text: SECTION 1. SHORT TITLE; AMENDMENTS OF 1986 CODE.
  
      (a) Short Title.--This Act may be cited as the ``Natural Disaster 
  Tax Relief Act of 1993''.
      (b) Amendment of 1986 Code.--Except as otherwise expressly 
  provided, whenever in this Act an amendment or repeal is expressed in 
  terms of an amendment to, or repeal of, a section or other provision, 
  the reference shall be considered to be made to a section or other 
  provision of the Internal Revenue Code of 1986.
  
  SEC. 2. DISTRIBUTIONS FROM CERTAIN PLANS MAY BE USED WITHOUT PENALTY TO 
                REPLACE HOMES.
  
      (a) In General.--No additional tax shall be imposed under section 
  72(t) of the Internal Revenue Code of 1986 on any distribution 
  described in subsection (b) to the extent such distribution is used, 
  within 60 days of the distribution, to pay qualified acquisition costs 
  with respect to a principal residence of an eligible individual.
      (b) Distributions.--Subsection (a) shall apply to distributions--
              (1) from an individual retirement plan, or
              (2) from amounts attributable to employer contributions 
          made pursuant to elective deferrals described in subparagraph 
          (A) or (C) of section 402(g)(3) of the Internal Revenue Code of 
          1986 or section 501(c)(18)(D)(iii) of such Code.
      (c) Definitions and Special Rules.--
              (1) Eligible individual.--The term ``eligible individual'' 
          means an individual--
                      (A) who receives a distribution described in 
                  subsection (b), or who is the spouse, child, or 
                  grandchild of such individual, and
                      (B) whose principal residence was destroyed or 
                  substantially damaged by Hurricane Andrew, Hurricane 
                  Iniki, or Typhoon Omar.
              (2) Qualified acquisition costs.--The term ``qualified 
          acquisition costs'' means the costs of acquiring, constructing, 
          or reconstructing a residence. Such term includes any usual or 
          reasonable settlement, financing, or other closing costs.
              (3) Principal residence.--The term ``principal residence'' 
          has the same meaning as when used in section 1034 of such Code.
              (4) Distributions allowed.--A distribution to which 
          subsection (a) applies shall be treated as a distribution 
          allowed under section 401(k)(2)(B)(i) or 403(b)(11) of such 
          Code.
              (5) Transition.--In the case of any distribution before the 
          date of the enactment of this Act, qualified acquisition costs 
          paid within 90 days of such date shall be treated as paid 
          within 60 days of the distribution.
      (d) Effective Date.--This section shall apply to distributions 
  after July 31, 1992.
  
  SEC. 3. SPECIAL RULE FOR INCLUSION OF CROP PROCEEDS OF CERTAIN DISASTER 
                VICTIMS.
  
      (a) In General.--If, for the taxpayer's taxable year which includes 
  the designation date described in subsection (b), the taxpayer has 
  income derived from the sale or exchange of crops grown in a qualified 
  disaster area, the taxpayer may elect to include such income for the 
  taxable year following the taxable year in which such sale or exchange 
  occurs.
      (b) Qualified Disaster Area.--For purposes of subsection (a), the 
  term ``qualified disaster area'' means an area designated by the 
  President of the United States to warrant assistance by the Federal 
  Government under the Robert T. Stafford Disaster Relief and Emergency 
  Assistance Act by reason of Hurricane Andrew, Hurricane Iniki, or 
  Typhoon Omar.
      (c) Limitation.--Subsection (a) shall apply only to a taxpayer 
  whose principal trade or business is farming (within the meaning of 
  section 6420(c)(3) of the Internal Revenue Code of 1986).
      (d) Special Rules for Self-Employment Tax.--If, for any taxable 
  year, a taxpayer includes in gross income any amounts which, but for 
  subsection (a), would have been included in gross income for the 
  preceding taxable year, then the applicable contribution base for 
  purposes of section 1402(b) of such Code for the taxable year of 
  inclusion shall be increased by the lesser of--
              (1) the applicable contribution base for the preceding 
          taxable year, reduced by the self-employment income of the 
          taxpayer for the preceding taxable year, or
              (2) the amounts so included in gross income for the taxable 
          year of inclusion.
      (e) Effective Date.--The provisions of this section shall apply to 
  taxable years ending after December 31, 1991.
  
