[115th Congress Public Law 63]
[From the U.S. Government Publishing Office]
[[Page 1167]]
DISASTER TAX RELIEF AND AIRPORT AND AIRWAY EXTENSION ACT OF 2017
[[Page 131 STAT. 1168]]
Public Law 115-63
115th Congress
An Act
To amend title 49, United States Code, to extend authorizations for the
airport improvement program, to amend the Internal Revenue Code of 1986
to extend the funding and expenditure authority of the Airport and
Airway Trust Fund, to provide disaster tax relief, and for other
purposes. <<NOTE: Sept. 29, 2017 - [H.R. 3823]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Disaster Tax
Relief and Airport and Airway Extension Act of 2017. 26 USC 1 note.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Disaster Tax Relief
and Airport and Airway Extension Act of 2017''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--FEDERAL AVIATION PROGRAMS
Sec. 101. Extension of airport improvement program.
Sec. 102. Extension of expiring authorities.
Sec. 103. Federal Aviation Administration operations.
Sec. 104. Small community air service.
Sec. 105. Air navigation facilities and equipment.
Sec. 106. Research, engineering, and development.
Sec. 107. Funding for aviation programs.
TITLE II--AVIATION REVENUE PROVISIONS
Sec. 201. Expenditure authority from Airport and Airway Trust Fund.
Sec. 202. Extension of taxes funding Airport and Airway Trust Fund.
TITLE III--EXPIRING HEALTH PROVISIONS
Sec. 301. Extension of certain public health programs.
Sec. 302. Extension of Medicare Patient IVIG Access Demonstration
Project.
Sec. 303. Funds from the Medicare Improvement Fund.
TITLE IV--DEVELOPMENT OF PRIVATE FLOOD INSURANCE MARKET
Sec. 401. Private flood insurance.
TITLE V--TAX RELIEF FOR HURRICANES HARVEY, IRMA, AND MARIA
Sec. 501. Definitions.
Sec. 502. Special disaster-related rules for use of retirement funds.
Sec. 503. Disaster-related employment relief.
Sec. 504. Additional disaster-related tax relief provisions.
Sec. 505. Budgetary effects.
TITLE <<NOTE: Time periods.>> I--FEDERAL AVIATION PROGRAMS
SEC. 101. EXTENSION OF AIRPORT IMPROVEMENT PROGRAM.
(a) Authorization of Appropriations.--
[[Page 131 STAT. 1169]]
(1) In general.--Section 48103(a) of title 49, United States
Code, is amended by striking the period at the end and inserting
``and $1,670,410,959 for the period beginning on October 1,
2017, and ending on March 31, 2018.''.
(2) Obligation of amounts.--Subject to limitations specified
in advance in appropriations Acts, sums made available pursuant
to the amendment made by paragraph (1) may be obligated at any
time through September 30, 2018, and shall remain available
until expended.
(3) Program implementation.--For purposes of calculating
funding apportionments and meeting other requirements under
sections 47114, 47115, 47116, and 47117 of title 49, United
States Code, for the period beginning on October 1, 2017, and
ending on March 31, 2018, the Administrator of the Federal
Aviation Administration shall--
(A) first calculate such funding apportionments on
an annualized basis as if the total amount available
under section 48103 of such title for fiscal year 2018
were $3,350,000,000; and
(B) then reduce by 50 percent--
(i) all funding apportionments calculated
under subparagraph (A); and
(ii) amounts available pursuant to sections
47117(b) and 47117(f)(2) of such title.
(b) Project Grant Authority.--Section 47104(c) of title 49, United
States Code, is amended in the matter preceding paragraph (1) by
striking ``September 30, 2017,'' and inserting ``March 31, 2018,''.
SEC. 102. EXTENSION OF EXPIRING AUTHORITIES.
(a) Section 47107(r)(3) of title 49, United States Code, is amended
by striking ``October 1, 2017'' and inserting ``April 1, 2018''.
(b) Section 47114(c)(1)(F) of title 49, United States Code, is
amended--
(1) in the subparagraph heading by striking ``for fiscal
year 2017''; and
(2) in the matter preceding clause (i) by striking ``for
fiscal year 2017 an amount'' and inserting ``for each of fiscal
years 2017 and 2018 an amount''.
(c) Section 47115(j) of title 49, United States Code, is amended by
inserting ``and for the period beginning on October 1, 2017, and ending
on March 31, 2018'' after ``fiscal years 2012 through 2017''.
(d) Section 47124(b)(3)(E) of title 49, United States Code, is
amended by inserting ``and not more than $5,160,822 for the period
beginning on October 1, 2017, and ending on March 31, 2018,'' after
``fiscal years 2012 through 2017''.
(e) Section 47141(f) of title 49, United States Code, is amended by
striking ``September 30, 2017'' and inserting ``March 31, 2018''.
(f) Section 186(d) of the Vision 100--Century of Aviation
Reauthorization Act (117 Stat. 2518) is amended by inserting ``and for
the period beginning on October 1, 2017, and ending on March 31, 2018,''
after ``fiscal years 2012 through 2017''.
(g) Section 409(d) of the Vision 100--Century of Aviation
Reauthorization Act (49 U.S.C. 41731 note) is amended by striking
``September 30, 2017'' and inserting ``March 31, 2018''.
[[Page 131 STAT. 1170]]
(h) Section 140(c)(1) of the FAA Modernization and Reform Act of
2012 (126 Stat. 28) is amended by striking ``2017'' and inserting
``2018''.
(i) Section 411(h) of the FAA Modernization and Reform Act of 2012
(49 U.S.C. 42301 prec. note) is amended by striking ``September 30,
2017'' and inserting ``March 31, 2018''.
