<div> Apr 11 2019 <a href="https://www.fischer.senate.gov/public/index.cfm/news?ID=B143A609-5150-4DB7-B05D-C91875A3061A">Fischer, Smith Lead NE Congressional</a> <a href="https://www.fischer.senate.gov/public/index.cfm/news?ID=B143A609-5150-4DB7-B05D-C91875A3061A">Delegation in Introducing Disaster Tax</a> <a href="https://www.fischer.senate.gov/public/index.cfm/news?ID=B143A609-5150-4DB7-B05D-C91875A3061A">Relief Act of 2019</a> WASHINGTON, D.C. – The Nebraska congressional delegation has introduced legislation to provide tax relief for Nebraskans impacted by the severe 2019 storms and flooding. The bill, known as the Disaster Tax Relief Act of 2019, would deliver tax relief to areas that received a federal disaster declaration between January 1, 2019 and April 15, 2019. “Nebraskans have had their homes and businesses destroyed by blizzards and severe flooding. We are strong and tough, but I’m committed to providing people with some relief in as many ways possible. I hope Congress will quickly enact the Disaster Tax Relief Act of 2019 so that we can lighten the load for families who are hurting,” said Senator Fischer (R-Neb.). “Offering tax considerations to areas hit by natural disasters is just one small piece of what the federal government can do to assist Americans struggling in the aftermath. As we advocate for further on-the- ground assistance, additional funding, and regulatory relief to ensure agencies can meet Nebraskans’ needs, I will continue to work on the Ways and Means Committee to ensure these provisions are enacted to assist Nebraskans. I appreciate Sen. Fischer introducing this bill in the Senate, and thank Senator Sasse, Congressman Fortenberry, Congressman Bacon, and the members of the Iowa delegation for joining our effort,” said Congressman Adrian Smith (NE-03), a member of the House Ways and Means Committee. “Nebraska is going to rebuild, and some common-sense tax relief is a good way to help our neighbors. We have the grit and the work ethic to fight through this. The recovery process is going to take time but we’re going to get the job done,” said Senator Sasse (R-Neb.). “This devastating flood destroyed more than 2,000 homes, 340 businesses, and took several lives, making it the worst natural disaster to hit the state in our 152-year history. The economic impact has also been severe and will hurt the state of Nebraska for years to come. Current estimates reveal, the cost of the damage has surpassed $1.3 billion. Nebraskans are strong and resilient people, but they need to know that the Federal Government is with them and will help them through these difficult times. I thank Senator Fischer and Congressman Smith for their work on this bill, and am glad to support it,” said Congressman Don Bacon (NE-02).  “A perfect storm of factors enabled the dislocation and distress we see around us. Nebraskans are hurting. True to their character, they are also coming together in this moment to help each other. Others from around the country are helping as well. But it is not enough. The federal government has a critical role to play as well. Right now, we need to put aside any political differences, find consensus, and lend a helping hand to our fellow citizens devastated by these unpredictable, unforeseen events,” said Congressman Jeff Fortenberry (NE-01). The bill is also cosponsored by the entire Iowa Congressional delegation, including Senator Chuck Grassley, the Chairman of the Senate Finance Committee. The Disaster Tax Relief Act of 2019 provides the following tax relief: <ul><li>No penalty for early withdrawals from retirement accounts for those in affected areas</li></ul> <ul><li>Employee retention credits for employers with inoperable businesses who continue to pay employees</li></ul> <ul><li>Eliminating the deduction cap for donations to projects in disaster areas, driving charitable donations to affected areas</li></ul> <ul><li>Expanding casualty loss deduction to assist with destroyed property, allowing deductions for property damage not covered by other insurance and other federal programs</li></ul> <ul><li>Making earned Income Tax Credit (EITC) changes, allowing people whose wages fell due to the disaster to claim the previous year’s credit if their wages decrease</li></ul> **<a href="https://www.fischer.senate.gov/public/_cache/files/cb430840-0cf5-4bde-a21a-e1d0cb11153c/mcg19247.pdf">Click here </a>to read a copy of the bill** **<a href="https://www.fischer.senate.gov/public/_cache/files/febbdc1a-6c24-4755-aca0-0446aa0a78bb/2019-0411-summary---disaster-tax-relief-act-of-2019.pdf">Click here </a>for a more detailed summary of the bill**  Summary of the Disaster Tax Relief Act of 2019 This bill includes the following tax relief provisions for individuals and businesses affected by federally declared disasters that occurred between January 1, 2019 and April 15, 2019, including flooding in Nebraska and Iowa and tornadoes in Alabama: Special disaster-related rules for use of retirement funds Qualified individuals may make early withdrawals from retirement accounts to help with expenses as they seek to rebuild their lives without incurring a 10-percent early withdrawal penalty. Withdrawals must be taken within six months after the bill’s enactment date. If people wish to put the money back into their retirement plans, they have a three-year period to do so. To the extent any amount withdrawn is required to be included in income, the amount can be spread ratably over a three-year period. Individuals who withdrew money from a retirement plan in order to purchase or construct a home in a disaster area, but did not do so because of a disaster, may contribute the withdrawn amount back into their retirement plan within six months after the bill’s enactment date. The limit on the amount of a loan from a retirement plan to a qualified individual that will not be treated as a distribution is increased from $50,000 to $100,000 for loans made within six months after the bill’s enactment date. The repayment date for loans to qualified individuals is delayed for one year if certain requirements are met. Employee retention credits for employers affected by qualified disasters In general, eligible employers may deduct 40% of an eligible employee’s qualifying wages (capped at $6,000 per employee) paid after the employer’s business becomes inoperable because of a qualified disaster and before it resumes significant operations. For this purpose, qualified wages include those paid to eligible employees regardless of whether the employees perform any services, perform them at a different location, or perform them at their regular location but before significant operations have resumed. Temporary increase in the limitation on qualified charitable contributions Current tax law provides limitations on the ability of taxpayers to claim itemized deductions for the full value of their charitable contributions. Qualified contributions would be disregarded in applying those limitations. Generally, qualified contributions are those that are paid in cash in 2019 to charitable organizations for relief efforts in qualified disaster areas. Tax deduction for qualified disaster-related personal casualty losses Subject to certain limitations, a taxpayer may generally claim an itemized deduction for losses sustained during the year, not compensated by insurance or otherwise, attributable to a federally declared disaster. This includes personal casualty losses arising from fire, storms, etc. A  qualified disaster-related personal casualty loss includes those personal casualty losses arising in a qualified disaster area (generally, an area in which a disaster struck between January 1, 2019, and April 15, 2019). Such losses, net of any related gains, may be claimed as an itemized deduction without regard to the generally applicable limitations on itemized deductions for personal casualty losses. Alternatively, for non-itemizers, such losses, net of any related gains, may be claimed in addition to the standard deduction. Determination of earned income Generally, qualified individuals whose principal residence is in a qualified disaster area may elect to calculate their child tax credit and earned income tax credit using their earned income amount for the year preceding the year when the qualified disaster occurred. This election is available to taxpayers whose earned income in the year in which the disaster struck is less than their earned income for the preceding year.</div>

