While the debates on the fiscal cliff continue, there has been a tax related bill introduced in the Senate. Senators Schumer (D-NY) and Robert Menendez (D-NJ) have proposed legislation to help taxpayers who have been financially affected by Hurricane Sandy. The Hurricane Sandy Relief Act (not on Thomas yet) was introduced on Dec 9th.
The bill includes a variety of individual programs for those who are directly affected by Sandy and for the general public. A few of the proposals include:
- Waiving the 50% limit on charitable contributions for qualified disaster contributions.
- Changes to carryback rules for NOLs.
- Reducing the limitations of casualty loss deductions.
- Waiving the 10% early withdrawal penalty on retirement plan by Sandy victims up to a $100,000 withdrawal.
- A credit for employers who keep paying employees while the business isn’t operating.
- Allows the Work Opportunity Credit to be claimed for Sandy employees.
- Increases depreciation to 50% for the first year in Sandy affected areas.
- Allows EIC and Child Tax Credit to be calculated on previous year’s income for people whose 2012 income was affected by Sandy.
These are just a few of the proposals in the bill. All the details can be found in a press release on Senator Schumer’s website.