,,ii  #aaf? ,,congress  #b;d ,session   
,s4 #dfba  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #ag1         
#bjbj,mr4 ,wyd5 7= himself1 ,mr4        
,m]kley1 ,mrs4 ,fe9/e91 ,mrs4 ,murray1 &
 ,ms4 ,h>ris7 introduc$ ! foll[+ bill2  
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
provide tax relief = p]sons affect$ by  
c]ta9 #bjbj disa/]s4  #a4 ,%ort title   
,?is ,act may be cit$ z ! #bjbj ,disa/]s
 ,tax ,relief ,act4  #b4 ,def9itions ,= 
purposes ( ?is ,act-- 7#a7 ,qualifi$    
disa/] area ,! t]m qualifi$ disa/] area 
means any area ) respect to :i* a major 
disa/] 0 decl>$1 dur+ ! p]iod beg9n+ on 
,janu>y #a1 #bjbj1 & end+ on ! date :i* 
is #fj days aft] ! date ( ! enactm5t (  
?is ,act1 by ! ,presid5t "u section #dja
 ( ! ,rob]t ,t4 ,/af=d ,disa/] ,relief &
 ,em]g5cy ,assi/ance ,act if ! incid5t  
p]iod ( ! disa/] ) respect to :i* su*   
decl>ation is made beg9s aft] ! date ( !
 enactm5t ( ! ,taxpay] ,c]ta9ty &       
,disa/] ,tax ,relief ,act ( #bjai & on  

or be=e ! date ( ! enactm5t ( ?is ,act4 
7#b7 ,qualifi$ disa/] zone ,! t]m       
qualifi$ disa/] zone means t portion (  
any qualifi$ disa/] area :i* 0 det]m9$  
by ! ,presid5t1 dur+ ! p]iod beg9n+ on  
,janu>y #a1 #bjbj1 & end+ on ! date :i* 
is #fj days aft] ! date ( ! enactm5t (  
?is ,act1 to w>rant individual or       
individual & public assi/ance f ! ,f$]al
 ,gov]nm5t "u ! ,rob]t ,t4 ,/af=d       
,disa/] ,relief & ,em]g5cy ,assi/ance   
,act by reason ( ! qualifi$ disa/] )    
respect to su* disa/] area4  7#c7       
,qualifi$ disa/]  7,a7 ,9 g5]al ,! t]m  
qualifi$ disa/] means1 ) respect to any 
qualifi$ disa/] area1 ! disa/] by reason
 ( :i* a major disa/] 0 decl>$ ) respect
 to su* area4  7,b7 ,exception ,su* t]m 
%all n include any major disa/] decl>$ z
 a result ( ! ,coronavirus ,disease     
#bjai 7,,covid-#ai7 p&emic4  7#d7       
,incid5t p]iod ,! t]m incid5t p]iod     
means1 ) respect to any qualifi$ disa/]1
 ! p]iod specifi$ by ! ,f$]al ,em]g5cy  
,managem5t ,ag5cy z ! p]iod dur+ :i* su*

 disa/] occurr$ 7except t = purposes (  
?is ,act su* p]iod %all n be treat$ z   
beg9n+ be=e ,janu>y #a1 #bjbj1 or end+  
aft] ! date :i* is #cj days aft] ! date 
( ! enactm5t ( ?is ,act74  #c4 ,special 
disa/]-relat$ rules = use ( retirem5t   
funds  7a7 ,tax-,favor$ )drawals f      
retirem5t plans  7#a7 ,9 g5]al ,section 
#gb7t7 ( ! ,int]nal ,rev5ue ,code (     
#aihf %all n apply to any qualifi$      
disa/] di/ribution4  7#b7 ,aggregate    
doll> limitation  7,a7 ,9 g5]al ,=      
purposes ( ?is subsection1 ! aggregate  
am\nt ( di/ributions receiv$ by an      
individual :i* may be treat$ z qualifi$ 
disa/] di/ributions = any taxable ye>   
%all n exce$ ! excess 7if any7 (-- 7i7  
#ajj1jjj1 ov]  7ii7 ! aggregate am\nts  
treat$ z qualifi$ disa/] di/ributions   
receiv$ by su* individual = all prior   
taxable ye>s4  7,b7 ,treatm5t ( plan    
di/ributions ,if a di/ribution to an    
individual w\ld 7)\t reg>d to           
subp>agraph 7,a77 be a qualifi$ disa/]  
di/ribution1 a plan %all n be treat$ z  