  SEC. 4. MODIFICATION OF INVOLUNTARY CONVERSION RULES FOR CERTAIN 
                DISASTER-RELATED CONVERSIONS.
  
      (a) In General.--Section 1033 (relating to involuntary conversions) 
  is amended by redesignating subsection (h) as subsection (i) and by 
  inserting after subsection (g) the following new subsection:
      ``(h) Special Rules for Principal Residences Damaged by 
  Presidentially Declared Disasters.--
              ``(1) In general.--If the taxpayer's principal residence or 
          any of its contents is compulsorily or involuntarily converted 
          as a result of a Presidentially declared disaster--
                      ``(A) Treatment of insurance proceeds.--
                              ``(i) Exclusion for unscheduled personal 
                          property.--No gain shall be recognized by 
                          reason of the receipt of any insurance proceeds 
                          for personal property which was part of such 
                          contents and which was not scheduled property 
                          for purposes of such insurance.
                              ``(ii) Other proceeds treated as common 
                          fund.--In case of any insurance proceeds (not 
                          described in clause (i)) for such residence or 
                          contents--
                                      ``(I) such proceeds shall be 
                                  treated as received for the conversion 
                                  of a single item of property, and
                                      ``(II) any property which is 
                                  similar or related in service or use to 
                                  the residence so converted (or contents 
                                  thereof) shall be treated for purposes 
                                  of subsection (a)(2) as property 
                                  similar or related in service or use to 
                                  such single item of property.
                      ``(B) Extension of replacement period.--Subsection 
                  (a)(2)(B) shall be applied with respect to any property 
                  so converted by substituting `4 years' for `2 years'.
              ``(2) Presidentially declared disaster.--For purposes of 
          this subsection, the term `Presidentially declared disaster' 
          means any disaster which, with respect to the area in which the 
          residence is located, resulted in a subsequent determination by 
          the President that such area warrants assistance by the Federal 
          Government under the Robert T. Stafford Disaster Relief and 
          Emergency Assistance Act.
              ``(3) Principal residence.--For purposes of this 
          subsection, the term `principal residence' has the same meaning 
          as when used in section 1034, except that no ownership 
          requirement shall be imposed.''.
      (b) Effective Date.--The amendment made by subsection (a) shall 
  apply to property compulsorily or involuntarily converted as a result 
  of disasters for which the determination referred to in section 
  1033(h)(2) of the Internal Revenue Code of 1986 (as added by this 
  section) is made on or after September 1, 1991, and to taxable years 
  ending on or after such date.
  
  SEC. 5. APPLICATION OF LOW-INCOME HOUSING CREDITS AND MORTGAGE REVENUE 
                BONDS TO NATURAL DISASTER AREAS.
  
