I 
119TH CONGRESS 
1ST SESSION H. R. 6842 
To provide tax relief with respect to certain Federal disasters, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 18, 2025 
Ms. CHU (for herself, Mr. SHERMAN, Mr. THOMPSON of California, Ms. 
PELOSI, Mr. AGUILAR, Ms. BARRAGA´N, Ms. BROWNLEY, Mr. CARBAJAL, 
Mr. COSTA, Mr. DESAULNIER, Ms. FRIEDMAN, Mr. GARAMENDI, Mr. 
GARCIA of California, Ms. JACOBS, Ms. KAMLAGER-DOVE, Mr. LEVIN, 
Mr. LICCARDO, Mr. LIEU, Ms. LOFGREN, Ms. MATSUI, Mr. MIN, Mr. 
MULLIN, Mr. PANETTA, Mr. PETERS, Ms. RIVAS, Mr. RUIZ, Ms. 
SA´NCHEZ, Mr. SWALWELL, Mr. TAKANO, Mr. TRAN, and Mr. 
WHITESIDES) introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To provide tax relief with respect to certain Federal 
disasters, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Disaster Survivors Tax 
Relief and Recovery Act’’. 
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SEC. 2. TEMPORARY SPECIAL RULE FOR DETERMINATION 
OF EARNED INCOME. 
(a) IN GENERAL.—In the case of a qualified indi-
vidual, if the earned income of a taxpayer for the tax-
payer’s first taxable year beginning in 2025 is less than 
the earned income of the taxpayer for the preceding tax-
able year, the credits allowed under sections 24(d) and 32 
of the Internal Revenue Code of 1986 may, at the election 
of the taxpayer, be determined by substituting— 
(1) such earned income for the preceding tax-
able year, for 
(2) such earned income for the taxpayer’s first 
taxable year beginning in 2025. 
(b) QUALIFIED INDIVIDUAL.—For purposes of this 
section, the term ‘‘qualified individual’’ means any indi-
vidual whose principal place of abode at any time during 
the incident period of any qualified disaster was located— 
(1) in the qualified disaster zone with respect to 
such qualified disaster, or 
(2) in the qualified disaster area with respect to 
such qualified disaster (but outside the qualified dis-
aster zone with respect to such qualified disaster) 
and such individual was displaced from such prin-
cipal place of abode by reason of such qualified dis-
aster. 
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(c) EARNED INCOME.—For purposes of this section, 
the term ‘‘earned income’’ has the meaning given such 
term in section 32(c) of such Code. 
(d) SPECIAL RULES.— 
(1) APPLICATION
TO
JOINT
RETURNS.—For 
purposes of subsection (a), in the case of a joint re-
turn for the taxpayer’s first taxable year beginning 
in 2025— 
(A) such subsection shall apply if either 
spouse is a qualified 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 pre-
ceding taxable year. 
(2) ERRORS TREATED AS MATHEMATICAL OR 
CLERICAL ERROR.—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. 
(3) NO EFFECT ON DETERMINATION OF GROSS 
INCOME, ETC.—Except as otherwise provided in this 
section, the Internal Revenue Code of 1986 shall be 
applied without regard to any substitution under 
subsection (a). 
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SEC. 3. TEMPORARY MODIFICATION OF LIMITATIONS ON 
CERTAIN CHARITABLE CONTRIBUTIONS. 
(a) TEMPORARY SUSPENSION OF LIMITATIONS ON 
CERTAIN CASH CONTRIBUTIONS.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in paragraph (2), qualified disaster relief con-
tributions shall be disregarded in applying sub-
sections (b) and (d) of section 170 of the Internal 
Revenue Code of 1986. 
(2) TREATMENT OF EXCESS CONTRIBUTIONS.— 
For purposes of section 170 of such Code— 
(A) INDIVIDUALS.—In the case of an indi-
vidual— 
(i) LIMITATION.—Any qualified dis-
aster relief contribution shall be allowed as 
a deduction only to the extent that the ag-
gregate of such contributions does not ex-
ceed the excess of the taxpayer’s contribu-
tion 
base 
(as 
defined 
in 
section 
170(b)(1)(H) of such Code) over the 
amount of all other charitable contribu-
tions allowed under section 170(b)(1) of 
such Code. 