violat+ any requirem5t ( ! ,int]nal     
,rev5ue ,code ( #aihf m]ely because !   
plan treats su* di/ribution z a qualifi$
 disa/] di/ribution1 unless ! aggregate 
am\nt ( su* di/ributions f all plans    
ma9ta9$ by ! employ] 7& any memb] ( any 
controll$ gr\p :i* includes ! employ]7  
to su* individual exce$s #ajj1jjj4  7,c7
 ,controll$ gr\p ,= purposes (          
subp>agraph 7,b71 ! t]m controll$ gr\p  
means any gr\p treat$ z a s+le employ]  
"u subsection 7b71 7c71 7m71 or 7o7 (   
section #dad ( ! ,int]nal ,rev5ue ,code 
( #aihf4  7,d7 ,special rule =          
individuals affect$ by m ?an "o disa/]  
,! limitation ( subp>agraph 7,a7 %all be
 appli$ sep>ately ) respect to          
di/ributions made ) respect to ea*      
qualifi$ disa/]4  7#c7 ,am\nt di/ribut$ 
may be repaid  7,a7 ,9 g5]al ,any       
individual :o receives a qualifi$ disa/]
 di/ribution may1 at any "t dur+ !      
#c-ye> p]iod beg9n+ on ! day aft] ! date
 on :i* su* di/ribution 0 receiv$1 make 
#a or m contributions 9 an aggregate    

am\nt n to exce$ ! am\nt ( su*          
di/ribution to an eligible retirem5t    
plan ( :i* su* individual is a b5efici>y
 & to :i* a rollov] contribution ( su*  
di/ribution c\ld be made "u section     
#djb7;c71 #djc7;a77#d71 #djc7;b77#h71   
#djh7;d77#c71 or #deg7;e77#af71 ( !     
,int]nal ,rev5ue ,code ( #aihf1 z ! case
 may be4  7,b7 ,treatm5t ( repaym5ts (  
di/ributions f eligible retirem5t plans 
o!r ?an ,i,r,as ,= purposes ( ! ,int]nal
 ,rev5ue ,code ( #aihf1 if a            
contribution is made pursuant to        
subp>agraph 7,a7 ) respect to a qualifi$
 disa/] di/ribution f an eligible       
retirem5t plan o!r ?an an individual    
retirem5t plan1 !n ! taxpay] %all1 to ! 
ext5t ( ! am\nt ( ! contribution1 be    
treat$ z hav+ receiv$ ! qualifi$ disa/] 
di/ribution 9 an eligible rollov]       
di/ribution 7z def9$ 9 section          
#djb7;c77#d7 ( su* ,code7 & z hav+      
transf]r$ ! am\nt to ! eligible         
retirem5t plan 9 a direct tru/ee to     
tru/ee transf] )9 #fj days ( !          

di/ribution4  7,c7 ,treatm5t ( repaym5ts
 ( di/ributions f ,i,r,as ,= purposes ( 
! ,int]nal ,rev5ue ,code ( #aihf1 if a  
contribution is made pursuant to        
subp>agraph 7,a7 ) respect to a qualifi$
 disa/] di/ribution f an individual     
retirem5t plan 7z def9$ by section      
#ggja7;a77#cg7 ( su* ,code71 !n1 to !   
ext5t ( ! am\nt ( ! contribution1 !     
qualifi$ disa/] di/ribution %all be     
treat$ z a di/ribution describ$ 9       
section #djh7;d77#c7 ( su* ,code & z    
hav+ be5 transf]r$ to ! eligible        
retirem5t plan 9 a direct tru/ee to     
tru/ee transf] )9 #fj days ( !          
di/ribution4  7#d7 ,def9itions ,=       
purposes ( ?is subsection-- 7,a7        
,qualifi$ disa/] di/ribution ,except z  
provid$ 9 p>agraph 7#b71 ! t]m qualifi$ 
disa/] di/ribution means any di/ribution
 f an eligible retirem5t plan made-- 7i7
 on or aft] ! fir/ day ( ! incid5t p]iod
 ( a qualifi$ disa/] & be=e ! date :i*  
is #ahj days aft] ! date ( ! enactm5t ( 
?is ,act1 &  7ii7 to an individual ^:   

