,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #cied  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #af1 #bjba,mr4  
,?ompson ( ,cali=nia introduc$ ! foll[+ 
bill2 :i* 0 ref]r$ to ! ,committee on   
,ways & ,means1 & 9 addition to !       
,committees on ,small ,bus9ess1 &       
,agriculture1 = a p]iod to be           
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide disa/] 
tax relief1 exclude f gross income      
am\nts receiv$ f ,/ate-bas$ cata/rophe  
loss mitigation programs1 & = o!r       
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,disa/] ,tax ,relief ,act (
 #bjba4  #b4 ,def9itions ,= purposes (  
?is ,act-- 7#a7 ,qualifi$ disa/] area   
7,a7 ,9 g5]al ,! t]m qualifi$ disa/]    
area means any area ) respect to :i* a  
major disa/] 0 decl>$1 dur+ ! p]iod     
beg9n+ on ,decemb] #bh1 #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 on or be=e ! date ( ! enactm5t (  
?is ,act4  7,b7 ,,covid-#ai exception   
,su* t]m %all n include any area )      
respect to :i* su* a major disa/] has   
be5 s decl>$ only by reason (           
,,covid-#ai4  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 ,decemb] #bh1 #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/] ,! 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#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    
,decemb] #bh1 #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;,a77ii71 #djc7;b77#aa71 & 
#deg7;d77#a77;,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;,a77ii7 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 #bjba1 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 ! #bjba     
qualifi$ disa/] employee ret5tion cr$it 
%all be treat$ z a cr$it li/$ at ! end (
 subsection 7b7 ( su* section4 ,=       
purposes ( ?is subsection1 ! #bjba      
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* #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 ,su* t]m %all n include any     
wages tak5 into acc\nt "u section #bcja 
( ! ,coronavirus ,aid1 ,relief1 &       

,economic ,security ,act4  7c7 ,special 
rules  7#a7 ,employee n tak5 into acc\nt
 m ?an once ,an employee %all n be      
treat$ z an eligible employee = purposes
 ( ?is subsection = any p]iod ) respect 
to any employ] if su* employ] is all[$ a
 cr$it "u section #ea ( ! ,int]nal      
,rev5ue ,code ( #aihf ) respect to su*  
employee = su* p]iod4  7#b7 ,d5ial (    
d\ble b5efit ,any wages tak5 into acc\nt
 9 det]m9+ ! cr$it all[$ "u ?is section 
%all n be tak5 into acc\nt z wages =    
purposes ( sections #da1 #de;,a1 #de,p1 
#de,s1 #ea1 & #acif ( ! ,int]nal ,rev5ue
 ,code ( #aihf4  7#c7 ,c]ta9 o!r rules  
to apply ,= purposes ( ?is subsection1  
rules simil> to ! rules ( sections      
#ea7;i77#a71 #eb1 & #bhj;,c7a71 ( !     
,int]nal ,rev5ue ,code ( #aihf1 %all    
apply4  7d7 ,election ,to n take c]ta9  
wages into acc\nt  7#a7 ,9 g5]al ,?is   
section %all n apply to qualifi$ wages  
paid by an eligible employ] ) respect to
 :i* su* employ] makes an election 7at  
su* "t & 9 su* mann] z ! ,secret>y may  

prescribe7 to h ?is section n apply to  
su* wages4  7#b7 ,coord9ation ) pay*eck 
protection program ,! ,secret>y1 9      
consultation ) ! ,adm9i/rator ( ! ,small
 ,bus9ess ,adm9i/ration1 %all issue     
guidance provid+ t payroll co/s paid or 
incurr$ dur+ ! cov]$ p]iod %all n fail  
to be treat$ z qualifi$ wages "u ?is    
section by reason ( an election "u      
p>agraph 7#a7 to ! ext5t t a cov]$ loan 
( ! eligible employ] is n =giv5 by      
reason ( a decision "u section #aajf7;g7
 ( ! ,,c>es ,act4 ,t]ms us$ 9 ! prec$+  
s5t5ce :i* are also us$ 9 section #aajf 
( su* ,act %all h ! same mean+ z :5 us$ 
9 su* section4  7e7 ,am5dm5t to pay*eck 
protection program ,section             
#aajf7;a77#h7 ( ! ,,c>es ,act is am5d$  
by ins]t+ 1 except t su* co/s %all n    
include qualifi$ wages tak5 into acc\nt 
9 det]m9+ ! cr$it all[$ "u section #d ( 
! ,disa/] ,tax ,relief ,act ( #bjba be=e
 ! p]iod at ! end4  #e4 ,o!r            
disa/]-relat$ tax relief provisions  7a7
 ,special rules = qualifi$ disa/] relief

