A series of federal tax breaks are now available for many Iowans who took a financial hit from last summer’s derecho.
The new law waives penalties for individuals who make early withdrawals from their retirement savings to pay for
storm-related expenses. Businesses in the derecho zone that had to close temporarily, but kept paying their employees, are eligible for a tax credit.
Low-income workers that had their hours cut will be able to use their 2019 income to calculate tax credits they would otherwise lose or see dramatically reduced. There are some changes in the deduction for charitable giving, to encourage donations that support derecho recovery.
These tax changes originally were in a bill introduced by Iowa Senator Joni Ernst that was later added to the huge piece of legislation President Trump signed in late December. Ernst says as Iowans continue to recover from the August 10th derecho, these tax changes will provide Iowa families, communities, and businesses more relief and support during challenging times.