U.S. Rep. Tom Reed (R-NY) introduced legislation this week that would offer assistance to victims of natural disasters in the U.S.
The National Disaster Relief Tax Act is designed to help victimized residents in federally declared disaster areas recover, allowing them to rebuild their homes and regain quality of life in devastated areas.
“We are fighting every day for neighbors impacted by floods and natural disasters,” Reed said. “It’s only fair that we offer basic solutions to help our neighbors get back on their feet.”
Under the legislation, disaster victims would be able to deduct losses to their property that are not usually covered by insurance. The measure also ensures that any state and county disaster payments are not taxable.
The legislation also permits businesses to immediately deduct the costs of rebuilding their facilities instead of forcing them to wait until the following tax year. Other provisions encourage businesses to rebuild in areas impacted by disasters by offering development tax incentives, as well as tax incentives for those who provide free housing to people displaced by a disaster.
Disaster relief is of particular importance to Reed, whose home state of New York has dealt with serious flood damage over the past several years. In 2013, 11 counties in New York experienced flooding and received a disaster declaration. Damages to the state’s roads and infrastructure that year totaled over $25 million.