Mitch Landrieu: “at the end of the 109th Congress, I learned that the Internal Revenue Service had a tax surprise for citizens in my…”

“at the end of the 109th Congress, I learned that the Internal Revenue Service had a tax surprise for citizens in my state of Louisiana and in Mississippi who are trying to rebuild after Katrina. This tax surprise will set back our recovery and discourage our citizens from coming home. Let me explain to my colleagues what I am talking about. Both Louisiana and Mississippi have established programs to help families rebuild their homes and their lives after Katrina and Rita. Congress appropriated the money for these initiatives--more than $10 billion in all, and we are very grateful for the assistance. The Louisiana program is called the ``Road Home'' and it is administered by the Louisiana Recovery Authority (LRA). The program is now starting to get going. Homeowners are eligible to receive grants from the Road Home of up to $150,000 to help them rebuild or repair their homes. Rental properties are also eligible. Grants can also be used to buy out homes. The Louisianians who were displaced by the storms want to go home and the Road Home program will get them there. But the IRS has dug a big pothole in the middle of the Road Home by making some of these payments taxable.”