summary
Introduced
11/20/2018
11/20/2018
In Committee
11/20/2018
11/20/2018
Crossed Over
Passed
Dead
12/31/2018
12/31/2018
Introduced Session
115th Congress
Bill Summary
Hurricane Michael Tax Relief Act This bill amends the Internal Revenue Code to allow various tax credits, deductions, and modifications to existing rules for individuals and businesses affected by Hurricane Michael. 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 9, 2018, and before January 1, 2020; permits individuals to recontribute funds to retirement plans if the funds were distributed for a home purchase in a Hurricane Michael disaster area that was cancelled on account of the hurricane; 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 Hurricane Michael disaster zone; temporarily suspends the limitation on charitable contributions for relief efforts in the Hurricane Michael disaster area; 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.
AI Summary
This bill provides tax relief for individuals and businesses affected by Hurricane Michael. The key provisions include:
1. Waiving the 10% additional tax on early retirement plan distributions up to $100,000 made between October 9, 2018 and January 1, 2020 for those in the affected areas. Individuals can also recontribute funds to retirement plans if a home purchase was cancelled due to the hurricane.
2. Increasing the limit and extending the repayment deadline for loans from retirement plans for those affected.
3. Providing an employee retention tax credit for a portion of wages paid to employees whose principal place of employment was in the Hurricane Michael disaster zone.
4. Temporarily suspending the limitation on charitable contributions for relief efforts in the disaster area.
5. Modifying the rules for the deduction of personal casualty losses and allowing the use of earned income from the prior year for the earned income tax credit and child tax credit for those impacted.
The bill aims to provide financial assistance and flexibility to individuals and businesses that suffered economic losses due to Hurricane Michael.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Referred to the House Committee on Ways and Means. (on 11/20/2018)
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/7166/all-info |
BillText | https://www.congress.gov/115/bills/hr7166/BILLS-115hr7166ih.pdf |
Bill | https://www.congress.gov/115/bills/hr7166/BILLS-115hr7166ih.pdf.pdf |
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