,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #hech  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,april #bh1 #bjbf,mr4 
,c>t] ( ,georgia 7= himself1 ,ms4       
,sewell1 ,mr4 ,bean ( ,florida1 ,mr4    
,?ompson ( ,cali=nia1 ,mr4 ,/eube1 ,mr4 
,murphy1 & ,mr4 ,moran7 introduc$ !     
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,ways & ,means  ,a ,,bill 
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to all[ = limit$ full exp5s+ (    
c]ta9 re=e/ation exp5ditures4  #a4 ,%ort
 title ,?is ,act may be cit$ z ! ,save  
,am]ica's ,family ,=e/s ,act ( #bjbf4   
#b4 ,modification ( re=e/ation          
exp5diture rules  7a7 ,increase 9 base  
exp5s+ am\nt ,section #aid7;b77#a77;,b7 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$--  7#a7 9 clause 7i71 by /rik+    
#aj1jjj & ins]t+ #cj1jjj1 &  7#b7 9     
clause 7ii71 by /rik+ #e1jjj & ins]t+   
#ae1jjj4  7b7 ,inflation adju/m5t = base
 exp5s+ ,section #aid7;b77#a7 ( su*     
,code is am5d$ by add+ at ! end ! foll[+
 new subp>agraph3  7,c7 ,inflation      

adju/m5t  7i7 ,9 g5]al ,9 ! case ( any  
taxable ye> beg9n+ aft] #bjbf1 ea* doll>
 am\nt 9 subp>agraph 7,b7 %all be       
increas$ by an am\nt equal to--  7,i7   
su* doll> am\nt1 multipli$ by  7,,ii7 ! 
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye> 9 :i* !       
taxable ye> beg9s1 det]m9$ by sub/itut+ 
cal5d> ye> #bjbe = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  7ii7 ,r\nd+ 
,if any increase det]m9$ "u clause 7i7  
is n a multiple ( #ajj1 su* increase    
%all be r\nd$ to ! ne>e/ multiple (     
#ajj4  4  7c7 ,effective date ,!        
am5dm5ts made by ?is section %all apply 
to am\nts paid or incurr$ 9 taxable ye>s
 beg9n+ aft] ,decemb] #ca1 #bjbf4  #c4  
,treatm5t ( re=e/ation exp5ditures =    
qualifi$ natural disa/]s  7a7 ,9 g5]al  
,"p ,,vi ( sub*apt] ,b ( *apt] #a (     
subtitle ,a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by ins]t+ aft] section  
#aid;,a ! foll[+ new section3  #aid;,b4 
,treatm5t ( re=e/ation exp5ditures =    
qualifi$ natural disa/]s  7a7 ,9 g5]al  

7#a7 ,9 g5]al ,9 ! case ( any qualifi$  
timb] prop]ty ) respect to :i* ! taxpay]
 has made an election "u ?is section1   
!re %all be all[$ a d$uction = ! taxable
 ye> 9 an am\nt equal to ! less] (--    
7,a7 s mu* ( ! disa/]-relat$ re=e/ation 
exp5ditures paid or incurr$ by ! taxpay]
 dur+ su* taxable ye> ) respect to ea*  
qualifi$ timb] prop]ty ( ! taxpay] z    
does n exce$ #ejj1jjj 7#bej1jjj 9 ! case
 ( a m>ri$ taxpay] fil+ sep>ately7 )    
respect to any su* prop]ty1 or  7,b7    
#a1jjj1jjj 7#ejj1jjj 9 ! case ( a m>ri$ 
taxpay] fil+ sep>ately71 9 ! aggregate =
 all qualifi$ timb] prop]ties ) respect 
to disa/] relat$-re=e/ation exp5ditures4
  7#b7 ,election ,an election "u ?is    
section %all be made at su* "t & 9 su*  
mann] z ! ,secret>y may prescribe1      
includ+ on an am5d$ return4  7#c7       
,det]m9ation ( m>ital /atus ,= purposes 
( ?is section1 m>ital /atus %all be     
det]m9$ "u section #ggjc7;a74  7#d7     
,inflation adju/m5t  7,a7 ,9 g5]al ,9 ! 
case ( any taxable ye> beg9n+ aft]      

#bjbf1 ea* ( ! doll> am\nts 9 p>agraph  
7#a7 %all be increas$ by an am\nt equal 
to-- 7i7 su* doll> am\nt1 multipli$ by  
7ii7 ! co/-(-liv+ adju/m5t det]m9$ "u   
section #a7;f77#c7 = ! cal5d> ye> 9 :i* 
! taxable ye> beg9s1 det]m9$ by         
sub/itut+ cal5d> ye> #bjbe = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  7,b7
 ,r\nd+ ,if any increase "u subp>agraph 
7,a7 is n a multiple ( #ajj1 su*        
increase %all be r\nd$ to ! ne>e/       
multiple ( #ajj4  7#e7 ,controll$ gr\ps 
7,a7 ,9 g5]al ,9 ! case ( a controll$   
gr\p ( corporations or trades or        
bus9esses "u common control1 !          
limitations ( p>agraph 7#a7 %all be     
allocat$ among ! memb]s ( su* gr\p 9    
accordance ) regulations prescrib$ by ! 
,secret>y4  7,b7 ,def9ition ,= purposes 
( subp>agraph 7,a71 ! t]m controll$ gr\p
 has ! mean+ giv5 to ! t]m controll$    
gr\p ( corporations 9 section #aefc7;a71
 except t section #aefc7;a77#a7 %all be 
appli$ by sub/itut+ m ?an #ej p]c5t = at
 lea/ #hj p]c5t 9 ea* in/ance4  7,c7    

