Press Releases

Roe Cosponsors Legislation to Help Storm Victims

Southeastern Disaster Tax Relief Act

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Washington, July 5, 2011 | comments

WASHINGTON D.C. – In response to the tornadoes, severe storms, and flooding that devastated parts East Tennessee and across the Southeast this spring, U.S. Congressman Phil Roe, M.D. (TN-01) cosponsored legislation that would provide temporary tax provisions for families, businesses, and local governments as they recover from the tragic storms.

Roe made the following statement about the Southeastern Disaster Tax Relief Act:

After the devastating storms raged through East Tennessee and across the state, many are having to deal with the horrible aftermath.  I have seen the damage firsthand, and that is why I felt it important to cosponsor legislation that will provide assistance to families and small businesses through tax relief.  As Tennesseans recover from the tragic storms, it is my hope that Congress will pass the Southeastern Disaster Tax Relief Act.

SUMMARY

Southeastern Disaster Tax Relief Act

This legislation consists of temporary tax provisions that were included in previous natural disaster responses that enjoyed overwhelming bipartisan support including the Heartland Disaster Tax Relief Act, Gulf Opportunity Zone Act, Katrina Emergency Tax Relief Act, and the tax relief provided to southern Kansas due to flooding in 2008.  The bill is fully offset by rescinding unobligated federal spending, and it will not increase the federal debt. 

Under this bill, the Southeastern disaster area would be established in the Internal Revenue Code to designate regions in the South that were affected by the recent tornadoes, severe storms or flooding.  In order for counties to be eligible for all of the benefits in the bill, they must be Presidentially-declared major disaster areas and determined by the President to warrant individual assistance for damage between April 13, 2011, and June 7, 2011.  Additionally, a limited number of benefits will be provided for areas designated eligible for public assistance by the Federal Emergency Management Agency (FEMA), including expensing for demolition and clean-up costs, education tax benefits, qualified retirement withdrawals, suspension of limitations on charitable contributions and casualty losses, special exemption for housing displaced individuals, look-back rule for earned income tax credit and child tax credit, exclusion of cancellation of indebtedness income, and the extension of replacement period for non-recognition of gains.

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Tags: Taxes