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Provides targeted tax relief for people and organizations harmed by Hurricanes Helene and Milton during Sept 28–Nov 2, 2024. It lets eligible residents use prior-year earned income to compute the Earned Income Credit, expands temporary charitable deduction rules for cash gifts to qualifying charities, and gives special retirement-plan distribution, rollover, loan, and repayment relief through the end of 2025. Relief is limited to people who lived in areas with a presidential major-disaster declaration for those hurricanes and who suffered economic loss; many provisions have caps, time limits, and special election or documentation rules.
The bill provides targeted tax and financial relief and clarifies eligibility for residents, donors, and taxpayers in declared Hurricane Helene/Milton areas—improving immediate liquidity and incentivizing donations—but does so with narrow timing and declaration rules, added administrative complexity, and fiscal costs that may leave some affected people excluded and others facing long-term trade-offs (like reduced retirement savings).
Homeowners and renters in areas covered by the qualifying Stafford Act declarations for Hurricanes Helene and Milton become eligible for disaster relief for losses during Sept 28–Nov 2, 2024, and the bill clarifies which presidential declarations qualify, reducing uncertainty about access to aid.
Low-income taxpayers (including joint filers where one spouse is eligible) in qualified hurricane disaster areas can elect to use higher prior-year earned income to increase refundable EIC amounts, and certain IRS math/clerical errors can be corrected quickly to reduce audit burden and speed resolution.
Individuals and corporations are given enhanced tax incentives to donate cash to Hurricane Helene/Milton relief (larger deductible amounts for individuals, up to an extra 20% corporate deduction, and an extended election window), which should increase donations available to relief nonprofits.
People who suffered housing loss or income loss outside the narrow incident period (before Sept 28 or after Nov 2, 2024) are excluded from relief under this Act, leaving some disaster-affected households without assistance.
Areas affected by the hurricanes but lacking a Presidential major disaster declaration before the bill's enactment may be excluded from benefits, potentially denying relief to some impacted communities.
Expanded EIC, donation deductions, and retirement/distribution rules will reduce federal revenue or increase outlays, adding fiscal cost that could increase deficits or pressure future tax and spending choices.
Introduced January 3, 2025 by Vernon G. Buchanan · Last progress January 3, 2025