To amend the Internal Revenue Code of 1986 to allow a deduction for portion of charitable contributions related to Hurricane Katrina or Hurricane Rita in computing adjusted gross income.

November 9, 2005

Mr. SHERMAN (for himself, Mr. BERMAN, and Mr. MARSHALL) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to allow a deduction for portion of charitable contributions related to Hurricane Katrina or Hurricane Rita in computing adjusted gross income.

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 `Katrina/Rita Hurricane Relief Act of 2005'.

SEC. 2. DEDUCTION FOR PORTION OF CHARITABLE CONTRIBUTIONS RELATED TO HURRICANE KATRINA OR HURRICANE RITA IN COMPUTING ADJUSTED GROSS INCOME.

(a) Katrina/Rita Relief Charitable Deduction- Subsection (a) of section 62 of the Internal Revenue Code of 1986 (defining adjusted gross income) is amended by redesignating paragraph (19) (relating to costs involving discrimination suits, etc.) as paragraph (20) and inserting after paragraph (20) (as so redesignated) the following new paragraph:

`(21) KATRINA/RITA RELIEF CHARITABLE DEDUCTION- In the case of taxable years ending on or after August 28, 2005, and before January 1, 2007, the deductions allowed by section 170 which consist of charitable contributions (as defined in section 170(c)) paid during the period beginning on August 28, 2005, and ending on December 31, 2006, in cash to an organization described in section 170(b)(1)(A) (other than an organization described in section 509(a)(3)), and designated for relief efforts related to Hurricane Katrina or Hurricane Rita.'.

(b) Regulations- The Secretary shall prescribe regulations providing for the allowance of the Katrina/Rita relief charitable deduction described in section 62(a)(21) of such Code (as amended by this section) on Forms 1040EZ and 1040A.

(c) Effective Date- The amendments made by this section shall apply to contributions paid on or after August 28, 2005, in taxable years ending on or after such date.

END