Tax Relief for Disaster Zones: Allowing Businesses to Transfer Unused Credits.
This law introduces a new financial aid mechanism for businesses operating in areas affected by major disasters (both federally and state-declared). It allows these companies to sell or transfer a portion of their unused general business tax credits (carryforwards) to cover eligible expenditures incurred while operating in the disaster zone. The goal is to provide immediate liquidity and support local economic recovery following a catastrophe.
Key points
Businesses in qualified disaster areas (declared after December 31, 2023) can transfer certain unused general business tax credits.
The transferable amount is capped by the expenses incurred by the business for operations within the disaster area.
This measure aims to accelerate economic recovery by providing cash flow to businesses facing high operational costs after a disaster.
Status:
Introduced
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