TheWeekInCongress.com

Week Ending December 9, 2005

H.R.4440 To amend the Internal Revenue Code of 1986 to provide tax benefits for the Gulf Opportunity Zone and certain areas affected by Hurricanes Rita and Wilma, and for other purposes.

BRIEF

The bill aims to generate interest and opportunity in rebuilding those areas of the US Gulf of Mexico coastline that were damaged by Hurricanes Katrina, Rita and Wilma.

To make investment more compelling the bill creates the Gulf Coast Opportunity Zone (Go Zone) where tax free bonds can be issued by States to raise rebuilding funds. Louisiana could designate up to $4.5 billion in bonds, Mississippi up to $2.250 billion and Alabama up to $1.125 billion.

Other tax incentives come in the form of deductions such as for the cost of debris removal and treating hazardous materials and replacement of equipment. Miscellaneous provisions would continue to lift limitations on deductions for charitable contributions relating to aid for the hurricane damage for individual donor and corporate donors. Another would lift limitations on personal casualty loss.

A victim who stays away from the stricken area for more than a year is no longer considered temporarily away but can extend the status for another year under some circumstances.

Sponsor: Representative Jim McCrery (R-LA-4^th)

Vote: Passed House 415 to 4 (RC 618) December 7, 2005

Cost to the taxpayers: $7 billion over five years in lost tax revenue.

## All Rights Reserved. © 2005 TheWeekInCongress.com No reproduction or distribution without written permission from TheWeekInCongress.com.