Disaster Survivors Tax Relief and Recovery Act

This bill changes federal tax rules for people and areas affected by major disasters declared by the President in 2025. It lets affected taxpayers use their prior year's earned income to figure the Earned Income Tax Credit and Child Tax Credit, and it removes usual limits on deductions for cash donations made for disaster relief. It lets affected people withdraw up to $100,000 from retirement plans without the early-withdrawal penalty, spread the income over three years, and repay it within three years, and it raises limits on retirement plan loans. It also loosens rules for deducting disaster-related property losses, extends a tax exclusion for wildfire loss payments through 2036, and increases low-income housing tax credit amounts for states with disaster zones in 2026 and 2027.

Full text and official record on Congress.gov

Sponsors

• Judy Chu Democrat sponsor
• 30 cosponsors