 contributions  7#a7 ,9 g5]al ,9 ! case 
( a qualifi$ disa/] relief contribution 
made by a corporation-- 7,a7 section    
#bbje7;a77#b77;,b7 ( ! ,,c>es ,act %all 
be appli$ fir/ to qualifi$ contributions
 )\t reg>d to any qualifi$ disa/] relief
 contributions & !n sep>ately to su*    
qualifi$ disa/] relief contribution1 &  
7,b7 9 apply+ su* section to su*        
qualifi$ disa/] relief contributions1   
clause 7i7 !re( %all be appli$-- 7i7 by 
sub/itut+ #ajj p]c5t = #be p]c5t1 &     
7ii7 by treat+ qualifi$ contributions   
o!r ?an qualifi$ disa/] relief          
contributions z contributions all[$ "u  
section #agj7;b77#b7 ( ! ,int]nal       
,rev5ue ,code ( #aihf4  7#b7 ,qualifi$  
disa/] relief contribution ,= purposes (
 ?is subsection1 ! t]m qualifi$ disa/]  
relief contribution means any qualifi$  
contribution 7z def9$ 9 section         
#bbje7;a77#c7 ( ! ,,c>es ,act7 if-- 7,a7
 su* contribution-- 7i7 is paid1 dur+ ! 
p]iod beg9n+ on ,decemb] #bh1 #bjbj1 &  
end+ on ! date :i* is #fj days aft] !   

date ( ! enactm5t ( ?is ,act1 &  7ii7 is
 made = relief ef=ts 9 "o or m qualifi$ 
disa/] areas1  7,b7 ! taxpay] obta9s f  
su* organization contemporane\s writt5  
ackn[l$gm5t 7)9 ! mean+ ( section       
#agj7;f77#h7 ( su* ,code7 t su*         
contribution 0 us$ 7or is to be us$7 =  
relief ef=ts describ$ 9 subp>agraph     
7,a77ii71 &  7,c7 ! taxpay] has elect$ !
 application ( ?is subsection ) respect 
to su* contribution4  7b7 ,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 9 ! case ( 
qualifi$ disa/]-relat$ p]sonal casualty 

losses1 section #afe7;h77#a7 ( su* ,code
 %all be appli$ to 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;,e7 ( 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  #f4 ,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  #g4 ,exclusion 
( am\nts receiv$ f /ate-bas$ cata/rophe 
loss mitigation programs  7a7 ,9 g5]al  
,section #aci ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by r$esignat+         
subsection 7h7 z subsection 7i7 & by    
ins]t+ aft] subsection 7g7 ! foll[+ new 

subsection3  7h7 ,/ate-,bas$ cata/rophe 
loss mitigation programs  7#a7 ,9 g5]al 
,gross income %all n include any am\nt  
receiv$ by an individual z a qualifi$   
cata/rophe mitigation paym5t "u a       
program e/abli%$ by a ,/ate1 or a       
political subdivision or in/rum5tality  
!re(1 = ! purpose ( mak+ su* paym5ts4   
7#b7 ,qualifi$ cata/rophe mitigation    
paym5t ,= purposes ( ?is section1 ! t]m 
qualifi$ cata/rophe mitigation paym5t   
means any am\nt :i* is receiv$ by an    
individual to make improvem5ts to su*   
individual's resid5ce = ! sole purpose (
 r$uc+ ! damage t w\ld be done to su*   
resid5ce by a w9d/orm1 e>?quake1 or     
wildfire4  7#c7 ,no increase 9 basis    
,rules simil> to ! rules ( subsection   
7g77#c7 %all apply 9 ! case ( ?is       
subsection4  4  7b7 ,con=m+ am5dm5ts    
7#a7 ,section #aci7;d7 is am5d$ by /rik+
 & qualifi$ & ins]t+ 1 qualifi$         
cata/rophe mitigation paym5ts1 &        
qualifi$4  7#b7 ,section #aci7;i7 7z    
r$esignat$ by subsection 7a77 is am5d$  

