Federal lawmakers looking at FEMA grant tax issue
Friday, March 4th 2005, 6:27 am
By: News On 6
OKLAHOMA CITY (AP) -- Congressman Ernest Istook says the US House could consider legislation to bar taxes on income from Federal Emergency Management Agency grants as early as next week.
The Internal Revenue Service determined last summer that income from FEMA grants is taxable, a decision that would affect Oklahomans who used the aid to build safe rooms to protect them from tornadoes.
According to a story from The Oklahoman's Washington bureau, Florida Congressman Mark Foley's bill to exclude the grants from taxation was introduced early this year. The measure has the support of Oklahoma House members.
President Bush's new budget also proposes the grant money not be taxed.