Disaster Zone Tax Credit
Help when disaster hits.
Our clients say:
TCC does not miss a beat. They found a huge missed opportunity, twice!”
– VP, tax, Fortune 500 manufacturing
Helping Clients Get Back To Business
Knowing Your Options
The tax credits for businesses affected by hurricanes, wildfires and other disasters can add up, depending on a number of quantitative and qualitative factors.
Beyond the Legislation
First introduced to support employers impacted by Hurricane Katrina in 2005, Disaster Zone tax credits have been enacted consistently since 2017. Most recently, the “Consolidated Appropriations Act, 2021” was signed into law December 27, 2020 and established these credits as part of disaster relief for FEMA designated disasters occurring in 2020. Businesses located in counties designated by FEMA for a certain level of assistance, whose operations were impacted by the disaster, and who continued paying employees during a period of inoperability are eligible to receive a retention credit. The definition of inoperability and instructions on how to measure the physical and economic impact of the disasters are not defined by statute.
TCC, utilizing our extensive experience with disaster relief legislation, can assist impacted companies to capture this incentive.
Our first step with clients is to collaborate on choosing the appropriate metric for measuring operability. We look at operation levels heading into, during and coming out of the disaster as compared to when significant operations resumed. The key is to identify a metric that’s measurable and supportable with data.