Nebraska Lawmakers Introduce Disaster Tax Relief Legislation

Nebraska Lawmakers Introduce Disaster Tax Relief Legislation

U.S. Senate

U.S. House of Representatives

The Nebraska congressional delegation announced legislation to provide tax relief to areas affected by 2019 natural disasters, specifically by allowing penalty-free withdrawals from retirement accounts, creating an employee retention tax credit, and temporarily increasing the limit on qualified charitable contributions.

The Nebraska congressional delegation announced legislation to provide tax relief to areas affected by 2019 natural disasters, specifically by allowing penalty-free withdrawals from retirement accounts, creating an employee retention tax credit, and temporarily increasing the limit on qualified charitable contributions.

In an April 11 release, the Nebraska congressional delegation announced <a href="/lr/resolve//29cbn">legislation</a> to provide tax relief to areas affected by 2019 natural disasters, specifically by allowing penalty-free withdrawals from retirement accounts, creating an employee retention tax credit, and temporarily increasing the limit on qualified charitable contributions, among other things.

In an April 11 release, the Nebraska congressional delegation announced legislation to provide tax relief to areas affected by 2019 natural disasters, specifically by allowing penalty-free withdrawals from retirement accounts, creating an employee retention tax credit, and temporarily increasing the limit on qualified charitable contributions, among other things.