Today, Congressman Bill Cassidy, M.D. (R-LA) introduced theInvestment Saving Access After Catastrophe Act of 2012 (ISAAC Act). Senator David Vitter (R-LA) proposed a companion bill in the Senate. This legislation provides additional tax relief for those most impacted by Hurricane Isaac.
"This bill allows families, small businesses and farmers to use their own resources to recover from Hurricane Isaac. This acknowledges that even though fewer were affected by Isaac than previous hurricanes, those who were affected deserve the same compassion," said Cassidy.
"Dealing with a natural disaster is incredibly stressful for Louisiana families, and our bill helps provide a little relief from the IRS," Vitter said. "By providing tax benefits to individuals and small businesses who suffered losses, we can help them get back on their feet in a budget neutral manner."
Specifically, Louisiana and Mississippi residents in the federally-declared disaster area who have sustained damages from hurricane Isaac qualify. Families and individuals would be able to deduct more of their unreimbursed losses. They could also withdraw funds from their Individual Retirement Accounts (IRAs) and other retirement accounts. The money would be tax free and not subject to contribution limits if paid back within three years.
Additionally, small businesses could deduct more of their profit losses on their tax returns. Finally, the Office of Management and Budget will be charged with identifying spending offsets for the tax relief.