,,ii  #aag? ,,congress  #a/ ,session    
,s4 #cagc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,novemb] #d1 #bjba,mr4 
,k5n$y introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide special
 rules = p]sonal casualty losses aris+ f
 major disa/]s4  #a4 ,%ort title ,?is   
,act may be cit$ z ! ,claim+ ,losses    
,aft] ,disa/]s ,act4  #b4 ,special rules
 = casualty losses aris+ f major disa/]s
  7a7 ,treatm5t ( losses  7#a7 ,9 g5]al 
,section #afe7;h7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new p>agraph3  7#f7 ,special   
rule = qualifi$ disa/] losses  7,a7 ,9  
g5]al ,if an individual has a qualifi$  
net disa/] loss = any taxable ye>1 !    
am\nt det]m9$ "u p>agraph 7#b77;,a77ii7 
%all be ! sum (-- 7i7 su* net disa/]    
loss1 &  7ii7 s mu* ( ! excess ref]r$ to
 9 ! matt] prec$+ clause 7i7 ( p>agraph 
7#b77;,a7 7r$uc$ by ! am\nt 9 clause 7i7
 ( ?is subp>agraph7 z exce$s #aj p]c5t (

 ! adju/$ gross income ( ! individual4  
7,b7 ,qualifi$ net disa/] loss ,=       
purposes ( subp>agraph 7,a71 ! t]m      
qualifi$ net disa/] loss means ! excess 
( qualifi$ disa/]-relat$ p]sonal        
casualty losses ov] p]sonal casualty    
ga9s4  7,c7 ,qualifi$ disa/]-relat$     
p]sonal casualty losses  7i7 ,9 g5]al ,=
 purposes ( ?is subsection1 ! t]m       
qualifi$ disa/]-relat$ p]sonal casualty 
losses means losses describ$ 9          
subsection 7c77#c7 7det]m9$ aft]        
application ( p>agraph 7#a77 :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* disa/]4  7ii7   
,qualifi$ disa/] area  7,i7 ,9 g5]al ,! 
t]m qualifi$ disa/] area means any area 
) respect to :i* a major disa/] has be5 
decl>$ 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] ,decemb]  

#bg1 #bjbj4  7,,ii7 ,exception ,su* t]m 
%all n include any area :i* is a        
qualifi$ disa/] area z def9$ 9 section  
#cja ( ! ,taxpay] ,c]ta9ty & ,disa/]    
,tax ,relief ,act ( #bjbj4  7iii7       
,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  
7iv7 ,incid5t p]iod ,= purposes ( ?is   
p>agraph1 ! 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$4  4  7#b7 ,con=m+ am5dm5t       
,section #afe7;h77#e77;,b77ii7 ( su*    
,code is am5d$ by ins]t+ or 7#f7 aft]   
p>agraph 7#b77;,a74  7b7 ,doll>         
limitation ,section #afe7;h77#a7 ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ #ejj 7#ajj = taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjji7 &      
ins]t+ #ajj 7#ejj 9 ! case ( any net    
disa/] loss to :i* p>agraph 7#c7        
applies74  7c7 ,/&>d d$uction  7#a7 ,9  

g5]al ,section #fc7;c77#a7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
& at ! end ( subp>agraph 7,a71 by /rik+ 
! p]iod at ! end ( subp>agraph 7,b7 &   
ins]t+ &1 & by add+ at ! end ! foll[+   
new subp>agraph3  7,c7 ! disa/] loss    
d$uction4  4  7#b7 ,disa/] loss d$uction
 ,section #fc7;c7 ( su* ,code is am5d$  
by add+ at ! end ! foll[+ new p>agraph3 
7#h7 ,disa/] loss d$uction ,= ! purposes
 ( p>agraph 7#a71 ! t]m disa/] loss     
d$uction means ! excess ( qualifi$ net  
disa/] losses 7z def9$ 9 section        
#afe7;h77#f77;,b77 ov] ! am\nt ( p]sonal
 casualty ga9s 7z def9$ 9 section       
#afe7;h77#c77;,a77 r$uc$ by any portion 
( su* ga9s tak5 into acc\nt "u section  
#afe7;h77#e77;,b77i74  4  7d7 ,treatm5t 
"u alt]native m9imum tax ,section       
#ef7;b77#a77;,d7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by ins]t+ 7o!r   
?an ! disa/] loss d$uction7 aft] section
 #fc7;c74  7e7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to losses incurr$ 9 taxable ye>s beg9n+ 

aft] ,decemb] #ca1 #bjai4