(j) Section 822(k) of the FAA Modernization and Reform Act of 2012
(49 U.S.C. 47141 note) is amended by striking ``September 30, 2017'' and
inserting ``March 31, 2018''.
(k) Section 2306(b) of the FAA Extension, Safety, and Security Act
of 2016 (130 Stat. 641) is amended by striking ``October 1, 2017'' and
inserting ``April 1, 2018''.
SEC. 103. FEDERAL AVIATION ADMINISTRATION OPERATIONS.
Section 106(k) of title 49, United States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (D) by striking ``and'' at the
end;
(B) in subparagraph (E) by striking the period at
the end and inserting ``; and''; and
(C) by inserting after subparagraph (E) the
following:
``(F) $4,999,191,956 for the period beginning on
October 1, 2017, and ending on March 31, 2018.''; and
(2) in paragraph (3) by inserting ``and for the period
beginning on October 1, 2017, and ending on March 31, 2018''
after ``fiscal years 2012 through 2017''.
SEC. 104. SMALL COMMUNITY AIR SERVICE.
(a) Essential Air Service Authorization.--Section 41742(a)(2) of
title 49, United States Code, is amended by striking ``and $175,000,000
for each of fiscal years 2016 and 2017'' and inserting ``$175,000,000
for each of fiscal years 2016 and 2017, and $74,794,521 for the period
beginning on October 1, 2017, and ending on March 31, 2018,''.
(b) Airports Not Receiving Sufficient Service.--Section 41743(e)(2)
of title 49, United States Code, is amended by inserting ``and
$4,986,301 for the period beginning on October 1, 2017, and ending on
March 31, 2018,'' after ``fiscal years 2012 through 2017''.
SEC. 105. AIR NAVIGATION FACILITIES AND EQUIPMENT.
Section 48101(a) of title 49, United States Code, is amended by
adding at the end the following:
``(6) $1,423,589,041 for the period beginning on October 1,
2017, and ending on March 31, 2018.''.
SEC. 106. RESEARCH, ENGINEERING, AND DEVELOPMENT.
Section 48102(a) of title 49, United States Code, is amended--
(1) in paragraph (8) by striking ``and'' at the end;
(2) in paragraph (9) by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(10) $88,008,219 for the period beginning on October 1,
2017 and ending on March 31, 2018.''.
SEC. 107. FUNDING FOR AVIATION PROGRAMS.
(a) In General.--Section 48114 of title 49, United States Code, is
amended--
(1) in subsection (a)(2) by striking ``2017'' and inserting
``2018''; and
[[Page 131 STAT. 1171]]
(2) in subsection (c)(2) by striking ``2017'' and inserting
``2018''.
(b) Compliance With Funding Requirements.--The budget authority
authorized in this title, including the amendments made by this title,
shall be deemed to satisfy the requirements of subsections (a)(1)(B) and
(a)(2) of section 48114 of title 49, United States Code, for the period
beginning on October 1, 2017, and ending on March 31, 2018.
TITLE II--AVIATION REVENUE PROVISIONS
SEC. 201. EXPENDITURE AUTHORITY FROM AIRPORT AND AIRWAY TRUST
FUND.
(a) In General.--Section 9502(d)(1) of the Internal Revenue Code of
1986 <<NOTE: 26 USC 9502.>> is amended--
(1) in the matter preceding subparagraph (A) by striking
``October 1, 2017'' and inserting ``April 1, 2018''; and
(2) in subparagraph (A) by striking the semicolon at the end
and inserting ``or the Disaster Tax Relief and Airport and
Airway Extension Act of 2017;''.
(b) Conforming Amendment.--Section 9502(e)(2) of such Code is
amended by striking ``October 1, 2017'' and inserting ``April 1, 2018''.
SEC. 202. EXTENSION OF TAXES FUNDING AIRPORT AND AIRWAY TRUST
FUND.
(a) Fuel Taxes.--Section 4081(d)(2)(B) of the Internal Revenue Code
of 1986 is amended by striking ``September 30, 2017'' and inserting
``March 31, 2018''.
(b) Ticket Taxes.--
(1) Persons.--Section 4261(k)(1)(A)(ii) of such Code is
amended by striking ``September 30, 2017'' and inserting ``March
31, 2018''.
(2) Property.--Section 4271(d)(1)(A)(ii) of such Code is
amended by striking ``September 30, 2017'' and inserting ``March
31, 2018''.
(c) Fractional Ownership Programs.--
(1) Treatment as noncommercial aviation.--Section 4083(b) of
such Code is amended by striking ``October 1, 2017'' and
inserting ``April 1, 2018''.
(2) Exemption from ticket taxes.--Section 4261(j) of such
Code is amended by striking ``September 30, 2017'' and inserting
``March 31, 2018''.
TITLE III--EXPIRING HEALTH PROVISIONS
SEC. 301. EXTENSION OF CERTAIN PUBLIC HEALTH PROGRAMS.
(a) Extension of Program of Payments to Teaching Health Centers That
Operate Graduate Medical Education Programs.--Section 340H(g) of the
Public Health Service Act (42 U.S.C. 256h(g)) is amended--
[[Page 131 STAT. 1172]]
(1) by striking ``and $60,000,000'' and inserting ``,
$60,000,000''; and
(2) by inserting ``, and $15,000,000 for the first quarter
of fiscal year 2018'' before the period at the end.
(b) Extension of Special Diabetes Program for Indians.--Section
330C(c)(2) of the Public Health Service Act (42 U.S.C. 254c-3(c)(2)) is
amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(D) $37,500,000 for the first quarter of fiscal
year 2018.''.
