HR6842119th CongressWALLET

Disaster Survivors Tax Relief and Recovery Act

Sponsored By: Representative Rep. Chu, Judy [D-CA-28]

Introduced

Summary

disaster tax relief for people and communities hit by a qualifying 2025 disaster. The bill would let displaced survivors use prior-year earned income for key tax credits, expand charitable deduction rules, ease retirement withdrawals, change casualty-loss treatment, and boost disaster housing tax credit capacity.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Bigger child tax and EITC refunds

If enacted, you would be able to use your prior year's earned income to compute the Child Tax Credit and Earned Income Tax Credit for your first tax year beginning in 2025 if your earned income that year is lower. You must elect the substitution on your return. If you file jointly and either spouse qualifies, the substitution uses both spouses' prior-year earned incomes added together. A wrong use on a return would be treated as a math or clerical error.

Higher cap for low-income housing credits

If enacted, states would be able to temporarily raise their low-income housing tax credit limit for calendar years 2026 and 2027 by the amount they allocate to projects in qualified disaster zones, subject to per-state caps. For 2026 the per-state increase would not exceed $8.25 times the State's 2025 population. For 2027 the increase would not exceed that amount reduced by the State's 2026 increase. States could designate those allocations to extend placed-in-service and carryover timing from two years to three years and from one year to two years.

Which disasters qualify for relief

If enacted, the bill would define who counts as in a qualified disaster area, zone, and disaster for its tax rules. The President would have to declare a major disaster between January 1, 2025 and 60 days after enactment. The disaster's incident period must begin on or after December 28, 2024 and on or before enactment. For this Act the incident period would not be treated as ending after 30 days from enactment.

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Sponsors & CoSponsors

Sponsor

Rep. Chu, Judy [D-CA-28]

CA • D

Cosponsors

  • Rep. Brownley, Julia [D-CA-26]

    CA • D

    Sponsored 12/18/2025

  • Rep. Carbajal, Salud O. [D-CA-24]

    CA • D

    Sponsored 12/18/2025

  • Rep. Costa, Jim [D-CA-21]

    CA • D

    Sponsored 12/18/2025

  • Rep. DeSaulnier, Mark [D-CA-10]

    CA • D

    Sponsored 12/18/2025

  • Friedman

    CA • D

    Sponsored 12/18/2025

  • Rep. Garamendi, John [D-CA-8]

    CA • D

    Sponsored 12/18/2025

  • Rep. Garcia, Robert [D-CA-42]

    CA • D

    Sponsored 12/18/2025

  • Rep. Jacobs, Sara [D-CA-51]

    CA • D

    Sponsored 12/18/2025

  • Rep. Kamlager-Dove, Sydney [D-CA-37]

    CA • D

    Sponsored 12/18/2025

  • Rep. Levin, Mike [D-CA-49]

    CA • D

    Sponsored 12/18/2025

  • Liccardo

    CA • D

    Sponsored 12/18/2025

  • Rep. Lieu, Ted [D-CA-36]

    CA • D

    Sponsored 12/18/2025

  • Rep. Lofgren, Zoe [D-CA-18]

    CA • D

    Sponsored 12/18/2025

  • Rep. Matsui, Doris O. [D-CA-7]

    CA • D

    Sponsored 12/18/2025

  • Rep. Sherman, Brad [D-CA-32]

    CA • D

    Sponsored 12/18/2025

  • Rep. Thompson, Mike [D-CA-4]

    CA • D

    Sponsored 12/18/2025

  • Pelosi

    CA • D

    Sponsored 12/18/2025

  • Rep. Aguilar, Pete [D-CA-33]

    CA • D

    Sponsored 12/18/2025

  • Rep. Barragan, Nanette Diaz [D-CA-44]

    CA • D

    Sponsored 12/18/2025

  • Rep. Min, Dave [D-CA-47]

    CA • D

    Sponsored 12/18/2025

  • Rep. Mullin, Kevin [D-CA-15]

    CA • D

    Sponsored 12/18/2025

  • Rep. Panetta, Jimmy [D-CA-19]

    CA • D

    Sponsored 12/18/2025

  • Rep. Peters, Scott H. [D-CA-50]

    CA • D

    Sponsored 12/18/2025

  • Rep. Rivas, Luz M. [D-CA-29]

    CA • D

    Sponsored 12/18/2025

  • Rep. Ruiz, Raul [D-CA-25]

    CA • D

    Sponsored 12/18/2025

  • Rep. Sánchez, Linda T. [D-CA-38]

    CA • D

    Sponsored 12/18/2025

  • Rep. Swalwell, Eric [D-CA-14]

    CA • D

    Sponsored 12/18/2025

  • Rep. Takano, Mark [D-CA-39]

    CA • D

    Sponsored 12/18/2025

  • Rep. Tran, Derek [D-CA-45]

    CA • D

    Sponsored 12/18/2025

  • Whitesides

    CA • D

    Sponsored 12/18/2025

  • Cisneros

    CA • D

    Sponsored 2/5/2026

Roll Call Votes

No roll call votes available for this bill.

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