(ii) CARRYOVER.—If the aggregate 
amount of qualified disaster relief con-
tributions made in the contribution year 
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(3) QUALIFIED
DISASTER
RELIEF
CONTRIBU-
TION.— 
(A) IN GENERAL.—For purposes of this 
subsection, the term ‘‘qualified disaster relief 
contribution’’ means any charitable contribution 
(as defined in section 170(c) of such Code) if— 
(i) such contribution— 
(I) is paid in cash to an organi-
zation 
described 
in 
section 
170(b)(1)(A) of such Code during the 
period beginning on January 1, 2025, 
and ending on the date which is 60 
days after the date of the enactment 
of this Act, and 
(II) is made for relief efforts in 
one or more qualified disaster areas, 
(ii) the taxpayer obtains from such or-
ganization contemporaneous written ac-
knowledgment (within the meaning of sec-
tion 170(f)(8) of such Code) that such con-
tribution was used (or is to be used) for 
relief efforts described in clause (i)(II), 
and 
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(iii) the taxpayer has elected the ap-
plication of this subsection with respect to 
such contribution. 
(B) EXCEPTION.—Such term shall not in-
clude a contribution by a donor if the contribu-
tion is— 
(i) to an organization described in sec-
tion 509(a)(3) of such Code, or 
(ii) for the establishment of a new, or 
maintenance of an existing, donor advised 
fund (as defined in section 4966(d)(2) of 
such Code). 
(C) APPLICATION OF ELECTION TO PART-
NERSHIPS AND S CORPORATIONS.—In the case 
of a partnership or S corporation, the election 
under subparagraph (A)(iii) shall be made sepa-
rately by each partner or shareholder. 
(b) INCREASE
IN LIMITS
ON CONTRIBUTIONS
OF 
FOOD INVENTORY.—In the case of any charitable con-
tribution of food during 2025 to which section 
170(e)(3)(C) of such Code applies, subclauses (I) and (II) 
of clause (ii) thereof shall each be applied by substituting 
‘‘25 percent’’ for ‘‘15 percent’’. 
(c) EFFECTIVE DATE.—This section shall apply to 
contributions made on or after January 1, 2025. 
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SEC. 4. SPECIAL DISASTER-RELATED RULES FOR USE OF 
RETIREMENT FUNDS. 
(a) TAX-FAVORED WITHDRAWALS FROM RETIRE-
MENT PLANS.— 
(1) IN GENERAL.—Section 72(t) of the Internal 
Revenue Code of 1986 shall not apply to any quali-
fied disaster distribution. 
(2) AGGREGATE DOLLAR LIMITATION.— 
(A) IN GENERAL.—For purposes of this 
subsection, the aggregate amount of distribu-
tions received by an individual which may be 
treated as qualified 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 disaster distributions received by 
such individual for all prior taxable years. 
(B) TREATMENT
OF
PLAN
DISTRIBU-
TIONS.—If a distribution to an individual would 
(without regard to subparagraph (A)) be a 
qualified disaster distribution, a plan shall not 
be treated as violating any requirement of the 
Internal Revenue Code of 1986 merely because 
the plan treats such distribution as a qualified 
disaster distribution, unless the aggregate 
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amount of such distributions from all plans 
maintained by the employer (and any member 
of any controlled group which includes the em-
ployer) to such individual exceeds $100,000. 
(C) CONTROLLED GROUP.—For purposes 
of subparagraph (B), 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. 
(D) SPECIAL RULE FOR INDIVIDUALS AF-
FECTED BY MORE THAN ONE DISASTER.—The 
limitation of subparagraph (A) shall be applied 
separately with respect to distributions made 
with respect to each qualified disaster. 
(3) AMOUNT DISTRIBUTED MAY BE REPAID.— 
(A) IN GENERAL.—Any individual who re-
ceives a qualified disaster distribution may, at 
any time during the 3-year period beginning on 
the day after the date on which such distribu-
tion was received, make one or more contribu-
tions in an aggregate amount not to exceed the 
amount of such distribution to an eligible retire-
ment plan of which such individual is a bene-
ficiary and to which a rollover contribution of 
such distribution could be made under section 
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402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 
457(e)(16) of such Code, as the case may be. 
(B) TREATMENT OF REPAYMENTS OF DIS-
TRIBUTIONS
FROM
ELIGIBLE
RETIREMENT 
PLANS
OTHER
THAN
IRAS.—For purposes of 
the Internal Revenue Code of 1986, if a con-
tribution is made pursuant to subparagraph (A) 
with respect to a qualified 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 con-
tribution, be treated as having received the 
qualified disaster distribution in an eligible roll-
over 
distribution 
(as 
defined 
in 
section 
402(c)(4) of such Code) and as having trans-
ferred the amount to the eligible retirement 
plan in a direct trustee to trustee transfer with-
in 60 days of the distribution. 
