Schumer, Menendez Work to Add Deductions for Businesses Affected by Sandy

U.S. Senator Charles Schumer and U.S. Senator Robert Menendez from New Jersey announced comprehensive legislation to reduce the tax burden on those financially impacted by Superstorm Sandy.

The tax package will include provisions that would allow for a full deduction for expenses paid or incurred as a result of disaster cleanup. It would also waive penalties for individuals who withdraw from their retirement plan early, which allows individuals who provided free housing to displaced individuals to claim additional exemptions.

Lastly, it would give a worker retention credit for disaster-damaged businesses that continued to pay their employees’ wages even though their business was inoperable; and accelerated depreciation for business equipment.

The senators said the changes build on existing laws and programs to maximize the speed with which aid gets to sandy victims.