Boustany Supports Help for Families Struggling with Road Home Taxes and GO Zone Extension

Press Release

U.S. Representative Charles W. Boustany, Jr., MD, R-Southwest Louisiana, last night voted to pass the Housing and Economic Recovery Act of 2008, which included provisions to allow taxpayers to amend their returns disallowing their casualty loss and an extension of the Gulf Opportunity Zone tax benefits for rebuilding.

"Southwest Louisiana families continue to rebuild our communities following Hurricane Rita, and this bill helps move the recovery effort forward," Boustany said. "The IRS put many people along the coast in a terrible position as they attempted to return home. I'm proud to support legislation that is critical for families hit by the IRS's decision and will continue to fight for our recovery effort."

The Housing and Economic Recovery Act of 2008, H.R. 3221, contains a Senate amendment advocated by the Louisiana delegation that allows homeowners and other taxpayers to amend their tax returns to disallow their casualty loss deductions. The IRS originally forced participants in the Road Home program to claim any help from the program as income, leading to dramatically higher tax bills.

In addition, the bill contains a provision to extend the GO Zone tax benefits to encourage continued rebuilding in Louisiana and other areas impacted by Hurricane Rita and Katrina. Businesses can take a 50% bonus depreciation tax deduction for constructing commercial or residential property in specified areas. Previously, projects must have been started by December 31, 2007, but H.R. 3221 eliminates the commencement date for building projects.

The bill passed the House with a vote of 272-152, and it now goes to the Senate where a vote is expected later this week.

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