(c) Technical Corrections.--Part D of the Public Health Service Act
is amended by redesignating--
(1) the second subpart XI (42 U.S.C. 256i; relating to a
community-based collaborative care network program) as subpart
XII; and
(2) the second section 340H (42 U.S.C. 256i) as section
340I.
SEC. 302. <<NOTE: Time periods.>> EXTENSION OF MEDICARE PATIENT
IVIG ACCESS DEMONSTRATION PROJECT.
Section 101(b) of the Medicare IVIG Access and Strengthening
Medicare and Repaying Taxpayers Act of 2012 (42 U.S.C. 1395l note) is
amended--
(1) in paragraph (1), by inserting after ``for a period of 3
years'' the following: ``and, subject to the availability of
funds under subsection (g)--
``(A) if the date of enactment of the Disaster Tax
Relief and Airport and Airway Extension Act of 2017 is
on or before September 30, 2017, for the period
beginning on October 1, 2017, and ending on December 31,
2020; and
``(B) if the date of enactment of such Act is after
September 30, 2017, for the period beginning on the date
of enactment of such Act and ending on December 31,
2020''; and
(2) in paragraph (2), by adding at the end the following new
sentences: ``Subject to the preceding sentence, a Medicare
beneficiary enrolled in the demonstration project on September
30, 2017, shall be automatically enrolled during the period
beginning on the date of the enactment of the Disaster Tax
Relief and Airport and Airway Extension Act of 2017 and ending
on December 31, 2020, without submission of another
application.''.
SEC. 303. FUNDS FROM THE MEDICARE IMPROVEMENT FUND.
Section 1898(b)(1) of the Social Security Act (42 U.S.C.
1395iii(b)(1)) is amended by striking ``during and after fiscal year
2021, $270,000,000'' and inserting ``during and after fiscal year 2021,
$220,000,000''.
[[Page 131 STAT. 1173]]
TITLE V--TAX RELIEF FOR HURRICANES HARVEY, IRMA, AND MARIA
SEC. 501. <<NOTE: Determinations. President.>> DEFINITIONS.
(a) Hurricane Harvey Disaster Zone and Disaster Area.--For purposes
of this title--
(1) Hurricane harvey disaster zone.--The term ``Hurricane
Harvey disaster zone'' means that portion of the Hurricane
Harvey disaster area determined by the President to warrant
individual or individual and public assistance from the Federal
Government under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act by reason of Hurricane Harvey.
(2) Hurricane harvey disaster area.--The term ``Hurricane
Harvey disaster area'' means an area with respect to which a
major disaster has been declared by the President before
September 21, 2017, under section 401 of such Act by reason of
Hurricane Harvey.
(b) Hurricane Irma Disaster Zone and Disaster Area.--For purposes of
this title--
(1) Hurricane irma disaster zone.--The term ``Hurricane Irma
disaster zone'' means that portion of the Hurricane Irma
disaster area determined by the President to warrant individual
or individual and public assistance from the Federal Government
under such Act by reason of Hurricane Irma.
(2) Hurricane irma disaster area.--The term ``Hurricane Irma
disaster area'' means an area with respect to which a major
disaster has been declared by the President before September 21,
2017, under section 401 of such Act by reason of Hurricane Irma.
(c) Hurricane Maria Disaster Zone and Disaster Area.--For purposes
of this title--
(1) Hurricane maria disaster zone.--The term ``Hurricane
Maria disaster zone'' means that portion of the Hurricane Maria
disaster area determined by the President to warrant individual
or individual and public assistance from the Federal Government
under such Act by reason of Hurricane Maria.
(2) Hurricane maria disaster area.--The term ``Hurricane
Maria disaster area'' means an area with respect to which a
major disaster has been declared by the President before
September 21, 2017, under section 401 of such Act by reason of
Hurricane Maria.
SEC. 502. SPECIAL DISASTER-RELATED RULES FOR USE OF RETIREMENT
FUNDS.
(a) Tax-Favored Withdrawals From Retirement Plans.--
(1) In general.--Section 72(t) of the Internal Revenue Code
of 1986 shall not apply to any qualified hurricane distribution.
(2) Aggregate dollar limitation.--
(A) In general.--For purposes of this subsection,
the aggregate amount of distributions received by an
individual which may be treated as qualified hurricane
distributions for any taxable year shall not exceed the
excess (if any) of--
(i) $100,000, over
[[Page 131 STAT. 1174]]
(ii) the aggregate amounts treated as
qualified hurricane distributions received by such
individual for all prior taxable years.
(B) Treatment of plan distributions.--If a
distribution to an individual would (without regard to
subparagraph (A)) be a qualified hurricane distribution,
a plan shall not be treated as violating any requirement
of the Internal Revenue Code of 1986 merely because the
plan treats such distribution as a qualified hurricane
distribution, unless the aggregate amount of such
distributions from all plans maintained by the employer
(and any member of any controlled group which includes
the employer) to such individual exceeds $100,000.
(C) <<NOTE: Definitions.>> Controlled group.--For
purposes of subparagraph (B), the term ``controlled
group'' means any group treated as a single employer
under subsection (b), (c), (m), or (o) of section 414 of
the Internal Revenue Code of 1986.
(3) <<NOTE: Deadlines.>> Amount distributed may be
repaid.--
(A) <<NOTE: Time period.>> In general.--Any
individual who receives a qualified hurricane
distribution may, at any time during the 3-year period
beginning on the day after the date on which such
distribution was received, make one or more
contributions in an aggregate amount not to exceed the
amount of such distribution to an eligible retirement
plan of which such individual is a beneficiary and to
which a rollover contribution of such distribution could
be made under section 402(c), 403(a)(4), 403(b)(8),
408(d)(3), or 457(e)(16), of the Internal Revenue Code
of 1986, as the case may be.