      (a) Low-Income Housing Credits.--
              (1) Waiver of 24-month completion requirement.--In the case 
          of any qualified building located in a qualified disaster area 
          with respect to which a low-income housing allocation is made 
          before the occurrence of the natural disaster, the Secretary 
          may extend the period described in section 42(h)(1)(E)(i) of 
          the Internal Revenue Code of 1986 to not later than the close 
          of the fourth calendar year following the calendar year in 
          which the allocation is made.
              (2) Waiver of written income verification requirement.--
                      (A) In general.--With respect to any occupant of a 
                  low-income unit in any qualified low-income building 
                  located in a qualified disaster area or any such 
                  occupant in any other qualified low-income building who 
                  immediately prior to such occupation resided in a 
                  qualified disaster area, the Secretary may waive the 
                  requirements of paragraphs (1) and (2) of section 42(l) 
                  of such Code regarding occupant income information 
                  until such information is reasonably obtainable.
                      (B) Discovery of ineligibility.--If upon receipt of 
                  occupant income information the income of any occupant 
                  of a low-income unit in the building is determined to 
                  exceed the income limitation under section 42(g) of 
                  such Code, such unit shall continue to be treated as a 
                  low-income unit if no subsequently available 
                  residential rental unit in the building is occupied by 
                  a new resident whose income exceeds such income 
                  limitation and such occupant vacates the unit upon the 
                  later of the lease termination or 30 days after receipt 
                  of such information by the Secretary.
              (3) Waiver of tenant income limitations.--With respect to 
          any tenant occupying a unit in a qualified low-income housing 
          project located in a qualified disaster area who relocates to 
          any other unit of a qualified low-income housing project, the 
          Secretary may waive the income limitation of subparagraph (A) 
          or (B) of section 42(g)(1) of such Code if the income of such 
          tenant does not exceed 140 percent of such income limitation.
              (4) Waiver of 6-month residence requirement.--With respect 
          to any unit in a building located in a qualified disaster area 
          or any unit occupied by individuals who immediately prior to 
          such occupation resided in a qualified disaster area, the 
          Secretary may waive the requirement of clause (i) of section 
          42(i)(3)(B) of such Code and allow the use of such unit on a 
          transient basis.
              (5) Waiver on 10-year rule for existing buildings.--The 
          Secretary may waive the requirement of subparagraph (B)(ii) of 
          section 42(d)(2) of such Code with respect to any building 
          located in a qualified disaster area.
              (6) Waiver of the national pool allocation.--The Secretary 
          may modify the formula described in the penultimate sentence of 
          section 42(h)(3)(D)(iii) of such Code for any calendar year 
          with respect to the allocation to any qualified State in which 
          is located a qualified disaster area to increase such 
          allocation to take into account the effects of such disaster.
              (7) Effective date.--This subsection shall take effect on 
          July 1, 1992.
      (b) Waiver of Dollar Limitation for Home Improvement Loans for 
  Residences in Qualified Disaster Areas.--The $15,000 limitation 
  specified in the last sentence of section 143(k)(4) of such Code shall 
  not apply to any loan for residences located in a qualified disaster 
  area if such loan is made on or after June 30, 1992, and before January 
  1, 1994.
      (c) Qualified Disaster Area.--For purposes of this section, the 
  term ``qualified disaster area'' means an area designated by the 
  President of the United States to warrant assistance by the Federal 
  Government under the Robert T. Stafford Disaster Relief and Emergency 
  Assistance Act by reason of Hurricane Andrew, Hurricane Iniki, or 
  Typhoon Omar.
target: Natural Disaster Tax Relief Act of 1993 - Amends the Internal Revenue Code to allow penalty-free distributions from individual retirement plans to pay acquisition costs to replace a principal residence that was destroyed or substantially damaged by the disasters Hurricane Andrew, Hurricane Iniki, or Typhoon Omar. 
  Allows a farmer who has income derived from the sale or exchange of crops grown in such disaster areas, to elect to defer such income for the next taxable year.  Provides a special rule for the self-employment tax. 
  Requires the nonrecognition of gain of insurance proceeds for the contents of principal residences compulsorily or involuntarily converted as a result of a presidentially-declared disaster.  Allows insurance proceeds from personal property and real property to be lumped together into one common fund.  Extends the time to replace a principal residence so converted from two years to four years. 
  Waives certain requirements with respect to low-income housing in areas damaged by the disasters Hurricane Andrew, Hurricane Iniki, or Typhoon Omar.  Waives the dollar limitation for home improvement loans through mortgage revenue bonds for residences in such disaster areas.
feat_title: Natural Disaster Tax Relief Act of 1993