[Congressional Record Volume 160, Number 139 (Friday, November 14, 2014)]
[Extensions of Remarks]
[Page E1592]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                SANDY REINVESTMENT EXTENSION ACT OF 2014

                                 ______
                                 

                       HON. CHRISTOPHER H. SMITH

                             of new jersey

                    in the house of representatives

                       Friday, November 14, 2014

  Mr. SMITH of New Jersey. Mr. Speaker, just over two weeks ago marked 
the second anniversary of Superstorm Sandy's landfall in New Jersey. I 
toured several areas hit hardest by the storm, meeting with residents 
and local officials who have been working at the ground level 
throughout the recovery. Their resiliency is ever-present, and much 
progress has been made. It remains clear however that as residents and 
businesses continue to rebuild, the federal government can do more to 
ensure a full recovery by incentivizing continued investment in the 
hard-hit communities.
   Many will never forget the iconic images following the storm of 
Casino Pier's Jet Star roller coaster standing in the Atlantic Ocean 
off the shore of Seaside Heights, NJ. Businesses such as Casino Pier 
would eventually receive insurance payments for their lost or damaged 
property, a transaction known as an ``involuntary conversion'' under 
the U.S. tax code. Once the involuntary conversion occurs, businesses 
have a two-year replacement period, after which time any gain may be 
recognized and subject to taxation.
   With amusement rides and other costly business assets, full 
replacement can be impossible within the two-year period. Accordingly, 
following past disasters--including Hurricane Katrina, the 2007 Kansas 
storms, and 2008 Midwest storms, floods, and tornadoes--Congress has 
extended the replacement period to five years, giving businesses the 
time they need to reinvest the money in the community. The Sandy 
Reinvestment Extension Act of 2014 would provide the same extension to 
those affected in the Sandy disaster area, and would apply only where 
the replacement property is of substantial use in the same area--
ensuring reinvestment in the affected communities.
   This legislation complements bills I have cosponsored--the Hurricane 
Sandy Tax Relief Act (H.R. 2137) and the Mortgage Forgiveness Tax 
Relief Act (H.R. 2994)--that together provide critical tax relief for 
homeowners and businesses still struggling to recover from Sandy. As we 
have learned from many previous natural disasters, recoveries take 
time, and victims are burdened long after the storm has passed.
   Mr. Speaker, I urge my colleagues to consider the Sandy Reinvestment 
Extension Act of 2014 and other critical tax relief legislation that 
will provide homeowners and businesses in the Sandy-impacted region 
with the assistance and tools needed for a full recovery.

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