Katrina Emergency Tax Relief Act of 2005

Katrina Emergency Tax Relief Act of 2005 - (Sec. 2) Defines: (1) "Hurricane Katrina disaster area" as an area declared as a major disaster area by the President before September 14, 2005, by reason of Hurricane Katrina; and (2) "core disaster area" as that portion of the Hurricane Katrina disaster area determined by the President to warrant individual or individual and public assistance. Title I: Special Rules For Use Of Retirement Funds For Relief Relating To Hurricane Katrina - (Sec. 101) Exempts from the 10% penalty for premature retirement plan distributions any qualified Hurricane Katrina distribution, up to $100,000, made on or after August 25, 2005, and before January 1, 2007, to an individual whose principal place of abode on August 28, 2005, was located in the Hurricane Katrina disaster area and who has sustained an economic loss due to Hurricane Katrina. Allows repayment of a qualified Hurricane Katrina distribution to a tax-qualified retirement plan as a rollover if made within three years after an initial distribution. Allows qualified Hurricane Katrina distributions to be spread in income ratably over a three-year period. (Sec. 102) Allows individuals to make rollover contributions to tax-qualified retirement plans of distributions from such plans received after February 28 and before August 29, 2005, to purchase or construct a principal residence in a Hurricane Katrina disaster area if the residence was not purchased or constructed due to Hurricane Katrina. (Sec. 103) Increases from $50,000 to $100,000 the limits on loans from tax-qualified retirement plans for Hurricane Katrina victims. Extends the repayment period for such loans. (Sec. 104) Sets forth rules for the retroactive application of amendments made by this title or by regulation to existing retirement plans or annuity contracts. Title II: Employment Relief - (Sec. 201) Includes a Hurricane Katrina employee as a member of a targeted group for purposes of the work opportunity tax credit. Defines "Hurricane Katrina employee" as any individual who is reasonably identified as having a principal residence in a core disaster area on August 28, 2005, and who is hired in such area prior to December 31, 2005. Waives the termination date of the work opportunity tax credit for Hurricane Katrina employees. (Sec. 202) Allows employers in a core disaster area a business tax credit for 40 percent of the first $6,000 of wages paid to core disaster area employees after August 28, 2005, and before January 1, 2006. Title III: Charitable Giving Incentives - (Sec. 301) Suspends limitations on individual and corporate tax deductions for cash contributions to charitable organizations made between August 28 and December 31, 2005. (Sec. 302) Allows individuals, in taxable years beginning in 2005 or 2006, to claim an additional tax exemption of $500 to $2,000 for providing free housing for a period of 60 consecutive days to an individual displaced by Hurricane Katrina. (Sec. 303) Increases (to 70 percent of the standard mileage rate for business usage) the mileage rate for the tax deduction for charitable use of an automobile for Hurricane Katrina disaster relief between August 25, 2005, and December 31, 2006. (Sec. 304) Excludes from gross income reimbursements to volunteers for automobile expenses for providing Hurricane Katrina disaster relief between August 25, 2005, and December 31, 2006. (Sec. 305) Extends to individual taxpayers (currently, restricted to C corporations) the tax deduction for charitable contributions of food inventory made between August 28 and December 31, 2005. (Sec. 306) Allows an increased tax deduction for charitable contributions of book inventories made to public schools between August 28 and December 31, 2005. Title IV: Additional Tax Relief Provisions - (Sec. 401) Excludes from gross income certain nonbusiness discharges of indebtedness of individuals residing in the core disaster area or the Hurricane Katrina disaster area, made on or after August 25, 2005, and before January 1, 2007. (Sec. 402) Suspends limitations on the tax deduction for personal casualty losses attributable to Hurricane Katrina. (Sec. 403) Extends deadlines for the filing of certain tax returns (including excise and employment tax returns) and for the payment of such taxes until February 28, 2006, for taxpayers in the Hurricane Katrina disaster area. (Sec. 404) Suspends certain requirements for home loans financed by mortgage revenue bonds for residences in the Hurricane Katrina disaster area and core disaster area that were rendered uninhabitable. Increases the limit on such loans to $150,000. (Sec. 405) Extends from two to five years the mandatory replacement period for property which is compulsorily or involuntarily converted on or after August 25, 2005, due to Hurricane Katrina, for purposes of allowing nonrecognition of gain from the conversion of such property. (Sec. 406) Allows taxpayers displaced by Hurricane Katrina to use earned income for the previous taxable year to compute the earned income and child tax credits for the tax year which includes August 25, 2005. (Sec. 407) Authorizes the Secretary of the Treasury, for taxable years beginning in 2005 or 2006, to apply the tax laws to ensure that taxpayers do not lose any tax deduction or credit or experience a change of filing status by reason of temporary relocations due to Hurricane Katrina. Title V: Emergency Requirement - (Sec. 501) Declares that any provision of this Act causing an effect on receipts, budget authority, or outlays is designated as an emergency requirement (pursuant to section 402 of H. Con. Res. 95 [109th Congress]).

