,,ii  #aagth ,,congress  #ast ,session  
,s4 #cagc  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,november #d1  
#bjba,mr4 ,kennedy introduced the       
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to provide      
special rules for personal casualty     
losses arising from major disasters4    
#a4 ,short title ,this ,act may be cited
 as the ,claiming ,losses ,after        
,disasters ,act4  #b4 ,special rules for
 casualty losses arising from major     
disasters  7a7 ,treatment of losses     
7#a7 ,in general ,section #afe7;h7 of   
the ,internal ,revenue ,code of #aihf is
 amended by adding at the end the       
following new paragraph3  7#f7 ,special 
rule for qualified disaster losses  7,a7
 ,in general ,if an individual has a    
qualified net disaster loss for any     
taxable year1 the amount determined     
under paragraph 7#b77;,a77ii7 shall be  
the sum of-- 7i7 such net disaster loss1

 and  7ii7 so much of the excess        
referred to in the matter preceding     
clause 7i7 of paragraph 7#b77;,a7       
7reduced by the amount in clause 7i7 of 
this subparagraph7 as exceeds #aj       
percent of the adjusted gross income of 
the individual4  7,b7 ,qualified net    
disaster loss ,for purposes of          
subparagraph 7,a71 the term qualified   
net disaster loss means the excess of   
qualified disaster-related personal     
casualty losses over personal casualty  
gains4  7,c7 ,qualified disaster-related
 personal casualty losses  7i7 ,in      
general ,for purposes of this           
subsection1 the term qualified          
disaster-related personal casualty      
losses means losses described in        
subsection 7c77#c7 7determined after    
application of paragraph 7#a77 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 disaster4  7ii7    

,qualified disaster area  7,i7 ,in      
general ,the term qualified disaster    
area means any area with respect to     
which a major disaster has been declared
 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 ,december #bg1     
#bjbj4  7,,ii7 ,exception ,such term    
shall not include any area which is a   
qualified disaster area as defined in   
section #cja of the ,taxpayer ,certainty
 and ,disaster ,tax ,relief ,act of     
#bjbj4  7iii7 ,qualified disaster ,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  7iv7 ,incident period ,for  
purposes of this paragraph1 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 occurred4  4  7#b7 
,conforming amendment ,section          
#afe7;h77#e77;,b77ii7 of such ,code is  
amended by inserting or 7#f7 after      
paragraph 7#b77;,a74  7b7 ,dollar       
limitation ,section #afe7;h77#a7 of the 
,internal ,revenue ,code of #aihf is    
amended by striking #ejj 7#ajj for      
taxable years beginning after ,december 
#ca1 #bjji7 and inserting #ajj 7#ejj in 
the case of any net disaster loss to    
which paragraph 7#c7 applies74  7c7     
,standard deduction  7#a7 ,in general   
,section #fc7;c77#a7 of the ,internal   
,revenue ,code of #aihf is amended by   
striking and at the end of subparagraph 
7,a71 by striking the period at the end 
of subparagraph 7,b7 and inserting and1 
and by adding at the end the following  
new subparagraph3  7,c7 the disaster    
loss deduction4  4  7#b7 ,disaster loss 
deduction ,section #fc7;c7 of such ,code
 is amended by adding at the end the    
following new paragraph3  7#h7 ,disaster

 loss deduction ,for the purposes of    
paragraph 7#a71 the term disaster loss  
deduction means the excess of qualified 
net disaster losses 7as defined in      
section #afe7;h77#f77;,b77 over the     
amount of personal casualty gains 7as   
defined in section #afe7;h77#c77;,a77   
reduced by any portion of such gains    
taken into account under section        
#afe7;h77#e77;,b77i74  4  7d7 ,treatment
 under alternative minimum tax ,section 
#ef7;b77#a77;,d7 of the ,internal       
,revenue ,code of #aihf is amended by   
inserting 7other than the disaster loss 
deduction7 after section #fc7;c74  7e7  
,effective date ,the amendments made by 
this section shall apply to losses      
incurred in taxable years beginning     
after ,december #ca1 #bjai4