Texas Border Business
WASHINGTON D.C.—Today, Congressman Henry Cuellar, co-chairman of the bi-partisan Hurricane Harvey Congressional Task Force, along with fellow co-chairman Rep. Joe Barton, announced the House passage of the Disaster Tax Relief and Airport and Airway Extension Act of 2017. The co-chairmen introduced the Task Force and along withWays and Means Committee Chairman Kevin Brady, announced the benefits of the bill.
“I am pleased with the passing of these important tax relief provisions and the efforts of my colleagues.” said Rep. Cuellar. “ Once again, the Texas delegation has proven that first and foremost, we are Texans above all else. With this bill, victims of Hurricane Harvey and other natural disasters will have the opportunity to earn tax relief for their hardship. I thank my Harvey taskforce co-chairman Joe Barton, Ways and Means Chairman Rep. Brady, and the rest of the Texas delegation for their efforts to find solutions and relief for those suffering in the wake of these disasters.”
The Disaster Tax Relief and Airport and Airway Extension Act of 2017 takes the following targeted actions to help American families and communities impacted by Hurricanes Harvey, Irma, and Maria:
Deduction for Personal Casualty Losses:
- With respect to uncompensated losses arising in the disaster area, eliminates the current law requirements that personal casualty losses must exceed 10 percent of Adjusted Gross Income to qualify for deduction.
- Eliminates the current law requirement that taxpayers must itemize deductions to access this tax relief.
Penalty-Free Access to Retirement Funds:
- Provides an exception to the 10 percent early retirement plan withdrawal penalty for qualified hurricane relief distributions.
- Allows for the re-contribution of retirement plan withdrawals for home purchases cancelled due to eligible disasters.
- Provides flexibility for loans from retirement plans for qualified hurricane relief.
Encouraging Charitable Giving:
- Temporarily suspends limitations on the deduction for charitable contributions associated with qualified hurricane relief made before December 31, 2017.
Disaster-Related Employment Relief:
- Provides a tax credit for 40 percent of wages (up to $6,000 per employee) paid by a disaster-affected employer to an employee from a core disaster area.
Special Rule for Determining 2017 Earned Income Tax Credit and Child Tax Credit:
- For 2017, allows taxpayers to refer to earned income from the immediately preceding year for purposes of determining the Earned Income Tax Credit and Child Tax Credit.
For Rep. Cuellar’s video remarks, please watch here.
