Hurricane Helene and Milton Tax Relief Act of 2025
Hurricane Helene and Milton Tax Relief Act of 2025
Plain Language Summary
# Hurricane Helene and Milton Tax Relief Act of 2025 – Summary **What the bill would do:** This bill aims to help people and businesses affected by Hurricanes Helene and Milton by making it easier and more rewarding to donate to relief efforts. It would allow individuals to deduct up to 100% of their income when donating to qualified hurricane relief charities (compared to lower limits currently), and corporations could deduct up to 20% of taxable income. People could claim these deductions even if they don't normally itemize deductions on their taxes.
The bill also allows people impacted by the hurricanes to withdraw money from retirement accounts (like 401(k)s and IRAs) without the typical 10% early withdrawal penalty, and makes adjustments to the Earned Income Tax Credit for affected individuals. **Who it affects:** The bill targets two main groups: (1) people and businesses in areas affected by Hurricanes Helene and Milton who want to donate to relief efforts, and (2) individuals impacted by the hurricanes who may need to access their retirement savings. The relief provisions apply to donations made between September 28, 2024, and December 31, 2025. **Current status:** As of now, the bill (HR 140) is in committee and has not yet been voted on by the full House of Representatives.
CRS Official Summary
Hurricane Helene and Milton Tax Relief Act of 2025This bill increases the tax deduction for charitable contributions related to Hurricanes Helene and Milton relief efforts and makes changes related to distributions and loans from retirement plans and the earned income tax credit (EITC) for eligible individuals impacted by the hurricanes.The bill increases the maximum tax deduction for charitable contributions to 100% of adjusted gross income for individuals and 20% of taxable income for corporations for qualified hurricane disaster contributions. Further, individuals may claim a deduction for qualified hurricane disaster contributions even if they do not itemize their tax deductions.The bill defines qualified hurricane disaster contributions, as charitable contributions for Hurricanes Helene and Milton relief efforts made on or after September 28, 2024, and before December 31, 2025. The bill also eliminates the 10% penalty on early distributions from a qualified retirement plan for up to $100,000 of qualified hurricane disaster distributions to an eligible individual,allows eligible individuals to include qualified hurricane disaster distributions in income over three years, andincreases the loan amount that may be borrowed from a qualified retirement plan to $100,000 and allows such loans to be repaid over a longer time period.An eligible individual is an individual whose principal home during the incident period was in a qualified hurricane disaster area and who sustained economic loss due to Hurricanes Helene or Milton.Finally, the bill allows eligible individuals to calculate the EITC for the 2024 tax year using 2023 earned income.
Latest Action
Referred to the House Committee on Ways and Means.