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Disaster Tax Relief Act of 2021
12/30/2022, 5:47 PM
Summary of Bill HR 3954
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.
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.
Congressional Summary of HR 3954
Disaster 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 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.
Read the Full Bill
Current Status of Bill HR 3954
Bill HR 3954 is currently in the status of Bill Introduced since June 16, 2021. Bill HR 3954 was introduced during Congress 117 and was introduced to the House on June 16, 2021. Bill HR 3954's most recent activity was Referred to the Subcommittee on General Farm Commodities and Risk Management. as of July 20, 2021
Bipartisan Support of Bill HR 3954
Total Number of Sponsors
1Democrat Sponsors
1Republican Sponsors
0Unaffiliated Sponsors
0Total Number of Cosponsors
0Democrat Cosponsors
0Republican Cosponsors
0Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 3954
Primary Policy Focus
TaxationPotential Impact Areas
- Agricultural prices, subsidies, credit
- Business expenses
- Charitable contributions
- Disaster relief and insurance
- Employee benefits and pensions
- Energy storage, supplies, demand
- Fires
- Forests, forestry, trees
- Government lending and loan guarantees
- Homelessness and emergency shelter
- Housing finance and home ownership
- Income tax credits
- Income tax deductions
- Income tax exclusion
- Motor fuels
- Natural disasters
- Residential rehabilitation and home repair
- Small Business Administration
- Small business
- Solid waste and recycling
- State and local government operations
- Tax administration and collection, taxpayers
- U.S. territories and protectorates
- Wages and earnings
Alternate Title(s) of Bill HR 3954
Disaster Tax Relief Act of 2021
To 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.
Disaster Tax Relief Act of 2021
Comments
Sponsors and Cosponsors of HR 3954
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