Hawai‘i Congressional Delegation Calls On The Internal Revenue Service To Exempt Residents From Taxation Of Emergency Assistance In Response To Red Hill Fuel Crisis

News Release, Washington, DC, March 2, 2023

(Washington, DC) – All four members of Hawaii’s Congressional Delegation sent a letter today to Mr. Douglas O’Donnell, Acting Commissioner of the Internal Revenue Service (IRS), expressing their “deep concern” that the IRS “may tax emergency assistance provided to individuals in response to the Red Hill Bulk Fuel Storage Facility (Red Hill) drinking water crisis.”

The letter goes on to say that “Just as assistance provided to individuals by the Federal Emergency Management Agency under the Stafford Act is exempted under Section 139 of the Internal Revenue Code, we believe the Red Hill emergency assistance should also be exempted.”

Attachment: Letter to Internal Revenue Service