[StBernard] Senate Moves Forward on Road Home Tax Relief

Westley Annis Westley at da-parish.com
Tue Jun 24 22:33:52 EDT 2008


It must seem like we're constantly sending out emails about this Road Home
Tax relief amendment alternating between declaring it done and promising to
keep fighting for Louisiana residents. In hopes of clarifying, Senator
Landrieu fought to get this tax relief included in a Housing bill that
passed the Senate in April, but failed to make it out of the House. Over
the past few weeks, the Senate was debating the Tax Extenders bill that also
included the Road Home tax provision at Senator Landrieu's insistence, but
the legislation could not get enough votes in the Senate to move to debate.
The release below is referring to the new Housing Bill the Senate is
considering that is basically an updated version of the previous housing
bill so it too includes the Road Home Tax fix.



As it stands now we have the Road Home tax and Bonus Depreciation language
(i.e. extending the date construction had to begin for certain parishes) in
both the tax extenders bill and housing bill. As you will see below, the
Senate voted overwhelmingly on a procedural vote to move forward on the
housing bill, but additional votes remain ahead. I will keep you posted,
but please feel free to contact me if you have any additional questions.



Wes Kungel

Regional Representative

U.S. Senator Mary L. Landrieu

(504)589-2427 office

(504)589-4023 fax



________________________________

Senate Moves Forward on Road Home Tax Relief
Housing bill includes tax relief provisions for Gulf Coast.



WASHINGTON - The United States Senate today to move forward on a housing
bill that includes a provision authored by Sen. Mary L. Landrieu, D-La., to
provide $1.3 billion in tax relief to Gulf Coast homeowners and businesses
recovering from the 2005 hurricanes. The Senate voted 83-to-9 on a
procedural vote. Sen. Landrieu voted with the majority to consider the
legislation, which will continue to be debated throughout this week. Sen.
David Vitter, R-La., was one of only nine senators to vote against
considering the bill.

"Today the Senate moved in the right direction for Gulf Coast homeowners who
were hit with a tremendous tax burden while struggling to recover from
hurricanes Katrina and Rita," Sen. Landrieu said. "Many of our homeowners
faced tax bills this spring on their Road Home grants, which was never
intended. But this bill will relieve them of $1 billion that the federal
government overtaxed them."

The "Road Home Tax" assistance would apply to homeowners who took a casualty
loss deduction on their 2005 federal tax returns to account for damage to
their homes following Hurricanes Katrina and Rita. These homeowners were
subsequently required by the Internal Revenue Service (IRS) to pay income
tax on their rebuilding grants.

In April, the Senate passed language by Sen. Landrieu to allow homeowners
who took the 2005 casualty loss deduction to amend their 2005 return by
repaying whatever savings they received. Their rebuilding grant income would
then be tax-free. This month, the Senate voted against two tax extender
bills that included a "Road Home Tax" relief provision. Sen. Landrieu voted
to consider both bills with the critical tax relief.

The housing bill also includes a Sen. Landrieu provision benefitting Gulf
Coast businesses by removing the deadline under which they are required to
begin construction of new ventures in hurricane-affected areas in order to
benefit from Gulf Opportunity Zone (GO Zone) bonus depreciation tax
benefits. Currently, only projects that began before December 31, 2007 are
eligible for the tax relief. Under the Landrieu plan, no commencement
deadline would exist.

The housing package is intended to help relive the housing crisis and
broadens the Federal Housing Administration's programs to back refinanced
loans. The House will also consider the bill in the coming weeks. President
Bush has issued a veto threat over the bill because of a provision providing
grants to states for foreclosed property rehabilitation.

"It is crucial that this bill be sent to the President's desk as soon as
possible, and I am working with my colleagues to ensure that happens," Sen.
Landrieu said.

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