I 
119TH CONGRESS 
1ST SESSION H. R. 3975 
To amend the Internal Revenue Code of 1986 to provide a lookback rule 
in the case of certain federally declared disasters for amounts related 
to earned income for purposes of determining certain tax credits. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2025 
Mr. KENNEDY of New York (for himself, Mr. HUFFMAN, Ms. BARRAGA´N, Ms. 
NORTON, Mr. NEGUSE, Ms. TOKUDA, Ms. TLAIB, and Ms. CHU) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a lookback rule in the case of certain federally declared 
disasters for amounts related to earned income for pur-
poses of determining certain tax credits. 
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 ‘‘Tax Fairness for Dis-
aster Victims Act’’. 
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SEC. 2. LOOKBACK RULE IN CASE OF CERTAIN FEDERALLY 
DECLARED DISASTERS FOR AMOUNTS RE-
LATED TO EARNED INCOME FOR PURPOSES 
OF DETERMINING CERTAIN TAX CREDITS. 
(a) IN GENERAL.—Section 32 of the Internal Rev-
enue Code of 1986 is amended by inserting after sub-
section (f) the following new subsection: 
‘‘(g) LOOKBACK RULE FOR DETERMINING AMOUNTS 
RELATED TO EARNED INCOME IN CASE OF CERTAIN 
FEDERALLY DECLARED DISASTERS.— 
‘‘(1) IN GENERAL.—In the case of a qualified 
individual who elects the application of this sub-
section (at such time and in such manner as the 
Secretary may provide)— 
‘‘(A) if the earned income of the taxpayer 
for the taxable year which includes the applica-
ble date is less than the earned income of the 
taxpayer for the preceding taxable year, the 
credits allowed under this section and section 
24(d) shall be determined by substituting— 
‘‘(i) such earned income for the pre-
ceding taxable year, for 
‘‘(ii) such earned income for the tax-
able year which includes the applicable 
date, and 
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‘‘(B) if the social security taxes of the tax-
payer for the taxable year which includes the 
applicable date is less than the social security 
taxes of the taxpayer for the preceding taxable 
year, the credit allowed under section 24(d) 
shall be determined by substituting— 
‘‘(i) such social security taxes for the 
preceding taxable year, for 
‘‘(ii) such social security taxes for the 
taxable year which includes the applicable 
date. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) QUALIFIED INDIVIDUAL.—The term 
‘qualified individual’ means any individual 
whose principal place of abode on the applicable 
date was located in a disaster area with respect 
to a federally declared disaster. 
‘‘(B) APPLICABLE DATE.—The term ‘ap-
plicable date’ means, with respect to any feder-
ally declared disaster, the first day of the period 
specified by the Federal Emergency Manage-
ment Agency as the period during which such 
disaster occurred. 
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‘‘(C) FEDERALLY
DECLARED
DISASTER; 
DISASTER AREA.—The terms ‘federally declared 
disaster’ and ‘disaster’ have the respective 
meanings given such terms by section 165(i)(5). 
‘‘(D) SOCIAL SECURITY TAXES.—The term 
‘social security taxes’ has the meaning given 
such term by section 24(d)(2). 
‘‘(3) APPLICATION
TO
JOINT
RETURNS.—For 
purposes of paragraph (1), in the case of a joint re-
turn— 
‘‘(A) such paragraph shall apply if either 
spouse is a qualified individual, 
‘‘(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, and 
‘‘(C) the social security taxes of the tax-
payer for the preceding taxable year shall be 
the sum of the social security taxes of each 
spouse for such preceding taxable year. 
‘‘(4) UNIFORM APPLICATION OF ELECTION.— 
Any election made under paragraph (1) shall apply 
for all purposes of paragraph (1). 
‘‘(5) NO EFFECT ON DETERMINATION OF GROSS 
INCOME, ETC.—Except as otherwise provided in this 
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subsection, this title shall be applied without regard 
to any substitution under paragraph (1).’’. 
(b) TREATMENT AS MATHEMATICAL OR CLERICAL 
ERRORS.—Section 6213(g)(2) of such Code is amended 
by striking ‘‘and’’ at the end of subparagraph (U), by 
striking the period at the end of subparagraph (V) and 
inserting ‘‘, and’’, and by inserting after subparagraph (V) 
the following new subparagraph: 
‘‘(W) an incorrect use of earned income or 
social security taxes pursuant to section 
32(g).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to determinations of earned income 
and social security taxes for taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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