(C) TREATMENT OF REPAYMENTS OF DIS-
TRIBUTIONS FROM IRAS.—For purposes of the 
Internal Revenue Code of 1986, if a contribu-
tion is made pursuant to subparagraph (A) 
with respect to a qualified disaster distribution 
from an individual retirement plan, then, to the 
extent of the amount of the contribution, the 
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qualified 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 dis-
tribution. 
(4) DEFINITIONS.—For purposes of this sub-
section— 
(A) 
QUALIFIED
DISASTER
DISTRIBU-
TION.—Except as provided in paragraph (2), 
the term ‘‘qualified disaster distribution’’ means 
any distribution from an eligible retirement 
plan made— 
(i) on or after the first day of the in-
cident period of a qualified disaster and 
before the date which is 180 days after the 
date of the enactment of this Act, and 
(ii) to an individual whose principal 
place of abode at any time during the inci-
dent period of such qualified disaster is lo-
cated in the qualified disaster area with re-
spect to such qualified disaster and who 
has sustained an economic loss by reason 
of such qualified disaster. 
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(B) ELIGIBLE
RETIREMENT
PLAN.—The 
term ‘‘eligible retirement plan’’ shall have the 
meaning 
given 
such 
term 
by 
section 
402(c)(8)(B) of such Code. 
(C) INDIVIDUAL RETIREMENT PLAN.—The 
term ‘‘individual retirement plan’’ shall have 
the meaning given such term by section 
7701(a)(37) of such Code. 
(5) INCOME INCLUSION SPREAD OVER 3-YEAR 
PERIOD.— 
(A) IN
GENERAL.—In the case of any 
qualified disaster distribution, unless the tax-
payer 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. 
(B) SPECIAL RULE.—For purposes of sub-
paragraph (A), rules similar to the rules of sub-
paragraph (E) of section 408A(d)(3) of such 
Code shall apply. 
(6) SPECIAL RULES.— 
(A) EXEMPTION OF DISTRIBUTIONS FROM 
TRUSTEE TO TRUSTEE TRANSFER AND WITH-
HOLDING
RULES.—For purposes of sections 
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401(a)(31), 402(f), and 3405 of such Code, 
qualified disaster distributions shall not be 
treated as eligible rollover distributions. 
(B) QUALIFIED DISASTER DISTRIBUTIONS 
TREATED AS MEETING PLAN DISTRIBUTION RE-
QUIREMENTS.—For purposes of the Internal 
Revenue Code of 1986, a qualified disaster dis-
tribution shall be treated as meeting the re-
quirements 
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 dis-
aster distribution which is an in-service with-
drawal shall be treated as meeting the distribu-
tion rules of section 401(a) of the Internal Rev-
enue Code of 1986. 
(b) RECONTRIBUTIONS
OF
WITHDRAWALS
FOR 
HOME PURCHASES.— 
(1) RECONTRIBUTIONS.— 
(A) IN GENERAL.—Any individual who re-
ceived a qualified distribution may, during the 
applicable period, make one or more contribu-
tions in an aggregate amount not to exceed the 
amount of such qualified distribution to an eli-
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gible retirement plan (as defined in section 
402(c)(8)(B) of such Code) of which such indi-
vidual 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. 
(B) TREATMENT OF REPAYMENTS.—Rules 
similar to the rules of subparagraphs (B) and 
(C) of subsection (a)(3) shall apply for purposes 
of this subsection. 
(2) QUALIFIED DISTRIBUTION.—For purposes 
of this subsection, 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 
disaster area, but which was not so used on ac-
count of the qualified disaster with respect to 
such area, and 
(C) which was received during the period 
beginning on the date which is 180 days before 
the first day of the incident period of such 
qualified disaster and ending on the date which 
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is 30 days after the last day of such incident 
period. 
(3) APPLICABLE PERIOD.—For purposes of this 
subsection, the term ‘‘applicable period’’ means, in 
the case of a principal residence in a qualified dis-
aster area with respect to any qualified disaster, the 
period beginning on the first day of the incident pe-
riod of such qualified disaster and ending on the 
date which is 180 days after the date of the enact-
ment of this Act. 
