No official summary available for this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6842 Introduced in House (IH)]
<DOC>
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. Barragan, 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. Sanchez, 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 Representatives 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''.
SEC. 2. TEMPORARY SPECIAL RULE FOR DETERMINATION OF EARNED INCOME.
(a) In General.--In the case of a qualified individual, if the
earned income of a taxpayer for the taxpayer's first taxable year
beginning in 2025 is less than the earned income of the taxpayer for
the preceding taxable 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 taxable 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 individual 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 disaster zone
with respect to such qualified disaster) and such individual
was displaced from such principal place of abode by reason of
such qualified disaster.
(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 return 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 preceding 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).
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 provided in paragraph
(2), qualified disaster relief contributions shall be
disregarded in applying subsections (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 individual--
(i) Limitation.--Any qualified disaster
relief contribution shall be allowed as a
deduction only to the extent that the aggregate
of such contributions does not exceed the
excess of the taxpayer's contribution base (as
defined in section 170(b)(1)(H) of such Code)
over the amount of all other charitable
contributions allowed under section 170(b)(1)
of such Code.
(ii) Carryover.--If the aggregate amount of
qualified disaster relief contributions made in
the contribution year (within the meaning of
section 170(d)(1) of such Code) exceeds the
limitation of clause (i), such excess shall be
added to the excess described in section
170(b)(1)(G)(ii).
(B) Corporations.--In the case of a corporation--
(i) Limitation.--Any qualified disaster
relief contribution shall be allowed as a
deduction only to the extent that the aggregate
of such contributions does not exceed the
excess of 100 percent of the taxpayer's taxable
income (as determined under section 170(b)(2)
of such Code) over the amount of all other
charitable contributions allowed under such
section.
(ii) Carryover.--If the aggregate amount of
qualified disaster relief contributions made in
the contribution year (within the meaning of
section 170(d)(2) of such Code) exceeds the
limitation of clause (i), such excess shall be
appropriately taken into account under section
170(d)(2), subject to the limitations thereof.
(3) Qualified disaster relief contribution.--
(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
organization 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
organization contemporaneous written
acknowledgment (within the meaning of section
170(f)(8) of such Code) that such contribution
was used (or is to be used) for relief efforts
described in clause (i)(II), and
(iii) the taxpayer has elected the
application of this subsection with respect to
such contribution.
(B) Exception.--Such term shall not include a
contribution by a donor if the contribution is--
(i) to an organization described in section
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 partnerships and s
corporations.--In the case of a partnership or S
corporation, the election under subparagraph (A)(iii)
shall be made separately by each partner or
shareholder.
(b) Increase in Limits on Contributions of Food Inventory.--In the
case of any charitable contribution 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.
SEC. 4. SPECIAL DISASTER-RELATED RULES FOR USE OF RETIREMENT FUNDS.
(a) Tax-Favored Withdrawals From Retirement Plans.--
(1) In general.--Section 72(t) of the Internal Revenue Code
of 1986 shall not apply to any qualified disaster distribution.
(2) Aggregate dollar limitation.--
(A) In general.--For purposes of this subsection,
the aggregate amount of distributions 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 distributions.--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
amount of such distributions from all plans maintained
by the employer (and any member of any controlled group
which includes the employer) 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 affected 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 receives a
qualified disaster distribution may, at any time during
the 3-year period beginning on the day after the date
on which such distribution was received, make one or
more contributions 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 section 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 distributions from
eligible retirement plans other than iras.--For
purposes of the Internal Revenue Code of 1986, if a
contribution 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 contribution, be treated as having
received the qualified disaster distribution in an
eligible rollover distribution (as defined in section
402(c)(4) of such Code) and as having transferred the
amount to the eligible retirement plan in a direct
trustee to trustee transfer within 60 days of the
distribution.
(C) Treatment of repayments of distributions from
iras.--For purposes of the Internal Revenue Code of
1986, if a contribution 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
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 distribution.
(4) Definitions.--For purposes of this subsection--
(A) Qualified disaster distribution.--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
incident 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 incident period
of such qualified disaster is located in the
qualified disaster area with respect to such
qualified disaster and who has sustained an
economic loss by reason of such qualified
disaster.
