Senators Propose Increase in Disaster Area Allocations
Sen. Charles Schumer, D-N.Y., recently introduced the National Disaster Tax Relief Act of 2014 (S. 2233), a bill that would increase the Low-Income Housing Tax Credit (LIHTC), New Markets Tax Credit (NMTC), and Historic Rehabilitation Tax Credit (HTC) allocations in states that included a federally declared disaster area in 2012 or 2013. For LIHTC allocations, each state would receive the greater of the amount of $8 multiplied by the state’s disaster-area population or 50 percent of the state housing credit ceiling for 2013.
In addition to the increase in low-income housing, new markets, and historic tax credit allocations, the bill would also allow businesses to create natural disaster funds with pre-tax dollars; provide 50 percent bonus depreciation for capital purchases on commercial or residential rental properties in disaster areas; and allow states to issue tax-exempt Disaster Recovery Bonds.
S. 2233 is co-sponsored by Sens. Michael Bennet, D-Colo.; Cory Booker, D-N.J.; Kirsten Gillibrand, D-N.Y.; Mary Landrieu, D-La.; Robert Menendez, D-N.J.; John Rockefeller, D-W.Va.; and Mark Udall, D-Colo. Sen. Bennet of Colorado released a statement about the bill’s introduction, noting it would help the victims of several natural disasters in his state, including a September 2013 flood, 2013’s Black Forest Fire, and 2012’s Waldo Canyon and High Park wildfires. The bill has been referred to the Senate Finance Committee.