The National Disaster Tax Relief Act of 2014 has been introduced to the Senate by a bipartisan group of senators. The Bill is designed to provide tax relief relating to disasters which occured in 2012 and 2013. Important provisions of the Bill with respect to Federal Income Tax Credit Programs are: (1) for each of calendar year which begins after 2012 and before 2016 a special increase in Federal New Markets Tax Credit allocation of $500,000 for each year to be allocated among qualified community development entities to make qualified low-income investments within any 2012 or 2013 federally designated disaster area; (2) for the calendar year 2014 the State Federal low-income housing tax credit ceiling for each State which includes a qualifying disaster area shall be increased by the greater of: (A) $8 multipilied by the populaton of the qualifying disaster area of such State; or (B) 50 percent of the State housing credit ceiling for 2013; and (3) with respect to qualified rehabilitation expenditures with respect to historic structures located in a Federally declared disaster area occuring in 2012 or 2013 the Federal Rehabilitation Tax Credit is increased from 10 percent to 13 percent for non-historic buildings and from 20 percent to 26 percent for historic builidng. The Bill is under review by the Senate Finance Committee.
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