(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 taxpayer 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 subparagraph
(A), rules similar to the rules of subparagraph (E) of
section 408A(d)(3) of such Code shall apply.
(6) Special rules.--
(A) Exemption of distributions from trustee to
trustee transfer and withholding rules.--For purposes
of sections 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 requirements.--For purposes
of the Internal Revenue Code of 1986, a qualified
disaster distribution shall be treated as meeting the
requirements 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 disaster distribution which is an in-
service withdrawal shall be treated as meeting the
distribution rules of section 401(a) of the Internal
Revenue Code of 1986.
(b) Recontributions of Withdrawals for Home Purchases.--
(1) Recontributions.--
(A) In general.--Any individual who received a
qualified distribution may, during the applicable
period, make one or more contributions in an aggregate
amount not to exceed the amount of such qualified
distribution to an eligible retirement plan (as defined
in section 402(c)(8)(B) of such Code) of which such
individual 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 account 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 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 disaster area with respect
to any qualified disaster, 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 date of the
enactment of this Act.
(c) Loans From Qualified Plans.--
(1) Increase in limit on loans not treated 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 individual 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 applied by
substituting ``the present value of the nonforfeitable
accrued benefit of the employee under the plan'' for
``one-half of the present 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 disaster) from a qualified employer
plan (as defined in section 72(p)(4) of such Code)--
(A) if the due date pursuant to subparagraph (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 respect to any
such loan shall be appropriately adjusted to reflect
the delay in the due date under subparagraph (A) and
any interest accruing 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 described in
subparagraph (A) of this paragraph 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 Amendments.--
(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 operated in accordance with
the terms of the plan during the period described in paragraph
(2)(B)(i).
(2) Amendments to which subsection applies.--
(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 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 January 1,
2027, or such later date as the Secretary 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 described in
subparagraph (A)(i) takes effect (or in
the case of a plan or contract
amendment not required by this section
or such regulation, the effective date
specified by the plan), and
(II) ending on the date described
in subparagraph (A)(ii) (or, if
earlier, the date the plan or contract
amendment 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-RELATED 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
individual,
(2) in the case of qualified disaster-related personal
casualty losses, section 165(h)(1) of such Code 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 attributable to the
increase under paragraph (3).
(b) Net Disaster Loss.--For purposes of this section, the term
``net disaster loss'' means the excess of qualified disaster-related
personal casualty losses over personal casualty gains (as defined in
section 165(h)(3)(A) of such Code).
(c) Qualified Disaster-Related Personal Casualty 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 qualified
disaster.
SEC. 6. EXTENSION OF EXCLUSION FROM GROSS INCOME FOR COMPENSATION FOR
LOSSES OR DAMAGES 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 ALLOCATIONS.
(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
agencies of such State for such calendar year to buildings located in
any qualified disaster zone in such State.
(b) Limitation.--
(1) Application of aggregate limitation.--The increase
determined under subsection (a) with respect to any State shall
not exceed--
(A) in the case of any such increase determined for
calendar year 2026, the applicable dollar limitation
for such State, and
(B) in the case of any such increase determined for
calendar year 2027, the applicable dollar limitation
for such State reduced by the amount of any increase
determined under subsection (a) with respect to such
State for calendar 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 subsection 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 appears, and
(B) by substituting ``2 years'' for ``1 year'' in
clause (ii) thereof.
(2) Application of limitation.--The aggregate amount of
housing credit dollar amount designated 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 Determining 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 respect to which a major disaster
was declared, 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, by the President under section 401 of
the Robert T. Stafford Disaster Relief and Emergency Assistance
Act, if the incident period of the disaster with respect to
which such declaration was made begins on or after December 28,
2024, and on or before the date of the enactment of this Act.
(2) Qualified disaster zone.--The term ``qualified disaster
zone'' means that portion of any qualified disaster area which
was determined by the President, 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, to warrant individual or
individual and public assistance from the Federal Government
under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act by reason of the qualified disaster with respect
to such disaster area.
(3) Qualified disaster.--The term ``qualified disaster''
means, with respect to any qualified disaster area, the
disaster by reason of which a major disaster was declared with
respect to such area.
(4) Incident period.--The term ``incident period'' means,
with respect to any qualified disaster, the period specified by
the Federal Emergency Management 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 enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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