by /rik+ or qualifi$ & ins]t+ 1 qualifi$
 cata/rophe mitigation paym5t1 or       
qualifi$4  7c7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjbj4  #h4 ,exclusion f gross     
income ( c]ta9 em]g5cy agricultural     
assi/ance  7a7 ,9 g5]al ,section #aci ( 
! ,int]nal ,rev5ue ,code ( #aihf1 z     
am5d$ by ! prec$+ provisions ( ?is ,act1
 is am5d$ by r$esignat+ subsection 7i7 z
 subsection 7j7 & by ins]t+ aft]        
subsection 7h7 ! foll[+ new subsection3 
7i7 ,c]ta9 agricultural assi/ance ,=    
purposes ( ?is section1 ! t]m qualifi$  
disa/] relief paym5t %all include any   
assi/ance receiv$ "u any ( ! foll[+3    
7#a7 ,assi/ance receiv$ "u ! ,wildfires 
& ,hurricanes ,indemnity ,program ,plus 
"u subp>t ,o ( "p #gfj ( title #g1 ,code
 ( ,f$]al ,regulations4  7#b7 ,assi/ance
 receiv$ "u section #aeja ( !           
,agricultural ,act ( #bjad 7#g ,u4,s4,c4
 #ijha74  7#c7 ,non9sur$ crop assi/ance 
"u section #aif ( ! ,f$]al ,agriculture 

,improvem5t & ,re=m ,act ( #aiif 7#g    
,u4,s4,c4 #gccc74  7#d7 ,assi/ance "u a 
food assi/ance program "u "p #i ( title 
#g1 ,code ( ,f$]al ,regulations4  7#e7  
,assi/ance "u title ,,iv ( !            
,agricultural ,cr$it ,act ( #aigh 7#af  
,u4,s4,c4 #bbja et seq474  7#f7         
,assi/ance "u ! ,quality ,loss          
,assi/ance ,program4  4  7b7 ,effective 
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjbj4  #i4 ,s5se (       
,congress reg>d+ disa/] loan process+ ,x
 is ! s5se ( ,congress t ! ,adm9i/rator 
( ! ,small ,bus9ess ,adm9i/ration %\ld  
use di/rict (fices ( ! ,adm9i/ration    
:5ev] possible to exp$ite ! process+ (  
disa/] loans "u section #g7;b7 ( !      
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fcf7;b774  #aj4 ,small bus9ess         
developm5t c5t] portability grants      
,section #ba7;a77#d77;,c77viii7 ( !     
,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fdh7;a77#d77;,c77viii77 is am5d$-- 7#a7
 9 ! fir/ s5t5ce1 by /rik+ z a result ( 

a bus9ess or gov]nm5t facility d[n siz+ 
or clos+1 :i* has result$ 9 ! loss (    
jobs or small bus9ess in/ability &      
ins]t+ due to ev5ts t h result$ or w    
result 9 a bus9ess or gov]nm5t facility 
d[nsiz+ or clos+2 &  7#b7 by add+ at !  
end ! foll[+3 ,at ! discretion ( !      
,adm9i/rator1 ! ,adm9i/rator may make an
 aw>d great] ?an #ajj1jjj to a recipi5t 
to accommodate extraord9>y occurr5ces   
hav+ a cata/rophic impact on ! small    
bus9ess conc]ns 9 a community44  #aa4   
,disa/] assi/ance to critical ent]prises
 ,section #bcg ( ! ,disa/] ,relief ,act 
( #aigj 7#ae ,u4,s4,c4 #fcf;d7 is       
am5d$-- 7#a7 by r$esignat+ subsection   
7b7 z subsection 7c72 &  7#b7 9         
subsection 7a7-- 7,a7 by /rik+ ,f>m]s   
,home ,adm9i/ration & ins]t+ ,f>m       
,s]vice ,ag5cy2  7,b7 by /rik+ major    
disa/] & ins]t+ major disa/] or is vital
 to recov]y ef=ts 9 ! disa/] area       
7includ+ provid+ debris removal s]vices1
 manufactur$ h\s+1 gasol9e1             
telecommunications1 or build+           

