summary
Introduced
11/15/2017
11/15/2017
In Committee
11/15/2017
11/15/2017
Crossed Over
Passed
Dead
12/31/2018
12/31/2018
Introduced Session
115th Congress
Bill Summary
California Wildfire Disaster Tax Relief Act of 2017 This bill amends the Internal Revenue Code to allow various tax credits, deductions, and modifications to existing rules for individuals and businesses affected by wildfires in California. 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 October 8, 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 wildfire disaster area that was cancelled on account of the wildfires; increases the limit and extends the repayment deadline for loans from retirement plans; allows an employee retention tax credit for a portion of the wages paid to an employee whose principal place of employment on specified dates was in a wildfire disaster zone; temporarily suspends the limitation on charitable contributions for relief efforts in the wildfire disaster areas; modifies the rules for the deduction for personal casualty losses, 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. The bill is designated as an emergency requirement, which exempts the budgetary effects of the bill from certain budget enforcement rules, such as Pay-As-You-Go (PAYGO) rules.
AI Summary
This bill provides tax relief to individuals and businesses affected by the California wildfires in 2017. Key provisions include:
- Waiving the 10% early withdrawal penalty on up to $100,000 in retirement account distributions made between October 8, 2017 and January 1, 2019 for those affected by the wildfires. Individuals can also recontribute these funds to their retirement accounts.
- Increasing the limit and extending the repayment deadline for loans from retirement plans for those affected.
- Providing an employee retention tax credit of up to 40% of qualified wages (up to $6,000 per employee) for eligible employers whose businesses were impacted by the wildfires.
- Temporarily suspending limitations on charitable contribution deductions for donations made between October 8 and December 31, 2017 for wildfire relief efforts.
- Modifying rules for deducting personal casualty losses and allowing affected individuals to use their prior year's earned income for calculating the Earned Income Tax Credit and Child Tax Credit.
The bill is designated as an emergency requirement, which exempts it from certain budget enforcement rules.
Committee Categories
Budget and Finance
Sponsors (23)
Mimi Walters (R)*,
Ami Bera (D),
Julia Brownley (D),
Ken Calvert (R),
Jim Costa (D),
Jeff Denham (R),
Mark DeSaulnier (D),
Anna Eshoo (D),
John Garamendi (D),
Jimmy Gomez (D),
Jared Huffman (D),
Duncan Hunter (R),
Stephen Knight (R),
Doug LaMalfa (R),
Barbara Lee (D),
Zoe Lofgren (D),
Alan Lowenthal (D),
Doris Matsui (D),
Kevin McCarthy (R),
Tom McClintock (R),
Edward Royce (R),
Jackie Speier (D),
Mike Thompson (D),
Last Action
Referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (on 11/15/2017)
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/house-bill/4397/all-info |
| BillText | https://www.congress.gov/115/bills/hr4397/BILLS-115hr4397ih.pdf |
| Bill | https://www.congress.gov/115/bills/hr4397/BILLS-115hr4397ih.pdf.pdf |
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