Hurricane Katrina Tax Cuts approved by Congress

Thursday, September 15, 2005

The US Congress has approved more than $5 billion dollars in tax cuts to Hurricane Katrina survivors, and those friends and families that are sheltering them.

The legislation will include provisions to allow those who shelter hurricane survivors to claim up to $2000 in tax credits, and allows the hurricane survivors themselves to exempt from taxes, any debts that have been cancelled because of the hurricane. Cancelled debts are usually considered to still be taxable income.

To date, more than $62.3 billion dollars has already been allocated to the relief efforts of Hurricane Katrina, a storm which completely devistated a strip of Gulf coast coastline from New Orleans to Biloxi, Missisippi on August 29th.