mat]ials712 &  7,c7 by /rik+ ,loans     
au?oriz$ & all t foll[s ?r\gh pursuant  
!reto4 & ins]t+ ! foll[+3  7b7 ,t]ms &  
conditions ,not)/&+ any o!r provision ( 
law1 loans au?oriz$ by ?is section--    
7#a7 %all be made )\t reg>d to          
limitations on ! size ( loans :i* may   
o!rwise be impos$ by any o!r provision (
 law or regulations promulgat$ pursuant 
!reto2 &  7#b7 may waive any requir$    
evaluation ( cr$itwor?9ess 9 ex*ange = a
 fee1 z set by ! ,small ,bus9ess        
,adm9i/ration or ! ,f>m ,s]vice ,ag5cy1 
z applicable4  4  #ab4 ,cr$it = qualifi$
 wildfire mitigation exp5ditures  7a7 ,9
 g5]al ,subp>t ,b ( "p ,,iv ( sub*apt]  
,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by ins]t+ aft] section
 #bg ! foll[+ new section3  #bh4        
,qualifi$ wildfire mitigation           
exp5ditures  7a7 ,9 g5]al ,!re %all be  
all[$ z a cr$it aga9/ ! tax impos$ by   
?is *apt] = ! taxable ye> an am\nt equal
 to #cj p]c5t ( ! qualifi$ wildfire     
mitigation exp5ditures paid or incurr$  

by ! taxpay] dur+ su* taxable ye> )     
respect to real prop]ty own$ or leas$ by
 ! taxpay]4  7b7 ,qualifi$ wildfire     
mitigation exp5ditures ,= purposes ( ?is
 section-- 7#a7 ,9 g5]al ,! t]m qualifi$
 wildfire mitigation exp5ditures means  
any specifi$ wildfire mitigation        
exp5diture made pursuant to a qualifi$  
,/ate wildfire mitigation program ( a   
,/ate :i* requires exp5ditures =        
wildfire mitigation to be paid bo? by ! 
taxpay] & su* ,/ate4 ,su* t]m %all n    
include any item ( exp5diture unless !  
ratio ( ! ,/ate's exp5diture = su* item 
to ! sum ( ! ,/ate's & taxpay]'s        
exp5ditures = su* item is n less ?an #be
 p]c5t4  7#b7 ,specifi$ wildfire        
mitigation exp5diture ,! t]m specifi$   
wildfire mitigation exp5diture means1 ) 
respect to any real prop]ty own$ or     
leas$ by ! taxpay]1 any am\nt paid or   
incurr$ to r$uce ! risk ( wildfire by   
remov+ accumulations ( vegetation       
7includ+ e/abli%+1 exp&+1 or ma9ta9+    
fuel breaks to s]ve z fire breaks7 on   

su* real prop]ty4  7#c7 ,qualifi$ ,/ate 
wildfire mitigation program ,! t]m      
qualifi$ ,/ate wildfire mitigation      
program means any program ( a ,/ate !   
prim>y purpose ( :i* is to mitigate !   
risk ( wildfires 9 su* ,/ate4  7#d7     
,treatm5t ( reimbursem5ts ,any am\nt    
orig9ally paid or incurr$ by ! taxpay]  
:i* is reimburs$ by a ,/ate "u a        
qualifi$ wildfire mitigation program (  
su* ,/ate %all be treat$ z paid by su*  
,/ate 7& n by su* taxpay]74  7c7        
,application ) o!r cr$its  7#a7 ,bus9ess
 cr$it treat$ z "p ( g5]al bus9ess cr$it
 ,s mu* ( ! cr$it :i* w\ld be all[$ "u  
subsection 7a7 = any taxable ye>        
7det]m9$ )\t reg>d to ?is subsection7 t 
is attributable to exp5ditures made 9 ! 
ord9>y c\rse ( ! taxpay]'s trade or     
bus9ess 7or1 9 ! case ( exp5ditures made
 by a ,/ate1 w\ld h be5 exp5ditures made
 9 ! ord9>y c\rse ( ! taxpay]'s trade or
 bus9ess if made by ! taxpay]7 %all be  
treat$ z a cr$it li/$ 9 section #ch7;b7 
= taxable ye> 7& n all[$ "u subsection  

