HR 2080
112th CONGRESS
1st Session
H. R. 2080
To amend the Internal Revenue Code of 1986 to allow individuals either
a credit against income tax or a deduction for expenses paid or incurred by
reason of a voluntary or mandatory evacuation.
IN THE HOUSE OF REPRESENTATIVES
June 1, 2011
Mr. PAUL introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow individuals either
a credit against income tax or a deduction for expenses paid or incurred by
reason of a voluntary or mandatory evacuation.
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 `Evacuees Tax Relief Act of 2011'.
SEC. 2. EVACUATION EXPENSES.
(a) Credit for Evacuation Expenses- Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable
personal credits) is amended by inserting after section 25D the following
new section:
`SEC. 25E. EVACUATION EXPENSES.
`(a) Allowance of Credit- In the case of an individual, there shall be allowed
as a credit against the tax imposed by this chapter for the taxable year an
amount equal to the qualified evacuation expenses paid or incurred by the
individual during the taxable year.
`(b) Dollar Limitation- With respect to an individual, the aggregate amount
of qualified evacuation expenses which may be taken into account under subsection
(a) for all taxable years during the credit allowance period shall not exceed
$5,000.
`(c) Qualified Evacuation Expenses- For purposes of this section--
`(1) IN GENERAL- The term `qualified evacuation expenses' means, with respect
to any taxable year during the credit allowance period, the sum of all expenses
paid or incurred by the individual during such taxable year by reason of
a qualified evacuation. Such expenses shall include travel and lodging expenses
as do not exceed $1,000, lost wages, and any property damage not compensated
for by insurance or otherwise.
`(2) QUALIFIED EVACUATION- With respect to an individual, the term `qualified
evacuation' means a voluntary or mandatory evacuation ordered by reason
of a qualified disaster (as defined in section 139(c)) of an area in which
such individual resides on the date of such disaster.
`(3) CREDIT ALLOWANCE PERIOD- With respect to a qualified evacuation, the
term `credit allowance period' means the taxable year or years during which
the evacuation occurred and each of the 3 succeeding taxable years.
`(d) Portion of Credit Refundable-
`(1) IN GENERAL- The aggregate credits allowed to an individual under subpart
C shall be increased by the lesser of--
`(A) the credit which would be allowed under this section without regard
to this subsection, or
`(B) the amount by which the aggregate amount of credits allowed by this
subpart (determined without regard to this subsection) would increase
if the limitation imposed by section 26(a) were increased by the individual's
social security taxes for the taxable year.
The amount of the credit allowed under this subsection shall not be treated
as a credit allowed under this subpart and shall reduce the amount of credit
otherwise allowable under subsection (a).
`(2) SOCIAL SECURITY TAXES- For purposes of paragraph (1)--
`(A) IN GENERAL- The term `social security taxes' means, with respect
to any taxpayer for any taxable year--
`(i) the amount of the taxes imposed by section 3101 and 3201(a) on
amounts received by the taxpayer during the calendar year in which the
taxable year begins,
`(ii) 50 percent of the taxes imposed by section 1401 on the self-employment
income of the taxpayer for the taxable year, and
`(iii) 50 percent of the taxes imposed by section 3211(a)(1) on amounts
received by the taxpayer during the calendar year in which the taxable
year begins.
`(B) COORDINATION WITH SPECIAL REFUND OF SOCIAL SECURITY TAXES- The term
`social security taxes' shall not include any taxes to the extent the
taxpayer is entitled to a special refund of such taxes under section 6413(c).
`(C) SPECIAL RULE- Any amounts paid pursuant to an agreement under section
3121(l) (relating to agreements entered into by American employers with
respect to foreign affiliates) which are equivalent to the taxes referred
to in subparagraph (A)(i) shall be treated as taxes referred to in such
paragraph.
`(e) Denial of Double Benefit- No credit shall be allowed under subsection
(a) for any expense for which a deduction or credit is allowed under any other
provision of this chapter.
`(f) Election Not To Have Section Apply- An individual may elect not to have
this section apply with respect to the qualified evacuation expenses of the
individual for any taxable year.'.
(b) Deduction for Evacuation Expenses-
(1) IN GENERAL- Part VII of subchapter B of chapter 1 of the Internal Revenue
Code of 1986 (relating to additional itemized deductions for individuals)
is amended by redesignating section 224 as section 225 and by inserting
after section 223 the following new section:
`SEC. 224. DEDUCTION FOR EVACUATION EXPENSES.
`(a) Allowance of Deduction- In the case of an individual, there shall be
allowed as a deduction an amount equal to the qualified evacuation expenses
paid or incurred by the individual during the taxable year.
`(b) Dollar Limitation- With respect to an individual, the aggregate amount
of qualified evacuation expenses which may be taken into account under subsection
(a) for all taxable years during the deduction allowance period shall not
exceed $5,000.
`(c) Qualified Evacuation Expenses- For purposes of this section--
`(1) IN GENERAL- The term `qualified evacuation expenses' means, with respect
to any taxable year during the deduction allowance period, the sum of all
expenses paid or incurred by the individual during such taxable year by
reason of a qualified evacuation. Such expenses shall include travel and
lodging expenses as do not exceed $1,000, lost wages, and any property damage
not compensated for by insurance or otherwise.
`(2) QUALIFIED EVACUATION- With respect to an individual, the term `qualified
evacuation' means a voluntary or mandatory evacuation ordered by reason
of a qualified disaster (as defined in section 139(c)) of an area in which
such individual resides on the date of such disaster.
`(3) DEDUCTION ALLOWANCE PERIOD- With respect to a qualified evacuation,
the term `deduction allowance period' means the taxable year or years during
which the evacuation occurred and each of the 3 succeeding taxable years.
`(d) Denial of Double Benefit- No deduction shall be allowed under subsection
(a) for any expense for which a deduction or credit is allowed under any other
provision of this chapter.
`(e) Election Not To Have Section Apply- An individual may elect not to have
this section apply with respect to the qualified evacuation expenses of the
individual for any taxable year.'.
(2) DEDUCTION ALLOWED WHETHER OR NOT INDIVIDUAL ITEMIZES OTHER DEDUCTIONS-
Subsection (a) of section 62 of such Code is amended by inserting after
paragraph (21) the following new paragraph:
`(22) DEDUCTION FOR EVACUATION EXPENSES- The deduction allowed by section
224.'.
(1) The table of sections for subpart A of part IV of subchapter A of chapter
1 of such Code is amended by inserting after the item relating to section
25D the following new item:
`Sec. 25E. Evacuation expenses.'.
(2) The table of sections for part VII of subchapter B of chapter 1 of such
Code is amended by striking the last item and inserting the following new
items:
`Sec. 224. Deduction for evacuation expenses.
`Sec. 225. Cross reference.'.
(d) Effective Date- The amendments made by this section shall apply to taxable
years beginning after December 31, 2010.
END