pr9cipal place ( abode at any "t dur+ ! 
incid5t p]iod ( su* qualifi$ disa/] is  
locat$ 9 ! qualifi$ disa/] area )       
respect to su* qualifi$ disa/] & :o has 
su/a9$ an economic loss by reason ( su* 
qualifi$ disa/]4  7,b7 ,eligible        
retirem5t plan ,! t]m eligible retirem5t
 plan %all h ! mean+ giv5 su* t]m by    
section #djb7;c77#h77;,b7 ( ! ,int]nal  
,rev5ue ,code ( #aihf4  7#e7 ,income    
inclusion spread ov] #c-ye> p]iod  7,a7 
,9 g5]al ,9 ! case ( any qualifi$ disa/]
 di/ribution1 unless ! taxpay] elects n 
to h ?is p>agraph apply = any taxable   
ye>1 any am\nt requir$ to be includ$ 9  
gross income = su* taxable ye> %all be s
 includ$ ratably ov] ! #c-taxable-ye>   
p]iod beg9n+ ) su* taxable ye>4  7,b7   
,special rule ,= purposes ( subp>agraph 
7,a71 rules simil> to ! rules (         
subp>agraph 7,e7 ( section              
#djh;,a7d77#c7 ( ! ,int]nal ,rev5ue     
,code ( #aihf %all apply4  7#f7 ,special
 rules  7,a7 ,exemption ( di/ributions f
 tru/ee to tru/ee transf] & )hold+ rules

 ,= purposes ( sections #dja7;a77#ca71  
#djb7;f71 & #cdje ( ! ,int]nal ,rev5ue  
,code ( #aihf1 qualifi$ disa/]          
di/ributions %all n be treat$ z eligible
 rollov] di/ributions4  7,b7 ,qualifi$  
disa/] di/ributions treat$ z meet+ plan 
di/ribution requirem5ts ,= purposes !   
,int]nal ,rev5ue ,code ( #aihf1 a       
qualifi$ disa/] di/ribution %all be     
treat$ z meet+ ! requirem5ts ( sections 
#dja7k77#b77;,b77i71                    
#djc7;b77#g77;,a77i71 #djc7;b77#aa71 &  
#deg7;d77#a77;,a7 ( su* ,code & section 
#hdcc7;h77#a7 ( title #e1 ,unit$ ,/ates 
,code1 &1 9 ! case ( a money pur*ase    
p5sion plan1 a qualifi$ disa/]          
di/ribution :i* is an 9-s]vice )drawal  
%all be treat$ z meet+ ! di/ribution    
rules ( section #dja7;a7 ( su* ,code4   
7b7 ,recontributions ( )drawals = home  
pur*ases  7#a7 ,recontributions  7,a7 ,9
 g5]al ,any individual :o receiv$ a     
qualifi$ di/ribution may1 dur+ !        
applicable p]iod1 make #a or m          
contributions 9 an aggregate am\nt n to 

exce$ ! am\nt ( su* qualifi$ di/ribution
 to an eligible retirem5t plan 7z def9$ 
9 section #djb7;c77#h77;,b7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf7 ( :i* su*       
individual is a b5efici>y & to :i* a    
rollov] contribution ( su* di/ribution  
c\ld be made "u section #djb7;c71       
#djc7;a77#d71 #djc7;b77#h71 or          
#djh7;d77#c71 ( su* ,code1 z ! case may 
be4  7,b7 ,treatm5t ( repaym5ts ,rules  
simil> to ! rules ( subp>agraphs 7,b7 & 
7,c7 ( subsection 7a77#c7 %all apply =  
purposes ( ?is subsection4  7#b7        
,qualifi$ di/ribution ,= purposes ( ?is 
subsection1 ! t]m qualifi$ di/ribution  
means any di/ribution-- 7,a7 describ$ 9 
section #dja7k77#b77;,b77i77,,iv71      
#djc7;b77#g77;,a77i7 7b only to ! ext5t 
su* di/ribution relates to f9ancial     
h>d%ip71 #djc7;b77#aa77;,b71 or         
#gb7t77#b77;,f71 ( ! ,int]nal ,rev5ue   
,code ( #aihf1  7,b7 :i* 0 to be us$ to 
pur*ase or con/ruct a pr9cipal resid5ce 
9 a qualifi$ disa/] area1 b :i* 0 n s   
us$ on acc\nt ( ! qualifi$ disa/] )     

