12 2 STA T .39 1 8PUBLIC LA W 11 0– 3 4 3 —O CT. 3 , 2008 (B)bytrea t ing t h ea p p l i c able d i s aster date w ith respect t o any s u ch indi v idual as the applicable date f or purposes of such subsection , and ( C ) by treating an area as described in paragraph ( 2 )(B)(ii) thereof if the area is a M idwestern disaster area only by reason of subsection (b)(2) of this section (relating to areas eligible only for public assistance) . ( 15 ) ADJUSTMEN TS R E GA RD I NG TA XP A Y ER AND DEPENDEN C Y STATUS. —S ection 1 40 0S(e), by substituting ‘ ‘200 8 or 200 9’ ’ for ‘‘2005 or 200 6 ’’. (e) M O DI F ICATIONS TO K ATRINA E MERGENCY T AX R E L IEF ACT OF 2005.—The following provisions of the Katrina E m ergency Ta x Relief Act of 2005 shall be applied with the following modifications
(1) ADDITIONAL EXEMPTION FOR H OUSING DISPLACED INDI -V IDUAL.—Section 3 02— (A) by substituting ‘‘2008 or 2009’’ for ‘‘2005 or 2006’’ in subsection (a) thereof, (B) by substituting ‘‘Midwestern displaced individual’’ for ‘‘ H urricane Katrina displaced individual’’ each place it appears, and (C) by treating an area as a core disaster area for purposes of applying subsection (c) thereof if the area is a Midwestern disaster area without regard to subsection (b)(2) of this section (relating to areas eligible only for public assistance). (2) I NCREASE IN STANDARD MILEAGE RATE.—Section 303, by substituting ‘‘beginning on the applicable disaster date and ending on D ecember 31, 2008’’ for ‘‘beginning on August 25, 2005, and ending on December 31, 2006’’. (3) MILEAGE REIM B URSEMENTS FOR CHARITABLE VOLUN- TEERS.—Section 304— (A) by substituting ‘‘beginning on the applicable dis- aster date and ending on December 31, 2008’’ for ‘‘beginning on August 25, 2005, and ending on December 31, 2006’’ in subsection (a), and (B) by substituting ‘‘the applicable disaster date’’ for ‘‘August 25, 2005’’ in subsection (a). (4) EXCLUSION OF CERTAIN CANCELLATION OF INDEBTEDNESS INCOME.—Section 401— (A) by treating an individual whose principal place of abode on the applicable disaster date was in a Mid- western disaster area (determined without regard to sub- section (b)(2) of this section) as an individual described in subsection (b)(1) thereof, and by treating an individual whose principal place of abode on the applicable disaster date was in a Midwestern disaster area solely by reason of subsection (b)(2) of this section as an individual described in subsection (b)(2) thereof, (B) by substituting ‘‘the applicable disaster date’’ for ‘‘August 28, 2005’’ both places it appears, and (C) by substituting ‘‘ J anuary 1, 2010’’ for ‘‘January 1, 200 7 ’’ in subsection (e). (5) EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNI- TION OF GAIN.—Section 405, by substituting ‘‘on or after the applicable disaster date’’ for ‘‘on or after August 25, 2005’’. Ap p licab ili ty.
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