(B) Treatment of repayments of distributions from
eligible retirement plans other than iras.--For purposes
of the Internal Revenue Code of 1986, if a contribution
is made pursuant to subparagraph (A) with respect to a
qualified hurricane distribution from an eligible
retirement plan other than an individual retirement
plan, then the taxpayer shall, to the extent of the
amount of the contribution, be treated as having
received the qualified hurricane distribution in an
eligible rollover distribution (as defined in section
402(c)(4) of such Code) and as having transferred the
amount to the eligible retirement plan in a direct
trustee to trustee transfer within 60 days of the
distribution.
(C) Treatment of repayments for distributions from
iras.--For purposes of the Internal Revenue Code of
1986, if a contribution is made pursuant to subparagraph
(A) with respect to a qualified hurricane distribution
from an individual retirement plan (as defined by
section 7701(a)(37) of such Code), then, to the extent
of the amount of the contribution, the qualified
hurricane distribution shall be treated as a
distribution described in section 408(d)(3) of such Code
and as having been transferred to the eligible
retirement plan in a direct trustee to trustee transfer
within 60 days of the distribution.
(4) Definitions.--For purposes of this subsection--
(A) <<NOTE: Time periods.>> Qualified hurricane
distribution.--Except as provided in paragraph (2), the
term ``qualified hurricane distribution'' means--
[[Page 131 STAT. 1175]]
(i) any distribution from an eligible
retirement plan made on or after August 23, 2017,
and before January 1, 2019, to an individual whose
principal place of abode on August 23, 2017, is
located in the Hurricane Harvey disaster area and
who has sustained an economic loss by reason of
Hurricane Harvey,
(ii) any distribution (which is not described
in clause (i)) from an eligible retirement plan
made on or after September 4, 2017, and before
January 1, 2019, to an individual whose principal
place of abode on September 4, 2017, is located in
the Hurricane Irma disaster area and who has
sustained an economic loss by reason of Hurricane
Irma, and
(iii) any distribution (which is not described
in clause (i) or (ii)) from an eligible retirement
plan made on or after September 16, 2017, and
before January 1, 2019, to an individual whose
principal place of abode on September 16, 2017, is
located in the Hurricane Maria disaster area and
who has sustained an economic loss by reason of
Hurricane Maria.
(B) Eligible retirement plan.--The term ``eligible
retirement plan'' shall have the meaning given such term
by section 402(c)(8)(B) of the Internal Revenue Code of
1986.
(5) Income inclusion spread over 3-year period.--
(A) In general.--In the case of any qualified
hurricane distribution, unless the taxpayer elects not
to have this paragraph apply for any taxable year, any
amount required to be included in gross income for such
taxable year shall be so included ratably over the 3-
taxable-year period beginning with such taxable year.
(B) <<NOTE: Applicability.>> Special rule.--For
purposes of subparagraph (A), rules similar to the rules
of subparagraph (E) of section 408A(d)(3) of the
Internal Revenue Code of 1986 shall apply.
(6) Special rules.--
(A) Exemption of distributions from trustee to
trustee transfer and withholding rules.--For purposes of
sections 401(a)(31), 402(f), and 3405 of the Internal
Revenue Code of 1986, qualified hurricane distributions
shall not be treated as eligible rollover distributions.
(B) Qualified hurricane distributions treated as
meeting plan distribution requirements.--For purposes
the Internal Revenue Code of 1986, a qualified hurricane
distribution shall be treated as meeting the
requirements of sections 401(k)(2)(B)(i),
403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of such
Code.
(b) Recontributions of Withdrawals for Home Purchases.--
(1) Recontributions.--
(A) <<NOTE: Time period.>> In general.--Any
individual who received a qualified distribution may,
during the period beginning on August 23, 2017, and
ending on February 28, 2018, make one or more
contributions in an aggregate amount not to exceed the
amount of such qualified distribution to an eligible
retirement plan (as defined in section 402(c)(8)(B)
[[Page 131 STAT. 1176]]
of the Internal Revenue Code of 1986) of which such
individual is a beneficiary and to which a rollover
contribution of such distribution could be made under
section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3), of
such Code, as the case may be.
(B) <<NOTE: Applicability.>> Treatment of
repayments.--Rules similar to the rules of subparagraphs
(B) and (C) of subsection (a)(3) shall apply for
purposes of this subsection.
(2) <<NOTE: Definition.>> Qualified distribution.--For
purposes of this subsection, the term ``qualified distribution''
means any distribution--
(A) described in section 401(k)(2)(B)(i)(IV),
403(b)(7)(A)(ii) (but only to the extent such
distribution relates to financial hardship),
403(b)(11)(B), or 72(t)(2)(F), of the Internal Revenue
Code of 1986,
(B) <<NOTE: Time period.>> received after February
28, 2017, and before September 21, 2017, and
(C) which was to be used to purchase or construct a
principal residence in the Hurricane Harvey disaster
area, the Hurricane Irma disaster area, or the Hurricane
Maria disaster area, but which was not so purchased or
constructed on account of Hurricane Harvey, Hurricane
Irma, or Hurricane Maria.
(c) <<NOTE: Time periods.>> Loans From Qualified Plans.--
(1) <<NOTE: Applicability.>> Increase in limit on loans not
treated as distributions.--In the case of any loan from a
qualified employer plan (as defined under section 72(p)(4) of
the Internal Revenue Code of 1986) to a qualified individual
made during the period beginning on the date of the enactment of
this Act and ending on December 31, 2018--
(A) clause (i) of section 72(p)(2)(A) of such Code
shall be applied by substituting ``$100,000'' for
``$50,000'', and
(B) clause (ii) of such section shall be applied by
substituting ``the present value of the nonforfeitable
accrued benefit of the employee under the plan'' for
``one-half of the present value of the nonforfeitable
accrued benefit of the employee under the plan''.