respect to su* area1 &  7,c7 :i* 0      
receiv$ dur+ ! p]iod beg9n+ on ! date   
:i* is #ahj days be=e ! fir/ day ( !    
incid5t p]iod ( su* qualifi$ disa/] &   
end+ on ! date :i* is #cj days aft] !   
la/ day ( su* incid5t p]iod4  7#c7      
,applicable p]iod ,= purposes ( ?is     
subsection1 ! t]m applicable p]iod      
means1 9 ! case ( a pr9cipal resid5ce 9 
a qualifi$ disa/] area ) respect to any 
qualifi$ disa/]1 ! p]iod beg9n+ on !    
fir/ day ( ! incid5t p]iod ( su*        
qualifi$ disa/] & end+ on ! date :i* is 
#ahj days aft] ! date ( ! enactm5t ( ?is
 ,act4  7c7 ,loans f qualifi$ plans     
7#a7 ,increase 9 limit on loans n treat$
 z di/ributions ,9 ! case ( any loan f a
 qualifi$ employ] plan 7z def9$ "u      
section #gb7p77#d7 ( ! ,int]nal ,rev5ue 
,code ( #aihf7 to a qualifi$ individual 
made dur+ ! #ahj-;day p]iod beg9n+ on ! 
date ( ! enactm5t ( ?is ,act-- 7,a7     
clause 7i7 ( section #gb7p77#b77;,a7 (  
su* ,code %all be appli$ by sub/itut+   
#ajj1jjj = #ej1jjj1 &  7,b7 clause 7ii7 

( su* section %all be appli$ by         
sub/itut+ ! pres5t value ( !            
non=feitable accru$ b5efit ( ! employee 
"u ! plan = "o-half ( ! pres5t value ( !
 non=feitable accru$ b5efit ( ! employee
 "u ! plan4  7#b7 ,delay ( repaym5t ,9 !
 case ( a qualifi$ individual 7) respect
 to any qualifi$ disa/]7 ) an out/&+    
loan 7on or aft] ! fir/ day ( ! incid5t 
p]iod ( su* qualifi$ disa/]7 f a        
qualifi$ employ] plan 7z def9$ 9 section
 #gb7p77#d7 ( ! ,int]nal ,rev5ue ,code (
 #aihf7-- 7,a7 if ! due date pursuant to
 subp>agraph 7,b7 or 7,c7 ( section     
#gb7p77#b7 ( su* ,code = any repaym5t ) 
respect to su* loan occurs dur+ ! p]iod 
beg9n+ on ! fir/ day ( ! incid5t p]iod (
 su* qualifi$ disa/] & end+ on ! date   
:i* is #ahj days aft] ! la/ day ( su*   
incid5t p]iod1 su* due date %all be     
delay$ = #a ye> 7or1 if lat]1 until !   
date :i* is #ahj days aft] ! date ( !   
enactm5t ( ?is ,act71  7,b7 any         
subsequ5t repaym5ts ) respect to any su*
 loan %all be appropriately adju/$ to   

reflect ! delay 9 ! due date "u         
subp>agraph 7,a7 & any int]e/ accru+    
dur+ su* delay1 &  7,c7 9 det]m9+ !     
#e-ye> p]iod & ! t]m ( a loan "u        
subp>agraph 7,b7 or 7,c7 ( section      
#gb7p77#b7 ( su* ,code1 ! p]iod describ$
 9 subp>agraph 7,a7 ( ?is p>agraph %all 
be disreg>d$4  7#c7 ,qualifi$ individual
 ,= purposes ( ?is subsection1 ! t]m    
qualifi$ individual means any           
individual-- 7,a7 ^: pr9cipal place (   
abode at any "t dur+ ! incid5t p]iod (  
any qualifi$ disa/] is locat$ 9 !       
qualifi$ disa/] area ) respect to su*   
qualifi$ disa/]1 &  7,b7 :o has su/a9$  
an economic loss by reason ( su*        
qualifi$ disa/]4  7d7 ,provisions relat+
 to plan am5dm5ts  7#a7 ,9 g5]al ,if ?is
 subsection applies to any am5dm5t to   
any plan or annuity contract1 su* plan  
or contract %all be treat$ z be+ op]at$ 
9 accordance ) ! t]ms ( ! plan dur+ !   
p]iod describ$ 9 p>agraph 7#b77;,b77i74 
7#b7 ,am5dm5ts to :i* subsection applies
  7,a7 ,9 g5]al ,?is subsection %all    

