September 8, 2005
JS-2704

The Honorable John W. Snow
Prepared Remarks: Announcement of Tax Relief and IRS Actions
Relating to Hurricane Recovery Assistance

Good morning; thank you all for coming. I've asked IRS Commissioner Mark Everson to be here today so we can fill you in on the steps that Treasury and the IRS are taking to provide tax relief to hurricane victims, and to encourage charitable giving during this difficult time of national disaster and recovery.

We know that the last thing people in the devastated areas of the Gulf Coast need to worry about right now is taxes. That's why we quickly implemented extensions of tax deadlines, so that people in the affected areas who would otherwise have had taxes or returns due on September 15^th don't have to worry about that deadline.

We also waived certain requirements for the low-income housing credit so that displaced victims, regardless of financial status, could have access to that housing during this time of great need.

In the aftermath of Katrina, it quickly became clear that the need for diesel fuel was of great importance in rescue and relief efforts. Treasury has therefore provided relief from penalties for highway use of dyed diesel fuel – a type of fuel that had been limited, by its tax treatment, to certain uses and is more widely available thanks to the lifting of these penalties. This change has made millions more gallons of diesel fuel available.

Another important action that we have taken, along with the Department of Labor and Pension Benefit Guarantee Corporation, is the extension of the deadline for employers in the affected areas to make minimum funding contributions to qualified retirement plans.

We are also pleased to be able to announce today something that we believe will give workers and businesses an easy and effective way to contribute to the charities that are doing so much to rescue, comfort and care for the victims of this terrible tragedy.

This action allows employers to adopt leave-based donation programs under which employees could forego vacation, sick or personal leave, and in turn their employers would make cash contributions to charitable organizations involved in relief efforts.

This is a time to help. The scale of this catastrophe is unprecedented, and the generosity of the American people is extremely important to Katrina's victims. We believe that this announcement will help workers and employers as they seek ways to help their fellow Americans.

America's tradition of generosity, of helping our neighbors, is one the most important advantages we have in terms of recovering from this disaster. We are also fortunate that we are dealing with this situation from a position of economic strength. The fact that our underlying economic fundamentals are so solid enhances our ability to deal with this disaster.

Over the long term, I'm confident that the region will recover and rebuild. We picked ourselves up after 9/11 and other catastrophic events, and we have the will and the resources and the resolve to do so again.  I am confident we will; it's the spirit of Americans to do so

I'll let Mark talk about IRS-specific efforts now, and then we'd be happy to take your questions.