A bill to provide certain special rules with respect to the application of the Internal Revenue Code of 1954 to certain flood victims.

Provides that in the case of any disaster loss resulting from the floods occurring on February 26, 1972, no taxpayer who elected to deduct the amount of such loss from his income taxes for the taxable years immediately preceding the taxable year in which such loss occurred, and who received compensation for such loss after filing claim for credit or refund for such preceding taxable years, shall be required (1) to include the amount of such compensation in gross income for purposes of computing his income tax for the taxable year in which such disaster occurred, or (2) to recompute the amount of income tax due for such preceding taxable year.