A bill to amend the Internal Revenue Code of 1954 to provide that taxpayers shall be required to reduce the amount of casualty loss deductions by the amount of reimbursement anticipated from the cancellation of certain Federal loans made in the case of certain disasters.

Declares for purposes of computing the casualty loss income tax deduction under the Internal Revenue Code, that no taxpayer shall be required to reduce the amount of such deduction, or to include in income the amount of any reimbursement anticipated as a result of the cancellation of any loan pursuant to the Small Business Act or the Consolidated Farmers Home Administration Act.