Disaster Tax Relief Act of 2020

Disaster Tax Relief Act of 2020

This bill sets forth tax relief provisions for individual and business taxpayers residing in a disaster zone during the period beginning on July 1, 2020, and ending 60 days after the enactment of this bill.

Specifically, the bill

• allows penalty-free disaster-relief withdrawals from tax-exempt retirement plans up to $100,000,
• permits recontributions of such withdrawals for home purchases cancelled due to disasters,
• increases to $100,000 the limit on loans for disaster assistance from retirement plans,
• allows employers affected by a disaster a 40% tax credit for the purpose of retaining employees,
• increases the tax deduction for corporate disaster relief contributions,
• enhances the tax deduction for disaster-related personal casualty losses,
• permits the calculation of the earned income tax credit based upon income earned prior to 2020, and
• reimburses U.S. possessions for losses sustained due to the application of the provisions of this bill.