U.S. Sen. John Kennedy (R-LA) introduced a bill designed to aid natural disaster victims in securing tax deductions.
The Claiming Losses After Disasters Act would enable victims from a major federally-declared disaster to claim a larger tax deduction for damages not covered by insurance.
Additionally, authorities noted the legislation would permanently waive requirements stipulating disaster-related casualty losses must exceed 10 percent of a victim’s adjusted gross income for tax deductions to apply.
“In 2021, historic flooding, Hurricane Ida, and a devastating winter storm all hit Louisiana families—and the year isn’t even over,” Kennedy said. “Unfortunately, for every Louisianian trying to rebuild, current law limits tax deductions for natural disaster victims. I introduced the Claiming Losses After Disasters Act to help more Louisianians defray the costs of rebuilding.”
Under the new measure, there would be a new minimum threshold of $500 in losses per disaster applicable before a person receives a tax deduction.
Kennedy detailed a recent series of natural disasters in Louisiana, citing a winter storm that resulted in $20.8 billion in statewide damages, rainfall, and flooding that caused damages totaling $1.4 billion, while Hurricane Ida caused an estimated $64.5 billion in damage.