(2) Delay of repayment.--In the case of a qualified
individual with an outstanding loan on or after the qualified
beginning date from a qualified employer plan (as defined in
section 72(p)(4) of the Internal Revenue Code of 1986)--
(A) if the due date pursuant to subparagraph (B) or
(C) of section 72(p)(2) of such Code for any repayment
with respect to such loan occurs during the period
beginning on the qualified beginning date and ending on
December 31, 2018, such due date shall be delayed for 1
year,
(B) any subsequent repayments with respect to any
such loan shall be appropriately adjusted to reflect the
delay in the due date under paragraph (1) and any
interest accruing during such delay, and
(C) <<NOTE: Determination.>> in determining the 5-
year period and the term of a loan under subparagraph
(B) or (C) of section 72(p)(2) of such Code, the period
described in subparagraph (A) shall be disregarded.
(3) <<NOTE: Definitions.>> Qualified individual.--For
purposes of this subsection--
[[Page 131 STAT. 1177]]
(A) In general.--The term ``qualified individual''
means any qualified Hurricane Harvey individual, any
qualified Hurricane Irma individual, and any qualified
Hurricane Maria individual.
(B) Qualified hurricane harvey individual.--The term
``qualified Hurricane Harvey individual'' means an
individual whose principal place of abode on August 23,
2017, is located in the Hurricane Harvey disaster area
and who has sustained an economic loss by reason of
Hurricane Harvey.
(C) Qualified hurricane irma individual.--The term
``qualified Hurricane Irma individual'' means an
individual (other than a qualified Hurricane Harvey
individual) whose principal place of abode on September
4, 2017, is located in the Hurricane Irma disaster area
and who has sustained an economic loss by reason of
Hurricane Irma.
(D) Qualified hurricane maria individual.--The term
``qualified Hurricane Maria individual'' means an
individual (other than a qualified Hurricane Harvey
individual or a qualified Hurricane Irma individual)
whose principal place of abode on September 16, 2017, is
located in the Hurricane Maria disaster area and who has
sustained an economic loss by reason of Hurricane Maria.
(4) Qualified beginning date.--For purposes of this
subsection, the qualified beginning date is--
(A) in the case of any qualified Hurricane Harvey
individual, August 23, 2017,
(B) in the case of any qualified Hurricane Irma
individual, September 4, 2017, and
(C) in the case of any qualified Hurricane Maria
individual, September 16, 2017.
(d) <<NOTE: Contracts.>> Provisions Relating to Plan Amendments.--
(1) <<NOTE: Applicability.>> In general.--If this
subsection applies to any amendment to any plan or annuity
contract, such plan or contract shall be treated as being
operated in accordance with the terms of the plan during the
period described in paragraph (2)(B)(i).
(2) Amendments to which subsection applies.--
(A) In general.--This subsection shall apply to any
amendment to any plan or annuity contract which is
made--
(i) <<NOTE: Regulations.>> pursuant to any
provision of this section, or pursuant to any
regulation issued by the Secretary or the
Secretary of Labor under any provision of this
section, and
(ii) <<NOTE: Time period.>> on or before the
last day of the first plan year beginning on or
after January 1, 2019, or such later date as the
Secretary may prescribe.
In the case of a governmental plan (as defined in
section 414(d) of the Internal Revenue Code of 1986),
clause (ii) shall be applied by substituting the date
which is 2 years after the date otherwise applied under
clause (ii).
(B) Conditions.--This subsection shall not apply to
any amendment unless--
(i) <<NOTE: Time period.>> during the
period--
(I) beginning on the date that this
section or the regulation described in
subparagraph (A)(i) takes effect (or in
the case of a plan or contract
[[Page 131 STAT. 1178]]
amendment not required by this section
or such regulation, the effective date
specified by the plan), and
(II) ending on the date described in
subparagraph (A)(ii) (or, if earlier,
the date the plan or contract amendment
is adopted),
the plan or contract is operated as if such plan or
contract amendment were in effect, and
(ii) <<NOTE: Applicability.>> such plan or
contract amendment applies retroactively for such
period.
SEC. 503. DISASTER-RELATED EMPLOYMENT RELIEF.
(a) Employee Retention Credit for Employers Affected by Hurricane
Harvey.--
(1) In general.--For purposes of section 38 of the Internal
Revenue Code of 1986, in the case of an eligible employer, the
Hurricane Harvey employee retention credit shall be treated as a
credit listed in subsection (b) of such section. For purposes of
this subsection, the Hurricane Harvey employee retention credit
for any taxable year is an amount equal to 40 percent of the
qualified wages with respect to each eligible employee of such
employer for such taxable year. For purposes of the preceding
sentence, the amount of qualified wages which may be taken into
account with respect to any individual shall not exceed $6,000.
(2) <<NOTE: Time periods.>> Definitions.--For purposes of
this subsection--
(A) Eligible employer.--The term ``eligible
employer'' means any employer--
(i) which conducted an active trade or
business on August 23, 2017, in the Hurricane
Harvey disaster zone, and
(ii) with respect to whom the trade or
business described in clause (i) is inoperable on
any day after August 23, 2017, and before January
1, 2018, as a result of damage sustained by reason
of Hurricane Harvey.
(B) Eligible employee.--The term ``eligible
employee'' means with respect to an eligible employer an
employee whose principal place of employment on August
23, 2017, with such eligible employer was in the
Hurricane Harvey disaster zone.
