Nebraska, Iowa Delegations Introduce Disaster Tax-Relief Bill

Nebraska, Iowa Delegations Introduce Disaster Tax-Relief Bill

The Nebraska and Iowa Congressional Delegations are introducing legislation that would provide tax relief for Nebraskans affected by severe flooding.

Dubbed the Disaster Tax Relief Act of 2019, it would deliver tax relief to areas that received a federal disaster declaration between January 1, 2019 and April 15, 2019.

If passed, the legislation would various effects such as:

  • No penalties for early withdrawals from retirement accounts for those in affected areas
  • Employee retention credits for employers with inoperable businesses who continue to pay employees
  • Eliminating the deduction cap for donations to projects in disaster areas, driving charitable donations to affected areas
  • Expanding casualty loss deduction to assist with destroyed property, allowing deductions for property damage not covered by other insurance and other federal programs
  • Making earned Income Tax Credit (EITC) changes, allowing people whose wages fell due to the disaster to claim the previous year’s credit if their wages decrease

A link to the full bill can be found here:

https://www.fischer.senate.gov/public/index.cfm/news?ID=B143A609-5150-4DB7-B05D-C91875A3061A

 

Photo Courtesy of Channel 8 Eyewitness News