HR 140 · 119th CongressIn Committee

Hurricane Helene and Milton Tax Relief Act of 2025

Latest updateJan 3, 2025

Referred to the House Committee on Ways and Means.

Taxation

Sponsor

Vern Buchanan

Introduced

January 3, 2025

Latest action

January 3, 2025

Legislative Progress

How far this bill has traveled through Congress

Introduced

Bill filed in chamber

Committee

Reviewed & reported

Passed Chamber

House or Senate vote

Passed Both

House & Senate agree

President

Sent to White House

Enacted

Signed into law

Introduced

Bill filed in chamber

Committee

Reviewed & reported

Passed Chamber

House or Senate vote

Passed Both

House & Senate agree

President

Sent to White House

Enacted

Signed into law

Latest Action

Referred to the House Committee on Ways and Means.

Plain-Language Summary

AI Generated

Under current tax law, individuals and corporations face standard limitations on charitable deductions and earned income tax credits. The earned income tax credit (EITC), which provides refundable credits to low- and moderate-income workers, is calculated based on income earned in the current tax year. Similarly, charitable contributions are subject to percentage-of-income caps that limit how much donors can deduct annually, with unused deductions carried forward. These rules apply uniformly regardless of whether a taxpayer has experienced a sudden economic loss from a disaster.

The Hurricane Helene and Milton Tax Relief Act of 2025 modifies the Internal Revenue Code to provide temporary relief for eligible individuals and businesses in federally declared disaster areas. The bill authorizes the Internal Revenue Service to allow affected taxpayers to calculate their earned income tax credit using income from the prior tax year if current-year earnings declined due to hurricane damage. For charitable contributions designated for hurricane relief, the bill requires the IRS to increase deduction limits for individuals to their full contribution base and for corporations to 20 percent of taxable income, with unused deductions carried forward five years. Additionally, the bill permits taxpayers to treat donations made between January 1 and April 15, 2025, as if made in 2024, allowing them to claim deductions on their 2024 returns.

These changes take effect immediately for the 2024 and 2025 tax years, with no new appropriations required—the relief operates through existing tax administration mechanisms. Eligible individuals are those with a principal residence in a qualified hurricane disaster area who sustained economic loss between September 28 and November 2, 2024. The expanded charitable deduction limits apply through December 31, 2025, and any unused deductions carry forward for five subsequent years. The changes are limited to single-year elections for the EITC and do not affect how gross income is calculated for other tax purposes, ensuring the relief targets only those directly impacted by the hurricanes.

Key Provisions

1Authorize eligible individuals in qualified hurricane disaster areas to calculate their earned income tax credit using prior-year income if current-year earnings declined due to hurricane damage, with the election limited to a single taxable year.
2Increase the charitable contribution deduction limit for individuals to their full contribution base and for corporations to 20 percent of taxable income for donations designated for hurricane relief, with excess deductions carried forward five years.
3Permit taxpayers to treat qualified hurricane disaster contributions paid between January 1 and April 15, 2025, as if made on December 31, 2024, allowing deductions on 2024 tax returns.
4Require that qualified hurricane disaster contributions be made in cash to eligible organizations and supported by contemporaneous written acknowledgment that funds were used for relief efforts in federally declared disaster areas.
5Define eligible individuals as those whose principal residence was located in a qualified hurricane disaster area during the incident period (September 28 through November 2, 2024) and who sustained economic loss from Hurricane Helene or Hurricane Milton.

★ Why this matters

Taxpayers in hurricane-affected areas will receive larger tax refunds or smaller tax bills through expanded deductions and credits, providing immediate cash relief during recovery. Charitable organizations receiving donations for disaster relief will benefit from increased giving incentives, potentially expanding the pool of resources available for recovery efforts. The ability to backdate charitable contributions to 2024 creates a timing advantage for donors filing early in 2025.

● Who this affects

Individuals and business owners with principal residences or operations in federally declared disaster areas in Florida, Georgia, North Carolina, South Carolina, and other states affected by Hurricanes Helene and Milton between September 28 and November 2, 2024. Charitable organizations providing hurricane relief services, particularly those classified as public charities under section 170(b)(1)(A) of the Internal Revenue Code. Low- and moderate-income workers in disaster zones who claim the earned income tax credit and experienced reduced earnings due to hurricane damage. Corporations and partnerships operating in qualified disaster areas that make charitable contributions for relief efforts.

Bill Text

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<DOC>

119th CONGRESS
  1st Session
                                H. R. 140

  To provide tax relief for damages relating to Hurricanes Helene and 
                                Milton.

                    IN THE HOUSE OF REPRESENTATIVES

                            January 3, 2025

 Mr. Buchanan introduced the following bill; which was referred to the 
                      Committee on Ways and Means

                                 A BILL

 
  To provide tax relief for damages relating to Hurricanes Helene and 
                                Milton.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Hurricane Helene 
and Milton Tax Relief Act of 2025''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Earned income credit determined based on preceding taxable year 
                            income with respect to qualified hurricane 
                            disaster areas.
Sec. 4. Increased limitation on charitable contributions for qualified 
                            hurricane disaster relief; certain 
                            contributions paid before April 15, 2025, 
                            treated as paid in 2024.
Sec. 5. Special hurricane disaster-related rules for use of retirement 
                            funds.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
     (a) Eligible Individual.--The term ``eligible individual'' means 
an individual whose principal place of abode at any time during the 
incident period is located in the qualified hurricane disaster area and 
who has sustained an economic loss by reason of Hurricane Helene or 
Hurricane Milton.
    (b) Qualified Hurricane Disaster Area.--The term ``qualified 
hurricane disaster area'' means an area with respect to which a major 
disaster has been declared by the President (before the date of the 
enactment of this Act) under section 401 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act by reason of Hurricane 
Helene or Hurricane Milton.
    (c) Incident Period.--The term ``incident period'' means the period 
beginning on September 28, 2024, and ending on November 2, 2024.

SEC. 3. EARNED INCOME CREDIT DETERMINED BASED ON PRECEDING TAXABLE YEAR 
              INCOME WITH RESPECT TO QUALIFIED HURRICANE DISASTER 
              AREAS.

    (a) In General.--In the case of an eligible individual, if the 
earned income of the taxpayer for the applicable taxable year is less 
than the earned income of the taxpayer for the preceding taxable year, 
the credit allowed under section 32 of the Internal Revenue Code of 
1986 for the applicable taxable year may, at the election of the 
taxpayer, be determined by substituting--
            (1) such earned income for the preceding taxable year, for
            (2) such earned inc…

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D-North Carolina · District 12

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Hurricane Helene and Milton Tax Relief Act of 2025

Legislative Progress

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Hurricane Helene and Milton Tax Relief Act of 2025

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● Who this affects

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