(C) Qualified wages.--The term ``qualified wages''
means wages (as defined in section 51(c)(1) of the
Internal Revenue Code of 1986, but without regard to
section 3306(b)(2)(B) of such Code) paid or incurred by
an eligible employer with respect to an eligible
employee on any day after August 23, 2017, and before
January 1, 2018, which occurs during the period--
(i) beginning on the date on which the trade
or business described in subparagraph (A) first
became inoperable at the principal place of
employment of the employee immediately before
Hurricane Harvey, and
(ii) ending on the date on which such trade or
business has resumed significant operations at
such principal place of employment.
[[Page 131 STAT. 1179]]
Such term shall include wages paid without regard to
whether the employee performs no services, performs
services at a different place of employment than such
principal place of employment, or performs services at
such principal place of employment before significant
operations have resumed.
(3) Certain rules to apply.--For purposes of this
subsection, rules similar to the rules of sections 51(i)(1) and
52, of the Internal Revenue Code of 1986, shall apply.
(4) Employee not taken into account more than once.--An
employee shall not be treated as an eligible employee for
purposes of this subsection for any period with respect to any
employer if such employer is allowed a credit under section 51
of the Internal Revenue Code of 1986 with respect to such
employee for such period.
(b) Employee Retention Credit for Employers Affected by Hurricane
Irma.--
(1) In general.--For purposes of section 38 of the Internal
Revenue Code of 1986, in the case of an eligible employer, the
Hurricane Irma employee retention credit shall be treated as a
credit listed in subsection (b) of such section. For purposes of
this subsection, the Hurricane Irma employee retention credit
for any taxable year is an amount equal to 40 percent of the
qualified wages with respect to each eligible employee of such
employer for such taxable year. For purposes of the preceding
sentence, the amount of qualified wages which may be taken into
account with respect to any individual shall not exceed $6,000.
(2) <<NOTE: Time periods.>> Definitions.--For purposes of
this subsection--
(A) Eligible employer.--The term ``eligible
employer'' means any employer--
(i) which conducted an active trade or
business on September 4, 2017, in the Hurricane
Irma disaster zone, and
(ii) with respect to whom the trade or
business described in clause (i) is inoperable on
any day after September 4, 2017, and before
January 1, 2018, as a result of damage sustained
by reason of Hurricane Irma.
(B) Eligible employee.--The term ``eligible
employee'' means with respect to an eligible employer an
employee whose principal place of employment on
September 4, 2017, with such eligible employer was in
the Hurricane Irma disaster zone.
(C) Qualified wages.--The term ``qualified wages''
means wages (as defined in section 51(c)(1) of the
Internal Revenue Code of 1986, but without regard to
section 3306(b)(2)(B) of such Code) paid or incurred by
an eligible employer with respect to an eligible
employee on any day after September 4, 2017, and before
January 1, 2018, which occurs during the period--
(i) beginning on the date on which the trade
or business described in subparagraph (A) first
became inoperable at the principal place of
employment of the employee immediately before
Hurricane Irma, and
[[Page 131 STAT. 1180]]
(ii) ending on the date on which such trade or
business has resumed significant operations at
such principal place of employment.
Such term shall include wages paid without regard to
whether the employee performs no services, performs
services at a different place of employment than such
principal place of employment, or performs services at
such principal place of employment before significant
operations have resumed.
(3) Certain rules to apply.--For purposes of this
subsection, rules similar to the rules of sections 51(i)(1) and
52, of the Internal Revenue Code of 1986, shall apply.
(4) Employee not taken into account more than once.--An
employee shall not be treated as an eligible employee for
purposes of this subsection for any period with respect to any
employer if such employer is allowed a credit under subsection
(a), or section 51 of the Internal Revenue Code of 1986, with
respect to such employee for such period.
(c) Employee Retention Credit for Employers Affected by Hurricane
Maria.--
(1) In general.--For purposes of section 38 of the Internal
Revenue Code of 1986, in the case of an eligible employer, the
Hurricane Maria employee retention credit shall be treated as a
credit listed in subsection (b) of such section. For purposes of
this subsection, the Hurricane Maria employee retention credit
for any taxable year is an amount equal to 40 percent of the
qualified wages with respect to each eligible employee of such
employer for such taxable year. For purposes of the preceding
sentence, the amount of qualified wages which may be taken into
account with respect to any individual shall not exceed $6,000.
(2) <<NOTE: Time periods.>> Definitions.--For purposes of
this subsection--
(A) Eligible employer.--The term ``eligible
employer'' means any employer--
(i) which conducted an active trade or
business on September 16, 2017, in the Hurricane
Maria disaster zone, and
(ii) with respect to whom the trade or
business described in clause (i) is inoperable on
any day after September 16, 2017, and before
January 1, 2018, as a result of damage sustained
by reason of Hurricane Maria.
(B) Eligible employee.--The term ``eligible
employee'' means with respect to an eligible employer an
employee whose principal place of employment on
September 16, 2017, with such eligible employer was in
the Hurricane Maria disaster zone.
(C) Qualified wages.--The term ``qualified wages''
means wages (as defined in section 51(c)(1) of the
Internal Revenue Code of 1986, but without regard to
section 3306(b)(2)(B) of such Code) paid or incurred by
an eligible employer with respect to an eligible
employee on any day after September 16, 2017, and before
January 1, 2018, which occurs during the period--
(i) beginning on the date on which the trade
or business described in subparagraph (A) first
became
[[Page 131 STAT. 1181]]
inoperable at the principal place of employment of
the employee immediately before Hurricane Maria,
and
(ii) ending on the date on which such trade or
business has resumed significant operations at
such principal place of employment.
Such term shall include wages paid without regard to
whether the employee performs no services, performs
services at a different place of employment than such
principal place of employment, or performs services at
such principal place of employment before significant
operations have resumed.
