Disaster Tax Relief Act of 2019 2019-04-09 Introduced in House Disaster Tax Relief Act of 2019

This bill allows various tax credits, tax deductions, and modifications to existing rules for individuals and businesses affected by certain federally declared disasters that began after January 1, 2018, and before the enactment of this bill.

With respect to individuals and businesses in the affected areas, the bill

  • waives the 10% additional tax on certain early distributions from retirement plans,
  • permits individuals to recontribute funds to retirement plans if the funds were distributed for a home purchase that was cancelled on account of a disaster,
  • increases the limit and extends the repayment deadline for loans from retirement plans,
  • allows an employee retention tax credit for employers affected by disasters,
  • temporarily suspends the limitation on tax deductions for charitable contributions for relief efforts in disaster areas,
  • modifies the rules for the deduction for personal casualty losses,
  • allows taxpayers residing in disaster areas to use earned income from the immediately preceding year for the purpose of determining earned income for the earned income tax credit and the child tax credit, and
  • automatically extends tax filing deadlines for taxpayers who have a principal residence or place of business located in a disaster area.

The bill also requires the Department of the Treasury to make payments to certain U.S. possessions to either compensate for revenue lost due to specified provisions in the bill or allow residents to benefit from the provisions.

]]> text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.