S.Amdt. 5038

SA 5038. Mrs. LINCOLN (for herself and Mr. Pryor) submitted an
amendment intended to be proposed to amendment SA 4983 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mr. Shelby)) to the bill H.R. 3221,
moving the United States toward greater energy independence and
security, developing innovative new technologies, reducing carbon
emissions, creating green jobs, protecting consumers, increasing clean
renewable energy production, and modernizing our energy infrastructure,
and to amend the Internal Revenue Code of 1986 to provide tax
incentives for the production of renewable energy and energy
conservation; which was ordered to lie on the table; as follows:

At the end of subtitle A of title III of division C, insert
the following:

[[Page S6030]]

SEC. ___. TEMPORARY TAX RELIEF FOR AREAS DAMAGED BY 2008
MIDWESTERN SEVERE STORMS, TORNADOS, AND
FLOODING.

(a) In General.--Subject to the modifications described in
this section, the following provisions of or relating to the
Internal Revenue Code of 1986 shall apply to any Midwestern
disaster area in addition to the areas to which such
provisions otherwise apply:
(1) Go zone benefits.--
(A) Section 1400N (relating to tax benefits) other than
subsections (b), (i), and (j) thereof.
(B) Section 1400O (relating to education tax benefits).
(C) Section 1400P (relating to housing tax benefits).
(D) Section 1400Q (relating to special rules for use of
retirement funds).
(E) Section 1400R(a) (relating to employee retention credit
for employers).
(F) Section 1400S (relating to additional tax relief) other
than subsection (d) thereof.
(G) Section 1400T (relating to special rules for mortgage
revenue bonds).
(2) Other benefits included in katrina emergency tax relief
act of 2005.--Sections 302, 303, 304, 401, and 405 of the
Katrina Emergency Tax Relief Act of 2005.
(3) Other benefits.--Section 3082(a) of this Act (relating
to use of amended income tax returns to take into account
receipt of certain casualty loss grants by disallowing
previously taken casualty loss deductions).
(b) Midwestern Disaster Area.--
(1) In general.--For purposes of this section and for
applying the substitutions described in subsections (d) and
(e), the term ``Midwestern disaster area'' means an area--
(A) with respect to which a major disaster has been
declared by the President after May 20, 2008, and before
August 1, 2008, under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act by reason of
severe storms, tornados, or flooding occurring in any of the
States of Arkansas, Illinois, Indiana, Iowa, Kansas,
Michigan, Minnesota, Missouri, and Wisconsin, and
(B) determined by the President to warrant individual or
individual and public assistance from the Federal Government
under such Act with respect to damages attributable to such
severe storms, tornados, or flooding.