apply to any am5dm5t to any plan or     
annuity contract :i* is made-- 7i7      
pursuant to any provision ( ?is section1
 or pursuant to any regulation issu$ by 
! ,secret>y or ! ,secret>y ( ,labor "u  
any provision ( ?is section1 &  7ii7 on 
or be=e ! la/ day ( ! fir/ plan ye>     
beg9n+ on or aft] ,janu>y #a1 #bjbb1 or 
su* lat] date z ! ,secret>y may         
prescribe4  ,9 ! case ( a gov]nm5tal    
plan 7z def9$ 9 section #dad7;d7 ( !    
,int]nal ,rev5ue ,code ( #aihf71 clause 
7ii7 %all be appli$ by sub/itut+ ! date 
:i* is #b ye>s aft] ! date o!rwise      
appli$ "u clause 7ii74  7,b7 ,conditions
 ,?is subsection %all n apply to any    
am5dm5t unless-- 7i7 dur+ ! p]iod-- 7,i7
 beg9n+ on ! date t ?is section or !    
regulation describ$ 9 subp>agraph       
7,a77i7 takes effect 7or 9 ! case ( a   
plan or contract am5dm5t n requir$ by   
?is section or su* regulation1 !        
effective date specifi$ by ! plan71 &   
7,,ii7 end+ on ! date describ$ 9        
subp>agraph 7,a77ii7 7or1 if e>li]1 !   

date ! plan or contract am5dm5t is      
adopt$71  ! plan or contract is op]at$ z
 if su* plan or contract am5dm5t 7 9    
effect1 &  7ii7 su* plan or contract    
am5dm5t applies retroactively = su*     
p]iod4  #d4 ,employee ret5tion cr$it =  
employ]s affect$ by qualifi$ disa/]s    
7a7 ,9 g5]al ,= purposes ( section #ch (
 ! ,int]nal ,rev5ue ,code ( #aihf1 9 !  
case ( an eligible employ]1 ! #bjbj     
qualifi$ disa/] employee ret5tion cr$it 
%all be treat$ z a cr$it li/$ at ! end (
 subsection 7b7 ( su* section4 ,=       
purposes ( ?is subsection1 ! #bjbj      
qualifi$ disa/] employee ret5tion cr$it 
= any taxable ye> is an am\nt equal to  
#dj p]c5t ( ! qualifi$ wages ) respect  
to ea* eligible employee ( su* employ] =
 su* taxable ye>4 ,! am\nt ( qualifi$   
wages ) respect to any employee :i* may 
be tak5 into acc\nt "u ?is subsection by
 ! employ] = any taxable ye> %all n     
exce$ #f1jjj 7r$uc$ by ! am\nt (        
qualifi$ wages ) respect to su* employee
 :i* may be s tak5 into acc\nt = any    

prior taxable ye>74  7b7 ,def9itions ,= 
purposes ( ?is section-- 7#a7 ,eligible 
employ] ,! t]m eligible employ] means   
any employ]-- 7,a7 :i* conduct$ an      
active trade or bus9ess 9 a qualifi$    
disa/] zone at any "t dur+ ! incid5t    
p]iod ( ! qualifi$ disa/] ) respect to  
su* qualifi$ disa/] zone1 &  7,b7 )     
respect to :om ! trade or bus9ess       
describ$ 9 subp>agraph 7,a7 is inop]able
 at any "t dur+ ! p]iod beg9n+ on ! fir/
 day ( ! incid5t p]iod ( su* qualifi$   
disa/] & end+ on ! date ( ! enactm5t (  
?is ,act1 z a result ( damage su/a9$ by 
reason ( su* qualifi$ disa/]4  7#b7     
,eligible employee ,! t]m eligible      
employee means ) respect to an eligible 
employ] an employee ^: pr9cipal place ( 
employm5t ) su* eligible employ]        
7det]m9$ imm$iately be=e ! qualifi$     
disa/] ref]r$ to 9 p>agraph 7#a77 0 9 ! 
qualifi$ disa/] zone ref]r$ to 9 su*    
p>agraph4  7#c7 ,qualifi$ wages ,! t]m  
qualifi$ wages means wages 7z def9$ 9   
section #ea7;c77#a7 ( ! ,int]nal ,rev5ue