,pass ?ru entity ,9 ! case ( a p>tn]%ip 
or ,s corporation1 ! aggregate am\nt    
describ$ 9 p>agraph 7#a77;,b7 %all be   
appli$ at ! p>tn]%ip or ,s corporation  
level1 respectively4  7b7 ,def9itions & 
special rules ,= purposes ( ?is         
section--  7#a7 ,disa/]-relat$          
re=e/ation exp5ditures  7,a7 ,9 g5]al ,!
 t]m disa/]-relat$ re=e/ation           
exp5ditures means re=e/ation exp5ditures
 paid or incurr$ 9 connection ) uncut   
timb] t 0 damag$ or de/roy$ z a direct  
result ( a qualifi$ natural disa/] :i*  
occurr$ dur+ ! #e-ye> p]iod end+ on !   
date on :i* su* re=e/ation occurs1      
det]m9$ )\t reg>d-- 7i7 to any          
exp5diture ) respect to :i* ! taxpay]   
has receiv$ reimbursem5t "u any         
gov]nm5tal re=e/ation co/-%>+ program   
unless ! am\nts s reimburs$ h be5       
includ$ 9 ! gross income ( ! taxpay]1 & 
7ii7 any exp5ditures ) respect to :i* a 
d$uction is all[$ "u section #aid7;a74  
7,b7 ,qualifi$ timb] prop]ty2 re=e/ation
 exp5ditures2 co/-%>+ programs ,! t]ms  

qualifi$ timb] prop]ty1 re=e/ation      
exp5ditures1 & co/-%>+ programs h !     
mean+s giv5 su* t]ms 9 section #aid7;c74
  7,c7 ,uncut timb] ,! t]m uncut timb]  
means1 ) respect to a qualifi$ natural  
disa/]1 /&+ timb] t _h n be5 h>ve/$1    
sev]$1 or o!rwise cut be=e su* qualifi$ 
natural disa/] occurr$4  7,d7 ,qualifi$ 
natural disa/] ,! t]m qualifi$ natural  
disa/] means any disa/] det]m9$ by !    
,presid5t "u section #dja ( ! ,rob]t ,t4
 ,/af=d ,disa/] ,relief & ,em]g5cy      
,assi/ance ,act4  7#b7 ,treatm5t ( tru/s
 & e/ates ,! aggregate am\nt (          
disa/]-relat$ re=e/ation exp5ditures    
incurr$ by any tru/ or e/ate %all be    
apportion$ betwe5 ! income b5efici>ies &
 ! fiduci>y "u regulations prescrib$ by 
! ,secret>y4  7#c7 ,coord9ation ) o!r   
d$uctions ,no d$uction %all be all[$ "u 
any o!r provision o!r ?is *apt] )       
respect to any exp5diture ) respect to  
:i* a d$uction is all[$ or all[able "u  
subsection 7a7 to ! taxpay]4  7c7       
,recapture ^u e>ly disposition  7#a7 ,9 

g5]al ,if a taxpay] disposes ( any      
qualifi$ timb] prop]ty 7or any timb]    
!reon7 ) respect to :i* a d$uction 0    
all[$ "u subsection 7a7 )9 !            
#aj-taxable-ye> p]iod beg9n+ ) ! taxable
 ye> 9 :i* su* d$uction 0 claim$1 su*   
prop]ty %all be treat$ z section #abde  
prop]ty1 & ! am\nt requir$ to be        
recaptur$ z ord9>y income %all be       
det]m9$ "u section #abde & includ$ 9    
gross income = ! taxable ye> (          
disposition4  7#b7 ,recapture am\nt ,=  
purposes ( apply+ section #abde1 ! am\nt
 subject to recapture %all n exce$ !    
d$uction all[$ "u subsection 7a7 )      
respect to su* prop]ty4  7#c7 ,p>tial   
dispositions ,9 ! case ( a disposition (
 only a portion ( ! qualifi$ timb]      
prop]ty1 ! applicable portion ( !       
d$uction all[$ "u subsection 7a7 %all be
 subject to recapture "u section #abde 9
 ! same proportion t ! dispos$ portion  
be>s to ! entire prop]ty4  7#d7         
,exceptions ,p>agraph 7#a7 %all n apply 
to a disposition :i* occurs by reason   

(--  7,a7 casualty1 condemnation1 or    
gov]nm5tal tak+1 or  7,b7 dea? ( !      
taxpay]4  7d7 ,regulations ,! ,secret>y 
%all prescribe su* regulations z        
necess>y or appropriate to c>ry out ?is 
subsection1 includ+ rules = det]m9+     
proportional allocations4  4  7b7       
,cl]ical am5dm5t ,! table ( sections =  
"p ,,vi ( sub*apt] ,b ( *apt] #a (      
subtitle ,a is am5d$ by ins]t+ aft] !   
item relat+ to section #aid;,a ! foll[+ 
new item3  ,sec4 #aid;,b4 ,treatm5t (   
re=e/ation exp5ditures = qualifi$       
natural disa/]s4  4  7c7 ,effective date
 ,! am5dm5ts made by ?is section %all   
apply to am\nts paid or incurr$ 9       
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjbf4