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US S4596

US S4596
Disaster Tax Relief Act of 2020


summary

Introduced
09/16/2020
In Committee
09/16/2020
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

A bill to provide tax relief for persons affected by certain 2020 disasters. This bill sets forth tax relief provisions for individual and business taxpayers residing in a disaster zone during the period beginning on July 1, 2020, and ending 60 days after the enactment of this bill. Specifically, the bill allows penalty-free disaster-relief withdrawals from tax-exempt retirement plans up to $100,000, permits recontributions of such withdrawals for home purchases cancelled due to disasters, increases to $100,000 the limit on loans for disaster assistance from retirement plans, allows employers affected by a disaster a 40% tax credit for the purpose of retaining employees, increases the tax deduction for corporate disaster relief contributions, enhances the tax deduction for disaster-related personal casualty losses, permits the calculation of the earned income tax credit based upon income earned prior to 2020, and reimburses U.S. possessions for losses sustained due to the application of the provisions of this bill.

AI Summary

This bill provides tax relief for individuals and businesses affected by certain 2020 disasters. Key provisions include: allowing penalty-free disaster-related withdrawals of up to $100,000 from retirement plans, permitting recontributions of such withdrawals for cancelled home purchases, increasing the limit on retirement plan loans, providing a 40% tax credit to employers to retain affected employees, enhancing deductions for disaster-related personal casualty losses and corporate disaster relief contributions, and allowing affected individuals to use prior-year income for the Earned Income Tax Credit. The bill also reimburses U.S. possessions for losses sustained due to the application of these provisions.

Committee Categories

Budget and Finance

Sponsors (5)

Last Action

Read twice and referred to the Committee on Finance. (on 09/16/2020)

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