively for such period4  
#d4 ,employee retention credit for      
employers affected by qualified         
disasters  7a7 ,in general ,for purposes
 of section #ch of the ,internal        
,revenue ,code of #aihf1 in the case of 
an eligible employer1 the #bjbj         
qualified disaster employee retention   
credit shall be treated as a credit     
listed at the end of subsection 7b7 of  
such section4 ,for purposes of this     
subsection1 the #bjbj qualified disaster
 employee retention credit for any      
taxable year is an amount equal to #dj  
percent of the qualified wages with     
respect to each eligible employee of    
such employer for such taxable year4    
,the amount of qualified wages with     

respect to any employee which may be    
taken into account under this subsection
 by the employer for any taxable year   
shall not exceed #f1jjj 7reduced by the 
amount of qualified wages with respect  
to such employee which may be so taken  
into account for any prior taxable      
year74  7b7 ,definitions ,for purposes  
of this section-- 7#a7 ,eligible        
employer ,the term eligible employer    
means any employer-- 7,a7 which         
conducted an active trade or business in
 a qualified disaster zone at any time  
during the incident period of the       
qualified disaster with respect to such 
qualified disaster zone1 and  7,b7 with 
respect to whom the trade or business   
described in subparagraph 7,a7 is       
inoperable at any time during the period
 beginning on the first day of the      
incident period of such qualified       
disaster and ending on the date of the  
enactment of this ,act1 as a result of  
damage sustained by reason of such      
qualified disaster4  7#b7 ,eligible     

employee ,the term eligible employee    
means with respect to an eligible       
employer an employee whose principal    
place of employment with such eligible  
employer 7determined immediately before 
the qualified disaster referred to in   
paragraph 7#a77 was in the qualified    
disaster zone referred to in such       
paragraph4  7#c7 ,qualified wages ,the  
term qualified wages means wages 7as    
defined in section #ea7;c77#a7 of the   
,internal ,revenue ,code of #aihf1 but  
without regard to section               
#ccjf7;b77#b77;,b7 of such ,code7 paid  
or incurred by an eligible employer with
 respect to an eligible employee at any 
time on or after the date on which the  
trade or business described in paragraph
 7#a7 first became inoperable at the    
principal place of employment of the    
employee 7determined immediately before 
the qualified disaster referred to in   
such paragraph7 and before the earlier  
of-- 7,a7 the date on which such trade  
or business has resumed significant     

operations at such principal place of   
employment1 or  7,b7 the date which is  
#aej days after the last day of the     
incident period of the qualified        
disaster referred to in paragraph 7#a74 
,such term shall include wages paid     
without regard to whether the employee  
performs no services1 performs services 
at a different place of employment than 
such principal place of employment1 or  
performs services at such principal     
place of employment before significant  
operations have resumed4  7c7 ,certain  
rules to apply ,for purposes of this    
section1 rules similar to the rules of  
sections #ea7;i77#a71 #eb1 and          
#bhj;,c7a71 of the ,internal ,revenue   
,code of #aihf1 shall apply4  7d7       
,employee not taken into account more   
than once ,an employee shall not be     
treated as an eligible employee for     
purposes of this section for any period 
with respect to any employer if such    
employer is allowed a credit under      
section #ea of the ,internal ,revenue   

,code of #aihf with respect to such     
employee for such period4  #e4 ,other   
disaster-related tax relief provisions  
7a7 ,special rules for qualified        
disaster-,related personal casualty     
losses  7#a7 ,in general ,if an         
individual has a net disaster loss for  
any taxable year-- 7,a7 the amount      
determined under section                
#afe7;h77#b77;,a77ii7 of the ,internal  
,revenue ,code of #aihf shall be equal  
to the sum of-- 7i7 such net disaster   
loss1 and  7ii7 so much of the excess   
referred to in the matter preceding     
clause 7i7 of section #afe7;h77#b77;,a7 
of such ,code 7reduced by the amount in 
clause 7i7 of this subparagraph7 as     
exceeds #aj percent of the adjusted     
gross income of the individual1  7,b7   
section #afe7;h77#a7 of such ,code shall
 be applied by substituting #ejj for    
#ejj 7#ajj for taxable years beginning  
after ,december #ca1 #bjji71  7,c7 the  
standard deduction determined under     
section #fc7;c7 of such ,code shall be  

increased by the net disaster loss1 and 
7,d7 section #ef7;b77#a77;,d7 of such   
,code shall not apply to so much of the 
standard deduction as is attributable to
 the increase under subparagraph 7,c7 of
 this paragraph4  7#b7 ,net disaster    
loss ,for purposes of this subsection1  
the term net disaster loss means the    
excess of qualified disaster-related    
personal casualty losses over personal  
casualty gains 7as defined in section   
#afe7;h77#c77;,a7 of the ,internal      
,revenue ,code of #aihf74  7#c7         
,qualified disaster-related personal    
casualty losses ,for purposes of this   
subsection1 the term qualified          
disaster-related personal casualty      
losses means losses described in section
 #afe7;c77#c7 of the ,internal ,revenue 
,code of #aihf which arise in a         
qualified disaster area on or after the 
first day of the incident period of the 
qualified disaster to which such area   
relates1 and which are attributable to  
such qualified disaster4  7b7 ,special  

