The year-end legislative package includes tax relief for anyone in presidentially declared disaster areas, including those impacted by the August derecho.
The Disaster Tax Relief Act of 2020 was signed into law by President Donald Trump as part of the Consolidated Appropriations Act.
The bipartisan bill removes penalties on early withdrawals from retirement accounts, provides a tax credit for employee retention during business interruption, and encourages charitable giving to affected areas by suspending limits on deductions for certain contributions.
Additionally, the legislation creates special rules for qualified disaster-related personal casualty losses.
The bill also allows low-income workers to use their previous year’s income to claim certain tax credits, ensuring that they do not lose access to the credits or receive a lower amount.
The bill was introduced by Iowa Senators, Republicans Chuck Grassley and Joni Ernst, in September after touring the damage following the historic derecho and meeting with local leaders and nonprofits.
(Story Courtesy of the NAFB News Service)