Vote Smart's Synopsis:

Vote on a motion to waive the Budget Act in order to adopt an amendment that grants tax benefits to areas affected by Hurricanes Katrina, Rita, and Wilma, extends some expiring tax provisions, oil and gas provisions, and charges for level of penalties for certain tax offenses.

Highlights:

• Indicates that a nonresidential or residential rental property affected by Hurricane Katrina will receive an allowance equal to 50 percent of adjusted basis of the property, the otherwise depreciation deduction then calculated on the reduced adjusted basis (Sec. 101).

• Increases the state low-income housing credit limit for Alabama, Louisiana, and Mississippi (Sec. 101).

• Designates property placed in service in an area affected by the hurricanes during 2006, 2007, or 2008 a "difficult development area" for tax purposes (Sec. 101).

• Allows individuals to treat up to 50 percent of "qualified Gulf recovery zone clean-up" as an expense not chargeable to a capital account when the property is used for business or trade (Sec. 101).

• Allows individuals who lived in areas affected by the hurricanes to receive up to $100,000 from another individual's retirement plan without increasing the amount the individual receiving the financial help is taxed (Sec. 111).

• Grants employers affected by the hurricanes an employee retention credit of up to 40 percent of qualified wages paid (Sec. 111).

• Suspends, temporarily, limitations on charitable contributions that are tax deductible for efforts related to relief from the hurricanes (Sec. 111).

• Suspends the minimal limit on personal casualty losses that are tax deductible for areas affected by the hurricanes (Sec. 111).

• Increases the alternative minimum tax exemption amount for individual taxpayers (Sec. 319).

• Extends superfund taxes until 2015 (Sec. 331).

Full Bill Text

Full Bill Text