Proposed Sandy tax relief for individuals and businesses

These measures are proposed June 2013 and appear to have a strong chance of passage. (My source is NJSCPA.org).

Individuals:

• Waiver of Adjusted Gross Income limitation for theft/loss deduction, so individuals can deduct the cost of uninsured losses. 
   
• Increased Charitable Contribution Limits: The legislation increases charitable deduction limits of taxpayers with respect to cash contributions to certain tax exempt organizations made for the purpose of relief efforts related to Hurricane Sandy. 
   
• Look-back Provision for Child Tax Credit and Earned Income Tax Credit, to allow a family in the affected region to opt to use their previous year’s earnings to calculate their Child Tax Credit and Earned Income Tax Credit.
   
• Allow taxpayers whose principal place of residence is in the Hurricane Sandy Disaster Area and who suffered a loss from Hurricane Sandy, to take distributions from retirement savings accounts with no tax penalty, provided such amount is repaid within three years.

Businesses:

• Allowing businesses to expense the cost of disaster recovery.
   
• Allowing businesses to use Net Operating Loss to recover past tax payments or reduce future tax payments, if they are operating with no tax liability during the prescribed period.
   
• Increase in new markets tax credit for investments in community development entities serving Hurricane Sandy disaster areas.
   
• Allowing public utilities to reduce their tax liability when rebuilding or replacing assets damaged in the storm.
   
• Work Opportunity Tax Credits for displaced workers.