,i #aaith ,,congress #ast ,session ,h4 ,r4 #adj ,,in ,,the ,,house ,,of ,,representatives ,january #c1 #bjbe,mr4 ,buchanan introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to provide tax relief for damages relating to ,hurricanes ,helene and ,milton4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,hurricane ,helene and ,milton ,tax ,relief ,act of #bjbe4 7b7 ,table of contents ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,definitions4,sec4 #c4 ,earned income credit determined based on preceding taxable year income with respect to qualified hurricane disaster areas4,sec4 #d4 ,increased limitation on charitable contributions for qualified hurricane disaster relief2 certain contributions paid before ,april #ae1 #bjbe1 treated as paid in #bjbd4,sec4 #e4 ,special hurricane disaster-related rules for use of retirement funds4 #b4 ,definitions ,for purposes of this ,act-- 7a7 ,eligible individual ,the term eligible individual means an individual whose principal place of abode at any time during the incident period is located in the qualified hurricane disaster area and who has sustained an economic loss by reason of ,hurricane ,helene or ,hurricane ,milton4 7b7 ,qualified hurricane disaster area ,the term qualified hurricane disaster area means an area with respect to which a major disaster has been declared by the ,president 7before the date of the enactment of this ,act7 under section #dja of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act by reason of ,hurricane ,helene or ,hurricane ,milton4 7c7 ,incident period ,the term incident period means the period beginning on ,september #bh1 #bjbd1 and ending on ,november #b1 #bjbd4 #c4 ,earned income credit determined based on preceding taxable year income with respect to qualified hurricane disaster areas 7a7 ,in general ,in the case of an eligible individual1 if the earned income of the taxpayer for the applicable taxable year is less than the earned income of the taxpayer for the preceding taxable year1 the credit allowed under section #cb of the ,internal ,revenue ,code of #aihf for the applicable taxable year may1 at the election of the taxpayer1 be determined by substituting-- 7#a7 such earned income for the preceding taxable year1 for 7#b7 such earned income for the applicable taxable year4 7b7 ,applicable tax year ,for purposes of this section1 the term applicable taxable year means any taxable year which includes any portion of the incident period4 7c7 ,earned income ,for purposes of this section1 the term earned income has the meaning given such term under section #cb7;c7 of such ,code4 7d7 ,special rules 7#a7 ,application to joint returns ,for purposes of subsection 7a71 in the case of a joint return for an applicable taxable year-- 7,a7 such subsection shall apply if either spouse is an eligible individual1 and 7,b7 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 year4 7#b7 ,errors treated as mathematical error ,for purposes of section #fbac of such ,code1 an incorrect use on a return of earned income pursuant to subsection 7a7 shall be treated as a mathematical or clerical error4 7#c7 ,no effect on determination of gross income1 etc ,except as otherwise provided in this section1 such ,code shall be applied without regard to any substitution under subsection 7a74 7#d7 ,limitation to single taxable year ,no taxpayer may make an election under subsection 7a7 if such taxpayer 7or in the case of a joint return1 the taxpayer's spouse7 made such an election for any preceding taxable year4 #d4 ,increased limitation on charitable contributions for qualified hurricane disaster relief2 certain contributions paid before ,april #ae1 #bjbe1 treated as paid in #bjbd 7a7 ,qualified hurricane disaster contributions 7#a7 ,individuals ,in the case of any qualified hurricane disaster contribution1 notwithstanding section #agj7;b7 of such ,code1 the total amount of such contributions which may be taken into account under section #agj7;a7 of such ,code shall not exceed the excess of-- 7,a7 the taxpayer's contribution base1 over 7,b7 the amount of all other charitable contributions allowable under section #agj7;b77#a7 of such ,code4 7#b7 ,carryover 7,a7 ,in general ,if the aggregate amount of contributions described in paragraph 7#a7 exceeds the limitation under such paragraph1 such excess shall be treated 7in a manner consistent with the rules of subsection #agj7;d77#a7 of such ,code7 as a charitable contribution to which paragraph 7#a7 applies in each of the #e succeeding years in order of time4 