[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3173 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 3173
To amend the Internal Revenue Code of 1986 to provide special rules for
personal casualty losses arising from major disasters.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 4, 2021
Mr. Kennedy introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide special rules for
personal casualty losses arising from major disasters.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Claiming Losses After Disasters
Act''.
SEC. 2. SPECIAL RULES FOR CASUALTY LOSSES ARISING FROM MAJOR DISASTERS.
(a) Treatment of Losses.--
(1) In general.--Section 165(h) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:
``(6) Special rule for qualified disaster losses.--
``(A) In general.--If an individual has a qualified
net disaster loss for any taxable year, the amount
determined under paragraph (2)(A)(ii) shall be the sum
of--
``(i) such net disaster loss, and
``(ii) so much of the excess referred to in
the matter preceding clause (i) of paragraph
(2)(A) (reduced by the amount in clause (i) of
this subparagraph) as exceeds 10 percent of the
adjusted gross income of the individual.
``(B) Qualified net disaster loss.--For purposes of
subparagraph (A), the term `qualified net disaster
loss' means the excess of qualified disaster-related
personal casualty losses over personal casualty gains.
``(C) Qualified disaster-related personal casualty
losses.--
``(i) In general.--For purposes of this
subsection, the term `qualified disaster-
related personal casualty losses' means losses
described in subsection (c)(3) (determined
after application of paragraph (1)) which arise
in a qualified disaster area on or after the
first day of the incident period of the
qualified disaster to which such area relates,
and which are attributable to such disaster.
``(ii) Qualified disaster area.--
``(I) In general.--The term
`qualified disaster area' means any
area with respect to which a major
disaster has been declared by the
President under section 401 of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act if the
incident period of the disaster with
respect to which such declaration is
made begins after December 27, 2020.
``(II) Exception.--Such term shall
not include any area which is a
qualified disaster area as defined in
section 301 of the Taxpayer Certainty
and Disaster Tax Relief Act of 2020.
``(iii) Qualified disaster.--The term
`qualified disaster' means, with respect to any
qualified disaster area, the disaster by reason
of which a major disaster was declared with
respect to such area.
``(iv) Incident period.--For purposes of
this paragraph, the term `incident period'
means, with respect to any qualified disaster,
the period specified by the Federal Emergency
Management Agency as the period during which
such disaster occurred.''.
(2) Conforming amendment.--Section 165(h)(5)(B)(ii) of such
Code is amended by inserting ``or (6)'' after ``paragraph
(2)(A)''.
(b) Dollar Limitation.--Section 165(h)(1) of the Internal Revenue
Code of 1986 is amended by striking ``$500 ($100 for taxable years
beginning after December 31, 2009)'' and inserting ``$100 ($500 in the
case of any net disaster loss to which paragraph (3) applies)''.
(c) Standard Deduction.--
(1) In general.--Section 63(c)(1) of the Internal Revenue
Code of 1986 is amended by striking ``and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``and'', and by adding at the
end the following new subparagraph:
``(C) the disaster loss deduction.''.
(2) Disaster loss deduction.--Section 63(c) of such Code is
amended by adding at the end the following new paragraph:
``(8) Disaster loss deduction.--For the purposes of
paragraph (1), the term `disaster loss deduction' means the
excess of qualified net disaster losses (as defined in section
165(h)(6)(B)) over the amount of personal casualty gains (as
defined in section 165(h)(3)(A)) reduced by any portion of such
gains taken into account under section 165(h)(5)(B)(i).''.
(d) Treatment Under Alternative Minimum Tax.--Section 56(b)(1)(D)
of the Internal Revenue Code of 1986 is amended by inserting ``(other
than the disaster loss deduction)'' after ``section 63(c)''.
(e) Effective Date.--The amendments made by this section shall
apply to losses incurred in taxable years beginning after December 31,
2019.
<all>