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Finkenauer introduces bill providing tax relief for Iowans impacted by derecho

Rep. Abby Finkenauer (Courtesy: House.gov)
Rep. Abby Finkenauer (Courtesy: House.gov)(KCRG)
Published: Sep. 18, 2020 at 3:50 PM CDT
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WASHINGTON, DC (KCRG) -– Congresswoman Abby Finkenauer introduced the Disaster RELIEF Act on Friday to provide tax relief to Iowans impacted by August’s derecho.

The bill would provide direct tax relief for Iowa families and provide a tax credit to Iowa businesses to help retain employees following the disaster.

“The derecho devastated communities across eastern Iowa, and our ongoing recovery will continue for months,” Congresswoman Abby Finkenauer said. “As we assess our losses and rebuild, tax relief for Iowans who saw damage and additional incentives for businesses getting back on their feet will help speed recovery in our neighborhoods and on our Main Streets.”

The Disaster RELIEF Act would create special tax rules for certain disaster-related personal property losses and an employee retention credit for employers affected by qualified disasters. The congresswoman’s aim is to ease the burden on Iowans and save jobs and small businesses in Iowa.

Under current law, personal casualty losses must exceed 10% of a taxpayer’s adjusted gross income to qualify as a tax deduction. This bill would eliminate that requirement, as well as the requirement that taxpayers must itemize deductions in order to access this tax relief. The bill would also provide a tax credit for a portion of wages paid by a disaster-affected employer to an employee from a core disaster area. The credit would apply to wages paid without regard to whether services associated with those wages were performed.

The measures contained in the Disaster RELIEF Act would be available to families and businesses in communities where a major disaster has been declared at any time since December 28, 2019 — including those affected by the August 10 derecho in eastern Iowa.

“I look forward to working with my colleagues around the country in passing this very important legislation to help our families and our small businesses through an incredibly hard and stressful time,” Finkenauer said.

Copyright 2020 KCRG. All rights reserved.

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