In the case of a State with respect to which the President
during the period beginning on January 1, 2008, and ending on
July 31, 2008, has declared major disasters under such Act
with respect to at least 75 percent of the counties of such
State, subparagraph (A) shall be applied by substituting
``December 31, 2007'' for ``May 20, 2008''.
(2) Certain benefits available to areas eligible only for
public assistance.--For purposes of applying this section to
benefits under the following provisions, paragraph (1) shall
be applied without regard to subparagraph (B):
(A) Sections 1400Q, 1400S(b), and 1400S(d) of the Internal
Revenue Code of 1986.
(B) Sections 302, 401, and 405 of the Katrina Emergency Tax
Relief Act of 2005.
(c) References.--
(1) Area.--Any reference in such provisions to the
Hurricane Katrina disaster area or the Gulf Opportunity Zone
shall be treated as a reference to any Midwestern disaster
area and any reference to the Hurricane Katrina disaster area
or the Gulf Opportunity Zone within a State shall be treated
as a reference to all Midwestern disaster areas within the
State.
(2) Items attributable to disaster.--Any reference in such
provisions to any loss, damage, or other item attributable to
Hurricane Katrina shall be treated as a reference to any
loss, damage, or other item attributable to the severe
storms, tornados, or flooding giving rise to any Presidential
declaration described in subsection (b)(1)(A).
(3) Applicable disaster date.--For purposes of applying the
substitutions described in subsections (d) and (e), the term
``applicable disaster date'' means, with respect to any
Midwestern disaster area, the date on which the severe
storms, tornados, or flooding giving rise to the Presidential
declaration described in subsection (b)(1)(A) occurred.
(d) Modifications to 1986 Code.--The following provisions
of the Internal Revenue Code of 1986 shall be applied with
the following modifications:
(1) Tax-exempt bond financing.--Section 1400N(a)--
(A) by substituting ``qualified Midwestern disaster area
bond'' for ``qualified Gulf Opportunity Zone Bond'' each
place it appears,
(B) by substituting ``any State in which a Midwestern
disaster area is located'' for ``the State of Alabama,
Louisiana, or Mississippi'' in paragraph (2)(B),
(C) by substituting ``designated for purposes of this
section (on the basis of providing assistance to areas in the
order in which such assistance is most needed)'' for
``designated for purposes of this section'' in paragraph
(2)(C),
(D) by substituting ``January 1, 2013'' for ``January 1,
2011'' in paragraph (2)(D),
(E) in paragraph (3)(A)--
(i) by substituting ``$5,000'' for ``$2,500'', and
(ii) by substituting ``before the earliest applicable
disaster date for Midwestern disaster areas within the
State'' for ``before August 28, 2005'',
(F) by substituting ``qualified Midwestern disaster area
repair or construction'' for ``qualified GO Zone repair or
construction'' each place it appears, and
(G) by substituting ``after the date of the enactment of
the Housing and Economic Recovery Act of 2008 and before
January 1, 2013'' for ``after the date of the enactment of
this paragraph and before January 1, 2011'' in paragraph
(7)(C).
(2) Low-income housing credit.--Section 1400N(c)--
(A) only with respect to calendar years 2009, 2010, and
2011,
(B) by substituting ``Disaster Recovery Assistance housing
amount'' for ``Gulf Opportunity housing amount'',
(C) by substituting ``before the earliest applicable
disaster date for Midwestern disaster areas within the
State'' for ``before August 28, 2005'' in paragraph (1)(B),
and
(D) determined without regard to paragraphs (2), (3), (4),
(5), and (6) thereof.
(3) Special allowance for certain property acquired on or
after the applicable disaster date.--Section 1400N(d)--
(A) by substituting ``qualified Disaster Recovery
Assistance property'' for ``qualified Gulf Opportunity Zone
property'' each place it appears,
(B) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(C) by substituting ``December 31, 2011'' for ``December
31, 2007'' in paragraph (2)(A)(v),
(D) by substituting ``December 31, 2012'' for ``December
31, 2008'' in paragraph (2)(A)(v),
(E) by substituting ``the day before the applicable
disaster date'' for ``August 27, 2005'' in paragraph (3)(A),
and
(F) determined without regard to paragraph (6) thereof.
(4) Increase in expensing under section 179.--Section
1400N(e), by substituting ``qualified section 179 Disaster
Recovery Assistance property'' for ``qualified section 179
Gulf Opportunity Zone property'' each place it appears.
(5) Expensing for certain demolition and clean-up costs.--
Section 1400N(f)--
(A) by substituting ``qualified Disaster Recovery
Assistance clean-up cost'' for ``qualified Gulf Opportunity
Zone clean-up cost'' each place it appears, and
(B) by substituting ``beginning on the applicable disaster
date and ending on December 31, 2010'' for ``beginning on
August 28, 2005, and ending on December 31, 2007'' in
paragraph (2).
(6) Extension of expensing for environmental remediation
costs.--Section 1400N(g)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(B) by substituting ``January 1, 2011'' for ``January 1,
2008'' in paragraph (1), and
(C) by substituting ``December 31, 2010'' for ``December
31, 2007''.
(7) Increase in rehabilitation credit.--Section 1400N(h)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'', and
(B) by substituting ``January 1, 2011'' for ``January 1,
2008'' in paragraph (1).
(8) Treatment of net operating losses attributable to
disaster losses.--Section 1400N(k)--
(A) by substituting ``qualified Disaster Recovery
Assistance loss'' for ``qualified Gulf Opportunity Zone
loss'' each place it appears,
(B) by substituting ``after the day before the applicable
disaster date, and before January 1, 2011'' for ``after
August 27, 2005, and before January 1, 2008'' each place it
appears,
(C) by substituting ``the applicable disaster date'' for
``August 28, 2005'' in paragraph (2)(B)(ii)(I),
(D) by substituting ``qualified Disaster Recovery
Assistance property'' for ``qualified Gulf Opportunity Zone
property'' in paragraph (2)(B)(iv), and
(E) by substituting ``qualified Disaster Recovery
Assistance casualty loss'' for ``qualified Gulf Opportunity
Zone casualty loss'' each place it appears.
(9) Credit to holders of tax credit bonds.--Section
1400N(l)--
(A) by substituting ``Midwestern tax credit bond'' for
``Gulf tax credit bond'' each place it appears,
(B) by substituting ``any State in which a Midwestern
disaster area is located'' for ``the State of Alabama,
Louisiana, or Mississippi'' in paragraph (4)(A)(i),
(C) by substituting ``after December 31, 2008 and before
January 1, 2010'' for ``after December 31, 2005, and before
January 1, 2007'',
(D) by substituting ``shall not exceed $100,000,000.'' for
``shall not exceed'' and all that follows in paragraph
(4)(C), and
(E) by substituting ``the earliest applicable disaster date
for Midwestern disaster areas within the State'' for ``August
28, 2005'' in paragraph (5)(A).
(10) New markets tax credit.--Section 1400N(m)--
(A) by substituting ``$300,000,000 for 2009 and 2010'' for
``$300,000,000 for 2005 and 2006'' in paragraph (2)(A), and
(B) by substituting ``$400,000,000 for 2011'' for
``$400,000,000 for 2007'' in paragraph (2)(B).
(11) Education tax benefits.--Section 1400O, by
substituting ``2008 or 2009'' for ``2005 or 2006''.
(12) Housing tax benefits.--Section 1400P, by substituting
``the applicable disaster date'' for ``August 28, 2005'' in
subsection (c)(1).
(13) Special rules for use of retirement funds.--Section
1400Q--