 ,code ( #aihf1 b )\t reg>d to section  
#ccjf7;b77#b77;,b7 ( su* ,code7 paid or 
incurr$ by an eligible employ] ) respect
 to an eligible employee at any "t on or
 aft] ! date on :i* ! trade or bus9ess  
describ$ 9 p>agraph 7#a7 fir/ became    
inop]able at ! pr9cipal place (         
employm5t ( ! employee 7det]m9$         
imm$iately be=e ! qualifi$ disa/] ref]r$
 to 9 su* p>agraph7 & be=e ! e>li] (--  
7,a7 ! date on :i* su* trade or bus9ess 
has resum$ significant op]ations at su* 
pr9cipal place ( employm5t1 or  7,b7 !  
date :i* is #aej days aft] ! la/ day ( !
 incid5t p]iod ( ! qualifi$ disa/]      
ref]r$ to 9 p>agraph 7#a74  ,su* t]m    
%all include wages paid )\t reg>d to    
:e!r ! employee p]=ms no s]vices1 p]=ms 
s]vices at a diff]5t place ( employm5t  
?an su* pr9cipal place ( employm5t1 or  
p]=ms s]vices at su* pr9cipal place (   
employm5t be=e significant op]ations h  
resum$4  7c7 ,c]ta9 rules to apply ,=   
purposes ( ?is section1 rules simil> to 
! rules ( sections #ea7;i77#a71 #eb1 &  

#bhj;,c7a71 ( ! ,int]nal ,rev5ue ,code (
 #aihf1 %all apply4  7d7 ,employee n    
tak5 into acc\nt m ?an once ,an employee
 %all n be treat$ z an eligible employee
 = purposes ( ?is section = any p]iod ) 
respect to any employ] if su* employ] is
 all[$ a cr$it "u section #ea ( !       
,int]nal ,rev5ue ,code ( #aihf ) respect
 to su* employee = su* p]iod4  #e4 ,o!r 
disa/]-relat$ tax relief provisions  7a7
 ,special rules = qualifi$              
disa/]-,relat$ p]sonal casualty losses  
7#a7 ,9 g5]al ,if an individual has a   
net disa/] loss = any taxable ye>-- 7,a7
 ! am\nt det]m9$ "u section             
#afe7;h77#b77;,a77ii7 ( ! ,int]nal      
,rev5ue ,code ( #aihf %all be equal to !
 sum (-- 7i7 su* net disa/] loss1 &     
7ii7 s mu* ( ! excess ref]r$ to 9 !     
matt] prec$+ clause 7i7 ( section       
#afe7;h77#b77;,a7 ( su* ,code 7r$uc$ by 
! am\nt 9 clause 7i7 ( ?is subp>agraph7 
z exce$s #aj p]c5t ( ! adju/$ gross     
income ( ! individual1  7,b7 section    
#afe7;h77#a7 ( su* ,code %all be appli$ 

by sub/itut+ #ejj = #ejj 7#ajj = taxable
 ye>s beg9n+ aft] ,decemb] #ca1 #bjji71 
7,c7 ! /&>d d$uction det]m9$ "u section 
#fc7;c7 ( su* ,code %all be increas$ by 
! net disa/] loss1 &  7,d7 section      
#ef7;b77#a77;,d7 ( su* ,code %all n     
apply to s mu* ( ! /&>d d$uction z is   
attributable to ! increase "u           
subp>agraph 7,c7 ( ?is p>agraph4  7#b7  
,net disa/] loss ,= purposes ( ?is      
subsection1 ! t]m net disa/] loss means 
! excess ( qualifi$ disa/]-relat$       
p]sonal casualty losses ov] p]sonal     
casualty ga9s 7z def9$ 9 section        
#afe7;h77#c77;,a7 ( ! ,int]nal ,rev5ue  
,code ( #aihf74  7#c7 ,qualifi$         
disa/]-relat$ p]sonal casualty losses ,=
 purposes ( ?is subsection1 ! t]m       
qualifi$ disa/]-relat$ p]sonal casualty 
losses means losses describ$ 9 section  
#afe7;c77#c7 ( ! ,int]nal ,rev5ue ,code 
( #aihf :i* arise 9 a qualifi$ disa/]   
area on or aft] ! fir/ day ( ! incid5t  
p]iod ( ! qualifi$ disa/] to :i* su*    
area relates1 & :i* are attributable to 

