weather and other conditions relating to Hurricane Irene or Tropical Storm Lee under section 321(a) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1961(a) ), or (III) a major disaster or emergency designated by the President in 2011 due to damaging weather and other conditions relating to Hurricane Irene or Tropical Storm Lee under the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5121 et seq.). . (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act. 116. Facilitation of transfer of water leasing and water by mutual ditch or irrigation companies in disaster areas (a) In general Paragraph (12) of section 501(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (I) Treatment of mutual ditch or irrigation companies in certain disaster areas (i) In general In the case of a qualified mutual ditch or irrigation company or like organization, subparagraph (A) shall be applied without taking into account any income received or accrued during the applicable period— (I) from the sale, lease, or exchange of fee or other interests in real property, including interests in water, (II) from the sale or exchange of stock in a mutual ditch or irrigation company or like organization or contract rights for the delivery or use of water, (III) from the investment of proceeds from sales, leases, or exchanges under subclauses (I) and (II), or (IV) from the United States, or a State or local government, resulting from the federally declared disaster, except that any income received under subclause (I), (II), (III), or (IV) which is distributed or expended for expenses (other than for operations, maintenance, and capital improvements) of the qualified mutual ditch or irrigation company or like organization shall be treated as nonmember income in the year in which it is distributed or expended. (ii) Qualified mutual ditch or irrigation company or like organization For purposes of this