Disaster Tax Relief Act of 2008

Madam Speaker, I rise, obviously, in support of the legislation. I do want to take a moment and thank my good friend from Texas for being an original sponsor of the legislation that we had introduced earlier this year in regards to disaster relief.

Madam Speaker, as you know all too well, it's always bittersweet to be before the Congress promoting a disaster relief bill; bitter because of the disastrous effect that disasters have on so many families and businesses throughout the country, and certainly we have received our fair share this year alone. But also sweet, given the bipartisan cooperation that we're seeing from the leadership, the leadership on the committee, and I thank Chairman Rangel and Ranking Member McCrery for their help and assistance with this package, and the urgency in order to get this done so that we can get the assistance out and the help provided, so we can start rebuilding our communities again, getting people back in their homes, getting businesses up and functioning, hiring people and restoring people's lives.

And we believe this Disaster Tax Relief Act is the right approach. It has three major features to it that I think merits attention. One is, by using the Tax Code, you build in some predictability and certainty for anyone throughout the country who's affected by disaster. Doing it this way, we don't have to wait for Congress to take an action on an appropriation bill or provide FEMA with more funding in order to get help out there.

Another important feature is that it is a nationwide, consistent and fair approach; so that Members, given their seniority or position on certain committees, don't have increased leverage in providing assistance to their area while neglecting other areas throughout country. By dealing with these tax provisions, it applies uniformly throughout the Nation in every district, every State, they qualify merely based on a Federal disaster declaration in that area.

Then, finally, I believe it provides additional assistance to businesses. Over the last year in dealing with the floods that have devastated the upper Midwest and talking to community leaders, but especially business owners, I was struck by the frustration business owners had in what little disaster assistance is out there for them to get their businesses up and going. About their only recourse, since they don't qualify for direct FEMA grants, was for them to go to the Small Business Administration and negotiate a loan at a rate that's typically not even competitive with local bank rates in their area. By revising these tax provisions this is, I think, a direct response of the need for providing more help to businesses, large and small, that are also affected by these disasters.

Real quickly, to highlight some of the provisions, the measure changes limitations to the deduction of personal casualty losses. It waives limits on charitable deductions for relief associated with federally declared disasters. Businesses can write off or deduct qualified disaster expenses through 2011. Businesses hurt by disasters can carry back now net losses for up to 5 years.

And two more provisions that I have to commend the Iowa delegation especially in promoting and getting including in this legislation, from Mr. Boswell to Mr. Loebsack and Mr. Braley, the additional low-income housing credits that's in this bill, and the private activity bond provisions for housing bonds and for business property projects.

As Mr. Brady also indicated, there is an increase in the charitable mileage rate that Mr. Lewis from Georgia has been advocating for some time in order to help those who are incurring travel expenses for charitable purposes to keep pace with the increased energy costs that they're facing. This will make it a little bit more affordable for them to continue these activities.

About a little over a year ago, Madam Speaker, the rains came, the waters rose, and the flooding occurred in the upper Midwest. And just when so many people were returning to their homes and getting back into their business, early in June this year we suffered the same type of flooding phenomena. It was a double whammy within a 10-month period of time.

To go through it once is one thing. People have this rallying effect and this collective responsibility to one another, and it's truly inspirational seeing how complete strangers show up on people's doorsteps to help. Seeing how the local community leaders and the first responders are the first ones out there battling the devastating effects of these disasters.

But to get hit within a 10-month period of time with the same type of disaster really takes the wind out of the sails. People have been looking for the government, the Federal Government, along with State and local agencies and all the help that they're getting from the private sector to enable them to get back up on their feet.

The floods in the upper Midwest over the past year that devastated the State of Iowa, northern Illinois, southern Minnesota and southern Wisconsin and portions of my district were tough enough. And then to see Hurricanes Gustav and Ike and the devastating effect that that has caused to so many lives in the southern part of our country, the wildfires out west, there is a great urgency and need in order to move this disaster relief package forward.

