26 U.S. Code § 1400S - Additional tax relief provisions
(a) Temporary suspension of limitations on charitable contributions
(1) In general
(2) Treatment of excess contributions
For purposes of section 170—
In the case of an individual—
(i) Limitation Any qualified contribution shall be allowed only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer’s contribution base (as defined in subparagraph (G) of section 170 (b)(1)) over the amount of all other charitable contributions allowed under section 170 (b)(1).
(ii) Carryover If the aggregate amount of qualified contributions made in the contribution year (within the meaning of section 170 (d)(1)) exceeds the limitation of clause (i), such excess shall be added to the excess described in the portion of subparagraph (A) of such section which precedes clause (i) thereof for purposes of applying such section.
In the case of a corporation—
(i) Limitation Any qualified contribution shall be allowed only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer’s taxable income (as determined under paragraph (2) of section 170 (b)) over the amount of all other charitable contributions allowed under such paragraph.
(3) Exception to overall limitation on itemized deductions
(4) Qualified contributions
(A) In general
For purposes of this subsection, the term “qualified contribution” means any charitable contribution (as defined in section 170 (c)) if—
(i) such contribution is paid during the period beginning on August 28, 2005, and ending on December 31, 2005, in cash to an organization described in section 170 (b)(1)(A) (other than an organization described in section 509 (a)(3)),
(ii) in the case of a contribution paid by a corporation, such contribution is for relief efforts related to Hurricane Katrina, Hurricane Rita, or Hurricane Wilma, and
Such term shall not include a contribution if the contribution is for establishment of a new, or maintenance in an existing, segregated fund or account with respect to which the donor (or any person appointed or designated by such donor) has, or reasonably expects to have, advisory privileges with respect to distributions or investments by reason of the donor’s status as a donor.
(b) Suspension of certain limitations on personal casualty losses
Paragraphs (1) and (2)(A) of section 165 (h) shall not apply to losses described in section 165 (c)(3)—
(1) which arise in the Hurricane Katrina disaster area on or after August 25, 2005, and which are attributable to Hurricane Katrina,
(2) which arise in the Hurricane Rita disaster area on or after September 23, 2005, and which are attributable to Hurricane Rita, or
(3) which arise in the Hurricane Wilma disaster area on or after October 23, 2005, and which are attributable to Hurricane Wilma.
(c) Required exercise of authority under section 7508A
In the case of any taxpayer determined by the Secretary to be affected by the Presidentially declared disaster relating to Hurricane Katrina, Hurricane Rita, or Hurricane Wilma, any relief provided by the Secretary under section 7508A shall be for a period ending not earlier than February 28, 2006.
(d) Special rule for determining earned income
(1) In general
In the case of a qualified individual, if the earned income of the taxpayer for the taxable year which includes the applicable date is less than the earned income of the taxpayer for the preceding taxable year, the credits allowed under sections 24 (d) and 32 may, at the election of the taxpayer, be determined by substituting—
(2) Qualified individual
For purposes of this subsection—
(A) In general
The term “qualified individual” means any qualified Hurricane Katrina individual, any qualified Hurricane Rita individual, and any qualified Hurricane Wilma individual.
(B) Qualified Hurricane Katrina individual
The term “qualified Hurricane Katrina individual” means any individual whose principal place of abode on August 25, 2005, was located—
(C) Qualified Hurricane Rita individual
The term “qualified Hurricane Rita individual” means any individual (other than a qualified Hurricane Katrina individual) whose principal place of abode on September 23, 2005, was located—
(D) Qualified Hurricane Wilma individual
The term “qualified Hurricane Wilma individual” means any individual whose principal place of abode on October 23, 2005, was located—
(3) Applicable date
For purposes of this subsection, the term “applicable date” means—
(4) Earned income
(5) Special rules
(A) Application to joint returns
For purposes of paragraph (1), in the case of a joint return for a taxable year which includes the applicable date—
(B) Uniform application of election
(C) Errors treated as mathematical error
For purposes of section 6213, an incorrect use on a return of earned income pursuant to paragraph (1) shall be treated as a mathematical or clerical error.
(e) Secretarial authority to make adjustments regarding taxpayer and dependency status
With respect to taxable years beginning in 2005 or 2006, the Secretary may make such adjustments in the application of the internal revenue laws as may be necessary to ensure that taxpayers do not lose any deduction or credit or experience a change of filing status by reason of temporary relocations by reason of Hurricane Katrina, Hurricane Rita, or Hurricane Wilma. Any adjustments made under the preceding sentence shall ensure that an individual is not taken into account by more than one taxpayer with respect to the same tax benefit.
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