WASHINGTON, D.C. – U.S. Sen. Bill Nelson (D-Fla.) introduced legislation today aimed at helping small business owners impacted by the toxic algal blooms plaguing South Florida’s waterways.

“These toxic algae blooms are having a real impact on the local businesses and economies that depend on our state’s waterways,” Nelson said. “We need to do everything we can to help the small business owners who, through no fault of their own, are suddenly struggling to make ends meet because of these toxic algae blooms."

If approved, Nelson’s legislation would authorize the Secretary of Treasury to designate areas that experience significant economic hardship due to the presence of a toxic algae bloom as “Toxic Algae Zones.” Once designated, a small business operating in one of these Toxic Algae Zones would be able claim a tax deduction for any loss of earnings due to the bloom.

The amount of losses a small business owner would be able to claim would depend on how much they earned during the year of the bloom, as compared to their average annual income for the three years prior. Small business owners who earned less than their average annual income for the three years prior would be entitled to claim a deduction for the difference.

In 2016, hotel occupancy rates in West Palm Beach and Boca Raton fell almost 20 percent as compared to the year before due, in part, to the toxic algae that took over the local waterways.

The bill defines small businesses as those with average gross sales under $25 million per year.

The text of Nelson’s legislation – known as the Toxic Algae Tax Relief Act – can be found here.