A bill to amend the Internal Revenue Code of 1954 with respect to the tax treatment of the cancellation of certain Federal loans made to individuals in the case of certain disasters.

States that an individual is not required to take into account the cancellation of any part of a disaster loan made under the Small Business Act, or of an emergency loan made under the Consolidated Farm and Rural Development Act, for purposes of determining gross income and the amount of the deduction allowable under the Internal Revenue Code for a loss attributable to a disaster occurring during calendar years 1972 or 1973.