31, 2015. (II) Federally declared disaster The term federally declared disaster has the meaning given to such term under section 165(i)(5). . (b) Effective date The amendment made by subsection (a) shall apply to taxable years ending after December 31, 2011. II Other disaster tax relief provisions 201. Exclusion for disaster mitigation payments received from State and local governments (a) In general Paragraph (2) of section 139(g) of the Internal Revenue Code of 1986 is amended by inserting , or any other amount which is paid by a State or local government or agency or instrumentality thereof, after (as in effect on such date) . (b) Effective date The amendment made by this section shall apply to payments received after the date of the enactment of this Act. 202. Natural disaster funds (a) Natural disaster fund Subpart C of part II of subchapter E of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 468B the following new section: 468C. Special rules for natural disaster funds (a) In general If a qualified taxpayer elects the application of this section, there shall be allowed as a deduction for any taxable year the amount of payments made by the taxpayer to a natural disaster fund during such taxable year. (b) Natural disaster fund The term natural disaster fund means a fund meeting the following requirements: (1) Designation The taxpayer designates— (A) the fund as a natural disaster fund in the manner prescribed by the Secretary, and (B) the line or lines of business to which the fund applies. (2) Segregation The assets of the fund are segregated from other assets of the taxpayer. (3) Investments (A) The assets of the fund are maintained in one or more qualified accounts and are invested only in— (i) deposits with banks whose deposits are insured subject to applicable limits by the Federal Deposit Insurance Corporation, or (ii) in stock or other securities in which the fund would be permitted to invest if it were a capital construction fund subject to the investment