Finkenauer Introduces Bill Providing Tax Relief for Iowans Impacted by Derecho
WASHINGTON, DC – Congresswoman Abby Finkenauer (IA-01) introduced the Disaster RELIEF Act on Friday to provide tax relief to Iowans impacted by August’s derecho. The bill would provide direct tax relief for Iowa families and provide a tax credit to Iowa businesses to help retain employees following the disaster.
"The derecho devastated communities across eastern Iowa, and our ongoing recovery will continue for months,” Congresswoman Abby Finkenauer said. “As we assess our losses and rebuild, tax relief for Iowans who saw damage and additional incentives for businesses getting back on their feet will help speed recovery in our neighborhoods and on our Main streets."
The Disaster RELIEF Act would create:
- Special tax rules for certain disaster-related personal property losses –– easing the burden for Iowans. Under current law, personal casualty losses must exceed 10 percent of a taxpayer’s adjusted gross income to qualify as a tax deduction. This bill eliminates that requirement, as well as the requirement that taxpayers must itemize deductions in order to access this tax relief.
- An employee retention credit for employers affected by qualified disasters –– saving jobs and small businesses in Iowa. This provides a tax credit for a portion of wages paid by a disaster-affected employer to an employee from a core disaster area. The credit applies to wages paid without regard to whether services associated with those wages were performed.
The measures contained in the Disaster RELIEF Act would be available to families and businesses in communities where a major disaster has been declared at any time since December 28, 2019 — including those affected by the August 10 derecho in eastern Iowa.
"I look forward to working with my colleagues around the country in passing this very important legislation to help our families and our small businesses through an incredibly hard and stressful time,” Finkenauer said.
Finkenauer’s Ongoing Derecho Relief Efforts:
The rare derecho storm affected more than 20 counties across Iowa, producing straight-line winds that exceeded 100 mph in several locations. Much of the damage took place in counties included in the First District. 550,000 homes were left without power and the total estimated damage is more than $3.9 billion.
On Wednesday, 9/16. Finkenauer helped introduce the FEMA Assistance Relief Act to increase the Federal Emergency Management Agency’s (FEMA) cost share and reduce the local financial burden for recovery efforts in communities impacted by natural disasters in 2020.
On Friday, 9/11, Finkenauer released a statement on the Federal Emergency Management Agency’s (FEMA) approval of the Meskwaki Nation’s Major Disaster Declaration request.
On Wednesday, 9/9, Finkenauer brought representatives from the Federal Emergency Management Agency (FEMA) and other federal agencies together with local elected officials to ensure Iowa communities impacted by the Aug. 10 derecho have all necessary information and resources on storm recovery and disaster aid.
On Friday, 9/4, Finkenauer hosted a forum allowing legislative, county, and local officials from Linn County to meet with federal disaster relief officials about ongoing derecho recovery efforts.
On Tuesday, 9/1, Finkenauer issued a statement regarding FEMA’s approval of individual disaster assistance for 10 additional Iowa counties affected by the Aug. 10 Derecho, including Benton, Marshall, Poweshiek and Tama in the First District.
On Friday, 8/21, Finkenauer was joined by Senators Chuck Grassley (R-IA) and Joni Ernst (R-IA) on Friday in calling on President Donald Trump to approve federal disaster aid for the Meskwaki Nation.
On Friday, 8/21, sent a letter to U.S. Department of Agriculture Secretary Sonny Perdue seeking information on potential USDA relief for farmers and producers affected by the derecho disaster.
On Thursday, 8/20, Finkenauer released a statement on the Administration’s approval of Individual Assistance for Linn County residents impacted by the derecho.
On Thursday, 8/20, Finkenauer visited the Meskwaki Nation in Tama to meet with tribal leaders and view damage from the derecho. Finkenauer also sent a letter to President Donald Trump on Thursday imploring him to approve the tribe’s request for federal disaster aid.
On Wednesday, 8/19, Finkenauer released a Disaster Resource Guide for constituents.
On Wednesday, 8/19, Finkenauer wrote to President Trump urging him to fully approve Iowa’s request for an expedited major disaster declaration, which includes individual assistance, and urged a waiver of local cost match.
On Monday, 8/17, Finkenauer took part in an electric restoration briefing with Alliant Energy.
On Monday, 8/17, Finkenauer visited Benton County to hear about local storm damage from local leaders and emergency management officials.
On Sunday, 8/16, Finkenauer joined the full Iowa federal delegation in sending a letter to President Donald Trump urging him to accept Governor Kim Reynolds’ request for an expedited presidential major disaster declaration.
On Friday, 8/14, Finkenauer visited storm damage in Marshalltown, including the Iowa Veterans Home.
On Thursday, 8/13, Finkenauer hosted a briefing with Iowa Director of Homeland Security and Emergency Management Joyce Flinn.
On Thursday, 8/13, Finkenauer urged Reynolds to call for an expedited Presidential Disaster Declaration and joined Cedar Rapids city officials at a press conference to call for expedited federal aid and additional state resources as Cedar Rapids and communities across Iowa work to recover from Monday’s derecho storm.
On Wednesday, 8/12, she attended a briefing with Cedar Rapids emergency officials.
On Tuesday, 8/11, Finkenauer sent a letter to Governor Kim Reynolds seeking information and offering assistance in the wake of Monday’s storms that knocked out power and caused widespread damage across eastern Iowa.
If you need or someone you know has been affected by the storm and needs help, call 1-800-RED-CROSS. For information about state aid for food and health assistance, click here. To volunteer through the United Way of East Central Iowa, click here.