US Senator John Kennedy (R-LA) introduced a bill to help victims of natural disasters obtain tax deductions.
The Post-Disaster Loss Claims Act would allow victims of a major federally declared disaster to claim a larger tax deduction for damage not covered by insurance.
In addition, the authorities noted that the legislation would permanently waive the requirements that disaster losses must exceed 10% of a victim’s adjusted gross income for tax deductions to apply.
“In 2021, historic flooding, Hurricane Ida and a devastating winter storm all hit Louisiana families – and the year isn’t even over,” Kennedy said. “Unfortunately, for every Louisian who tries to rebuild, current law limits tax deductions for victims of natural disasters. I introduced the Claiming Losses After Disasters Act to help more Louisians with the cost of rebuilding.
Under the new measure, there would be a new minimum threshold of $ 500 loss per claim applicable before a person receives a tax deduction.
Kennedy detailed a recent series of natural disasters in Louisiana, citing a winter storm that caused $ 20.8 billion in statewide damage, with precipitation and flooding that caused damage totaling 1.4 billion dollars, while Hurricane Ida caused damage estimated at 64.5 billion dollars.