- Allows deductions for disaster cleanup expenses;
- Allows homeowners who lost their homes to qualify for financing under tax-exempt mortgage revenue bonds;
- Provides an additional bonus depreciation allowance for capital expenditures on commercial and residential rental properties in disaster areas;
- Waives the 10 percent penalty tax that would otherwise apply on an early withdrawal from a retirement plan for disaster victims;
- Allows an exemption of up to $2,000 for individuals who provided free housing for those displaced by a disaster;
- Permits disaster victims to use prior year’s income for purposes of calculating the earned income and child tax credits;
- Allows states to issue tax-exempt Disaster Recovery Bonds for the acquisition, construction, reconstruction, and renovation of residential rental property, commercial property, docks, wharves, mass commuting facilities, and public utility properties;
- Increases the Low-Income Housing Credit allocation for states damaged by a natural disaster, based on the population of qualified disaster areas within the state;
- Allows businesses to create a natural disaster fund, whereby they could set aside pretax dollars for natural disaster expenses, including insurance deductibles and coinsurance.
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