(3) Certain rules to apply.--For purposes of this
subsection, rules similar to the rules of sections 51(i)(1) and
52, of the Internal Revenue Code of 1986, shall apply.
(4) Employee not taken into account more than once.--An
employee shall not be treated as an eligible employee for
purposes of this subsection for any period with respect to any
employer if such employer is allowed a credit under subsection
(a) or (b), or section 51 of the Internal Revenue Code of 1986,
with respect to such employee for such period.
SEC. 504. ADDITIONAL DISASTER-RELATED TAX RELIEF PROVISIONS.
(a) Temporary Suspension of Limitations on Charitable
Contributions.--
(1) In general.--Except as otherwise provided in paragraph
(2), subsection (b) of section 170 of the Internal Revenue Code
of 1986 shall not apply to qualified contributions and such
contributions shall not be taken into account for purposes of
applying subsections (b) and (d) of such section to other
contributions.
(2) Treatment of excess contributions.--For purposes of
section 170 of the Internal Revenue Code of 1986--
(A) Individuals.--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)
of such Code) over the amount of all other
charitable contributions allowed under section
170(b)(1) of such Code.
(ii) <<NOTE: Applicability.>> Carryover.--If
the aggregate amount of qualified contributions
made in the contribution year (within the meaning
of section 170(d)(1) of such Code) 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.
(B) Corporations.--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)
of such Code) over the amount of all other
charitable contributions allowed under such
paragraph.
[[Page 131 STAT. 1182]]
(ii) <<NOTE: Applicability.>> Carryover.--
Rules similar to the rules of subparagraph (A)(ii)
shall apply for purposes of this subparagraph.
(3) Exception to overall limitation on itemized
deductions.--So much of any deduction allowed under section 170
of the Internal Revenue Code of 1986 as does not exceed the
qualified contributions paid during the taxable year shall not
be treated as an itemized deduction for purposes of section 68
of such Code.
(4) Qualified contributions.--
(A) <<NOTE: Definition.>> In general.--For purposes
of this subsection, the term ``qualified contribution''
means any charitable contribution (as defined in section
170(c) of the Internal Revenue Code of 1986) if--
(i) such contribution--
(I) <<NOTE: Time period.>> is paid
during the period beginning on August
23, 2017, and ending on December 31,
2017, in cash to an organization
described in section 170(b)(1)(A) of
such Code, and
(II) is made for relief efforts in
the Hurricane Harvey disaster area, the
Hurricane Irma disaster area, or the
Hurricane Maria disaster area,
(ii) the taxpayer obtains from such
organization contemporaneous written
acknowledgment (within the meaning of section
170(f)(8) of such Code) that such contribution was
used (or is to be used) for relief efforts
described in clause (i)(II), and
(iii) the taxpayer has elected the application
of this subsection with respect to such
contribution.
(B) Exception.--Such term shall not include a
contribution by a donor if the contribution is--
(i) to an organization described in section
509(a)(3) of the Internal Revenue Code of 1986, or
(ii) for the establishment of a new, or
maintenance of an existing, donor advised fund (as
defined in section 4966(d)(2) of such Code).
(C) Application of election to partnerships and s
corporations.--In the case of a partnership or S
corporation, the election under subparagraph (A)(iii)
shall be made separately by each partner or shareholder.
(b) <<NOTE: Definitions.>> Special Rules for Qualified Disaster-
Related Personal Casualty Losses.--
(1) In general.--If an individual has a net disaster loss
for any taxable year--
(A) <<NOTE: Determination.>> the amount determined
under section 165(h)(2)(A)(ii) of the Internal Revenue
Code of 1986 shall be equal to the sum of--
(i) such net disaster loss, and
(ii) so much of the excess referred to in the
matter preceding clause (i) of section
165(h)(2)(A) of such Code (reduced by the amount
in clause (i) of this subparagraph) as exceeds 10
percent of the adjusted gross income of the
individual,
(B) <<NOTE: Applicability. Effective date.>>
section 165(h)(1) of such Code shall be applied by
substituting ``$500'' for ``$500 ($100 for taxable years
beginning after December 31, 2009)'',
[[Page 131 STAT. 1183]]
(C) the standard deduction determined under section
63(c) of such Code shall be increased by the net
disaster loss, and
(D) section 56(b)(1)(E) of such Code shall not apply
to so much of the standard deduction as is attributable
to the increase under subparagraph (C) of this
paragraph.
(2) Net disaster loss.--For purposes of this subsection, the
term ``net disaster loss'' means the excess of qualified
disaster-related personal casualty losses over personal casualty
gains (as defined in section 165(h)(3)(A) of the Internal
Revenue Code of 1986).
(3) <<NOTE: Time periods.>> Qualified disaster-related
personal casualty losses.--For purposes of this subsection, the
term ``qualified disaster-related personal casualty losses''
means losses described in section 165(c)(3) of the Internal
Revenue Code of 1986--
(A) which arise in the Hurricane Harvey disaster
area on or after August 23, 2017, and which are
attributable to Hurricane Harvey,
(B) which arise in the Hurricane Irma disaster area
on or after September 4, 2017, and which are
attributable to Hurricane Irma, or
(C) which arise in the Hurricane Maria disaster area
on or after September 16, 2017, and which are
attributable to Hurricane Maria.
(c) 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 of the Internal Revenue Code of 1986
may, at the election of the taxpayer, be determined by
substituting--
(A) such earned income for the preceding taxable
year, for
(B) such earned income for the taxable year which
includes the applicable date.
In <<NOTE: Puerto Rico.>> the case of a resident of Puerto Rico
determining the credit allowed under section 24(d)(1)(B)(ii) of
such Code, the preceding sentence shall be applied by
substituting ``social security taxes (as defined in section
24(d)(2)(A) of the Internal Revenue Code of 1986)'' for ``earned
income'' each place it appears.