(c) LOANS FROM QUALIFIED PLANS.— 
(1) INCREASE IN LIMIT ON LOANS NOT TREAT-
ED
AS
DISTRIBUTIONS.—In the case of any loan 
from a qualified employer plan (as defined under 
section 72(p)(4) of such Code) to a qualified indi-
vidual made during the 180-day period beginning on 
the date of the enactment of this Act— 
(A) clause (i) of section 72(p)(2)(A) of 
such Code shall be applied by substituting 
‘‘$100,000’’ for ‘‘$50,000’’, and 
(B) clause (ii) of such section shall be ap-
plied by substituting ‘‘the present value of the 
nonforfeitable accrued benefit of the employee 
under the plan’’ for ‘‘one-half of the present 
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value of the nonforfeitable accrued benefit of 
the employee under the plan’’. 
(2) DELAY OF REPAYMENT.—In the case of a 
qualified individual (with respect to any qualified 
disaster) with an outstanding loan (on or after the 
first day of the incident period of such qualified dis-
aster) from a qualified employer plan (as defined in 
section 72(p)(4) of such Code)— 
(A) if the due date pursuant to subpara-
graph (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 of such qualified 
disaster and ending on the date which is 180 
days after the last day of such incident period, 
such due date shall be delayed for one year (or, 
if later, until the date which is 180 days after 
the date of the enactment of this Act), 
(B) any subsequent repayments with re-
spect to any such loan shall be appropriately 
adjusted to reflect the delay in the due date 
under subparagraph (A) and any interest accru-
ing during such delay, and 
(C) in determining the 5-year period and 
the term of a loan under subparagraph (B) or 
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(C) of section 72(p)(2) of such Code, the period 
described in subparagraph (A) of this para-
graph shall not be disregarded. 
(3) QUALIFIED INDIVIDUAL.—For purposes of 
this subsection, the term ‘‘qualified individual’’ 
means any individual— 
(A) whose principal place of abode at any 
time during the incident period of any qualified 
disaster is located in the qualified disaster area 
with respect to such qualified disaster, and 
(B) who has sustained an economic loss by 
reason of such qualified disaster. 
(d) PROVISIONS
RELATING
TO
PLAN
AMEND-
MENTS.— 
(1) IN GENERAL.—If this subsection applies to 
any amendment to any plan or annuity contract, 
such plan or contract shall be treated as being oper-
ated in accordance with the terms of the plan during 
the period described in paragraph (2)(B)(i). 
(2) AMENDMENTS TO WHICH SUBSECTION AP-
PLIES.— 
(A) IN
GENERAL.—This subsection shall 
apply to any amendment to any plan or annuity 
contract which is made— 
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(i) pursuant to any provision of this 
section, or pursuant to any regulation 
issued by the Secretary of the Treasury (or 
his delegate) 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 Janu-
ary 1, 2027, or such later date as the Sec-
retary 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 two 
years after the date otherwise applied under 
clause (ii). 
(B) CONDITIONS.—This subsection shall 
not apply to any amendment unless— 
(i) during the period— 
(I) beginning on the date that 
this section or the regulation de-
scribed in subparagraph (A)(i) takes 
effect (or in the case of a plan or con-
tract amendment not required by this 
section or such regulation, the effec-
tive date specified by the plan), and 
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(II) ending on the date described 
in subparagraph (A)(ii) (or, if earlier, 
the date the plan or contract amend-
ment 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. 
SEC. 5. SPECIAL RULES FOR QUALIFIED DISASTER-RE-
LATED PERSONAL CASUALTY LOSSES. 
(a) IN GENERAL.—If an individual has a net disaster 
loss for any taxable year— 
(1) the amount determined under section 
165(h)(2)(A)(ii) of the Internal Revenue Code of 
1986 shall be equal to the sum of— 
(A) such net disaster loss, and 
(B) so much of the excess referred to in 
the matter preceding clause (i) of section 
165(h)(2)(A) of such Code (reduced by the 
amount in subparagraph (A)) as exceeds 10 
percent of the adjusted gross income of the in-
dividual, 
(2) in the case of qualified disaster-related per-
sonal casualty losses, section 165(h)(1) of such Code 
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shall be applied to by substituting ‘‘$500’’ for ‘‘$500 
($100 for taxable years beginning after December 
31, 2009)’’, 
(3) the standard deduction determined under 
section 63(c) of such Code shall be increased by the 
net disaster loss, and 
(4) section 56(b)(1)(E) of such Code shall not 
apply to so much of the standard deduction as is at-
tributable to the increase under paragraph (3). 
