WASHINGTON - U.S. Senator Sam Brownback yesterday joined a bipartisan group of senators to introduce the Midwestern Disaster Tax Relief Act, a comprehensive plan to provide $3.96 billion in federal tax relief to flood, tornado and severe storm victims in the Midwest.

"I was pleased to join so many of my colleagues, on both sides of the aisle, to work toward helping all those in the Midwest who are trying to rebuild," said Brownback. "This past year, many areas of the Midwest were hit hard by weather disasters. I know it will be a long process to restore homes, businesses and communities, but I am confident this legislation will help with that process."

The Midwestern Disaster Tax Relief Act of 2008, S.3322, is modeled after tax legislation that Congress passed to help victims of Hurricanes Katrina, Rita and Wilma in 2005 and the tornado in Kiowa County, Kansas, in 2007. Individuals and businesses located in presidentially declared disaster areas due to floods, tornados and severe storms in Iowa, Arkansas, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska and Wisconsin would be eligible to benefit from for the Midwestern Disaster Tax Relief Act.

Brownback continued, "Kansans are resilient, but my state has had more than its fair share of disastrous weather in the past several months. People around the Midwest need the Disaster Tax Relief Act to continue to rebuild their lives."

Among other provisions, the legislation would allow disaster victims who sustained damage to their primary residence to tap their assets and access cash by withdrawing money from retirement plans without tax penalties; suspend limits on tax incentives for charitable contributions, strengthening local and other fundraising drives collecting money to help small businesses and families recover; create tax-credit bond authority to help local governments rebuild infrastructure; increase the amount of tax-exempt bond authority to help businesses receive below-market interest rate financing; remove limitations on deducting casualty losses due to natural disaster; and reduce the 2008 tax burden for small and mid-sized businesses by substantially increasing the 2008 deductions for the depreciation and expensing of business property.

The following senators co-sponsored the bill: Senators Chuck Grassley (R-IA), Tom Harkin (D-IA), Kit Bond (R-MO), Claire McCaskill (D-MO), Norm Coleman (R-MN), Amy Klobuchar (D-MN), Richard Durbin (D-IL), Pat Roberts (R-KS), Evan Bayh (D-IN), and Richard Lugar (R-IN). Companion legislation was introduced yesterday in the House of Representatives.