FOR IMMEDIATE RELEASE
September 24, 2008

Washington, D.C.— Today, Congressman Jefferson voted to provide significant tax relief for areas that are designated federally declared disaster areas between January 1, 2008 and December 31, 2011. The bill is designed to provide general disaster relief, instead of relief targeted to a particular disaster and includes many programs represented in the Rep. Ron Kind disaster tax bill, H.R. 6640 of which Rep. Jefferson was an original co-sponsor.

“There are several issues that our people face following nearly every type of disaster and this bill puts in place tax provisions that aid recovery in more of a proactive way,” said Jefferson after voting. “Low income housing must be replaced, businesses must rebuild and reopen, charities must be able to get in and do the aid work needed. Precious time is lost when we wait for the disaster to happen instead of using our knowledge and experience before a disaster strikes to make the difference in the rescue and recovery of our citizens.”

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H.R. 7006, The Disaster Tax Relief Act:

• Allows for personal casualty loses to be calculated without taking into account adjusted gross income. Prior to this, one could only use this deduction if loses exceeded 10 percent of one’s adjusted gross income.
• Waives annual limits on charitable contributions made prior to December 31, 2009 in connection to relief efforts in federally declared disaster areas.
• Permits businesses to deduct “qualified disaster expenses” such as demolition, remediation, clean-up and repair costs
• Allows businesses to “carry back” their net losses five years, rather than the original two years.
• Gives the Treasury Department to increase the amount of Low-income tax credits to states where a federal disaster area has been declared.
• Allows states to use their tax-exempt housing bonds to supply loans to repair houses and rental housing units that have been declared unsafe due to a federally-declared disaster area.