To provide housing relief for individuals affected by Hurricane Katrina.

1. Adds SEC. 104. HOUSING RELIEF FOR INDIVIDUALS AFFECTED BY HURRICANE KATRINA on page 35, between lines 16 and 17

   Adds a sectionPrinted page

   Inserted: SEC. 104. HOUSING RELIEF FOR INDIVIDUALS AFFECTED BY HURRICANE KATRINA.

   Inserted: (a) Exclusion of Employer Provided Housing for Individual Affected by Hurricane Katrina.--

   Inserted: (1) In general.--For purposes of the Internal Revenue Code of 1986, gross income of a qualified employee shall not include the value of any lodging furnished to such employee, such employee's spouse, or any of such employee's dependents by or on behalf of a qualified employer for any month during the taxable year.

   Inserted: (2) Limitation.--The amount which may be excluded under subsection (a) for any month for which lodging is furnished during the taxable year shall not exceed $600.

   Inserted: (3) Treatment of exclusion.--For purposes of the Internal Revenue Code of 1986 (other than sections 3121(a)(19) and 3306(b)(14), an exclusion under subsection (a) shall be treated as an exclusion under section 119 of such Code.

   Inserted: (b) Employer Credit for Housing Employees Affected by Hurricane Katrina.--

   Inserted: (1) In general.--In the case of a qualified employer, there shall be allowed as a credit against the tax imposed by chapter 1 of the Internal Revenue Code of 1986 for any month during the taxable year an amount equal to 30 percent of any amount which is excludable from the gross income of a qualified employee of such employer under subsection (a).

   Inserted: (2) Certain rules to apply.--For purposes of this section, rules similar to the rules of section 280C(a) of such Code shall apply.

   Inserted: (3) Credit to be part of general business credit.--The credit allowed under this section shall be added to the current year business credit under section 38(b) of such Code and shall be treated as a credit allowed under subpart D of part IV of subchapter A of such Code.

   Inserted: (c) Qualified Employee.--For purposes of this section, the term "qualified employee" means, with respect to any month, an individual--

   Inserted: (1) who had a principal residence (as defined in section 121 of the Internal Revenue Code of 1986) in the go zone (as defined in section 1400N(1) of such Code) on August 28, 2005, and

   Inserted: (2) who performs not less than 80 percent of the employment services for a qualified employer in the Hurricane Katrina disaster area (as so defined).

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   Inserted: (d) Qualified Employer.--For purposes of this section, the term "qualified employer" means any employer with a trade or business located in the Hurricane Katrina disaster area (as so defined).

   Inserted: (e) Application of Section.--This section shall apply to lodging provided--

   Inserted: (1) after the date of the enactment of this Act, and

   Inserted: (2) before the date which is 6 months after the date of the enactment of this Act, and

   Inserted: (3) no credit with respect to such lodging shall be claimed before October 1, 2006.

   Original wording

   On page 35, between lines 16 and 17, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed