WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA) and John Kennedy (R-LA) are continuing their efforts to provide support for the people of Louisiana impacted by the Hurricane Laura. Yesterday, the Louisiana senators introduced a bipartisan bill with Senators Dianne Feinstein (D-CA), Joni Ernst (R-IA), and Chuck Grassley (R-IA) to provide tax relief to the individuals, families, and small businesses in Presidentially declared disaster areas, including those impacted by Hurricane Laura, the wildfires in California and Oregon, and the derecho in Iowa.
“This bill gives tax relief to those Hurricane Laura victims who wish to use their own money to recover their lives and the businesses,” said Dr. Cassidy.
“This smart, targeted tax relief for people and businesses will help Louisianians pick up the pieces from Hurricane Laura to rebuild. Now is the time to incentivize giving to charities and keeping workers on the payroll, which is why I’m fighting for the Disaster Tax Relief Act,” said Kennedy.
The Disaster Tax Relief Act of 2020 provides tax relief for individuals and businesses in Presidentially declared disaster areas for major disasters declared on or after July 1, 2020, through the period ending 60 days after the date of enactment.
- Removes penalties on early withdrawals from retirement accounts so folks can access their savings to help cover the cost of certain storm-related expenses.
- Provides a tax credit for employee retention during business interruption.
- Encourages charitable giving to affected areas, by suspending limits on deductions for certain contributions.
- Creates special rules for qualified disaster-related personal casualty losses.
- Allows low-income workers to use their previous year’s income to claim certain tax credits, ensuring that they do not lose access to the credits or receive a lower amount.