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Columbia Missourian

Tax relief proposal for flood victims pending in U.S. Senate

By The Associated Press
June 25, 2008 | 10:13 p.m. CDT

WASHINGTON — Residents in Missouri and other Midwestern states hit by recent floods and storms could get some tax relief under a measure pending in the U.S. Senate.

The proposal would let disaster victims take money out of retirement plans without facing tax penalties. It also would give tax breaks to businesses dealing with losses and encourage more donations to charities.

The measure is similar to tax relief legislation that Congress passed to help victims of Hurricane Katrina and the 2007 tornado that devastated Greensburg, Kan.

It would affect residents of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri and Wisconsin.

The measure is part of housing legislation being considered in the Senate.