7a774  7#b7 ,p]sonal cr$it ,= purposes (
 ?is title1 ! cr$it all[$ "u subsection 
7a7 = any taxable ye> 7det]m9$ aft]     
application ( p>agraph 7#a77 %all be    
treat$ z a cr$it all[able "u subp>t ,a =
 su* taxable ye>4  7d7 ,r$uction ( cr$it
 p]c5tage :]e taxpay] exp5ditures less  
?an #cj p]c5t  7#a7 ,9 g5]al ,if !      
exp5diture p]c5tage ) respect to any    
item ( qualifi$ wildfire mitigation     
exp5diture is less ?an #cj p]c5t1       
subsection 7a7 %all be appli$ by        
sub/itut+ ! exp5diture p]c5tage = #cj   
p]c5t ) respect to su* item (           
exp5diture4  7#b7 ,exp5diture p]c5tage  
,= purposes ( ?is section1 ! t]m        
exp5diture p]c5tage means1 ) respect to 
any item ( qualifi$ wildfire mitigation 
exp5diture any portion ( :i* is paid or 
incurr$ by a ,/ate1 ! ratio 7express$ z 
a p]c5tage7 (-- 7,a7 ! taxpay]'s        
exp5diture = su* item1 divid$ by  7,b7 !
 sum ( ! taxpay]'s & su* ,/ate's        
exp5ditures = su* item4  7e7 ,special   
rules  7#a7 ,treatm5t ( exp5ditures     

relat$ to m>ketable timb] ,an exp5diture
 %all n be tak5 into acc\nt = purposes (
 ?is section 7:e!r made by ! taxpay] or 
a ,/ate pursuant to a qualifi$ ,/ate    
wildfire mitigation program ( su* ,/ate7
 if su* exp5diture is prop]ly allocable 
to timb] :i* is sold or ex*ang$ by !    
taxpay]4 ,! prec$+ s5t5ce %all n apply  
to ! ext5t t su* am\nt exce$s ! ga9 on  
su* sale or ex*ange4  7#b7 ,basis       
r$uction ,= purposes ( ?is subtitle1 if 
! basis ( any prop]ty w\ld 7b = ?is     
p>agraph7 be det]m9$ by tak+ into acc\nt
 any qualifi$ wildfire mitigation       
exp5diture1 ! basis ( su* prop]ty %all  
be r$uc$ by ! am\nt ( ! cr$it all[$ "u  
subsection 7a7 ) respect to su*         
exp5diture 7det]m9$ )\t reg>d to        
subsection 7c774  7#c7 ,d5ial ( d\ble   
b5efit ,! am\nt ( any d$uction or o!r   
cr$it all[able "u ?is *apt] = any       
exp5diture = :i* a cr$it is all[able "u 
subsection 7a7 %all be r$uc$ by ! am\nt 
( cr$it all[$ "u su* subsection = su*   
exp5diture 7det]m9$ )\t reg>d to        

subsection 7c774  4  7b7 ,con=m+        
am5dm5ts  7#a7 ,section #ch7;b7 ( su*   
,code is am5d$ by /rik+ plus at ! end ( 
p>agraph 7#cb71 by /rik+ ! p]iod at !   
end ( p>agraph 7#cc7 & ins]t+ 1 plus1 & 
by add+ at ! end ! foll[+ new p>agraph3 
7#cd7 ! portion ( ! qualifi$ wildfire   
mitigation exp5ditures cr$it to :i*     
section #bh7;c77#a7 applies4  4  7#b7   
,section #ajaf7;a7 ( su* ,code is am5d$ 
by r$esignat+ p>agraphs 7#ce7 ?r\gh     
7#ch7 z p>agraphs 7#cf7 ?r\gh 7#ci71    
respectively1 & by ins]t+ aft] p>agraph 
7#cd7 ! foll[+ new p>agraph3  7#ce7 to !
 ext5t provid$ 9 section #bh7;e77#b71  4
  7#c7 ,! table ( sections = subp>t ,b (
 "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* 
,code is am5d$ by ins]t+ aft] ! item    
relat+ to section #bg ! foll[+ new item3
  ,sec4 #bh4 ,qualifi$ wildfire         
mitigation exp5ditures4  4  7c7         
,effective date ,! am5dm5ts made by ?is 
section %all apply to exp5ditures paid  
or incurr$ aft] ! date ( ! enactm5t (   
?is ,act1 9 taxable ye>s end+ aft] su*  

date4