I 
119TH CONGRESS 
1ST SESSION 
H. R. 140 
To provide tax relief for damages relating to Hurricanes Helene and Milton. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 3, 2025 
Mr. BUCHANAN introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To provide tax relief for damages relating to Hurricanes 
Helene and Milton. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Hurricane Helene and Milton Tax Relief Act of 2025’’. 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
Sec. 3. Earned income credit determined based on preceding taxable year in-
come with respect to qualified hurricane disaster areas. 
Sec. 4. Increased limitation on charitable contributions for qualified hurricane 
disaster relief; certain contributions paid before April 15, 2025, 
treated as paid in 2024. 
Sec. 5. Special hurricane disaster-related rules for use of retirement funds. 
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SEC. 2. DEFINITIONS. 
For purposes of this Act— 
(a) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible indi-
vidual’’ means an individual whose principal place of abode 
at any time during the incident period is located in the 
qualified hurricane disaster area and who has sustained 
an economic loss by reason of Hurricane Helene or Hurri-
cane Milton. 
(b) QUALIFIED HURRICANE DISASTER AREA.—The 
term ‘‘qualified hurricane disaster area’’ means an area 
with respect to which a major disaster has been declared 
by the President (before the date of the enactment of this 
Act) under section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act by reason of Hurri-
cane Helene or Hurricane Milton. 
(c) INCIDENT PERIOD.—The term ‘‘incident period’’ 
means the period beginning on September 28, 2024, and 
ending on November 2, 2024. 
SEC. 3. EARNED INCOME CREDIT DETERMINED BASED ON 
PRECEDING TAXABLE YEAR INCOME WITH 
RESPECT TO QUALIFIED HURRICANE DIS-
ASTER AREAS. 
(a) IN GENERAL.—In the case of an eligible indi-
vidual, if the earned income of the taxpayer for the appli-
cable taxable year is less than the earned income of the 
taxpayer for the preceding taxable year, the credit allowed 
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under section 32 of the Internal Revenue Code of 1986 
for the applicable taxable year 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 applicable tax-
able year. 
(b) APPLICABLE TAX YEAR.—For purposes of this 
section, the term ‘‘applicable taxable year’’ means any tax-
able year which includes any portion of the incident pe-
riod. 
(c) EARNED INCOME.—For purposes of this section, 
the term ‘‘earned income’’ has the meaning given such 
term under 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 an applicable taxable year— 
(A) such subsection shall apply if either 
spouse is an eligible 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. 
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(2) ERRORS
TREATED
AS
MATHEMATICAL 
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, such Code shall be applied without regard to 
any substitution under subsection (a). 
(4) LIMITATION TO SINGLE TAXABLE YEAR.— 
No taxpayer may make an election under subsection 
(a) if such taxpayer (or in the case of a joint return, 
the taxpayer’s spouse) made such an election for any 
preceding taxable year. 
SEC. 4. INCREASED LIMITATION ON CHARITABLE CON-
TRIBUTIONS 
FOR 
QUALIFIED 
HURRICANE 
DISASTER RELIEF; CERTAIN CONTRIBUTIONS 
PAID BEFORE APRIL 15, 2025, TREATED AS 
PAID IN 2024. 
(a) QUALIFIED HURRICANE DISASTER CONTRIBU-
TIONS.— 
(1) INDIVIDUALS.—In the case of any qualified 
hurricane disaster contribution, notwithstanding sec-
tion 170(b) of such Code, the total amount of such 
contributions which may be taken into account 
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(3) APPLICATION OF ELECTION TO PARTNER-
SHIPS AND S CORPORATIONS.—In the case of a part-
nership or S corporation, the election under sub-
section (e)(3)(A)(iii) shall be made separately by 
each partner or shareholder. 
(b) CORPORATIONS.— 
(1) IN GENERAL.—In the case of any qualified 
hurricane disaster contribution, notwithstanding sec-
tion 170(b) of such Code, the total amount of such 
contributions which may be taken into account 
under section 170(a) of such Code shall not exceed 
the excess of— 
(A) 20 percent of the taxpayer’s taxable 
income, over 
(B) the amount of charitable contributions 
allowed under section 170(b)(2)(A) of such 
Code. 
(2) CARRYOVER.—If the aggregate amount of 
contributions described in paragraph (1) exceeds the 
limitation under such paragraph, such excess shall 
be treated (in a manner consistent with the rules of 
section 170(d)(1) of such Code) as a charitable con-
tribution to which paragraph (1) applies in each of 
the 5 succeeding years in order of time. 
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(3) COORDINATION
WITH
DEDUCTION
FOR 
CHARITABLE CONTRIBUTIONS.—For purposes of ap-
plying this paragraph and sections 170(b)(2) of such 
Code, contributions described in paragraph (1) shall 
not be treated as described in subparagraph (A), 
(B), or (C) of section 170(b)(2) of such Code and 
such subparagraphs shall be applied without regard 
to such contributions. 
(c) DEDUCTION ALLOWED ABOVE THE LINE.—In 
the case of an individual— 
(1) the standard deduction otherwise deter-
mined under section 63 of such Code shall be in-
creased by so much of the deduction allowed under 
section 170 of such Code as would not be so allowed 
if determined without regard to this section, and 
(2) section 56(b)(1)(D) of such Code shall not 
apply to so much of the standard deduction as is at-
tributable to the increase under paragraph (1). 
(d) CONTRIBUTIONS TREATED AS MADE IN PRIOR 
YEAR.—For purposes of this section, a taxpayer may treat 
any qualified hurricane disaster contribution which is paid 
after December 31, 2024, and on or before April 15, 2025, 
as if such contribution was made on December 31, 2024, 
and not in 2025. 