su* qualifi$ disa/]4  7b7 ,special rule 
= det]m9+ e>n$ income  7#a7 ,9 g5]al ,9 
! case ( a qualifi$ individual1 if !    
e>n$ income ( ! taxpay] = ! applicable  
taxable ye> is less ?an ! e>n$ income ( 
! taxpay] = ! prec$+ taxable ye>1 !     
cr$its all[$ "u sections #bd7;d7 & #cb (
 ! ,int]nal ,rev5ue ,code ( #aihf may1  
at ! election ( ! taxpay]1 be det]m9$ by
 sub/itut+-- 7,a7 su* e>n$ income = !   
prec$+ taxable ye>1 =  7,b7 su* e>n$    
income = ! applicable taxable ye>4  7#b7
 ,qualifi$ individual ,= purposes ( ?is 
subsection1 ! t]m qualifi$ individual   
means any individual ^: pr9cipal place (
 abode at any "t dur+ ! incid5t p]iod ( 
any qualifi$ disa/] 0 locat$-- 7,a7 9 ! 
qualifi$ disa/] zone ) respect to su*   
qualifi$ disa/]1 or  7,b7 9 ! qualifi$  
disa/] area ) respect to su* qualifi$   
disa/] 7b outside ! qualifi$ disa/] zone
 ) respect to su* qualifi$ disa/]7 & su*
 individual 0 displac$ f su* pr9cipal   
place ( abode by reason ( su* qualifi$  
disa/]4  7#c7 ,applicable taxable ye> ,=

 purposes ( ?is subsection1 ! t]m       
applicable taxable ye> means-- 7,a7 9 ! 
case ( a qualifi$ individual o!r ?an an 
individual describ$ 9 subp>agraph 7,b71 
any taxable ye> :i* includes any portion
 ( ! incid5t p]iod ( ! qualifi$ disa/]  
to :i* ! qualifi$ disa/] area ref]r$ to 
9 p>agraph 7#b77;,a7 relates1 or  7,b7 9
 ! case ( a qualifi$ individual describ$
 9 subp>agraph 7,b7 ( p>agraph 7#b71 any
 taxable ye> :i* includes any portion ( 
! p]iod describ$ 9 su* subp>agraph4     
7#d7 ,e>n$ income ,= purposes ( ?is     
subsection1 ! t]m e>n$ income has !     
mean+ giv5 su* t]m "u section #cb7;c7 ( 
! ,int]nal ,rev5ue ,code ( #aihf4  7#e7 
,special rules  7,a7 ,application to    
jo9t returns ,= purposes ( p>agraph     
7#a71 9 ! case ( a jo9t return = an     
applicable taxable ye>-- 7i7 su*        
p>agraph %all apply if ei!r sp\se is a  
qualifi$ individual1 &  7ii7 ! e>n$     
income ( ! taxpay] = ! prec$+ taxable   
ye> %all be ! sum ( ! e>n$ income ( ea* 
sp\se = su* prec$+ taxable ye>4  7,b7   

,uni=m application ( election ,any      
election made "u p>agraph 7#a7 %all     
apply ) respect to bo? sections #bd7;d7 
& #cb ( ! ,int]nal ,rev5ue ,code (      
#aihf4  7,c7 ,errors treat$ z ma!matical
 error ,= purposes ( section #fbac ( !  
,int]nal ,rev5ue ,code ( #aihf1 an      
incorrect use on a return ( e>n$ income 
pursuant to p>agraph 7#a7 %all be treat$
 z a ma!matical or cl]ical error4  7,d7 
,no effect on det]m9ation ( gross       
income1 etc ,except z o!rwise provid$ 9 
?is subsection1 ! ,int]nal ,rev5ue ,code
 ( #aihf %all be appli$ )\t reg>d to any
 sub/itution "u p>agraph 7#a74  #f4     
,additional l[-income h\s+ cr$it        
allocations  7a7 ,9 g5]al ,= purposes ( 
section #db ( ! ,int]nal ,rev5ue ,code (
 #aihf1 ! ,/ate h\s+ cr$it ceil+ = any  
qualifi$ ,/ate = cal5d> ye> #bjba %all  
be increas$ by ! less] (-- 7#a7 !       
aggregate h\s+ cr$it doll> am\nt        
allocat$ by ! ,/ate h\s+ cr$it ag5cies (
 su* qualifi$ ,/ate = su* cal5d> ye> to 
build+s locat$ 9 qualifi$ disa/] zones 9