7,b7 ,coordination with deduction for charitable contributions ,for purposes of applying this paragraph and sections #agj7;b77#a77;,g7 and #agj7;d77#a7 of such ,code1 contributions described in paragraph 7#a7 shall not be treated as described in subparagraph 7,a7 or 7,g7 of section #agj7;b77#a7 of such ,code and such subparagraphs shall be applied without regard to such contributions4 7#c7 ,application of election to partnerships and s corporations ,in the case of a partnership or ,s corporation1 the election under subsection 7e77#c77;,a77iii7 shall be made separately by each partner or shareholder4 7b7 ,corporations 7#a7 ,in general ,in the case of any qualified hurricane disaster contribution1 notwithstanding section #agj7;b7 of such ,code1 the total amount of such contributions which may be taken into account under section #agj7;a7 of such ,code shall not exceed the excess of-- 7,a7 #bj percent of the taxpayer's taxable income1 over 7,b7 the amount of charitable contributions allowed under section #agj7;b77#b77;,a7 of such ,code4 7#b7 ,carryover ,if the aggregate amount of contributions described in paragraph 7#a7 exceeds the limitation under such paragraph1 such excess shall be treated 7in a manner consistent with the rules of section #agj7;d77#a7 of such ,code7 as a charitable contribution to which paragraph 7#a7 applies in each of the #e succeeding years in order of time4 7#c7 ,coordination with deduction for charitable contributions ,for purposes of applying this paragraph and sections #agj7;b77#b7 of such ,code1 contributions described in paragraph 7#a7 shall not be treated as described in subparagraph 7,a71 7,b71 or 7,c7 of section #agj7;b77#b7 of such ,code and such subparagraphs shall be applied without regard to such contributions4 7c7 ,deduction allowed above the line ,in the case of an individual-- 7#a7 the standard deduction otherwise determined under section #fc of such ,code shall be increased by so much of the deduction allowed under section #agj of such ,code as would not be so allowed if determined without regard to this section1 and 7#b7 section #ef7;b77#a77;,d7 of such ,code shall not apply to so much of the standard deduction as is attributable to the increase under paragraph 7#a74 7d7 ,contributions treated as made in prior year ,for purposes of this section1 a taxpayer may treat any qualified hurricane disaster contribution which is paid after ,december #ca1 #bjbd1 and on or before ,april #ae1 #bjbe1 as if such contribution was made on ,december #ca1 #bjbd1 and not in #bjbe4 7e7 ,definitions ,for purposes of this section-- 7#a7 ,charitable contribution ,the term charitable contribution has the meaning given such term in section #agj7;c7 of such ,code4 7#b7 ,contribution base ,the term contribution base has the meaning given such term in section #agj7;b77#a77;,h7 of such ,code4 7#c7 ,qualified hurricane disaster contribution 7,a7 ,in general ,the term qualified hurricane disaster contribution means any charitable contribution if-- 7i7 such contribution-- 7,i7 is paid on or after the first day of the incident period and before ,december #ca1 #bjbe1 in cash to an organization described in section #agj7;b77#a77;,a7 of such ,code1 and 7,,ii7 is made for relief efforts in a qualified hurricane disaster area related to ,hurricane ,helene or ,hurricane ,milton1 7ii7 the taxpayer obtains from such organization contemporaneous written acknowledgment 7within the meaning of section #agj7;f77#h7 of such ,code7 that such contribution was used 7or is to be used7 for relief efforts in a qualified hurricane disaster area related to ,hurricane ,helene or ,hurricane ,milton1 and 7iii7 the taxpayer has elected the application of this section with respect to such contribution4 7,b7 ,exception ,a qualified hurricane disaster contribution shall not include a contribution by a donor if the contribution is-- 7i7 to an organization described in section #eji7;a77#c7 of such ,code1 or 7ii7 for establishment of a new1 or maintenance of an existing1 donor advised fund 7as defined in section #diff7;d77#b7 of such ,code74 #e4 ,special hurricane disaster-related rules for use of retirement funds 7a7 ,tax-,favored withdrawals from retirement plans 7#a7 ,in general ,section #gb7t7 of the ,internal ,revenue ,code of #aihf shall not apply to any qualified hurricane disaster distribution4 7#b7 ,aggregate dollar limitation 7,a7 ,in general ,for purposes of this subsection1 the aggregate amount of distributions received by an individual which may be treated as qualified hurricane