Bill 118 hr 10380, also known as the "Disaster Relief Business Tax Credit Transfer Act," aims to amend the Internal Revenue Code of 1986 to provide relief for taxpayers affected by Federally declared disasters. Specifically, the bill allows certain taxpayers to transfer a portion of their general business credit carryforwards to help offset the financial burden caused by these disasters.
Under current law, taxpayers are able to carry forward unused general business credits to future tax years. However, in the event of a Federally declared disaster, some taxpayers may find themselves in a situation where they are unable to utilize these credits due to the economic impact of the disaster. This bill seeks to address this issue by allowing these taxpayers to transfer a portion of their unused credits to other taxpayers who have been affected by the disaster.
By enabling the transfer of general business credits, this bill aims to provide much-needed financial relief to businesses and individuals who have suffered losses as a result of Federally declared disasters. This transferability of credits will help to ensure that these taxpayers are able to fully utilize their credits and receive the tax benefits they are entitled to.
Overall, the "Disaster Relief Business Tax Credit Transfer Act" is a bipartisan effort to support those who have been adversely affected by disasters and provide them with the necessary assistance to recover and rebuild.