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Congressional Research Service
Version 00 · Introduced in House · Jan 3, 2025
Hurricane Helene and Milton Tax Relief Act of 2025
This bill increases the tax deduction for charitable contributions related to Hurricanes Helene and Milton relief efforts and makes changes related to distributions and loans from retirement plans and the earned income tax credit (EITC) for eligible individuals impacted by the hurricanes.
The bill increases the maximum tax deduction for charitable contributions to 100% of adjusted gross income for individuals and 20% of taxable income for corporations for qualified hurricane disaster contributions. Further, individuals may claim a deduction for qualified hurricane disaster contributions even if they do not itemize their tax deductions.
Showing the opening paragraphs of the official summary.
The bill defines qualified hurricane disaster contributions, as charitable contributions for Hurricanes Helene and Milton relief efforts made on or after September 28, 2024, and before December 31, 2025.
The bill also
eliminates the 10% penalty on early distributions from a qualified retirement plan for up to $100,000 of qualified hurricane disaster distributions to an eligible individual,
allows eligible individuals to include qualified hurricane disaster distributions in income over three years, and
increases the loan amount that may be borrowed from a qualified retirement plan to $100,000 and allows such loans to be repaid over a longer time period.
An eligible individual is an individual whose principal home during the incident period was in a qualified hurricane disaster area and who sustained economic loss due to Hurricanes Helene or Milton.
Finally, the bill allows eligible individuals to calculate the EITC for the 2024 tax year using 2023 earned income.
People & committees
Rep. Buchanan, Vern [R-FL-16] · R–FL
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Sep 10, 2025. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-01-03 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposed Hurricane Helene and Milton Tax Relief Act of 2025 would offer special tax rules for people who lived in qualifying disaster areas and suffered hurricane-related economic losses. They could use prior-year earnings to calculate the earned income tax credit when earnings fell and receive special treatment for retirement withdrawals and loans. The bill would also change deduction limits and timing for qualifying charitable donations supporting hurricane relief.
This Act may be cited as the Hurricane Helene and Milton Tax Relief Act of 2025.
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
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 income for the applicable taxable year.
Increased limitation on charitable contributions for qualified hurricane disaster relief; certain contributions paid before April 15, 2025, treated as paid in 2024
Special hurricane disaster-related rules for use of retirement funds
Loans from qualified plans (1) Increase in limit on loans not treated as distributions
An eligible person would need to have had their main home in a qualifying disaster area at some point from September 28 through November 2, 2024, and suffered an economic loss from either hurricane. Qualifying areas would require a presidential major-disaster declaration for Helene or Milton before enactment.
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.
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.
The term incident period means the period beginning on September 28, 2024, and ending on November 2, 2024.
Eligible taxpayers whose earnings fell could choose to calculate the earned income tax credit using the preceding year's earnings. This option would apply to a tax year containing any part of the incident period.
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 income for the applicable taxable year.
the term applicable taxable year means any taxable year which includes any portion of the incident period.
For a joint return, either spouse's eligibility would satisfy the eligibility condition, and both spouses' preceding-year earnings would be added together. The election could be used for only one tax year; a prior election by either spouse would bar a later joint-return election.
in the case of a joint return for an applicable taxable year— (A) such subsection shall apply if either spouse is an eligible individual, and (B) the earned income of the taxpayer for the preceding taxable year shall be the sum of the earned income of each spouse for such preceding taxable year.
No taxpayer may make an election under subsection (a) if such taxpayer (or in the case of a joint return, the taxpayer’s spouse) made such an election for any preceding taxable year.
Incorrect use of the earnings substitution would be classified as a mathematical or clerical error under the referenced tax procedure. Except for this section's rules, the substitution would not change how the tax code applies.
For purposes of section 6213 of such Code, an incorrect use on a return of earned income pursuant to subsection (a) shall be treated as a mathematical or clerical error.
Except as otherwise provided in this section, such Code shall be applied without regard to any substitution under subsection (a).
