U.S. Rep. Tom Rice (R-SC) on Feb. 11 sponsored a bipartisan bill that would provide tax relief to Americans who suffered financial losses during last year’s natural disasters.
“From Hurricane Florence in the Carolinas to the wildfires in California, natural disasters devastated communities across the country in 2018 and many people are still facing a long, costly recovery process,” Rep. Rice said on Monday. “This legislation includes a number of targeted provisions that will ease this financial burden through targeted tax relief.”
The Natural Disasters Tax Relief Act, H.R. 1148, the congressman added, “will provide certainty and help alleviate some of the financial difficulties faced by those recovering from these disasters.”
Because current law is unclear, the Internal Revenue Service (IRS) subsequently has delayed action to grant a tax deadline extension following a natural disaster, according to Rep. Rice’s statement, which said H.R. 1148 includes a provision that would create an automatic 60-day tax deadline extension immediately following a Presidential Disaster Declaration.
“If a natural disaster coincides with a tax filing deadline, people will be able to prioritize their safety rather than worry about filing a tax return,” said the lawmaker.
If enacted, H.R. 1148 also would permit victims of natural disasters to access their retirement accounts without penalty, according to a summary provided by the congressman’s office.
At the same time, H.R. 1148 would create a tax credit for employers who paid their employees while their businesses were closed due to a natural disaster, according to the summary.
“As many of my constituents know too well, families are faced with unexpected costs after a natural disaster, but most do not have these funds at their immediate disposal,” Sen. Rice said.
H.R. 1148 has been referred for consideration to the U.S. House Ways and Means Committee. The measure counts U.S. Rep. Gregorio Kilili Camacho Sablan, a Democrat representing the Northern Mariana Islands, among its original cosponsors.
“I urge my colleagues to act quickly to pass this common-sense legislation that will provide a sense of stability and reassurance,” added Rep. Rice.