Disaster Tax Relief and Airport and Airway Extension Act of 2017 provides up to $2400 in tax credits per employee

Congress passed and the President approved legislation that could favorably impact businesses in the counties impacted by Hurricanes Harvey, Irma, and Maria. This includes the nine-county area in and around Houston.

The legislation allows businesses to receive a tax credit for continuing to provide wages to employees during the period the company was deemed inoperable. Qualifying business may claim a 40% credit for wages paid to employees (up to a maximum wage base of $6,000) during the interruption period.

The coverage areas are the designated disaster zones for Hurricane Harvey, Hurricane Irma, and Hurricane Maria. For Hurricane Harvey, this currently this includes multiple Texas counties.  (Check the IRS website for the updated list, as it’s already changed in the past few weeks).

If you believe your company qualifies for such credits, please contact your Briggs & Veselka tax professional, who can assist with the requisite documentation for filing your 2017 returns.

And if you’re not currently working with a tax professional, or working with one who has not already brought this to your attention, please contact our tax department chair, Jason Sanders, at jsanders@bvccpa.com.