This is one aspect of it. There will still be an emergency supplemental appropriation bill to provide disaster assistance as well. But again, given the outlines and the contours of this legislation, we think it's a uniform, fair approach with built-in predictability, so that if a disaster declaration is declared, people know what they can expect and what type of relief they can have. And then coupled with the assistance that FEMA is able to provide.

Let me just conclude by thanking FEMA for the assistance that they've provided, at least in the upper Midwest that I personally witnessed. They brought teams in that were the height of professionalism, very sensitive to the needs. They tried to expedite the process as quickly as possible while staying true and responsible to taxpayer funds. We appreciated that assistance as well as the coordination that they provided at the State and local level.

With that, Madam Speaker, I would encourage my colleagues to support the legislation.

I will reserve the balance of my time.

Madam Speaker, at this time I would like to yield 2 minutes to my good friend and colleague from the great State of Texas who obviously has suffered greatly under the effects of Hurricane Ike, Mr. Lampson.

I yield the gentleman 1 additional minute.

Mr. Speaker, at this time I would like to yield 3 minutes to our good friend and colleague from Louisiana (Mr. Cazayoux) who has been instrumental in helping to shape and put this disaster package together and ushering it through the Congress.

Madam Speaker, may I inquire as to the time remaining on our side?

At this time I would like to yield 2 minutes to my good friend from Iowa, who has been in the front lines of battling the flooding that his State unfortunately incurred, Mr. Boswell.

(Mr. BOSWELL asked and was given permission to revise and extend his remarks.)

Madam Speaker, we have no further requests for time, and I am prepared to yield, if my friend from Texas is.

Madam Speaker, I yield myself the remainder of my time.

Again, Madam Speaker, I do want to thank and commend the leadership of this Congress, from Speaker Pelosi to Minority Leader Boehner, as well as the leadership on the House Ways and Means Committee, to Mr. Rangel, to Mr. McCrery, and my colleagues on the committee.

I also want to thank all the hard work and effort that our staff on the committee and off the committee have put in to putting this legislation in order.

And disasters, as my friend from Texas so eloquently stated, is not fun. It is not fun seeing the effect that it has on families, on little children, on businesses and the spirit of the communities. But they also are a time of great inspiration, and it really tests the true character of any community.

And we've unfortunately seen that in a span of 10 months twice in the State of Wisconsin. We still have communities there that are wrestling with some very important decisions about possibly relocating whole towns into higher ground or to different locations where there have been businesses and homes for generations there, and it's not an easy decision.

At times like that, it's inspirational seeing how people come together and rally from the agencies, to local leaders, to first responders, to volunteer organizations, and complete strangers just showing up because of their concern and compassion for their fellow citizens.

Now, it's the country's time, and this Nation has always shown that compassionate streak, that when one area has been hit by a disaster, we all rally and collectively respond. And no one, no matter where they live, is immune from this, and that's been demonstrated again over the course of this last year.

We think this is an appropriate direction. We think the provisions in here are the right way to go, and I would encourage my colleagues to support this legislation.

I would be happy to yield.

Madam Speaker, I yield back.

Madam Speaker, on that I demand the yeas and nays.

Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I rise today in support in H.R. 7006, the Disaster Tax Relief Act of 2008, a bill that provides targeted tax benefits to victims of federally declared natural disasters.

As the chairman and gentleman from New York said, we have had a tough year here in the United States for disasters across this country; most recently, Hurricane Ike which hit the gulf coast and Texas especially. Ike will likely be the worst storm to hit Texas in 50 years. Ike damaged or destroyed about $52 billion worth of homes and businesses. It was far worse than Hurricane Rita that just hit us 3 years ago. And this is the region of Texas that was so quick to open their homes and their hearts and their churches to those victims of Hurricane Katrina, so it feels a bit like we are being piled on.

We look to areas like Galveston and Bolivar, and Orange and Bridge City where the storm surge destroyed thousands of homes and damaged businesses and left people homeless. Today, 11 days after Hurricane Ike, despite heroic efforts, 250,000 people are still without running water and many more are still without power as the Texas heat continues to bear down on them.