(b) NET DISASTER LOSS.—For purposes of this sec-
tion, the term ‘‘net disaster loss’’ means the excess of 
qualified disaster-related personal casualty losses over per-
sonal casualty gains (as defined in section 165(h)(3)(A) 
of such Code). 
(c) QUALIFIED DISASTER-RELATED PERSONAL CAS-
UALTY LOSSES.—For purposes of this section, the term 
‘‘qualified disaster-related personal casualty losses’’ means 
losses described in section 165(c)(3) of such Code which 
arise in a qualified disaster area on or after the first day 
of the incident period of the qualified disaster to which 
such area relates, and which are attributable to such quali-
fied disaster. 
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SEC. 6. EXTENSION OF EXCLUSION FROM GROSS INCOME 
FOR COMPENSATION FOR LOSSES OR DAM-
AGES 
RESULTING 
FROM 
CERTAIN 
WILDFIRES. 
Section 3(d) of the Federal Disaster Tax Relief Act 
of 2023 (Public Law 118–148) is amended by striking 
‘‘2026’’ and inserting ‘‘2036’’. 
SEC. 7. ADDITIONAL LOW-INCOME HOUSING CREDIT ALLO-
CATIONS. 
(a) IN GENERAL.—For purposes of section 42 of the 
Internal Revenue Code of 1986, the State housing credit 
ceiling for any State for each of calendar years 2026 and 
2027 shall be increased by the aggregate housing credit 
dollar amount allocated by the State housing credit agen-
cies of such State for such calendar year to buildings lo-
cated in any qualified disaster zone in such State. 
(b) LIMITATION.— 
(1) APPLICATION
OF
AGGREGATE
LIMITA-
TION.—The increase determined under subsection 
(a) with respect to any State shall not exceed— 
(A) in the case of any such increase deter-
mined for calendar year 2026, the applicable 
dollar limitation for such State, and 
(B) in the case of any such increase deter-
mined for calendar year 2027, the applicable 
dollar limitation for such State reduced by the 
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amount of any increase determined under sub-
section (a) with respect to such State for cal-
endar year 2026. 
(2) APPLICABLE
DOLLAR
LIMITATION.—For 
purposes of this subsection, the term ‘‘applicable 
dollar limitation’’ means, with respect to any State, 
the product of $8.25 multiplied by the population of 
such State (as determined for calendar year 2025). 
(c) EXTENSION OF PLACED IN SERVICE DEADLINE 
FOR
DESIGNATED
HOUSING
CREDIT
DOLLAR 
AMOUNTS.— 
(1) IN GENERAL.—In the case of any housing 
credit dollar amount which is allocated by a State 
housing credit agency of a State for calendar year 
2026 or 2027 to a building located in a qualified 
disaster zone in such State and which is designated 
(at such time and in such manner as the Secretary 
may provide) by such State housing credit agency as 
housing credit dollar amount to which this sub-
section applies, section 42(h)(1)(E) of such Code 
shall be applied— 
(A) by substituting ‘‘third calendar year’’ 
for ‘‘second calendar year’’ each place it ap-
pears, and 
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(B) by substituting ‘‘2 years’’ for ‘‘1 year’’ 
in clause (ii) thereof. 
(2) APPLICATION OF LIMITATION.—The aggre-
gate amount of housing credit dollar amount des-
ignated under paragraph (1) for any calendar year 
by all State housing credit agencies of a State shall 
not exceed the amount determined under subsection 
(b)(1) with respect to such State for such calendar 
year. 
(d) ALLOCATIONS TREATED AS MADE FIRST FROM 
ADDITIONAL ALLOCATION
FOR PURPOSES
OF DETER-
MINING CARRYOVER.—For purposes of determining the 
unused State housing credit ceiling for any calendar year 
under section 42(h)(3)(C) of such Code, any increase in 
the State housing credit ceiling under subsection (a) shall 
be treated as an amount described in clause (ii) of such 
section. 
SEC. 8. DEFINITIONS. 
In this Act— 
(1) QUALIFIED
DISASTER
AREA.—The term 
‘‘qualified disaster area’’ means any area with re-
spect to which a major disaster was declared, during 
the period beginning on January 1, 2025, and end-
ing on the date which is 60 days after the date of 
the enactment of this Act, by the President under 
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agement Agency as the period during which such 
disaster occurred, except that for purposes of this 
Act, such period shall not be treated as ending after 
the date which is 30 days after the date of the en-
actment of this Act. 
Æ 
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