Qualifying donations would have to be cash payments made from September 28, 2024, through December 30, 2025, to organizations covered by the cited tax-code provision, for Helene or Milton relief in qualifying areas. Donors would need a contemporaneous written acknowledgment of that use and would have to elect the special treatment.
the period beginning on September 28, 2024, and ending on November 2, 2024.
such contribution— (I) is paid on or after the first day of the incident period and before December 31, 2025, in cash to an organization described in section 170(b)(1)(A) of such Code, and (II) is made for relief efforts in a qualified hurricane disaster area related to Hurricane Helene or Hurricane Milton
the taxpayer obtains from such organization contemporaneous written acknowledgment (within the meaning of section 170(f)(8) of such Code) that such contribution was used (or is to be used) for relief efforts in a qualified hurricane disaster area related to Hurricane Helene or Hurricane Milton, and (iii) the taxpayer has elected the application of this section with respect to such contribution.
Donations to organizations described in tax-code section 509(a)(3), or to establish or maintain donor-advised funds, would be excluded. For partnerships and S corporations, each partner or shareholder would separately choose whether to use the special treatment.
A qualified hurricane disaster contribution shall not include a contribution by a donor if the contribution is— (i) to an organization described in section 509(a)(3) of such Code, or (ii) for establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2) of such Code).
In the case of a partnership or S corporation, the election under subsection (e)(3)(A)(iii) shall be made separately by each partner or shareholder.
For individual donors, the special deduction limit would equal their tax-code-defined contribution base minus other allowable charitable contributions. Amounts above this limit could be carried forward, meaning considered for deduction in the next five years in order, under the stated coordination rules.
the total amount of such contributions which may be taken into account under section 170(a) of such Code shall not exceed the excess of— (A) the taxpayer’s contribution base, over (B) the amount of all other charitable contributions allowable under section 170(b)(1) of such Code.
such excess shall be treated (in a manner consistent with the rules of subsection 170(d)(1) of such Code) as a charitable contribution to which paragraph (1) applies in each of the 5 succeeding years in order of time.
contributions described in paragraph (1) shall not be treated as described in subparagraph (A) or (G) of section 170(b)(1) of such Code and such subparagraphs shall be applied without regard to such contributions.
The term contribution base has the meaning given such term in section 170(b)(1)(H) of such Code.
For corporations, the special deduction limit would be 20 percent of taxable income minus charitable contributions allowed under section 170(b)(2)(A). Excess qualifying donations could be carried forward for five succeeding years in order, with separate coordination rules for other charitable deductions.
the total amount of such contributions which may be taken into account under section 170(a) of such Code shall not exceed the excess of— (A) 20 percent of the taxpayer’s taxable income, over (B) the amount of charitable contributions allowed under section 170(b)(2)(A) of such Code.
such excess shall be treated (in a manner consistent with the rules of section 170(d)(1) of such Code) as a charitable contribution to which paragraph (1) applies in each of the 5 succeeding years in order of time.
contributions described in paragraph (1) shall not be treated as described in subparagraph (A), (B), or (C) of section 170(b)(2) of such Code and such subparagraphs shall be applied without regard to such contributions.
For individuals, the bill would increase the standard deduction by the additional charitable deduction allowed because of this section. It would also make tax-code section 56(b)(1)(D) inapplicable to that increase; the referenced provision is not reproduced.
In the case of an individual— (1) the standard deduction otherwise determined under section 63 of such Code shall be increased by so much of the deduction allowed under section 170 of such Code as would not be so allowed if determined without regard to this section, and (2) section 56(b)(1)(D) of such Code shall not apply to so much of the standard deduction as is attributable to the increase under paragraph (1).
Taxpayers could choose to treat qualifying donations paid from January 1 through April 15, 2025, as made on December 31, 2024, instead of in 2025.
a taxpayer may treat any qualified hurricane disaster contribution which is paid after December 31, 2024, and on or before April 15, 2025, as if such contribution was made on December 31, 2024, and not in 2025.
Qualifying retirement withdrawals would have to come from an eligible retirement plan, go to an eligible individual, and occur from September 28, 2024, through December 30, 2025. Tax-code section 72(t) would not apply to those withdrawals; the bill does not reproduce that section.
the period beginning on September 28, 2024, and ending on November 2, 2024.
Section 72(t) of the Internal Revenue Code of 1986 shall not apply to any qualified hurricane disaster distribution.
Except as provided in paragraph (2), the term qualified hurricane disaster distribution means any distribution from an eligible retirement plan made— (i) on or after the first day of the incident period and before December 31, 2025, and (ii) to an eligible individual.