So these folks are suffering. They need our help now. Damage from the hurricane was widespread, and lives were disrupted and destroyed. Yet here it is 11 days after Hurricane Ike, and to its credit, this Congress, which I have criticized at times as not moving quickly enough or substantively enough, has moved quickly to respond to the needs of not just Texas, but Louisiana, the Midwest and throughout this country. I am grateful to them for that.

I am encouraged that Congress responded so quickly, and I urge my colleagues to support this assistance.

I, along with my friend and colleague from Houston, Al Green, along with the Texas delegation, introduced a bill much like Congressman Kind's to provide even more expansive tax benefits to Hurricane Ike victims. While we hope that Congress will consider it in the future because it has some key provisions important to our recovery, this legislation today is a very good step forward, especially coming so quickly after the hurricane.

This bill will provide Texans and others much-needed help through a variety of tax relief measures. One provision is enhanced casualty loss deductions, which in plain English just allows families to write off more of the property loss from Hurricane Ike and other disasters without regard to their adjusted gross income.

We have increased low income housing tax credits by $2 billion under this bill. That is important to help those who most need housing.

Another provision is the ability to allow States to use mortgage revenue bonds to provide loans to repair or reconstruct homes and rental housing units that are now unsafe for use as residences because of hurricane damage.

In addition, we all must recognize that the business community, those who provide our jobs, experienced severe disruption and damage from Hurricane Ike. To help businesses recover quickly, this legislation will allow them to write off and immediately expense costs for disaster recovery, including demolition, repair, cleanup and environmental remediation.

Any business with net operating losses from the disaster, and there are many, will be allowed to carry back those losses for 5 years, which means they will be able to put more money back into recovery and put workers back to work and getting back into business which is important for property values and sale tax values in our affected communities.

Also, the Treasury Department is authorized under this bill to permit States to issue $13 billion of tax-exempt bonds to finance the replacement, the repair, the reconstruction and renovation of business property damaged or destroyed by a federally declared disaster like Hurricane Ike. I believe these private activity bonds are a critical tool to help damaged businesses through these hard times.

And we should not forget the remarkable charitable work that people and businesses provided to their friends and

neighbors in hard times. I witnessed this myself throughout our district that was hit so hard. We've seen this in past disasters. To assist those who come selflessly to work so that they do not get hit so hard by the high price of gasoline, the mileage reimbursement rate for charitable work will be increased and, moreover, limits for charitable relief contributions in response to a federal disaster are waived.

This is a very important bill. And while I strongly believe and hope that Congress might take a look at additional measures in the future, this bill is a crucial first step, and I strongly support it.

With that, I reserve the balance of my time.

Madam Speaker, I reserve the balance of my time.

Madam Speaker, at this time I reserve the balance of my time.

Madam Speaker, I would reserve the balance of my time.

Madam Speaker, at this time, I yield 2 minutes to my colleague from Houston, the gentlelady from Texas, Congresswoman Sheila Jackson-Lee.

(Ms. JACKSON-LEE of Texas asked and was given permission to revise and extend her remarks.)

I yield myself, for closing, as much time as I may consume.

Disasters are so hard on families and especially on small businesses and on communities as they try to recover, whether it is the flooding in the Midwest or wildfires in the West or Hurricane Ike, Hurricane Gustav or hurricanes that have hit Florida. It is just a terrible time.

And I know in our case, you always know your own communities best, and we saw 8- to 10-foot storm surge in Orange County that went over the levees, flooded one-third of that town and most of its historic district. It completely flooded about 6 feet up in every home in Bridge City. I think out of almost 4,000 homes, 15 were left untouched.

And when I was there touring the area, we toured it the day after by boat, and these are land cities. We could see the devastation, and today, those communities are trying to recover and those families are trying to repair their homes.

