House Ways and Means Committee Chairman Kevin Brady (R-TX) has introduced legislation to provide limited tax relief for survivors of Hurricanes Harvey, Irma, and Maria. The bill will be added to must-pass legislation to reauthorize the Federal Aviation Administration (FAA) for six months to give Congressional leaders more time to negotiate a longer-term reauthorization bill. The House is expected to vote on the legislative package this week.
Although the bill does not provide Low Income Housing Tax Credits or New Markets Tax Credits that are needed to help rebuild homes and communities, it would expand tax deductions available for casualty losses, make it easier for individuals to access retirement accounts without penalties, and create a new tax credit for employers affected by the hurricanes. The bill would also temporarily lift limitations on the charitable tax deduction and allow individuals impacted by the disaster to use their incomes from last year to qualify for the Earned Income Tax Credit and Child Tax Credit.
"My bill specifically helps hurricane victims keep more of their paycheck, deduct more of the cost of their expensive property damage, and have more affordable and immediate access to money they have saved for their retirement," Chairman Brady said. "The legislation will also encourage even more Americans to donate generously to help those in need. Taken together, these tax relief measures will help more people be able to bear the tremendous expense of recovering from these destructive hurricanes."
Learn more about the tax bill at: http://bit.ly/2hrOf48