Rep. Mike Thompson (D-CA) is espousing the benefits of the recently introduced Disaster Tax Relief Act of 2021, which uses the tax code as relief for survivors of natural disasters.
Per Thompson, the measure also includes previously introduced portions of disaster relief legislation.
“As our district continues to recover from the recent devastating fires and prepares for another Fire Season, it’s critical the Federal government provide every resource possible to recover and mitigate the impact of future disasters,” Thompson, chairman of the House Ways and Means Subcommittee on Select Revenue Measures, said. “That’s why I’m proud to introduce the Disaster Tax Relief Act of 2021, comprehensive legislation that uses the tax code to help people and small businesses impacted by natural disasters, such as fires. Not only does it ease the tax burden for and give financial flexibility to disaster survivors, the bill incentivizes investment in disaster resiliency projects for both individuals and small businesses.”
Bill provisions, per officials, include allowing qualified individuals in federally declared disaster areas to withdraw up to $100,000 from tax-exempt retirement plans with no tax penalty; increasing the limit on loans from retirement plans not treated as distributions for individuals in federally declared disaster areas to $100,000; creation of an employee retention tax credit for employers impacted by disaster; and expansion of eligibility for disaster-related personal casualty losses.