The problem we have is that Hurricane Rita, which had just come through 3 years ago, wiped out all the hotel-motels, had wiped out all available rental housing. So our workers in our energy refineries and shipbuilding and chemical refineries are staying 90, 100 miles away in available hotels, driving each day an hour-and-a-half each way to try to pull the carpet and the sheetrock out of their homes. They have all their possessions in the world piled in the front yard for insurance adjusters to appraise or for others to just simply take away.

And to give them hope that they can recover, it's important Congress do all that we can, and these tax provisions help those families and small businesses try to take those first steps, which is why not only do I strongly support this, I appreciate the gentleman from Wisconsin's long effort to provide disaster relief throughout this country.

I appreciate Chairman Rangel and the Ways and Means Committee taking a leadership role to move this bill to the floor before the session is over. I appreciate the support of our Texas delegation, Republicans and Democrats, as we move forward.

I strongly support this and appreciate the responsiveness of this Congress.

I yield back.

Would the gentleman yield?

Again, I want to thank you for your leadership, and this is a great piece of legislation.

I was remiss in not recognizing my colleague, Congressman Al Green from Houston. He's the lead Democrat cosponsor with me on the Texas portion of disaster relief. He is tied up in Financial Services today working on issues. I know he is here in spirit, and I just wanted to publicly thank him for his role as well.

Let me thank the managing member, Mr. Kind of the Ways and Means Committee, for his leadership and the leadership of Chairman Rangel. And as well, let me thank my colleague Congressman Kevin Brady who over the last 10 days we have traveled throughout our respective districts, along with Congressman Lampson and Congressmen Al Green, Gene Green and Ron Paul, and

we've worked together in a bipartisan effort to obviously respond to the devastation and needs of our constituents.

People are suffering through the impact of Hurricane Ike. We've been told that there will be billions and billions of dollars of damage, 40,000 to 35,000 people still evacuated, many of them coming back to devastated housing and loss of housing.

This is an important initiative. I think one of the most important aspects of it is the ability to increase low-income housing tax credits to States that contain Federal disaster areas. That is particularly important because we've seen the damage to our multiple family housing units. I've also seen the damage that comes about through our regular housing.

Mortgage revenue bond financing for individuals suffering home damage as a result of Federal disaster, there's a limit to the annual amount of taxing housing bonds that each State may issue. This bill allows an increase, a very important part of recovery.

In addition, a business is allowed a 5-year carryback period for certain losses related to the disaster. Of course, the State of Texas has Federal disaster counties, and we have an enormous impact in our business communities, particularly small businesses in our neighborhoods and in our cities.

So this legislation is an important tax relief bill that I believe responds to the crux of the need for recovery, and that's what we want to do in the gulf region. We want to recover. Galveston wants to recover. The southeast part of Harris County wants to recover, and the inner city neighborhoods that I represent such as southeast, such as Acres Home, South Park, Sunny Side, northeast Houston, all of those want to recover.

For that reason, I rise to support The Disaster Tax Relief Act of 2008, H.R. 7006, and I ask my colleagues to support it.

Madam Speaker, I rise today to speak on a very important issue to me, House Resolution 7006, the Disaster Tax Relief Act of 2008. Right now, over 800,000 people in the greater Houston area are without power; this is not acceptable. We must pass responsible legislation to make it easier for people to get back on their feet after natural disasters ravage their communities. It is time to show the Nation that we learned the lessons of Katrina and Rita and now Ike as well as the other natural disasters we have faced in recent memory.

Katrina and Rita taught FEMA quite a lot on how to recover from natural disasters that destroy thousands of people's homes and livelihood. We now have more advanced warning systems in place, a better plan to evacuate those in the storm's path and our first responders are better trained to deal with the medical crisis for those whose best option is to stay. All these things helped save countless lives in my district, but now we face the true test of how a nation responds to a natural disaster.

While we have plenty to praise about the response, sadly, we also have plenty to criticize. The utility companies were told to improve their infrastructure so that a disaster like this would not cripple the region; however, more than a week after Hurricane Ike, these utility companies left my constituents to clean up with flashlights and candles. Power still has not been restored to almost a million people, and we face an emerging health crisis because of it.

