Menendez, Schumer Introduce Sandy Tax Relief Bill

Booker Co-Sponsors Senate Bill

Senator Charles Schumer On April, 9, 2014, U.S. Senators Charles Schumer and Robert Menendez introduced S-2233, The Sandy Tax Relief Act, in order to provide additional assistance to families and businesses struggling to rebuild in the wake of Hurricane Sandy.

New Jersey Senator Cory Booker is a co-sponsor of the legislation.

S-2233 provides increased disaster allocation of Low-Income Housing Tax Credits (LIHTC) by per-capita rate to $8 (our current annual allocation is $2.25 per capital).

Senator MenendezThe tax package also include provisions that would provide $500 million (S-2233) to New Markets Tax Credits (NMTC); provide tax-exempt bonds to finance eligible projects in Sandy-afflicted areas; allow for a full deduction for expenses paid or incurred as a result of disaster cleanup; waive penalties for individuals who withdraw from their retirement plan early; allows individuals who provided free housing to displaced individuals to claim additional exemptions; a worker retention credit for disaster-damaged businesses that continued to pay their employees’ wages even though their business was inoperable; and accelerated depreciation for business equipment.

The senators said the changes build on existing laws and programs to maximize the speed with which aid gets to Sandy victims.

“When recovering from a hammer-blow like Sandy, every bit of support helps, and this legislation will make it easier for families and small businesses affected by the storm to marshal more of their resources for recovery. These changes to existing tax law are a common sense and simple way to help disaster victims, and a quick way to get them aid to repair their homes, to recover losses, and to support their businesses.”

Said Schumer.

“This bill will provide critical tools to help families recover their losses, rebuild shattered businesses and restore communities devastated by the storm. I know we’re closer to the starting line in this painful process of recovery than the finish line, but unveiling this bill is an important next step in our region’s recovery.”

Said Menendez.

S-2233 mirrors HR-2137, introduced in May 2013, except that it provides for double the allocation for NMTC. This bill was sponsored by  U.S. Rep. Bill Pascrell, Jr. (D-NJ-09) lead a bipartisan coalition including Reps. Joseph Crowley (D-NY), Rodney Frelinghuysen (R-NJ), Michael Grimm (R-NY), John Larson (D-CT), Frank LoBiondo (R-NJ), Charles Rangel (D-NY), Tom Reed (R-NY) and Carolyn McCarthy (D-NY).

Click here for more information on S-2233.