[[Page S6031]]

(A) by substituting ``qualified Disaster Recovery
Assistance distribution'' for ``qualified hurricane
distribution'' each place it appears,
(B) by substituting ``on or after the applicable disaster
date and before January 1, 2010'' for ``on or after August
25, 2005, and before January 1, 2007'' in subsection
(a)(4)(A)(i),
(C) by substituting ``the applicable disaster date'' for
``August 28, 2005'' in subsections (a)(4)(A)(i) and
(c)(3)(B),
(D) by disregarding clauses (ii) and (iii) of subsection
(a)(4)(A) thereof,
(E) by substituting ``qualified storm damage distribution''
for ``qualified Katrina distribution'' each place it appears,
(F) by substituting ``after the date which is 6 months
before the applicable disaster date and before the date which
is the day after the applicable disaster date'' for ``after
February 28, 2005, and before August 29, 2005'' in subsection
(b)(2)(B)(ii),
(G) by substituting ``the Midwestern disaster area, but not
so purchased or constructed on account of severe storms,
tornados, or flooding giving rise to the designation of the
area as a disaster area'' for ``the Hurricane Katrina
disaster area, but not so purchased or constructed on account
of Hurricane Katrina'' in subsection (b)(2)(B)(iii),
(H) by substituting ``beginning on the applicable disaster
date and ending on the date which is 5 months after the date
of the enactment of the Housing and Economic Recovery Act of
2008'' for ``beginning on August 25, 2005, and ending on
February 28, 2006'' in subsection (b)(3)(A),
(I) by substituting ``qualified storm damage individual''
for ``qualified Hurricane Katrina individual'' each place it
appears,
(J) by substituting ``December 31, 2009'' for ``December
31, 2006'' in subsection (c)(2)(A),
(K) by substituting ``beginning on the date of the
enactment of the Housing and Economic Recovery Act of 2008
and ending on December 31, 2009'' for ``beginning on
September 24, 2005, and ending on December 31, 2006'' in
subsection (c)(4)(A)(i),
(L) by substituting ``the applicable disaster date'' for
``August 25, 2005'' in subsection (c)(4)(A)(ii), and
(M) by substituting ``January 1, 2010'' for ``January 1,
2007'' in subsection (d)(2)(A)(ii).
(14) Employee retention credit for employers affected by
severe storms, tornados, and flooding.--Section 1400R(a)--
(A) by substituting ``the applicable disaster date'' for
``August 28, 2005'' each place it appears,
(B) by substituting ``January 1, 2009'' for ``January 1,
2006'' both places it appears, and
(C) only with respect to eligible employers who employed an
average of not more than 200 employees on business days
during the taxable year before the applicable disaster date.
(15) Temporary suspension of limitations on charitable
contributions.--Section 1400S(a), by substituting the
following paragraph for paragraph (4) thereof:
``(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--

``(I) is paid during the period beginning on the earliest
applicable disaster date for all States and ending on
December 31, 2008, in cash to an organization described in
section 170(b)(1)(A), and
``(II) is made for relief efforts in 1 or more Midwestern
disaster areas,

