Katrina Emergency Tax Relief Act of 2005
Public Law 109-73 · H.R. 3768 · 109th Congress · began in the House
Signed by George W. Bush (R) on Sep 23, 2005 · Taxation
Sponsor: Rep. Jim McCrery (R-LA-4)
Cosponsors (6): Rep. William Jefferson, Rep. Richard Baker,
Passage votes
- HouseMethod not stated
- SenateUnanimous consent
Data notes
The final version of the law, as each chamber passed it. A chamber that passed it by voice vote or unanimous consent has no count. “Method not stated” means the record does not say how the chamber voted. Where the record has a member-by-member vote, the “Who voted for it” section shows who voted yea.
Summary
The Congressional Research Service’s plain-language summary of what the law does.
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]).
Committees
The committees the bill was sent to, and what each did with it.
Data notes
A committee links to its page only where it exists in the current Congress; older and renamed committees are named without a link.
Related bills
2 bills the Library of Congress relates to this one.
H.Res. 454Procedurally-relatedRelated bill
Katrina Emergency Tax Relief Act of 2005
S. 1696Related bill
Hurricane Katrina Tax Relief Act of 2005
Data notes
Related bills are identified by the Congressional Research Service, the House and the Senate: companion and identical bills, bills with similar text, bills that were folded into this law, and rules that brought it to the floor. A bill that is itself a public law in this site’s data links here; the others link to Congress.gov.
Timeline
From introduction to signing, newest first: the committees, the floor and the president. 21 actions.
- Sep 23, 2005Became lawBecame law · Became Public Law No: 109-73.
- Became lawBecame law · Signed by President.
- Sep 22, 2005FloorFloor · Presented to President.
- FloorFloor · Message on Senate action sent to the House.
- Sep 21, 2005Resolving differencesResolving differences · Senate agreed to amendment of the House to the amendment of the Senate by Unanimous Consent.
- FloorFloor · Message on House action received in Senate and at desk: House amendment to Senate amendment.
- FloorFloor · House agreed to Senate amendment with amendment pursuant to H. Res. 454.
- OtherOther · Cleared for White House.
- OtherOther · Resolving differences -- Senate actions: Senate agreed to amendment of the House to the amendment of the Senate by Unanimous Consent.
- OtherOther · Resolving differences -- House actions: House agreed to Senate amendment with amendment pursuant to H. Res. 454.
- Sep 20, 2005FloorFloor · Message on Senate action sent to the House.
- Sep 15, 2005FloorFloor · Passed Senate with an amendment by Unanimous Consent.
- FloorFloor · Measure laid before Senate by unanimous consent.
- FloorFloor · Motion to reconsider laid on the table Agreed to without objection.
- FloorFloor · On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
- FloorFloor · DEBATE - The House proceeded with forty minutes of debate on H.R. 3768.
- FloorFloor · Considered under suspension of the rules.
- FloorFloor · Mr. McCrery moved to suspend the rules and pass the bill, as amended.
- CommitteeCommittee · Received in the Senate, read twice.
- Sep 14, 2005CommitteeCommittee · Referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- IntroducedIntroduced · Introduced in House
Data notes
Every action the Library of Congress lists for the bill, from introduction to signing, plus the dated committee hearings. The source lists many steps twice (the chamber’s own entry and the Library of Congress copy, or a presidential and a became-law entry with the same words); those are shown once. Amendments are listed in their own section.
Amendments
1 amendment offered to the bill, with the last recorded step of each.
- Agreed to
S.Amdt. 1728SenateSen. Chuck GrassleyR-IA· offered Sep 15, 2005Agreed to
In the nature of a substitute.
Sep 15, 2005: Amendment SA 1728 agreed to in Senate by Unanimous Consent.
Data notes
Amendments offered to this bill in either chamber, as the Library of Congress records them: each with a status read from its last recorded step: agreed to, rejected, withdrawn, ruled out of order, fell with another amendment, or offered with no vote recorded (most Senate amendments are only ever offered). The wording of each amendment is the source’s. Amendments to amendments and amendments to other bills are not listed.
Official record
The bill’s full text is on Congress.gov. Data through Oct 7, 2026.