A person could receive special disaster-withdrawal treatment for a total of up to $100,000 across tax years. Each year's remaining limit would subtract amounts already treated as qualifying withdrawals in earlier years.
the aggregate amount of distributions received by an individual which may be treated as qualified hurricane disaster distributions for any taxable year shall not exceed the excess (if any) of— (i) $100,000, over (ii) the aggregate amounts treated as qualified hurricane disaster distributions received by such individual for all prior taxable years.
A retirement plan generally would not violate the tax code merely by treating an otherwise qualifying withdrawal as a disaster withdrawal. This protection would not apply if such withdrawals to the person from all plans maintained by the employer and its related employer group exceeded $100,000.
a plan shall not be treated as violating any requirement of such Code merely because the plan treats such distribution as a qualified hurricane disaster distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual exceeds $100,000.
the term controlled group means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of such Code.
Recipients could repay all or part of a qualifying retirement withdrawal during the three-year period starting the day after receipt. Repayments could not exceed the withdrawal and would have to go to an eligible plan in which the person is a beneficiary and that could accept the transfer under the cited rules.
Any individual who receives a qualified hurricane disaster distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make 1 or more contributions in an aggregate amount not to exceed the amount of such distribution to an eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), of such Code, as the case may be.
Qualifying repayments would receive rollover treatment—that is, treatment as a transfer into a retirement plan. The repaid amount would be treated as transferred directly between plan trustees within 60 days of the original withdrawal, under separate rules for individual retirement plans and other eligible plans.
with respect to a qualified hurricane disaster distribution from an eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received the qualified hurricane disaster distribution in an eligible rollover distribution (as defined in section 402(c)(4) of such Code) and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.
with respect to a qualified hurricane disaster distribution from an individual retirement plan (as defined by section 7701(a)(37) of such Code), then, to the extent of the amount of the contribution, the qualified hurricane disaster distribution shall be treated as a distribution described in section 408(d)(3) of such Code and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.
Any qualifying withdrawal amount required to be included in income would generally be spread evenly over three tax years, beginning with the tax year for which the amount otherwise must be included. Taxpayers could opt out, and rules similar to those in the referenced section 408A(d)(3)(E) would also apply.
unless the taxpayer elects not to have this paragraph apply for any taxable year, any amount required to be included in gross income for such taxable year shall be so included ratably over the 3-taxable-year period beginning with such taxable year.
For purposes of subparagraph (A), rules similar to the rules of section 408A(d)(3)(E) of such Code shall apply.
Qualifying disaster withdrawals would not count as eligible rollover distributions for purposes of tax-code sections 401(a)(31), 402(f), and 3405, under the bill's heading concerning transfer and withholding rules. They would also be treated as satisfying the listed plan-distribution requirements, including the stated rule for in-service withdrawals under a money purchase pension plan. The referenced requirements are not reproduced.
Exemption of distributions from trustee to trustee transfer and withholding rules For purposes of sections 401(a)(31), 402(f), and 3405 of such Code, qualified hurricane disaster distributions shall not be treated as eligible rollover distributions.
a qualified hurricane disaster distribution shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A) of such Code and section 8433(h)(1) of title 5, United States Code, and, in the case of a money purchase pension plan, a qualified hurricane disaster distribution which is an in-service withdrawal shall be treated as meeting the distribution rules of section 401(a) of such Code.
A separate repayment option would cover specified retirement withdrawals intended to buy or build a main home in a qualifying disaster area but not used for that purpose because of either hurricane. The original withdrawal would have to fall between 180 days before the incident period began and 30 days after it ended.
the term qualified distribution means any distribution— (A) described in section 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(i)(V), 403(b)(11)(B), or 72(t)(2)(F), of such Code, (B) which was to be used to purchase or construct a principal residence in a qualified hurricane disaster area, but which was not so used on account of Hurricane Helene or Hurricane Milton, and (C) which was received during the period beginning on the date which is 180 days before the first day of the incident period and ending on the date which is 30 days after the last day of such incident period.
Qualifying home-purchase withdrawals could be repaid to an eligible retirement plan from September 28, 2024, through December 31, 2025. Repayments could not exceed the original withdrawal, would need to satisfy the stated transfer eligibility rules, and would receive treatment similar to the other disaster-withdrawal repayments.
the period beginning on September 28, 2024, and ending on November 2, 2024.
