S.Amdt. 3999

SA 3999. Ms. LANDRIEU (for herself and Mr. Vitter) submitted an
amendment intended to be proposed to amendment SA 3983 proposed by Mr.
Reid to the bill H.R. 5140, to provide economic stimulus through
recovery rebates to individuals, incentives for business investment,
and an increase in conforming and FHA loan limits; which was ordered to
lie on the table; as follows:

On page 13, before line 4, insert the following:

SEC. 102. USE OF AMENDED INCOME TAX RETURNS TO TAKE INTO
ACCOUNT RECEIPT OF CERTAIN HURRICANE-RELATED
CASUALTY LOSS GRANTS BY DISALLOWING PREVIOUSLY
TAKEN CASUALTY LOSS DEDUCTIONS.

Notwithstanding any other provision of the Internal Revenue
Code of 1986, if a taxpayer claims a deduction for any
taxable year with respect to a casualty loss to a personal
residence (within the meaning of section 121 of such Code)
resulting from Hurricane Katrina or Hurricane Rita and in a
subsequent taxable year receives a grant under Public Law
109-148, 109-234, or 110-116 as reimbursement for such loss
from the State of Louisiana or the State of Mississippi, such
taxpayer may elect to file an amended income tax return for
the taxable year in which such deduction was allowed and
disallow such deduction. If elected, such amended return must
be filed not later than the due date for filing the tax
return for the taxable year in which the taxpayer receives
such reimbursement. Any increase in Federal income tax
resulting from such disallowance shall not be subject to any
penalty

[[Page S747]]

or interest under such Code if such amended return is so
filed.
______