arrow_back Trending Legislation
Share share

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.
article Official text account_balance Process page notifications_active Track this Bill
gavel
Status:
Expired
Record your position for audit.
Why does your vote on bills matter?
It creates raw, undeniable proof. Civic Will provides the permanent data to verify the Government's loyalty towards its citizens (explained here). Start recording it now.
Additional Information
Disaster Tax Relief Act of 2021
Print number: HR 3954
Sponsor: Rep. Thompson, Mike [D-CA-5]
Process start date: 2021-06-16
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch
Summary & Status

Key Questions about Tax Relief and Support for Natural Disaster Victims

A structured overview of the legislative process, official sources, status and civic context.

What is the official ID of this bill?

The official print number for this legislation is 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.

Analysis and Potential Impact of HR 3954

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge. Review our public AI processing logs for full transparency, and use Lustra to track active legislation for instant status push notifications.

CATEGORIES

Taxes Benefits Environment