I have taken every opportunity to talk to people facing this crisis and to find out what the Government can do to help them rebuild their shattered lives. A number of stories that I have heard have been inspirational, they want, more than anything, to help their friends, family and neighbors. My staff has received hundreds of calls from people begging to be of any assistance. These brave souls look at the

devastation and refuse to sit by and watch as people they don't know, as well as their loved ones, suffer.

This bill will honor those wonderful human beings by helping ease the burden they have willingly placed on themselves to help. They will get a higher reimbursement for the miles they drive in the service of others. The limit that corporations are allowed to write off on their taxes would be waived. This will allow companies to help the communities they support and still remain responsible officers for the employees who work for them.

Madam Speaker, this legislation would also help people's way of life remain protected during Federal disasters. Being able to deduct a greater cost for their damaged property help keep homes in the affected areas instead of them not being rebuilt and relocating. Allowing small businesses to write off expenses relating to these disasters assures that the jobs for those who return still exist. Businesses would also be able to focus on healing before they focus on gathering what is owed to them. Moving the carry-back period, the statue of limitations on claiming damages from natural disasters, from 2 years to 5 years would provide financial assistance as well as peace of mind.

Since the time of the founding of our country, the Government has been helping out towns and cities affected by disasters. In 1803 a small fire ravaged the town of Portsmouth, New Hampshire, and the Congress reacted. This is widely considered the first use of any type of disaster relief.

Today, a lot of my constituents are no better off than they were a week ago; this must be remedied. This bill is a great step forward to help communities recover, and we must pass this bill. With that, I am also pleased to be an original cosponsor of this legislation with my Texas colleagues, Congressman Al Green and Congressman Kevin Brady.

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 7006) to amend the Internal Revenue Code of 1986 to provide disaster assistance relief.

Madam Speaker, I ask that all Members have 5 legislative days to revise and extend their remarks and insert extraneous material in the Record.

Madam Speaker, the provisions of H.R. 7006, the Disaster Tax Relief Act of 2008, provide tax relief for victims of disasters. I, along with Ways and Means Committee Ranking Member James McCrery, have asked the nonpartisan Joint Committee on Taxation to make available to the public a technical explanation of the bill, JCX-73-08. The technical explanation expresses the committee understanding and the legislative intent

behind this important piece of legislation. It is available on the Joint Committee's Web site www.jct.gov. Madam Speaker, the United States as a Nation has experienced a terrible number of natural disasters. We started early this year with tornadoes in Georgia and Tennessee. We saw wildfires consume parts of these great United States, millions of acres in California. We saw the mighty rivers of the Midwest overflow their banks and damage the homes and businesses of so many Americans. And most recently, we saw the tremendous power of hurricanes Ike and Gustav devastate parts of Texas and the gulf coast.

I don't think anyone in this Chamber would disagree with me when I say unfortunately, we probably haven't seen the end of these horrible events this year. The hurricane season does not end until November 30.

The individuals hit by these natural disasters all shared one thing in common: they are victims of Mother Nature's strength, and they are looking for assistance from their Federal Government.

The bill before us today, H.R. 7006, the Disaster Tax Relief Act of 2008, provides a framework for the Congress to be able to provide all Americans that they be able to count on us in the unfortunate event that they get hit by a natural disaster. The Congress for years has been forced to negotiate between individual Representatives and Senators to decide which victims deserve Federal relief and which ones do not. It is a process that not one single one of us enjoys being a part of.

My bill today makes certain that every victim of a natural disaster gets the relief they need when they are trying to rebuild their homes and businesses, and trying to rebuild their lives. It does not pick winners and losers. It does not leave the recovery of these victims to a handful involved in political control.

