In order to help victims of  the tornadoes, severe storms and flooding that devastated Tennessee and other Southeaster states this spring, Representative Scott DesJarlais (TN-04) cosponsored legislation that would provide temporary tax provisions and relief for families, businesses and local governments as they recover from these tragic storms.

“I saw first-hand the terrible damage that these storms caused to communities throughout Tennessee and spoke directly with the families who had to begin the long, difficult process of rebuilding their lives,” said Representative DesJarlais. “This legislation will provide much needed assistance through tax relief to the victims of these tragedies as they seek to cope with the aftermath. While nothing can replace all that was lost, it is my hope that the Southeastern Disaster Tax Relief Act will help to ease some of the pain experienced by our friends and neighbors.”

Summary of Southeastern Disaster Tax Relief Act:

This legislation consists of temporary tax provisions that were included in previous natural disaster responses that enjoyed overwhelming bipartisan support including the Heartland Disaster Tax Relief Act, Gulf Opportunity Zone Act, Katrina Emergency Tax Relief Act, and the tax relief provided to southern Kansas due to flooding in 2008.  The bill is fully offset by rescinding unobligated federal spending, and it will not increase the federal debt. 

Under this bill, the Southeastern disaster area would be established in the Internal Revenue Code to designate regions in the South that were affected by the recent tornadoes, severe storms or flooding.  In order for counties to be eligible for all of the benefits in the bill, they must be Presidentially-declared major disaster areas and determined by the President to warrant individual assistance for damage between April 13, 2011, and June 7, 2011.  Additionally, a limited number of benefits will be provided for areas designated eligible for public assistance by the Federal Emergency Management Agency (FEMA), including expensing for demolition and clean-up costs, education tax benefits, qualified retirement withdrawals, suspension of limitations on charitable contributions and casualty losses, special exemption for housing displaced individuals, look-back rule for earned income tax credit and child tax credit, exclusion of cancellation of indebtedness income, and the extension of replacement period for non-recognition of gains.

Original cosponsors of the legislation are: Spencer Bachus (AL-6), Jo Bonner (AL-1), Mo Brooks (AL-5), Russ Carnahan (MO-3), William Lacy Clay (MO-1), Tom Cole (OK-4), Rick Crawford (AZ-1), Scott DesJarlais (TN-4), John Duncan (TN-2), Steven Fincher (TN-8), Tim Griffin (AR-2), Brett Guthrie (KY-2), Gregg Harper (MS-3), Vicki Hartzler(MO-4), Walter Jones (NC-3), Billy Long (MO-7), Frank Lucas (OK-3), Alan Nunnelee (MS-1), Steven Palazzo (MS-4), Martha Roby (AL-2), Phil Roe (TN-1), Mike Rogers (AL-3), Mike Ross (AR-4), Austin Scott (GA-8), Terri Sewell (AL-7), Lynn Westmoreland (GA-4), Steve Womack (AR-3).