disaster distributions for any taxable year shall not exceed the excess 7if any7 of-- 7i7 #ajj1jjj1 over 7ii7 the aggregate amounts treated as qualified hurricane disaster distributions received by such individual for all prior taxable years4 7,b7 ,treatment of plan distributions ,if a distribution to an individual would 7without regard to subparagraph 7,a77 be a qualified hurricane disaster distribution1 a plan shall not be treated as violating any requirement of such ,code merely because the plan treats such distribution as a qualified hurricane disaster distribution1 unless the aggregate amount of such distributions from all plans maintained by the employer 7and any member of any controlled group which includes the employer7 to such individual exceeds #ajj1jjj4 7,c7 ,controlled group ,for purposes of subparagraph 7,b71 the term controlled group means any group treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad of such ,code4 7#c7 ,amount distributed may be repaid 7,a7 ,in general ,any individual who receives a qualified hurricane disaster distribution may1 at any time during the #c-year period beginning on the day after the date on which such distribution was received1 make #a 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 #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 or #deg7;e77#af71 of such ,code1 as the case may be4 7,b7 ,treatment of repayments of distributions from eligible retirement plans other than ,i,r,as ,for purposes of such ,code1 if a contribution is made pursuant to subparagraph 7,a7 with respect to a qualified hurricane disaster distribution from an eligible retirement plan other than an individual retirement plan1 then the taxpayer shall1 to the extent of the amount of the contribution1 be treated as having received the qualified hurricane disaster distribution in an eligible rollover distribution 7as defined in section #djb7;c77#d7 of such ,code7 and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within #fj days of the distribution4 7,c7 ,treatment of repayments of distributions from ,i,r,as ,for purposes of such ,code1 if a contribution is made pursuant to subparagraph 7,a7 with respect to a qualified hurricane disaster distribution from an individual retirement plan 7as defined by section #ggja7;a77#cg7 of such ,code71 then1 to the extent of the amount of the contribution1 the qualified hurricane disaster distribution shall be treated as a distribution described in section #djh7;d77#c7 of such ,code and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within #fj days of the distribution4 7#d7 ,definitions ,for purposes of this subsection-- 7,a7 qualified hurricane disaster distribution ,except as provided in paragraph 7#b71 the term qualified hurricane disaster distribution means any distribution from an eligible retirement plan made-- 7i7 on or after the first day of the incident period and before ,december #ca1 #bjbe1 and 7ii7 to an eligible individual4 7,b7 ,eligible retirement plan ,the term eligible retirement plan shall have the meaning given such term by section #djb7;c77#h77;,b7 of such ,code4 7#e7 ,income inclusion spread over #c-year period 7,a7 ,in general ,in the case of any qualified hurricane disaster distribution1 unless the taxpayer elects not to have this paragraph apply for any taxable year1 any amount required to be included in gross income for such taxable year shall be so included ratably over the #c-taxable-year period beginning with such taxable year4 7,b7 ,special rule ,for purposes of subparagraph 7,a71 rules similar to the rules of section #djh;,a7d77#c77;,e7 of such ,code shall apply4 7#f7 ,special rules 7,a7 ,exemption of distributions from trustee to trustee transfer and withholding rules ,for purposes of sections #dja7;a77#ca71 #djb7;f71 and #cdje of such ,code1 qualified hurricane disaster distributions shall not be treated as eligible rollover distributions4 7,b7 qualified hurricane disaster distributions treated as meeting plan distribution requirements ,for purposes of such ,code1 a qualified hurricane disaster distribution shall be treated as meeting the requirements of sections #dja7k77#b77;,b77i71 #djc7;b77#g77;,a77i71 #djc7;b77#aa71 and #deg7;d77#a77;,a7 of such ,code and section #hdcc7;h77#a7 of title #e1 ,united ,states ,code1 and1 in the case of a money purchase pension plan1 a qualified hurricane disaster distribution which is an in-service withdrawal shall be treated as meeting the distribution rules of section #dja7;a7 of such ,code4 7b7 ,recontributions of