My bill offers a variety of relief to victims of natural disasters, and the bill would first waive the income limitations on personal loss deductions. It would allow businesses to write off certain qualified disaster cleanup expenses. It would permit a 5-year carryback for certain losses. It waives certain mortgage revenue bond requirements to allow bond proceeds to be used for this rebuilding. It provides for additional low-income housing tax credits for communities with housing losses to build $2 billion in affordable housing. It adds a new set of disaster private activity bonds for business reconstruction, and it waives certain limitations on charitable contributions for disaster relief.

The bill would also increase the standard mileage rate for the charitable use of a vehicle whether they are involved in the disaster or not. And most importantly, the relief will be in place for disasters that may occur for years to come. The provisions are in place through 2011.

That means that when hurricanes like Ike and Gustav come back next year, albeit with different names, the Federal Government will have relief in place for the victims of these terrible storms.

I urge my colleagues to work to protect their constituents and hope and pray that they are never hit. But if they are suffering, that we will be able to swiftly pass this legislation so that we can provide some security for these victims.

I hope that you will listen to two of my fellow Democrats, Representative Lampson and Representative Cazayoux, who know all too well the pain which these disasters have done to their constituents. And I hope you appreciate, those who have yet to be hit, that this Congress has provided the need and support for their constituents.

At this time I ask unanimous consent to yield the balance of my time to an outstanding member of the Ways and Means Committee, Ron Kind, who has drafted the outlines of this not for his district, not for his region, but so that this great country of ours would have the type of relief that all of us wish we had done before, but we are now doing it today.

Thank you, Mr. Kind, for allowing me to have a little bit of time to talk.

I come to the floor in strong support of H.R. 7006, the Disaster Relief Act of 2008.

Last Saturday, September 13, Hurricane Ike barreled through southeast Texas and in its wake left some of the worst destruction in U.S. history.

I had the pleasure of working closely with my friend, Congressman Brady, and other colleagues in the Houston area, in trying to put our pieces back together again for so many people.

Hurricane Ike inflicted massive wind and flood damage, leaving many residents without a home, others in homes without power. Texans endured the largest power outage in our State's history, leaving millions without electricity and with limited access to water, food and fuel. People like my own daughter, who, thank goodness, had evacuated to some 300 miles away from her home, and when they returned, found that a tree had crashed through their house, left a 3-foot by 5-foot hole which flooded their home. Thank goodness, that tree, unfortunately, had fallen into the bed where

my 2-year-old granddaughter sleeps. But even in the face of devastation, we can find mighty blessings for which we can be most thankful.

Last week I spent every waking moment helping my constituents recover and rebound from this storm. I worked with House Chief Administrative Officer Dan Beard to establish a mobile congressional office with some 225 laptop computers and telephones. The mobile office allowed displaced residents with nowhere to turn to have an opportunity to quickly get information and to get in touch. Texans used that office for everything from registering for FEMA assistance, finding a hotel, to finding a loved one, or just getting in touch with someone to talk to.

After witnessing the expansive destruction and devastation left by Hurricane Ike, I am determined to make certain that essential Federal tax relief flows quickly to our communities. It is absolutely critical that the Disaster Tax Relief Act of 2008 pass this Chamber and be signed into law without delay.

By removing income limitations on personal loss deductions, this bill helps hardworking Texans affected by the storm get back on their feet more quickly. This bill also helps Texans rebuild by waiving mortgage revenue bond requirements to allow bond proceeds to be used for rebuilding purposes.

The storm left thousands of businesses shuttered and closed, unable to operate without power or with significant property destruction and flood damage.

This bill helps businesses recover by allowing them to write off disaster clean-up expenses. The act's 5-year carry-back provision will help businesses that sustained disaster-related losses, and the new disaster private activity bonds will greatly aid business reconstruction.

Every Texan lent a helping hand during this crisis. I was amazed at how many neighbors welcomed neighbors into their homes, how many churches and hospitals and businesses and military facilities opened their doors to evacuees, how many volunteers showed up on our doorstep from around the State and around the country. Now it is important that the Federal Government lend a helping hand to Texas.

Thank you, Mr. Kind, for the time. I encourage my colleagues to pass H.R. 7006 with dispatch.