PETITION OF:

SECTION 1. Item 1599-2005 of section 2A of chapter 81 of the acts of 2005, as amended by section 10 of chapter 192 of the acts of 2006, is hereby further amended by inserting after the words “flood relief” the following words:-- provided further, that not less than $6,800,000 shall be expended to certain municipalities and eligible private non-profit organizations in areas declared federal disaster areas in any county in which a state of emergency has been declared by the Governor of the Commonwealth of Massachusetts in either 2005 or 2006 for the purpose of providing emergency disaster relief; provided further that the relief shall be in the amount of 25 per cent of the total damage as certified by the Massachusetts emergency management agency; provided further, that not more than $1,000,000 shall be expended for the purpose of providing emergency disaster relief to the victims of the flooding in any county in which a state of emergency has been declared by the Governor of the Commonwealth of Massachusetts in either 2005 or 2006 for whom flood relief provided by the Federal Emergency Management Agency, the Small Business Administration, or in any other provision of this item is inadequate; provided further, that funds may be expended from this item for grants to charitable organizations engaged in assisting flood victims; provided further, that not more than $2,000,000 of these funds shall be made available to the Massachusetts Development Finance Agency, established in chapter 23G of the General Laws, for the purpose of providing grants to individuals and businesses located in any county in which a state of emergency has been declared by the Governor of the Commonwealth of Massachusetts in either 2005 or 2006; provided further, that the grants shall be used by the individuals and businesses to pay a percentage of the total interest portion on loans, calculated over the life of the loans, received from the Small Business Administration due to the emergency flooding; provided further, that the percentage shall be determined by the Massachusetts Development Finance Agency; and provided further, that the percentage shall be uniform for all grant recipients.

SECTION 2. Notwithstanding any general or special law, rule or regulation to the contrary, for tax years beginning on or after January 1, 2006 and before January 1, 2007, there shall be allowed in the case of an individual a deduction from the Part B adjusted gross income, as defined in section 3 of chapter 62 of the General Laws, an amount up to $10,000 of the costs per household as a result of damages sustained to real and personal property as a result of the May 2006 flooding in any county in which a state of emergency has been declared by the Governor of the Commonwealth of Massachusetts in either 2005 or 2006. A deduction shall not be allowed unless the taxpayer has previously completed an application for federal disaster assistance with the Federal Emergency Management Agency or the Small Business Administration.

Eligible items for the deduction shall include, but not be limited to, sump pumps and related items and services, fees for services associated with water removal, repairs to existing dwellings and replacement flooring, environmental remediation, appliances, furniture and home heating instruments. A deduction shall not be claimed for a cost that has been or is subsequently recovered through insurance, assistance from governmental or charitable organizations, or otherwise.

The deduction shall not be claimed on the individual income tax return form, but shall be claimed by filing an abatement application in accordance with rules or regulations to be promulgated by the department of revenue.

The department of revenue shall adopt regulations to carry out the purpose of this section.

SECTION 3. Notwithstanding chapter 151A or any other general or special law to the contrary, an individual shall be considered “unemployed”, as defined in said chapter and for the purposes of qualifying for benefits under said chapter, for any period of unemployment caused by the closure of the individual’s place of employment if the cause of the closure was a direct result of the flood emergency in any county in which a state of emergency has been declared by the Governor of the Commonwealth of Massachusetts in either 2005 or 2006; if the individual would otherwise qualify for the benefits under said chapter.