``(ii) the taxpayer obtains from such organization
contemporaneous written acknowledgment (within the meaning of
section 170(f)(8)) that such contribution was used (or is to
be used) for relief efforts in 1 or more Midwestern disaster
areas, 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), or
``(ii) for establishment of a new, or maintenance of an
existing, donor advised fund (as defined in section
4966(d)(2)).
``(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.''.
(16) Suspension of certain limitations on personal casualty
losses.--Section 1400S(b)(1), by substituting ``the
applicable disaster date'' for ``August 25, 2005''.
(17) Special rule for determining earned income.--Section
1400S(d)--
(A) by treating an individual as a qualified individual if
such individual's principal place of abode on the applicable
disaster date was located in a Midwestern disaster area,
(B) by treating the applicable disaster date with respect
to any such individual as the applicable date for purposes of
such subsection, and
(C) by treating an area as described in paragraph
(2)(B)(ii) thereof if the area is a Midwestern disaster area
only by reason of subsection (b)(2) of this section (relating
to areas eligible only for public assistance)
(18) Adjustments regarding taxpayer and dependency
status.--Section 1400S(e), by substituting ``2008 or 2009''
for ``2005 or 2006''.
(e) Modifications to Katrina Emergency Tax Relief Act of
2005.--The following provisions of the Katrina Emergency Tax
Relief Act of 2005 shall be applied with the following
modifications:
(1) Additional exemption for housing displaced
individual.--Section 302--
(A) by substituting ``Midwestern displaced individual'' for
``Hurricane Katrina displaced individual'' each place it
appears, and
(B) by treating an area as a core disaster area for
purposes of applying subsection (c) thereof if the area is a
Midwestern disaster area without regard to subsection (b)(2)
of this section (relating to areas eligible only for public
assistance).
(2) Increase in standard mileage rate.--Section 303, by
substituting ``beginning on the applicable disaster date and
ending on December 31, 2009'' for ``beginning on August 25,
2005, and ending on December 31, 2006''.
(3) Mileage reimbursements for charitable volunteers.--
Section 304--
(A) by substituting ``beginning on the applicable disaster
date and ending on December 31, 2009'' for ``beginning on
August 25, 2005, and ending on December 31, 2006'' in
subsection (a), and
(B) by substituting ``the applicable disaster date'' for
``August 25, 2005'' in subsection (a).
(4) Exclusion of certain cancellation of indebtedness
income.--Section 401--
(A) by treating an individual whose principal place of
abode on the applicable disaster date was in a Midwestern
disaster area (determined without regard to subsection (b)(2)
of this section) as an individual described in subsection
(b)(1) thereof, and by treating an individual whose principal
place of abode on the applicable disaster date was in a
Midwestern disaster area solely by reason of subsection
(b)(2) of this section as an individual described in
subsection (b)(2) thereof,
(B) by substituting ``the applicable disaster date'' for
``August 28, 2005'' both places it appears, and
(C) by substituting ``January 1, 2010'' for ``January 1,
2007'' in subsection (e).
(5) Extension of replacement period for nonrecognition of
gain.--Section 405, by substituting ``on or after the
applicable disaster date'' for ``on or after August 25,
2005''.

SEC. ___. ENHANCED CHARITABLE DEDUCTIONS FOR CONTRIBUTIONS OF
FOOD INVENTORY.

(a) Increased Amount of Deduction.--
(1) In general.--Clause (iv) of section 170(e)(3)(C)
(relating to termination) of the Internal Revenue Code of
1986 is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2009''.
(2) Effective date.--The amendment made by this subsection
shall apply to contributions made after December 31, 2007.
(b) Temporary Suspension of Limitations on Charitable
Contributions.--
(1) In general.--Section 170(b) of such Code is amended by
adding at the end the following new paragraph:
``(3) Temporary suspension of limitations on charitable
contributions.--In the case of a qualified farmer or rancher
(as defined in paragraph (1)(E)(v)), any charitable
contribution of food--
``(A) to which subsection (e)(3)(C) applies (without regard
to clause (ii) thereof), and
``(B) which is made during the period beginning on the date
of the enactment of this paragraph and before January 1,
2009,

shall be treated for purposes of paragraph (1)(E) or (2)(B),
whichever is applicable, as if it were a qualified
conservation contribution which is made by a qualified farmer
or rancher and which otherwise meets the requirements of such
paragraph.''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years ending after the date of the
enactment of this Act.

SEC. ___. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR
CONTRIBUTIONS OF BOOK INVENTORY.

(a) Extension.--Clause (iv) of section 170(e)(3)(D) of the
Internal Revenue Code of 1986 (relating to termination) of
the Internal Revenue Code of 1986 is amended by striking
``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Clerical Amendment.--Clause (iii) of section
170(e)(3)(D) of such Code (relating to certification by
donee) is amended by inserting ``of books'' after ``to any
contribution''.
(c) Effective Date.--The amendments made by this section
shall apply to contributions made after December 31, 2007.

SEC. ___. REPORTING REQUIREMENTS RELATING TO DISASTER RELIEF
CONTRIBUTIONS.

(a) In General.--Section 6033(b) of the Internal Revenue
Code of 1986 (relating to returns of certain organizations
described in section 501(c)(3)) is amended by striking
``and'' at the end of paragraph (13), by redesignating
paragraph (14) as paragraph (15), and by adding after
paragraph (13) the following new paragraph:
``(14) such information as the Secretary may require with
respect to disaster relief activities, including the amount
and use of qualified contributions to which section 1400S(a)
applies, and''.
(b) Effective Date.--The amendments made by this section
shall apply to returns the due date for which (determined
without regard to any extension) occurs after December 31,
2008.
______