ADDITIONAL EXEMPTION FOR HOUSING HURRICANE KATRINA DISPLACED INDIVIDUALS.

SEC. 302. ADDITIONAL EXEMPTION FOR HOUSING HURRICANE KATRINA DISPLACED INDIVIDUALS.(a) In General.—In the case of taxable years of a natural person beginning in 2005 or 2006, for purposes of the Internal Revenue Code of 1986, taxable income shall be reduced by $500 for each Hurricane Katrina 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 119 STAT. 2024 individual is included on the return of the taxpayer for such taxable year. (c) Hurricane Katrina Displaced Individual.—For purposes of this section, the term “Hurricane Katrina displaced individual” means, with respect to any taxpayer for any taxable year, any natural person if—(1) such person’s principal place of abode on August 28, 2005, was in the Hurricane Katrina disaster area,(2)(A) in the case of such an abode located in the core disaster area, such person is displaced from such abode, or(B) in the case of such an abode located outside of the core disaster area, such person is displaced from such abode, and(i) such abode was damaged by Hurricane Katrina, or (ii) such person was evacuated from such abode by reason of Hurricane Katrina, and(3) such person 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.