12 2 STA T .39 2 4PUBLIC LA W 11 0– 343 —O CT. 3 , 200 8‘ ‘ (2)suchpro p e r ty ( ifn ot other w ise section 1 2 45 property) sh al l b e treate d as section 1245 property solely for purposes of applyin g section 1245 to such deduction . ‘‘(e) CO O RDINAT ION W IT HO TH E R P RO V I S IONS. —S ections 1 98, 28 0B , and4 6 8 shall not apply to a m ounts which are treated as e x penses under this section. ‘‘(f) R E GUL ATIONS.— T he Secretary shall prescribe such regula - tions as may be necessary or appropriate to carry out the purposes of this section. ’ ’. (b) CLERI C AL AM ENDMENT.—The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 198 the following new item
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‘ Sec.198A . Exp e nsi n gofQual ifie dD isas t e r Expenses. ’ ’. (c) EF FECTIVE D ATE.—The amendments made by this section shall apply to amounts paid or incurred after December 3 1, 200 7 in connection with disaster declared after such date. SEC.708 . N E TOP E RA T I N GL OSSES ATTRI BU TABLE TO F E D ERALL Y DECLARED DISASTERS. (a) IN G ENERAL.—Paragraph (1) of section 172(b) is amended by adding at the end the following new subparagraph: ‘‘( J ) CERTAIN LOSSES ATTRI B UTABLE FEDERALL Y DECLARED DISASTERS.—In the case of a taxpayer who has a q ualified disaster loss (as defined in subsection ( j )), such loss shall be a net operating loss carrybac k to each of the 5 taxable years preceding the taxable year of such loss.’’. (b) Q UALIFIED DISASTER L OSS.—Section 172 is amended by redesignating subsections (j) and (k) as subsections (k) and (l), respecti v ely, and by inserting after subsection (i) the following new subsection: ‘‘(j) RULES RELATING TO QUALIFIED DISASTER LOSSES.— F or pur- poses of this section— ‘‘(1) IN GENERAL.—The term ‘qualified disaster loss’ means the lesser of— ‘‘(A) the sum of— ‘‘(i) the losses allowable under section 165 for the taxable year— ‘‘(I) attributable to a federally declared dis- aster (as defined in section 165(h)(3)(C)(i)) occur- ring before January 1, 2010, and ‘‘(II) occurring in a disaster area (as defined in section 165(h)(3)(C)(ii)), and ‘‘(ii) the deduction for the taxable year for qualified disaster expenses which is allowable under section 198A(a) or which would be so allowable if not otherwise treated as an expense, or ‘‘(B) the net operating loss for such taxable year. ‘‘(2) COORDINATION W ITH SUBSECTION (b)(2).—For purposes of applying subsection (b)(2), a qualified disaster loss for any taxable year shall be treated in a manner similar to the manner in which a specified liability loss is treated. ‘‘(3) ELECTION.—Any taxpayer entitled to a 5-year carryback under subsection (b)(1)(J) from any loss year may elect to have the carryback period with respect to such loss year determined without regard to subsection (b)(1)(J). Such 26USC17 2 . 26USC1 98Anote .
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