SA 1193. Mr. ROBERTS (for himself and Mr. BROWNBACK) submitted an amendment intended to be proposed by him to the bill S. 1423, to extend tax relief to the residents and businesses of an 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 (FEMA-1699-DR) by reason of severe storms and tornados beginning on May 4, 2007, and determined by the President to warrant individual or
public assistance from the Federal Government under such Act; which was referred to the Committee on Finance; as follows:
Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE.
This Act may be cited as ``Kansas Disaster Tax Relief Assistance Act''.

SEC. 2. TEMPORARY TAX RELIEF.
(a) IN GENERAL.--Subchapter Y of the Internal Revenue Code of 1986 (relating to short-term regional benefits) is amended by adding at the end the following new part:

``PART III--TAX BENEFITS FOR OTHER DISASTER AREAS


``Sec. l400U. Tax benefits for Kiowa County, Kansas and surrounding area.
``SEC. 1400U. TAX BENEFITS FOR KIOWA COUNTY, KANSAS AND SURROUNDING AREA.
``The following provisions of this subchapter shall apply, in addition to the areas described in such provisions, to an 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 (FEMA-1699-DR) by reason of severe storms and tornados beginning on May 4, 2007, and determined by the President to warrant individual or public assistance from the Federal Government under such Act:

``(1) Suspension of certain limitations on personal casualty losses.--Section 1400S(b)(1), by substituting `May 4, 2007' for 'August 25, 2005'.

``(2) EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNITION OF GAIN.--Section 1400L(g), by substituting `storms on May 4, 2007' for `terrorist attacks on September 11, 2001'.

``(3) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY MAY 4 STORMS.--Section 1400R(a)--

``(A) by substituting `May 4, 2007' for `August 28, 2005' each place it appears,

``(B) by substituting `January 1, 2008' 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 May 4, 2007.

``(4) SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED ON OR AFTER MAY 5, 2007.--Section 1400N(d)--

``(A) by substituting `qualified Recovery Assistance property' for `qualified Gulf Opportunity Zone property' each place it appears,

``(B) by substituting `May 5, 2007' for `August 28, 2005' each place it appears,

``(C) by substituting `December 31, 2008' for `December 31, 2007' in paragraph (2)(A)(v),

``(D) by substituting `December 31, 2009' for `December 31, 2008' paragraph (2)(A)(v),

``(E) by substituting `May 4, 2007' for `August 27, 2005' in paragraph (3)(A),

``(F) by substituting `January 1, 2009' for `January 1, 2008' in paragraph (3)(B), and

``(G) determined without regard to paragraph (6) thereof.

``(5) INCREASE IN EXPENSING UNDER SECTION 179.--Section 1400N(e), by substituting `qualified section 179 Recovery Assistance property' for `qualified section 179 Gulf Opportunity Zone property' each place it appears.

``(6) EXPENSING FOR CERTAIN DEMOLITION AND CLEAN-UP COSTS.--Section 1400N(f)--

``(A) by substituting `qualified Recovery Assistance clean-up cost' for `qualified Gulf Opportunity Zone clean-up cost' each place it appears, and

``(B) by substituting `beginning on May 4, 2007, and ending on December 31, 2009' for `beginning on August 28, 2005, and ending on December 31, 2007' in paragraph (2) thereof.

``(7) TREATMENT OF PUBLIC UTILITY PROPERTY DISASTER LOSSES.--Section 1400N(o).

``(8) TREATMENT OF NET OPERATING LOSSES ATTRIBUTABLE TO STORM LOSSES.--Section 1400N(k)--

``(A) by substituting `qualified Recovery Assistance loss' for `qualified Gulf Opportunity Zone loss' each place it appears,

``(B) by substituting `after May 3, 2007, and before on January 1, 2010' for `after August 27, 2005, and before January 1, 2008' each place it appears,

``(C) by substituting `May 4, 2007' for `August 28, 2005' in paragraph (2)(B)(ii)(I) thereof,

``(D) by substituting `qualified Recovery Assistance property' for 'qualified Gulf Opportunity Zone property' in paragraph (2)(B)(iv) thereof, and

``(E) by substituting `qualified Recovery Assistance casualty loss' for `qualified Gulf Opportunity Zone casualty loss' each place it appears.

``(9) TREATMENT OF REPRESENTATIONS REGARDING INCOME ELIGIBILITY FOR PURPOSES OF QUALIFIED RENTAL PROJECT REQUIREMENTS.--Section 1400N(n).

``(10) SPECIAL RULES FOR USE OF RETIREMENT FUNDS.--Section 1400Q--

``(A) by substituting `qualified Recovery Assistance distribution' for `qualified hurricane distribution' each place it appears,

``(B) by substituting `on or after May 4, 2007, and before January 1, 2009' for `on or after August 25, 2005, and before January 1, 2007' in subsection (a)(4)(A)(i),

``(C) by substituting `qualified storm distribution' for `qualified Katrina distribution' each place it appears,

``(D) by substituting `after November 4, 2006, and before May 5, 2007' for `after February 28, 2005, and before August 29, 2005' in subsection (b)(2)(B)(ii),

``(E) by substituting `beginning on May 4, 2007, and ending on November 5, 2007' for `beginning on August 25, 2005, and ending on February 28, 2006' in subsection (b)(3)(A),

``(F) by substituting `qualified storm individual' for `qualified Hurricane Katrina individual' each place it appears,

``(G) by substituting `December 31, 2007' for `December 31, 2006' in subsection (c)(2)(A),

``(H) by substituting `beginning on June 4, 2007, and ending on December 31, 2007' for `beginning on September 24, 2005, and ending on December 31, 2006' in subsection (c)(4)(A)(i),

``(I) by substituting `May 4, 2007' for `August 25, 2005' in subsection (c)(4)(A)(ii), and

``(J) by substituting `January 1, 2008' for `January 1, 2007' in subsection (d)(2)(A)(ii).''.

(b) CLERICAL AMENDMENT.--The table of parts for subchapter Y of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:


``Part III. Tax benefits for other disaster areas.''.


(As printed in the Congressional Record for the Senate on May 24, 2007.)