Working Families Disaster Tax Relief Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6645 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 6645

 To amend the Internal Revenue Code of 1986 to allow disaster-affected 
  taxpayers to use preceding taxable year earned income to determine 
eligibility for the earned income credit and the refundable portion of 
                         the child tax credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 11, 2025

  Ms. Jacobs introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow disaster-affected 
  taxpayers to use preceding taxable year earned income to determine 
eligibility for the earned income credit and the refundable portion of 
                         the child tax credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Working Families Disaster Tax Relief 
Act''.

SEC. 2. ELECTION FOR DISASTER-AFFECTED TAXPAYERS TO USE PRECEDING YEAR 
              EARNED INCOME TO DETERMINE CREDIT ELIGIBILITY.

    (a) Election To Use Prior Year Income for Disaster-Affected 
Taxpayers With Respect to Child Tax Credit.--Section 24(d) of the 
Internal Revenue Code of 1986 is amended to read as follows:
            ``(4) Election to use prior year income for disaster-
        affected taxpayers.--
                    ``(A) In general.--A disaster-affected taxpayer may 
                elect to apply paragraph (1) by substituting `the 
                preceding taxable year' for `the taxable year' each 
                place such term appears.
                    ``(B) Disaster-affected taxpayer.--For purposes of 
                this paragraph, the term `disaster-affected taxpayer' 
                means, with respect to a taxable year--
                            ``(i) a taxpayer whose principal place of 
                        abode or principal place of work, during any 
                        period in the taxable year which is part of the 
                        incident period of a qualified disaster, is 
                        located in a qualified disaster zone, or
                            ``(ii) a taxpayer--
                                    ``(I) whose principal place of 
                                abode, during any period in the taxable 
                                year which is part of the incident 
                                period of a qualified disaster, is 
                                located in the qualified disaster area 
                                with respect to such qualified 
                                disaster, and
                                    ``(II) who is displaced from such 
                                principal place of abode during such 
                                taxable year as a result of such 
                                qualified disaster.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Qualified disaster.--The term 
                        `qualified disaster' means any disaster with 
                        respect to which a major disaster has been 
                        declared by the President under section 401 of 
                        the Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act.
                            ``(ii) Qualified disaster area.--The term 
                        `qualified disaster area' means, with respect 
                        to any qualified disaster, the area with 
                        respect to which the major disaster was 
                        declared under the Robert T. Stafford Disaster 
                        Relief and Emergency Assistance Act.
                            ``(iii) Qualified disaster zone.--The term 
                        `qualified disaster zone' means the portion of 
                        a qualified disaster area determined by the 
                        President to warrant individual or individual 
                        and public assistance from the Federal 
                        Government under the Robert T. Stafford 
                        Disaster Relief and Emergency Assistance 
                        Act.''.
    (b) Election To Use Prior Year Income for Disaster-Affected 
Taxpayers With Respect to Earned Income Credit.--Section 32(c) of such 
Code is amended by adding at the end the following new paragraph:
            ``(5) Election to use prior year income for disaster-
        affected taxpayers.--A disaster-affected taxpayer (as defined 
        in section 24(d)(4)(B)) may elect to apply subsection (a)(1) by 
        inserting `preceding' before `taxable year' in such 
        paragraph.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
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