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Tax Relief and Support for Natural Disaster Victims

This act introduces various tax reliefs and facilitations for individuals and businesses affected by natural disasters like wildfires, hurricanes, or earthquakes. It includes special rules for retirement fund withdrawals, employee retention credits for employers, and personal casualty loss deductions. The aim is to assist in recovery and return to normalcy after challenging events.
Key points
Easier access to retirement funds: Allows penalty-free withdrawals up to $100,000, with an option to spread tax over 3 years or repay funds within 3 years.
Support for businesses: Employers in disaster zones can receive a tax credit for retaining employees, up to 40% of qualified wages (maximum $6,000 per employee).
Personal casualty loss relief: Increased standard deduction for individuals who suffered property losses due to a disaster, and easier deduction of these losses.
Wildfire mitigation credit: A new 30% tax credit for expenses related to protecting property from wildfires, if part of a state-supported program.
Exclusion of agricultural assistance: Certain forms of assistance for farmers affected by disasters will not be included in taxable income.
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Additional Information
Print number: 117_HR_3954
Sponsor: Rep. Thompson, Mike [D-CA-5]
Process start date: 2021-06-16
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Disaster Tax Relief Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_3954.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-06-16.

What are the main provisions?

Key points include:

  • Easier access to retirement funds: Allows penalty-free withdrawals up to $100,000, with an option to spread tax over 3 years or repay funds within 3 years.
  • Support for businesses: Employers in disaster zones can receive a tax credit for retaining employees, up to 40% of qualified wages (maximum $6,000 per employee).
  • Personal casualty loss relief: Increased standard deduction for individuals who suffered property losses due to a disaster, and easier deduction of these losses.
  • Wildfire mitigation credit: A new 30% tax credit for expenses related to protecting property from wildfires, if part of a state-supported program.
  • Exclusion of agricultural assistance: Certain forms of assistance for farmers affected by disasters will not be included in taxable income.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Thompson, Mike [D-CA-5].

What is the latest detailed status?

The latest detailed status is: Referred to the Subcommittee on General Farm Commodities and Risk Management.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

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