Katrina Emergency Tax Relief Act of 2005 - Amends the Internal Revenue Code to provide tax relief to Hurricane Katrina victims, including by: (1) extending (from two to five years) the mandatory replacement period for property involuntarily converted due to Hurricane Katrina: (2) suspending (between August 28 and December 31, 2005) the limitations on individual and corporate charitable cash contributions for Hurricane Katrina relief efforts; (3) increasing the standard mileage rate for the tax deduction for charitable use of an automobile used for Hurricane Katrina relief; (4) excluding from gross income cancellations of certain nonbusiness indebtedness incurred by Hurricane Katrina victims; (5) suspending certain restrictions on residential loans financed with mortgage revenue bonds in a Hurricane Katrina disaster area; (6) suspending limitations on casualty losses incurred by Hurricane Katrina victims; (7) allowing an additional personal tax exemption for housing individuals displaced by Hurricane Katrina; (8) allowing Hurricane Katrina victims eligible for an earned income credit in 2005 to base such credit on 2004 earned income; (9) authorizing the Secretary of the Treasury to make tax law adjustments to ensure that Hurricane Katrina victims do not lose certain tax benefits; (10) allowing employers a work opportunity tax credit for employees hired in a Hurricane Katrina disaster area; and (11) permitting retirement plan participants to take distributions and loans from such plans without penalty.

Hurricane Katrina Tax Relief Act of 2005 - (Sec. 2) Defines "Hurricane Katrina disaster area" for purposes of this Act. Title I: Penalty Free Use of Retirement Funds in the Case of Natural Disasters - (Sec. 101) Permits penalty-free distributions, up to $100,000, from tax-qualified retirement plans to individuals who have sustained a loss due to a federally-declared natural disaster if such distributions are made within one year after the disaster declaration. Allows repayment of a disaster-related distribution to a tax-qualified retirement plan if made within three years after an initial distribution. (Sec. 102) Allows individuals receiving a disaster-related distribution from a tax-qualified retirement plan to spread such distribution ratably in income over a three-year period. (Sec. 103) Allows individuals to recontribute as a rollover withdrawals from qualified retirement plans received after February 28 and before August 29, 2005, to purchase or construct a principal residence in a Hurricane Katrina disaster area that was not purchased or constructed due to Hurricane Katrina. (Sec. 104) Increases from $50,000 to $100,000 the amount a tax-qualified employer retirement plan may loan to a plan participant affected by Hurricane Katrina. Extends the repayment period for such loans. (Sec. 105) Sets forth rules for amendments made by this title or by regulation to existing retirement plans or annuity contracts. Title II: Employment Relief - (Sec. 201) Includes a Hurricane Katrina employee survivor as a member of a targeted group for purposes of the work opportunity tax credit. Defines "Hurricane Katrina employee survivor" as any individual who is certified as having a principal residence in a Hurricane Katrina disaster area on August 28, 2005, and who became unemployed due to Hurricane Katrina. Waives the termination date of the work opportunity tax credit for Hurricane Katrina employee survivors. (Sec. 202) Allows employers in a Hurricane Katrina disaster area a general business tax credit for 40 percent of wages paid to Hurricane Katrina disaster area employees and certain Ready Reserve-National Guard employees after August 28, 2005, and before January 1, 2006. Title III: Charitable Giving Incentives - (Sec. 301) Suspends limitations on individual and corporate tax deductions for cash charitable contributions to charitable organizations made between August 28 and December 31, 2005. (Sec. 302) Extends to individual taxpayers (currently, restricted to corporations) the tax deduction for contributions of food inventories. Increases the allowable amount of such tax deduction for the period after August 28, 2005, and before January 1, 2006. (Sec. 303) Increases the allowable amount of the tax deduction for charitable contributions of book inventories made after August 28, 2005, and before January 1, 2006. (Sec. 304) Allows individuals who provide free housing to individuals displaced by Hurricane Katrina for 60 consecutive days an additional personal tax exemption of $500 for each displaced individual, up to $2,000 annually. (Sec. 305) Increases the mileage rate for determining the tax deduction for the charitable use of an automobile to provide Hurricane Katrina disaster relief to 70 percent of the standard mileage rate in effect for business usage. (Sec. 306) Excludes from gross income reimbursements to volunteers of a charitable organization for automobile expenses for the benefit of such organization. Allows such volunteers to use the standard business rate in computing mileage reimbursements. Title IV: Additional Tax Relief Provisions - (Sec. 401) Excludes from gross income certain nonbusiness cancellations of indebtedness for victims of Hurricane Katrina. (Sec. 402) Suspends limitations on personal casualty losses incurred by victims of Hurricane Katrina. (Sec. 403) Extends deadlines for the filing of certain tax returns (including excise and employment tax returns) and for the payment of such taxes until February 28, 2006. (Sec. 404) Increases the limitation on loans financed by mortgage revenue bonds to $150,000 for residences destroyed or damaged by Hurricane Katrina. Suspends certain loan requirements for three years from the date of the disaster declaration. (Sec. 405) Extends from two to five years the mandatory replacement period for property involuntarily converted due to Hurricane Katrina for purposes of provisions allowing nonrecognition of gain from property involuntarily converted. (Sec. 406) Allows taxpayers in Hurricane Katrina Disaster Areas to use earned income for the previous tax year to compute the earned income and child tax credits for the tax year which includes August 28, 2005. (Sec. 407) Authorizes the Secretary of the Treasury, for taxable years beginning in 2005 or 2006, to apply the tax laws to ensure that taxpayers do not lose any deduction or credit or experience a change of filing status due to temporary relocation after Hurricane Katrina or due to the receipt of hurricane relief. Title V: Emergency Requirement - (Sec. 501) States that any provision of this Act causing an effect on receipts, budget authority, or outlays is designated as an emergency requirement (pursuant to section 402 of H. Con. Res. 95 [109th Congress]).

