Tax relief for hurricane victims: EITC boost, retirement access, donation deductions.

What it does

This bill provides tax relief to individuals and businesses affected by Hurricanes Helene and Milton. It allows disaster victims to calculate their earned income tax credit based on prior-year income (if higher), increases charitable donation deductions for hurricane relief contributions, and permits early withdrawal from retirement accounts without penalties—with a three-year window to repay the withdrawn funds.

Why we flagged it

The bill's sole function is to provide targeted tax relief and liquidity access to individuals and businesses harmed by two named hurricanes. It operates through standard tax code mechanisms (EITC, charitable deductions, retirement plan rules) applied narrowly to a defined disaster area and time period.

What the text implies

• The three-year repayment window for retirement withdrawals may create administrative burden for plan administrators and IRS tracking, though the bill permits plan amendments through 2025 (or 2027 for government plans) to accommodate the change.
• Charitable contribution carryover for five years may benefit high-income donors more than lower-income households, as the deduction value depends on marginal tax rate and ability to itemize.
• The EITC election is limited to one taxable year per taxpayer, preventing repeated use in subsequent disaster years—a safeguard against abuse but also a constraint on relief if recovery extends beyond 2024 tax year.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Disaster victims gain immediate liquidity and tax relief during recovery. The EITC adjustment, charitable deduction expansion, and retirement fund access without penalties all reduce tax burden and provide cash flow when households face economic loss. No offsetting cost to other citizens is apparent.

Who stands to gain

• Disaster-affected individuals and households in Hurricanes Helene and Milton declared disaster areas
• Charitable organizations receiving hurricane relief donations (indirect benefit via increased deduct

Named in the bill

Internal Revenue Service (IRS), Department of the Treasury, Eligible individuals in qualified hurricane disaster areas, Charitable organizations (section 170(b)(1)(A) entities), Qualified employer plans and retirement accounts, Hurricane Helene (September 28, 2024 incident period start), Hurricane Milton (November 2, 2024 incident period end)

Where it stands

1 cosponsor: 1 Republicans.

• Jan 3, 2025 — Introduced · Congress.gov: “Introduced in House”
• Jan 3, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 2 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $3,620,000 in lobbying spend. A filing names 34 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Vern Buchanan, the sponsor, reported $544,700 in PAC receipts in the 2026 cycle.

• American Cancer Society Cancer Action Network Inc — $3,620,000 on 2 filings

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.