By Vicki Needham - 05/23/13 10:40 PM EDT
The legislation would help individuals deduct the cost of uninsured losses, increase charitable deduction limits for those making cash contributions for relief efforts and allow taxpayers whose homes are in the affected areas to take distributions from retirement savings accounts with no tax penalty, provided the loan is repaid within three years.
“Seven months after Hurricane Sandy, New Jersey residents and business are continuing the hard work of recovery,” said Rodney Frelinghuysen (R-N.J.).
“This legislation gives families the ability to help themselves by targeting tax relief where it’s most needed.”
The measure also would allow businesses to expense the cost of disaster recovery and use net operating loss to recover past tax payments or reduce future tax payments, if they are operating with no tax liability during the prescribed period.
It also would create a new state-by-state private activity bond allocation for Sandy-affected areas to rebuild docks and wharfs, commuting facilities, certain housing, water, sewage, solid waste infrastructure and facilities used to provide electric energy or gas.
In addition, the legislation would increase the allocation of the Low Income Housing Tax Credit for declared disaster area and provide a waiver of certain mortgage revenue bond requirements, easing access to capital.
Joining with Pascrell and Frelinghuysen are Reps. Joseph Crowley (D-N.Y.), Michael Grimm (R-N.Y.), John Larson (D-Conn.), Frank LoBiondo (R-N.J.), Charles Rangel (D-N.Y.), Tom Reed (R-N.Y.) and Carolyn McCarthy (D-N.Y.).
"We fought hard for aid following Hurricane Sandy so that victims would get the help needed to rebuild their communities,” said Reed, a member of the House Ways and Means Committee.
"With this bill, we can continue and enhance those rebuilding efforts.”