By Emily Cadik, Senior Policy Analyst, Project Manager
Representative Tom Reed (R-NY-3rd) and Bill Pascrell (D-NJ-9th) are circulating a Dear Colleague letter supporting tax relief for victims of natural disasters. Congress has routinely provided tax relief to communities in the wake of our worst natural disasters, including over 130 since 2005. However, no similar assistance has been provided to the 24 states and hundreds of communities that have been impacted over the past several years, despite the demonstrated continued need.
Representatives Reed and Pascrell will soon be introducing the National Disaster Tax Relief Act, which would provide an increased Low-Income Housing Tax Credit (Housing Credit) allocation of the greater of $8 per person in impacted counties or half of the state’s annual Housing Credit allocation for states impacted by qualifying natural disasters over the past several years. It would also allow eligible states to compete for an additional New Markets Tax Credit allocation of $500 million to help revitalize the most distressed communities in these areas, and would allow states to issue disaster recovery bonds to help finance rebuilding.