; disaster area The terms federally declared disaster and disaster area have the meanings given such terms under section 165(i)(5). (B) Applicable disaster date The term applicable disaster date means, with respect to any federally declared disaster, the date on which such federally declared disaster occurs. . (b) Effective date The amendment made by this section shall apply to discharges made on or after December 31, 2011. 111. Special rule for determining earned income of individuals affected by federally declared disasters (a) In general Section 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (n) Special rule for determining earned income of taxpayers affected by federally declared disasters (1) In general In the case of a qualified individual with respect to any federally declared disaster occurring during any calendar year beginning after 2011, if the earned income of the taxpayer for the taxable year which includes the applicable disaster date is less than the earned income of the taxpayer for the preceding taxable year, the credit allowed under this section and section 24(d) may, at the election of the taxpayer, be determined by substituting— (A) such earned income for the preceding taxable year, for (B) such earned income for the taxable year which includes the applicable date. (2) Qualified individual For purposes of this subsection, the term qualified individual means, with respect to any federally declared disaster occurring during in any calendar year beginning after 2011 and before 2016, any individual whose principal place of abode on the applicable disaster date, was located— (A) in any portion of a disaster area determined by the President to warrant individual or individual and public assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of the federally declared disaster, or (B) in any portion of the disaster area not described in subparagraph (A) and such individual was displaced from such principal