Katrina Emergency Tax Relief Act of 2005 - (Sec. 2) Provides that any provision of this Act causing an effect on receipts, budget authority, or outlays is designated as an emergency requirement (pursuant to section 402 of H. Con. Res. 95 [109th Congress]). Title I: General Tax Relief Provisions - (Sec. 101) Extends from two to five years the mandatory replacement period for property involuntarily converted due to Hurricane Katrina for purposes of provisions allowing nonrecognition of gain from property involuntarily converted. (Sec. 102) Suspends limitations on individual and corporate tax deductions for cash charitable contributions to charitable organizations made between August 28 and December 31, 2005, for Hurricane Katrina relief efforts. (Sec. 103) Increases the mileage rate for determining the tax deduction for the charitable use of an automobile to provide Hurricane Katrina disaster relief to 70 percent of the standard mileage rate in effect for business usage. (Sec. 104) Excludes from gross income certain nonbusiness cancellations of indebtedness for victims of Hurricane Katrina. (Sec. 105) Suspends certain requirements for loans financed by mortgage revenue bonds for residences located in a Hurricane Katrina disaster area. (Sec. 106) Suspends certain limitations on personal casualty losses incurred by victims of Hurricane Katrina. (Sec. 107) Allows individuals who provide free housing to individuals displaced by Hurricane Katrina for 60 consecutive days an additional personal tax exemption of $500 for each displaced individual, up to $2,000 annually. (Sec. 108) Allows taxpayers in Hurricane Katrina disaster areas to use earned income for the previous tax year to compute the earned income and child tax credits for the tax year which includes August 28, 2005. (Sec. 109) Authorizes the Secretary of the Treasury, in taxable years beginning in 2005 or 2006, to apply the tax laws to ensure that taxpayers relocated due to Hurricane Katrina do not lose dependency exemptions or child tax credits or experience a change of filing status due to their relocation. (Sec. 110) Designates employees hired in a Hurricane Katrina disaster area as members of a targeted group for purposes of the work opportunity tax credit. Waives the termination date of such credit for such employees. Title II: Penalty Free Use of Retirement Funds in the Case of Natural Disasters - (Sec. 201) Permits penalty-free distributions, up to $100,000, from tax-qualified retirement plans to individuals who have sustained a loss due to a federally-declared natural disaster if such distributions are made within one year after the disaster declaration. Allows repayment of a disaster-related distribution to a tax-qualified retirement plan if made within three years after an initial distribution. (Sec. 202) Allows individuals receiving a disaster-related distribution from a tax-qualified retirement plan to spread such distribution ratably in income over a three-year period. (Sec. 203) Allows individuals to recontribute as a rollover withdrawals from qualified retirement plans received after February 28 and before August 29, 2005, to purchase or construct a principal residence in a Hurricane Katrina disaster area that was not purchased or constructed due to Hurricane Katrina. (Sec. 204) Increases from $50,000 to $100,000 the amount which a tax-qualified employer retirement plan may loan to a plan participant affected by Hurricane Katrina. Extends the repayment period for such loans. (Sec. 205) Sets forth rules for amendments made by this title or by regulation to existing retirement plans or annuity contracts. Title III: Extension of Certain Provisions to Florida and Other Affected Areas - (Sec. 301) Applies certain provisions of this Act as if such provisions did not include the phrase "individual or individual and public."