WASHINGTON - Senators from Midwestern states are seeking tax relief for residents for flood, tornado and other storm victims in their states.

The lawmakers introduced legislation Thursday modeled after tax legislation previously passed to help victims of hurricanes Katrina, Rita and Wilma in 2005.

The bill's benefits would include:

-Letting victims with damaged homes take money out of their retirement plans without tax penalties.

-Suspending limits on tax incentives for charitable contributions.

-Creating tax-credit bond authority to help local governments rebuild infrastructure.

-Helping business receive below-market interest rate financing and increasing small business tax deductions for depreciation and expensing.

-Removing deduction limitations on casualty losses due to natural disasters.

Sen. Richard Lugar, R-Ind., called the proposal a "critical element of recovery" from flooding in the state.

"We can and must do more to deliver critical aid to storm victims so they can rebuild their homes, their businesses and their lives," said Sen. Evan Bayh, D-Ind.

The states that would benefit are Indiana, Iowa, Arkansas, Illinois, Kansas, Michigan, Minnesota, Missouri, Nebraska and Wisconsin. President Bush has declared disaster areas in those states.

The bill's prospects are unclear. Congress is not expected to finish work on a spending bill that includes additional disaster aid until after Congress returns in September from its summer break.

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