Bill · H.R. 140· House(119-HR-140)
Hurricane Helene and Milton Tax Relief Act of 2025
- Introduced
- 1/3/2025
- Last activity
- 1/3/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Vern Buchanan
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The Hurricane Helene and Milton Tax Relief Act of 2025 aims to provide tax relief for people affected by these specific hurricanes. It offers options for eligible individuals in qualified disaster areas to adjust their earned income for tax credits. The bill also increases limitations on charitable contributions for disaster relief. Additionally, it establishes special rules for using retirement funds to assist those suffering economic losses. These rules include provisions for withdrawals, loans, and recontributions.
Yes· 3 of 8
Would households on low incomes be better off under this?+6
The expansion of the earned income credit determination helps low-income families recover from economic losses.
Does this improve help for people hit by a disaster?+6
The bill provides significant tax-related relief and expanded access to personal funds for individuals impacted by Hurricanes Helene and Milton.
Would people over 65 be better off under this?+5
The bill provides flexible access to retirement funds and potential income smoothing for those receiving distributions.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Credit Adjustments: Eligible individuals whose income dropped due to the hurricanes can elect to use their previous year's income to determine their earned income credit, which may provide more relief (Section 3).
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Charitable Giving Relief: The bill increases the amount of charitable contributions people can take into account for disaster relief, even if it exceeds standard limits (Section 4).
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Flexible Charitable Timing: Taxpayers can treat certain qualified disaster contributions made in early 2025 as if they were made in 2024 (Section 4).
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Retirement Fund Access: Individuals can take distributions from their retirement plans without the usual tax penalties typically associated with such withdrawals (Section 5).
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Income Smoothing: For those taking retirement distributions, the bill allows the required income inclusion to be spread out over a three-year period to reduce the immediate tax burden (Section 5).
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Retirement Plan Loans: The bill increases the limit on loans that can be taken from qualified employer plans, allowing for larger amounts to be borrowed (Section 5).
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Loan Repayment Flexibility: For those with existing plan loans, the due date for repayments can be delayed, providing more time to pay back the funds (Section 5).
Potential Negative Impacts for People
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Contribution Exclusions: Certain charitable contributions, such as those made to specific organizations or for establishing new donor-advised funds, are not considered qualified hurricane disaster contributions (Section 4).
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Retirement Distribution Limits: There is an aggregate dollar limit of $100,000 on the total qualified hurricane disaster distributions an individual can receive (Section 5).
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Loan Limits: The increase in loan amounts is capped, as the new higher limit replaces the previous $50,000 threshold (Section 5).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+6Good For Middle Class Households+5Good For Retirees+5Good For Seniors+5
- Economy And Finance
- Reduces Middle Class Taxes+5Improves Economic Growth+3
- Environment Energy And Infrastructure
- Improves Disaster Relief And F E M A+6
- Social Issues And Justice
- Improves Poverty Reduction+4
- 1/22/2025
- 1 Cosponsor added.
- 1/3/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House
Chuck EdwardsRepublican · North Carolina