text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Tax Relief for Victims of Disasters 
  Act of 2011''.
  
  SEC. 2. SPECIAL RULE FOR DETERMINING EARNED INCOME MADE APPLICABLE 
                GENERALLY TO FEDERALLY DECLARED DISASTERS.
  
      (a) In General.--Section 1400S(d)(2)(A) of the Internal Revenue 
  Code of 1986 is amended--
              (1) by striking ``and any'' and inserting ``any'', and
              (2) by inserting before the period at the end ``, and any 
          qualified federally declared disaster individual''.
      (b) Qualified Federally Declared Disaster Individual.--Section 
  1400S(d)(2) of the Internal Revenue Code of 1986 is amended by adding 
  at the end the following:
                      ``(E) Qualified federally declared disaster 
                  individual.--The term `qualified federally declared 
                  disaster individual' means with respect to a federally 
                  declared disaster occurring after December 31, 2010, 
                  and before January 1, 2013, any individual--
                              ``(i) whose principal place of abode on the 
                          applicable date was located in the disaster 
                          area and such individual was displaced from 
                          such principal place of abode by reason of the 
                          federally declared disaster, or
                              ``(ii) who performed substantially all 
                          employment services in the disaster area and 
                          was so employed on the applicable date.
                  For purposes of the preceding sentence and paragraph 
                  (3)(D), the terms `federally declared disaster' and 
                  `disaster area' have the meanings given such terms in 
                  section 165(h)(3).''.
      (c) Applicable Date.--Section 1400S(d)(3) of the Internal Revenue 
  Code of 1986 is amended by striking ``and'' at the end of subparagraph 
  (B), by striking the period at the end of subparagraph (C) and 
  inserting ``, and'', and by inserting after subparagraph (C) the 
  following:
                      ``(D) in the case of a qualified federally declared 
                  disaster individual, the date of the federally declared 
                  disaster.''.
      (d) Effective Date.--The amendments made by this section shall 
  apply with respect to federally declared disasters occurring after 
  December 31, 2010.
  
  SEC. 3. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED DISASTERS.
  
      (a) In General.--Section 1400S(b) of the Internal Revenue Code of 
  1986 is amended--
              (1) by striking ``and (2)(A)'' in the matter preceding 
          paragraph (1) and inserting ``, (2)(A), and (3)'',
              (2) by striking ``or'' at the end of paragraph (2),
              (3) by striking the period at the end of paragraph (3) and 
          inserting ``, or'', and
              (4) by inserting after paragraph (3) the following new 
          paragraph:
              ``(4) which arise in the disaster area (as defined in 
          section 165(h)(3)(C)(ii)) and which are attributable to a 
          federally declared disaster (as defined in section 
          165(h)(3)(C)(i)) occurring after December 31, 2010, and before 
          January 1, 2013.''.
      (b) Effective Date.--The amendments made by this section shall 
  apply with respect to federally declared disasters occurring after 
  December 31, 2010.
  
  SEC. 4. ADDITIONAL EXEMPTION FOR HOUSING QUALIFIED FEDERALLY DECLARED 
                DISASTER DISPLACED INDIVIDUALS.
  
      (a) In General.--In the case of taxable years of a natural person 
  beginning in 2011 or 2012, for purposes of the Internal Revenue Code of 
  1986, taxable income shall be reduced by $500 for each qualified 
  federally declared disaster displaced individual of the taxpayer for 
  the taxable year.
      (b) Limitations.--
              (1) Dollar limitation.--The reduction under subsection (a) 
          shall not exceed $2,000, reduced by the amount of the reduction 
          under this section for all prior taxable years.
              (2) Individuals taken into account only once.--An 
          individual shall not be taken into account under subsection (a) 
          if such individual was taken into account under such subsection 
          by the taxpayer for any prior taxable year.
              (3) Identifying information required.--An individual shall 
          not be taken into account under subsection (a) for a taxable 
          year unless the taxpayer identification number of such 
          individual is included on the return of the taxpayer for such 
          taxable year.
      (c) Qualified Federally Declared Disaster Displaced Individual.--
  For purposes of this section, the term ``qualified federally declared 
  disaster displaced individual'' means, with respect to any taxpayer for 
  any taxable year, any qualified federally declared disaster individual 
  (as defined in section 1400S(d)(2)(E)(i)) if such individual is 
  provided housing free of charge by the taxpayer in the principal 
  residence of the taxpayer for a period of 60 consecutive days which 
  ends in such taxable year. Such term shall not include the spouse or 
  any dependent of the taxpayer.
      (d) Compensation for Housing.--No deduction shall be allowed under 
  this section if the taxpayer receives any rent or other amount (from 
  any source) in connection with the providing of such housing.
target: Tax Relief for Victims of Disasters Act of 2011 - Amends the Internal Revenue Code to extend disaster-related tax provisions relating to the child tax credit and the earned income tax credit, losses, and the individual tax exemption to a qualified federally declared disaster individual (defined to mean, with respect to a federally declared disaster after December 31, 2010, and before January 1, 2013, any individual whose principal place of abode was located in the disaster area, who was displaced by the disaster, and who was performing employment services in the disaster area).
feat_title: To amend the Internal Revenue Code of 1986 to provide a look back rule in the case of federally declared disasters for determining earned income for purposes of the child tax credit and the earned income credit, and for other purposes.