Any individual who received a qualified distribution may, during the applicable period, make 1 or more contributions in an aggregate amount not to exceed the amount of such qualified distribution to an eligible retirement plan (as defined in section 402(c)(8)(B) of such Code) of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3), of such Code, as the case may be.
Rules similar to the rules of subparagraphs (B) and (C) of subsection (a)(3) shall apply for purposes of this subsection.
the period beginning on the first day of the incident period and ending on December 31, 2025.
For qualifying employer-plan loans to eligible individuals made from enactment through June 30, 2025, the bill would replace the referenced $50,000 limit with $100,000. It would also replace the reference to half the present value of benefits the employee is entitled to keep with their full present value. The complete underlying loan-limit formula is not supplied.
In the case of any loan from a qualified employer plan (as defined under section 72(p)(4) of such Code) to an eligible individual made during the period beginning on the date of the enactment of this Act and ending on June 30, 2025— (A) section 72(p)(2)(A)(i) of such Code shall be applied by substituting $100,000 for $50,000, and (B) clause (ii) of such section shall be applied by substituting the present value of the nonforfeitable accrued benefit of the employee under the plan for one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan.
For eligible individuals with qualifying employer-plan loans outstanding on or after the incident period began, covered repayments due from the incident period's first day through 180 days after its last day would be delayed. Each covered due date would move back one year, or to December 31, 2025, if that were later.
In the case of an eligible individual with an outstanding loan (on or after the first day of the incident period) from a qualified employer plan (as defined in section 72(p)(4) of such Code)— (A) if the due date pursuant to subparagraph (B) or (C) of section 72(p)(2) of such Code for any repayment with respect to such loan occurs during the period beginning on the first day of the incident period and ending on the date which is 180 days after the last day of such incident period, such due date shall be delayed for 1 year (or, if later, until December 31, 2025)
Later loan payments would be adjusted for the delay and any interest accruing during it. The period described in the delay provision would be disregarded when determining the referenced five-year repayment period and loan term.
any subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date under subparagraph (A) and any interest accruing during such delay
in determining the 5-year period and the term of a loan under subparagraph (B) or (C) of section 72(p)(2) of such Code, the period described in subparagraph (A) of this paragraph shall be disregarded.
Plans and annuity contracts could receive the bill's amendment-related compliance treatment if amendments implementing this section or related regulations were adopted by the last day of the first plan year beginning on or after January 1, 2025, or a later date prescribed by the Secretary. Governmental plans would receive two additional years.
If this subsection applies to any amendment to any plan or annuity contract, such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph (2)(B)(i).
any amendment to any plan or annuity contract which is made— (i) pursuant to any provision of this section, or pursuant to any regulation issued by the Secretary or the Secretary of Labor under any provision of this section, and (ii) on or before the last day of the first plan year beginning on or after January 1, 2025, or such later date as the Secretary may prescribe.
In the case of a governmental plan (as defined in section 414(d) of such Code), clause (ii) shall be applied by substituting the date which is 2 years after the date otherwise applied under clause (ii).
That compliance treatment would require the plan to operate as though the amendment were already effective and then adopt it retroactively. The covered period would run from the relevant effective date to the amendment deadline or earlier adoption date; optional amendments would use the effective date specified by the plan.
This subsection shall not apply to any amendment unless— (i) during the period— (I) beginning on the date that this section or the regulation described in subparagraph (A)(i) takes effect (or in the case of a plan or contract amendment not required by this section or such regulation, the effective date specified by the plan), and (II) ending on the date described in subparagraph (A)(ii) (or, if earlier, the date the plan or contract amendment is adopted), the plan or contract is operated as if such plan or contract amendment were in effect, and (ii) such plan or contract amendment applies retroactively for such period.
The supplied official-actions snapshot, updated September 10, 2025, records introduction in the House and referral to the House Committee on Ways and Means on January 3, 2025. It does not establish subsequent action or enactment.
Source snapshot updated 2025-09-10T13:55:58Z. 2025-01-03: Referred to the House Committee on Ways and Means. 2025-01-03: Introduced in House 2025-01-03: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-01-03. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No provision unrelated to the hurricane tax-relief subject, or policy change attached to appropriations, was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish attachment history or the contents of other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version; the source set does not establish formal earmark status in other versions or accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow preferential carve-out beyond the bill's intended disaster-relief beneficiaries and routine administration was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: Sep 10, 2025. How PlainBill uses AI