(2) <<NOTE: Definitions.>> Qualified individual.--For
purposes of this subsection--
(A) In general.--The term ``qualified individual''
means any qualified Hurricane Harvey individual, any
qualified Hurricane Irma individual, and any qualified
Hurricane Maria individual.
(B) Qualified hurricane harvey individual.--The term
``qualified Hurricane Harvey individual'' means any
individual whose principal place of abode on August 23,
2017, was located--
(i) in the Hurricane Harvey disaster zone, or
(ii) in the Hurricane Harvey disaster area
(but outside the Hurricane Harvey disaster zone)
and such individual was displaced from such
principal place of abode by reason of Hurricane
Harvey.
[[Page 131 STAT. 1184]]
(C) Qualified hurricane irma individual.--The term
``qualified Hurricane Irma individual'' means any
individual (other than a qualified Hurricane Harvey
individual) whose principal place of abode on September
4, 2017, was located--
(i) in the Hurricane Irma disaster zone, or
(ii) in the Hurricane Irma disaster area (but
outside the Hurricane Irma disaster zone) and such
individual was displaced from such principal place
of abode by reason of Hurricane Irma.
(D) Qualified hurricane maria individual.--The term
``qualified Hurricane Maria individual'' means any
individual (other than a qualified Hurricane Harvey
individual or a qualified Hurricane Irma individual)
whose principal place of abode on September 16, 2017,
was located--
(i) in the Hurricane Maria disaster zone, or
(ii) in the Hurricane Maria disaster area (but
outside the Hurricane Maria disaster zone) and
such individual was displaced from such principal
place of abode by reason of Hurricane Maria.
(3) Applicable date.--For purposes of this subsection, the
term ``applicable date'' means--
(A) in the case of a qualified Hurricane Harvey
individual, August 23, 2017,
(B) in the case of a qualified Hurricane Irma
individual, September 4, 2017, and
(C) in the case of a qualified Hurricane Maria
individual, September 16, 2017.
(4) Earned income.--For purposes of this subsection, the
term ``earned income'' has the meaning given such term under
section 32(c) of the Internal Revenue Code of 1986.
(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--
(i) such paragraph shall apply if either
spouse is a qualified individual, and
(ii) the earned income of the taxpayer for the
preceding taxable year shall be the sum of the
earned income of each spouse for such preceding
taxable year.
(B) Uniform application of election.--Any election
made under paragraph (1) shall apply with respect to
both sections 24(d) and 32, of the Internal Revenue Code
of 1986.
(C) Errors treated as mathematical error.--For
purposes of section 6213 of the Internal Revenue Code of
1986, an incorrect use on a return of earned income
pursuant to paragraph (1) shall be treated as a
mathematical or clerical error.
(D) <<NOTE: Applicability.>> No effect on
determination of gross income, etc.--Except as otherwise
provided in this subsection, the Internal Revenue Code
of 1986 shall be applied without regard to any
substitution under paragraph (1).
(d) Application of Disaster-Related Tax Relief to Possessions of the
United States.--
[[Page 131 STAT. 1185]]
(1) Payments to united states virgin islands and puerto
rico.--
(A) United states virgin islands.--The Secretary of
the Treasury shall pay to the United States Virgin
Islands amounts equal to the loss in revenues to the
United States Virgin Islands by reason of the provisions
of this title. Such amounts <<NOTE: Determination.>>
shall be determined by the Secretary of the Treasury
based on information provided by the government of the
United States Virgin Islands.
(B) <<NOTE: Estimate.>> Puerto rico.--The Secretary
of the Treasury shall pay to Puerto Rico amounts
estimated by the Secretary of the Treasury as being
equal to the aggregate benefits that would have been
provided to residents of Puerto Rico by reason of the
provisions of this title if a mirror code tax system had
been in effect in Puerto Rico. <<NOTE: Plan.>> The
preceding sentence shall not apply with respect to
Puerto Rico unless Puerto Rico has a plan, which has
been approved by the Secretary of the Treasury, under
which Puerto Rico will promptly distribute such payments
to its residents.
(2) Definition and special rules.--
(A) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means,
with respect to any possession of the United States, the
income tax system of such possession if the income tax
liability of the residents of such possession under such
system is determined by reference to the income tax laws
of the United States as if such possession were the
United States.
(B) Treatment of payments.--For purposes of section
1324 of title 31, United States Code, the payments under
this subsection shall be treated in the same manner as a
refund due from a credit provision referred to in
subsection (b)(2) of such section.
(C) Coordination with united states income taxes.--
In the case <<NOTE: Applicability.>> of any person with
respect to whom a tax benefit is taken into account with
respect to the taxes imposed by any possession of the
United States by reason of this title, the Internal
Revenue Code of 1986 shall be applied with respect to
such person without regard to the provisions of this
title which provide such benefit.
SEC. 505. BUDGETARY EFFECTS.
(a) Emergency Designation.--This title is designated as an emergency
requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go Act
of 2010 (2 U.S.C. 933(g)).
(b) Designation in Senate.--In the Senate, this title is designated
as an emergency requirement pursuant to section 403(a)
[[Page 131 STAT. 1186]]
of S. Con. Res. 13 (111th Congress), the concurrent resolution on the
budget for fiscal year 2010.
Approved September 29, 2017.
LEGISLATIVE HISTORY--H.R. 3823:
---------------------------------------------------------------------------
CONGRESSIONAL RECORD, Vol. 163 (2017):
Sept. 25, considered and failed House.
Sept. 27, considered in House.
Sept. 28, considered and passed House; considered and passed
Senate, amended; House concurred in Senate amendment.
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