 su* qualifi$ ,/ate1 or  7#b7 #ej p]c5t 
( ! sum ( ! ,/ate h\s+ cr$it ceil+s =   
su* qualifi$ ,/ate = cal5d> ye> #bjbj4  
7b7 ,allocations treat$ z made fir/ f   
additional allocation = purposes (      
det]m9+ c>ryov] ,= purposes ( det]m9+ ! 
unus$ ,/ate h\s+ cr$it ceil+ = any      
cal5d> ye> "u section #db7;h77#c77;,c7 (
 ! ,int]nal ,rev5ue ,code ( #aihf1 any  
increase 9 ! ,/ate h\s+ cr$it ceil+ "u  
subsection 7a7 %all be treat$ z an am\nt
 describ$ 9 clause 7ii7 ( su* section4  
7c7 ,def9itions ,= purposes ( ?is       
section-- 7#a7 ,qualifi$ ,/ate ,! t]m   
qualifi$ ,/ate means any ,/ate 9 :i* !re
 is a qualifi$ disa/] zone4  7#b7 ,o!r  
def9itions ,t]ms us$ 9 ?is section :i*  
are also us$ 9 section #db ( ! ,int]nal 
,rev5ue ,code ( #aihf %all h ! same     
mean+ 9 ?is section z 9 su* section #db4
  #g4 ,treatm5t ( c]ta9 possessions  7a7
 ,paym5ts to possessions ) mirror code  
tax sy/ems ,! ,secret>y ( ! ,treasury   
%all pay to ea* possession ( ! ,unit$   
,/ates :i* has a mirror code tax sy/em  

am\nts equal to ! loss 7if any7 to t    
possession by reason ( ! application ( !
 provisions ( ?is ,act4 ,su* am\nts %all
 be det]m9$ by ! ,secret>y ( ! ,treasury
 bas$ on in=mation provid$ by ! gov]nm5t
 ( ! respective possession4  7b7        
,paym5ts to o!r possessions ,! ,secret>y
 ( ! ,treasury %all pay to ea*          
possession ( ! ,unit$ ,/ates :i* does n 
h a mirror code tax sy/em am\nts e/imat$
 by ! ,secret>y ( ! ,treasury z be+     
equal to ! aggregate b5efits 7if any7 t 
w\ld h be5 provid$ to resid5ts ( su*    
possession by reason ( ! provisions (   
?is ,act if a mirror code tax sy/em _h  
be5 9 effect 9 su* possession4 ,! prec$+
 s5t5ce %all n apply unless ! respective
 possession has a plan1 :i* has be5     
approv$ by ! ,secret>y ( ! ,treasury1 "u
 :i* su* possession w promptly di/ribute
 su* paym5ts to its resid5ts4  7c7      
,mirror code tax sy/em ,= purposes ( ?is
 section1 ! t]m mirror code tax sy/em   
means1 ) respect to any possession ( !  
,unit$ ,/ates1 ! income tax sy/em ( su* 

possession if ! income tax liability ( !
 resid5ts ( su* possession "u su* sy/em 
is det]m9$ by ref]5ce to ! income tax   
laws ( ! ,unit$ ,/ates z if su*         
possession 7 ! ,unit$ ,/ates4  7d7      
,treatm5t ( paym5ts ,= purposes (       
section #acbd ( title #ca1 ,unit$ ,/ates
 ,code1 ! paym5ts "u ?is section %all be
 treat$ 9 ! same mann] z a refund due f 
a cr$it provision ref]r$ to 9 subsection
 7b77#b7 ( su* section4