U.S. Senator Ken Salazar

Member of the Agriculture, Energy and Veterans Affairs Committees

 

2300 15th Street, Suite 450 Denver, CO 80202 | 702 Hart Senate Building, Washington, D.C. 20510

 

 

For Immediate Release

September 14, 2005

CONTACT:    Cody Wertz – Press Secretary

                        202-228-3630

Jen Clanahan – Deputy Press Secretary

                        303-455-7600

 

SEN. SALAZAR TO INTRODUCE
“GOOD NEIGHBOR TAX CREDIT”
Bill Would Provide Tax Credits to Americans Who Take in Evacuees or Donate to Hurricane Relief Charities

WASHINGTON, D.C. – United States Senator Ken Salazar will introduce the “Good Neighbor Tax Credit” to make it easier for Americans to extend their generosity to victims of Hurricane Katrina by providing tax breaks to them for their efforts.

“Americans are generous, but generosity should not be a financial burden to those who want to help. These simple changes enable everyone who wants to lend a helping hand the financial ability to do so,” Senator Salazar said.

Senator Salazar’s Good Neighbor Tax Credit legislation for Hurricane Katrina relief contains two provisions to allow the generosity of Coloradans and all Americans to extend further for victims of Hurricane Katrina:

Tax Credit for Those That Open Their Homes: Sen. Salazar’s bill creates a tax credit of $20 a day to help good Samaritans cover the costs of feeding and keeping evacuees in their home. Households that take in an evacuee would be eligible for up to $900 in tax relief. Households that take in more than one Hurricane victim would be eligible for up to $2,000 in relief; and

Raise the Charitable Contribution Limit for Katrina-related Donations: Under existing law, the amount of tax deduction an individual can receive for charitable contributions is limited to 50 percent of that person’s adjusted gross income. Sen. Salazar’s bill lifts this limit for four years to allow individuals to contribute more to Katrina-related efforts, both this year and in the coming rebuilding years.

FACTS:

Coloradans have already contributed more than $6 million to the American Red Cross for Hurricane Katrina relief efforts. In addition, nearly 1,000 Gulf Coast evacuees are being housed in Colorado, more than 600 of whom are staying in private homes. Colorado schools have also accepted nearly 300 children from New Orleans schools displaced by Hurricane Katrina.

Nationwide, according to the Department of Homeland Security, 248,200 evacuees are staying at 774 shelters across the country. This figure underscores the fact that more than 700,000 evacuees are staying elsewhere.

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