Bill
Bill > S1892
US S1892
A bill to provide tax relief related to Hurricanes Harvey, Irma, and Maria.
summary
Introduced
09/28/2017
09/28/2017
In Committee
09/28/2017
09/28/2017
Crossed Over
Passed
Dead
12/31/2018
12/31/2018
Introduced Session
115th Congress
Bill Summary
A bill to provide tax relief related to Hurricanes Harvey, Irma, and Maria. This bill amends the Internal Revenue Code to allow various tax credits, deductions, and modifications to existing rules for individuals and businesses affected by Hurricanes Harvey, Irma, and Maria. With respect to individuals and businesses in the affected areas, the bill: waives the 10% additional tax on early distributions from retirement plans for up to $100,000 in distributions made on or after August 23, 2017, and before January 1, 2019; permits individuals to recontribute funds to retirement plans if the funds were distributed for a home purchase in a hurricane disaster area that was cancelled on account of the hurricanes; increases the limit and extends the repayment deadline for loans from retirement plans; allows an employee retention tax credit for employers equal to 40% of the qualified wages (up to $6,000 per employee) paid to an employee whose principal place of employment on specified dates was in a hurricane disaster zone; modifies the deduction for charitable contributions to temporarily suspend the limitations on charitable contributions made before December 31, 2017, for relief efforts in the hurricane disaster areas; modifies the deduction for personal casualty losses in the hurricane disaster areas to eliminate: (1) the requirement for losses to exceed 10% of adjusted gross income to qualify for the deduction, and (2) the requirement to itemize; and allows taxpayers to use earned income from the immediately preceding year for the purpose of determining earned income for the earned income tax credit and the child tax credit.
AI Summary
This bill provides tax relief related to Hurricanes Harvey, Irma, and Maria. The key provisions of the bill include:
1. Allowing tax-favored withdrawals of up to $100,000 from retirement plans for individuals affected by the hurricanes, permitting recontribution of funds for cancelled home purchases, and increasing loan limits and repayment deadlines for retirement plan loans.
2. Providing an employee retention tax credit of 40% of up to $6,000 in qualified wages for employers whose businesses were inoperable due to the hurricanes.
3. Temporarily suspending the limitations on charitable contribution deductions for hurricane-related donations, and modifying the rules for claiming deductions for personal casualty losses.
4. Allowing affected taxpayers to use their prior year's earned income to calculate the earned income tax credit and child tax credit.
5. Providing payments to the U.S. Virgin Islands and Puerto Rico to offset the revenue impacts of the bill's provisions.
The bill is designated as an emergency requirement, allowing the costs to be exempt from certain budgetary rules.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
Read twice and referred to the Committee on Finance. (on 09/28/2017)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/115th-congress/senate-bill/1892/all-info |
| BillText | https://www.congress.gov/115/bills/s1892/BILLS-115s1892is.pdf |
| Bill | https://www.congress.gov/115/bills/s1892/BILLS-115s1892is.pdf.pdf |
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