rule for determining earned income  7#a7
 ,in general ,in the case of a qualified
 individual1 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  
year1 the credits allowed under sections
 #bd7;d7 and #cb of the ,internal       
,revenue ,code of #aihf 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    
applicable taxable year4  7#b7          
,qualified individual ,for purposes of  
this subsection1 the term qualified     
individual means any individual whose   
principal place of abode at any time    
during the incident period of any       
qualified disaster was located-- 7,a7 in
 the qualified disaster zone with       
respect to such qualified disaster1 or  
7,b7 in the qualified disaster area with
 respect to such qualified disaster 7but
 outside the qualified disaster zone    

with respect to such qualified disaster7
 and such individual was displaced from 
such principal place of abode by reason 
of such qualified disaster4  7#c7       
,applicable taxable year ,for purposes  
of this subsection1 the term applicable 
taxable year means-- 7,a7 in the case of
 a qualified individual other than an   
individual described in subparagraph    
7,b71 any taxable year which includes   
any portion of the incident period of   
the qualified disaster to which the     
qualified disaster area referred to in  
paragraph 7#b77;,a7 relates1 or  7,b7 in
 the case of a qualified individual     
described in subparagraph 7,b7 of       
paragraph 7#b71 any taxable year which  
includes any portion of the period      
described in such subparagraph4  7#d7   
,earned income ,for purposes of this    
subsection1 the term earned income has  
the meaning given such term under       
section #cb7;c7 of the ,internal        
,revenue ,code of #aihf4  7#e7 ,special 
rules  7,a7 ,application to joint       

returns ,for purposes of paragraph 7#a71
 in the case of a joint return for an   
applicable taxable year-- 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 sections    
#bd7;d7 and #cb of the ,internal        
,revenue ,code of #aihf4  7,c7 ,errors  
treated as mathematical error ,for      
purposes of section #fbac of the        
,internal ,revenue ,code of #aihf1 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 the ,internal ,revenue ,code
 of #aihf shall be applied without      

regard to any substitution under        
paragraph 7#a74  #f4 ,additional        
low-income housing credit allocations   
7a7 ,in general ,for purposes of section
 #db of the ,internal ,revenue ,code of 
#aihf1 the ,state housing credit ceiling
 for any qualified ,state for calendar  
year #bjba shall be increased by the    
lesser of-- 7#a7 the aggregate housing  
credit dollar amount allocated by the   
,state housing credit agencies of such  
qualified ,state for such calendar year 
to buildings located in qualified       
disaster zones in such qualified ,state1
 or  7#b7 #ej percent of the sum of the 
,state housing credit ceilings for such 
qualified ,state for calendar year      
#bjbj4  7b7 ,allocations treated as made
 first from additional allocation for   
purposes of determining carryover ,for  
purposes of determining the unused      
,state housing credit ceiling for any   
calendar year under section             
#db7;h77#c77;,c7 of the ,internal       
,revenue ,code of #aihf1 any increase in

 the ,state housing credit ceiling under
 subsection 7a7 shall be treated as an  
amount described in clause 7ii7 of such 
section4  7c7 ,definitions ,for purposes
 of this section-- 7#a7 ,qualified      
,state ,the term qualified ,state means 
any ,state in which there is a qualified
 disaster zone4  7#b7 ,other definitions
 ,terms used in this section which are  
also used in section #db of the         
,internal ,revenue ,code of #aihf shall 
have the same meaning in this section as
 in such section #db4  #g4 ,treatment of
 certain possessions  7a7 ,payments to  
possessions with mirror code tax systems
 ,the ,secretary of the ,treasury shall 
pay to each possession of the ,united   
,states which has a mirror code tax     
system amounts equal to the loss 7if    
any7 to that possession by reason of the
 application of the provisions of this  
,act4 ,such amounts shall be determined 
by the ,secretary of the ,treasury based
 on information provided by the         
government of the respective possession4

  7b7 ,payments to other possessions    
,the ,secretary of the ,treasury shall  
pay to each possession of the ,united   
,states which does not have a mirror    
code tax system amounts estimated by the
 ,secretary of the ,treasury as being   
equal to the aggregate benefits 7if any7
 that would have been provided to       
residents of such possession by reason  
of the provisions of this ,act if a     
mirror code tax system had been in      
effect in such possession4 ,the         
preceding sentence shall not apply      
unless the respective possession has a  
plan1 which has been approved by the    
,secretary of the ,treasury1 under which
 such possession will promptly          
distribute such payments to its         
residents4  7c7 ,mirror code tax system 
,for purposes of this section1 the term 
mirror code tax system means1 with      
respect to any possession of the ,united
 ,states1 the income tax system of such 
possession if the income tax liability  
of the residents of such possession     

under such system is determined by      
reference to the income tax laws of the 
,united ,states as if such possession   
were the ,united ,states4  7d7          
,treatment of payments ,for purposes of 
section #acbd of title #ca1 ,united     
,states ,code1 the payments under this  
section shall be treated in the same    
manner as a refund due from a credit    
provision referred to in subsection     
7b77#b7 of such section4