A bill to amend the Internal Revenue Code of 1954 to provide that the amount of a deduction in the case of a disaster loss shall be increased by an amount computed with regard to the replacement cost of property lost in a disaster.

Amends the Internal Revenue Code to modify the formula for the determination of the basis of the deduction for disaster losses to take into account the replacement cost of the destroyed property. Sets such basis at the sum of the adjusted basis (for determining loss from the sale or other disposition of property), plus the excess of the replacement cost over the unadjusted basis of such property.