Disaster Survivors Tax Relief and Recovery Act

Tax Credit Protection: Qualified individuals whose earned income decreases due to a disaster can elect to use their previous year's income to determine their tax credits under sections 24(d) and 32 (Section 2).

Charitable Giving Flexibility: The bill allows for the disregard of certain limitations on cash contributions for qualified disaster relief (Section 3(a)).

Increased Food Donation Limits: There is an increase in the limits on the contribution of food inventory (Section 3(b)).

Retirement Fund Access: Individuals can take "qualified disaster distributions" from retirement plans without the usual penalties, up to a $100,000 aggregate limit (Section 4(a)).

Retirement Fund Recovery: People who take disaster distributions can make recontributions to their retirement plans within a three-year period (Section 4(a)(3)).

Home Purchase Support: Individuals can make recontributions to retirement plans specifically for those who intended to use funds for a principal residence in a disaster area but were unable to do so (Section 4(b)).

Loan Adjustments: The bill increases the limit on loans from qualified employer plans to $100,000 and allows for the delay of loan repayments for qualified individuals (Section 4(c)).

Casualty Loss Relief: The standard deduction can be increased by the amount of a net disaster loss, and the threshold for personal casualty losses is adjusted (Section 5).

Wildfire Compensation: The exclusion from gross income for compensation resulting from certain wildfires is extended through 2036 (Section 6).

Housing Credit Increases: State housing credit ceilings are increased for buildings located in qualified disaster zones during 2026 and 2027 (Section 7).

Contribution Limitations for Individuals: For individuals, qualified disaster relief contributions are allowed as a deduction only up to the excess of their contribution base over other charitable contributions (Section 3(a)(2)(A)).

Contribution Limitations for Corporations: For corporations, these contributions are limited to the excess of 100 percent of taxable income over other charitable contributions (Section 3(a)(2)(B)).

Retirement Distribution Caps: There is an aggregate dollar limitation of $100,000 for qualified disaster distributions received by an individual (Section 4(a)(2)).

Housing Credit Caps: The increase in the State housing credit ceiling is subject to an applicable dollar limitation based on the state's population (Section 7(b)).