This bill sets forth tax relief provisions for taxpayers residing in a disaster zone. Specifically, the bill
allows penalty-free qualified disaster distributions from tax-exempt retirement plans up to $100,000;
allows recontributions of distributions for home purchases cancelled due to disasters;
increases to $100,000 the limit on loans from retirement plans not treated as distributions;
allows an employee retention tax credit for 40% of wages paid by employers affected by a disaster;
expands eligibility for disaster-related personal casualty losses;
allows exclusions from gross income, for income tax purposes, of amounts received from state-based catastrophe loss mitigation programs and emergency agricultural assistance;
suspends the limitation on corporate charitable contributions;
allows the Small Business Administration to award grants to accomodate extraordinary occurrences having a catastrophic impact on small business concerns; and
allows a new tax credit for 30% of qualified wildfire mitigation expenditures.
Bill 117 HR 3954, also known as the Disaster Tax Relief Act of 2021, is a piece of legislation introduced in the US Congress. The purpose of this bill is to provide tax relief to individuals and businesses affected by natural disasters such as hurricanes, wildfires, and other catastrophic events.
The bill includes provisions that allow for tax deductions for casualty losses incurred as a result of a disaster, as well as tax credits for businesses that are located in disaster zones and have suffered economic losses. Additionally, the bill provides for tax-exempt bonds to help finance the recovery efforts in disaster-affected areas.
Furthermore, the Disaster Tax Relief Act of 2021 includes measures to streamline the process for claiming disaster-related tax benefits, making it easier for individuals and businesses to access the relief they need in a timely manner.
Overall, this bill aims to provide much-needed assistance to those who have been impacted by natural disasters, helping them recover and rebuild their lives and businesses in the aftermath of these devastating events.
This bill sets forth tax relief provisions for taxpayers residing in a disaster zone. Specifically, the bill
allows penalty-free qualified disaster distributions from tax-exempt retirement plans up to $100,000;
allows recontributions of distributions for home purchases cancelled due to disasters;
increases to $100,000 the limit on loans from retirement plans not treated as distributions;
allows an employee retention tax credit for 40% of wages paid by employers affected by a disaster;
expands eligibility for disaster-related personal casualty losses;
allows exclusions from gross income, for income tax purposes, of amounts received from state-based catastrophe loss mitigation programs and emergency agricultural assistance;
suspends the limitation on corporate charitable contributions;
allows the Small Business Administration to award grants to accomodate extraordinary occurrences having a catastrophic impact on small business concerns; and
allows a new tax credit for 30% of qualified wildfire mitigation expenditures.
Bill 117 HR 3954, also known as the Disaster Tax Relief Act of 2021, is a piece of legislation introduced in the US Congress. The purpose of this bill is to provide tax relief to individuals and businesses affected by natural disasters such as hurricanes, wildfires, and other catastrophic events.
The bill includes provisions that allow for tax deductions for casualty losses incurred as a result of a disaster, as well as tax credits for businesses that are located in disaster zones and have suffered economic losses. Additionally, the bill provides for tax-exempt bonds to help finance the recovery efforts in disaster-affected areas.
Furthermore, the Disaster Tax Relief Act of 2021 includes measures to streamline the process for claiming disaster-related tax benefits, making it easier for individuals and businesses to access the relief they need in a timely manner.
Overall, this bill aims to provide much-needed assistance to those who have been impacted by natural disasters, helping them recover and rebuild their lives and businesses in the aftermath of these devastating events.
Alternative Names
Official Title as IntroducedTo amend the Internal Revenue Code of 1986 to provide disaster tax relief, exclude from gross income amounts received from State-based catastrophe loss mitigation programs, and for other purposes.
Display TitleDisaster Tax Relief Act of 2021
Official Title as IntroducedTo amend the Internal Revenue Code of 1986 to provide disaster tax relief, exclude from gross income amounts received from State-based catastrophe loss mitigation programs, and for other purposes.
Short Title(s) as IntroducedDisaster Tax Relief Act of 2021
This bill sets forth tax relief provisions for taxpayers residing in a disaster zone. Specifically, the bill
allows penalty-free qualified disaster distributions from tax-exempt retireme...
nt plans up to $100,000;
allows recontributions of distributions for home purchases cancelled due to disasters;
increases to $100,000 the limit on loans from retirement plans not treated as distributions;
allows an employee retention tax credit for 40% of wages paid by employers affected by a disaster;
expands eligibility for disaster-related personal casualty losses;
allows exclusions from gross income, for income tax purposes, of amounts received from state-based catastrophe loss mitigation programs and emergency agricultural assistance;
suspends the limitation on corporate charitable contributions;
allows the Small Business Administration to award grants to accomodate extraordinary occurrences having a catastrophic impact on small business concerns; and
allows a new tax credit for 30% of qualified wildfire mitigation expenditures.
Latest Action7/20/2021
Referred to the Subcommittee on General Farm Commodities and Risk Management.