(e) DEFINITIONS.—For purposes of this section— 
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(1) CHARITABLE
CONTRIBUTION.—The term 
‘‘charitable contribution’’ has the meaning given 
such term in section 170(c) of such Code. 
(2) CONTRIBUTION
BASE.—The term ‘‘con-
tribution base’’ has the meaning given such term in 
section 170(b)(1)(H) of such Code. 
(3) QUALIFIED
HURRICANE
DISASTER
CON-
TRIBUTION.— 
(A) IN
GENERAL.—The term ‘‘qualified 
hurricane disaster contribution’’ means any 
charitable contribution if— 
(i) such contribution— 
(I) is paid on or after the first 
day of the incident period and before 
December 31, 2025, in cash to an or-
ganization 
described 
in 
section 
170(b)(1)(A) of such Code, and 
(II) is made for relief efforts in a 
qualified hurricane disaster area re-
lated to Hurricane Helene or Hurri-
cane Milton, 
(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-
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tribution was used (or is to be used) for 
relief efforts in a qualified hurricane dis-
aster area related to Hurricane Helene or 
Hurricane Milton, and 
(iii) the taxpayer has elected the ap-
plication of this section with respect to 
such contribution. 
(B) EXCEPTION.—A qualified hurricane 
disaster contribution shall not include a con-
tribution by a donor if the contribution is— 
(i) to an organization described in sec-
tion 509(a)(3) of such Code, or 
(ii) for establishment of a new, or 
maintenance of an existing, donor advised 
fund (as defined in section 4966(d)(2) of 
such Code). 
SEC. 5. SPECIAL HURRICANE 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 hurricane disaster distribution. 
(2) AGGREGATE DOLLAR LIMITATION.— 
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(A) IN GENERAL.—For purposes of this 
subsection, the aggregate amount of distribu-
tions received by an individual which may be 
treated as qualified hurricane disaster distribu-
tions for any taxable year shall not exceed the 
excess (if any) of— 
(i) $100,000, over 
(ii) the aggregate amounts treated as 
qualified hurricane 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 hurricane disaster distribution, a plan 
shall not be treated as violating any require-
ment of such Code merely because the plan 
treats such distribution as a qualified hurricane 
disaster distribution, unless the aggregate 
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 
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group’’ means any group treated as a single 
employer under subsection (b), (c), (m), or (o) 
of section 414 of such Code. 
(3) AMOUNT DISTRIBUTED MAY BE REPAID.— 
(A) IN GENERAL.—Any individual who re-
ceives a qualified hurricane disaster distribution 
may, at any time during the 3-year period be-
ginning on the day after the date on which such 
distribution was received, make 1 or more con-
tributions in an aggregate amount not to exceed 
the amount of such distribution to an eligible 
retirement plan of which such individual is a 
beneficiary and to which a rollover contribution 
of such distribution could be made under sec-
tion 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 
such Code, if a contribution is made pursuant 
to subparagraph (A) with respect to a qualified 
hurricane disaster distribution from an eligible 
retirement plan other than an individual retire-
ment plan, then the taxpayer shall, to the ex-
tent of the amount of the contribution, be treat-
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(2), the term ‘‘qualified hurricane disaster dis-
tribution’’ means any distribution from an eligi-
ble retirement plan made— 
(i) on or after the first day of the in-
cident period and before December 31, 
2025, and 
(ii) to an eligible individual. 
(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. 
(5) INCOME INCLUSION SPREAD OVER 3-YEAR 
PERIOD.— 
(A) IN
GENERAL.—In the case of any 
qualified hurricane disaster distribution, unless 
the taxpayer elects not to have this paragraph 
apply for any taxable year, any amount re-
quired 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 sec-
tion 408A(d)(3)(E) of such Code shall apply. 
(6) SPECIAL RULES.— 
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(A) EXEMPTION OF DISTRIBUTIONS FROM 
TRUSTEE TO TRUSTEE TRANSFER AND WITH-
HOLDING
RULES.—For purposes of sections 
401(a)(31), 402(f), and 3405 of such Code, 
qualified hurricane disaster distributions shall 
not be treated as eligible rollover distributions. 
(B) QUALIFIED HURRICANE DISASTER DIS-
TRIBUTIONS TREATED AS MEETING PLAN DIS-
TRIBUTION REQUIREMENTS.—For purposes of 
such Code, a qualified hurricane 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 hurri-
cane disaster distribution which is an in-service 
withdrawal shall be treated as meeting the dis-
tribution rules of section 401(a) of such Code. 
(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 1 or more contributions 
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in an aggregate amount not to exceed the 
amount of such qualified distribution to an eli-
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 
hurricane disaster area, but which was not so 
used on account of Hurricane Helene or Hurri-
cane Milton, and 
(C) which was received during the period 
beginning on the date which is 180 days before 
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the first day of the incident period and ending 
on the date which 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 hurri-
cane disaster area, the period beginning on the first 
day of the incident period and ending on December 
31, 2025. 
(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 an eligible indi-
vidual made during the period beginning on the date 
of the enactment of this Act and ending on June 30, 
2025— 
(A) section 72(p)(2)(A)(i) 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 an 
eligible individual with an outstanding loan (on or 
after the first day of the incident period) 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 and ending on 
the date which is 180 days after the last day 
of such incident period, such due date shall be 
delayed for 1 year (or, if later, until December 
31, 2025), 
(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 
(C) of section 72(p)(2) of such Code, the period 
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described in subparagraph (A) of this para-
graph shall be disregarded. 
(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— 
(i) pursuant to any provision of this 
section, or pursuant to any regulation 
issued by the Secretary 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, 2025, 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 
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