withdrawals for home purchases 7#a7 ,recontributions 7,a7 ,in general ,any individual who received a qualified distribution may1 during the applicable period1 make #a or more contributions in an aggregate amount not to exceed the amount of such qualified distribution to an eligible retirement plan 7as defined in section #djb7;c77#h77;,b7 of such ,code7 of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 or #djh7;d77#c71 of such ,code1 as the case may be4 7,b7 ,treatment of repayments ,rules similar to the rules of subparagraphs 7,b7 and 7,c7 of subsection 7a77#c7 shall apply for purposes of this subsection4 7#b7 ,qualified distribution ,for purposes of this subsection1 the term qualified distribution means any distribution-- 7,a7 described in section #dja7k77#b77;,b77i77,,iv71 #djc7;b77#g77;,a77i77,v71 #djc7;b77#aa77;,b71 or #gb7t77#b77;,f71 of such ,code1 7,b7 which was to be used to purchase or construct a principal residence in a qualified hurricane disaster area1 but which was not so used on account of ,hurricane ,helene or ,hurricane ,milton1 and 7,c7 which was received during the period beginning on the date which is #ahj days before the first day of the incident period and ending on the date which is #cj days after the last day of such incident period4 7#c7 ,applicable period ,for purposes of this subsection1 the term applicable period means1 in the case of a principal residence in a qualified hurricane disaster area1 the period beginning on the first day of the incident period and ending on ,december #ca1 #bjbe4 7c7 ,loans from qualified plans 7#a7 ,increase in limit on loans not treated as distributions ,in the case of any loan from a qualified employer plan 7as defined under section #gb7p77#d7 of such ,code7 to an eligible individual made during the period beginning on the date of the enactment of this ,act and ending on ,june #cj1 #bjbe-- 7,a7 section #gb7p77#b77;,a77i7 of such ,code shall be applied by substituting #ajj1jjj for #ej1jjj1 and 7,b7 clause 7ii7 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 plan4 7#b7 ,delay of repayment ,in the case of an eligible individual with an outstanding loan 7on or after the first day of the incident period7 from a qualified employer plan 7as defined in section #gb7p77#d7 of such ,code7-- 7,a7 if the due date pursuant to subparagraph 7,b7 or 7,c7 of section #gb7p77#b7 of such ,code for any repayment with respect to such loan occurs during the period beginning on the first day of the incident period and ending on the date which is #ahj days after the last day of such incident period1 such due date shall be delayed for #a year 7or1 if later1 until ,december #ca1 #bjbe71 7,b7 any subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date under subparagraph 7,a7 and any interest accruing during such delay1 and 7,c7 in determining the #e-year period and the term of a loan under subparagraph 7,b7 or 7,c7 of section #gb7p77#b7 of such ,code1 the period described in subparagraph 7,a7 of this paragraph shall be disregarded4 7d7 ,provisions relating to plan amendments 7#a7 ,in general ,if this subsection applies to any amendment to any plan or annuity contract1 such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph 7#b77;,b77i74 7#b7 ,amendments to which subsection applies 7,a7 ,in general ,this subsection shall apply to any amendment to any plan or annuity contract which is made-- 7i7 pursuant to any provision of this section1 or pursuant to any regulation issued by the ,secretary or the ,secretary of ,labor under any provision of this section1 and 7ii7 on or before the last day of the first plan year beginning on or after ,january #a1 #bjbe1 or such later date as the ,secretary may prescribe4 ,in the case of a governmental plan 7as defined in section #dad7;d7 of such ,code71 clause 7ii7 shall be applied by substituting the date which is #b years after the date otherwise applied under clause 7ii74 7,b7 ,conditions ,this subsection shall not apply to any amendment unless-- 7i7 during the period-- 7,i7 beginning on the date that this section or the regulation described in subparagraph 7,a77i7 takes effect 7or in the case of a plan or contract amendment not required by this section or such regulation1 the effective date specified by the plan71 and 7,,ii7 ending on the date described in subparagraph 7,a77ii7 7or1 if earlier1 the date the plan or contract amendment is adopted71 the plan or contract is operated as if such plan or contract amendment were in effect1 and 7ii7 such plan or contract amendment applies retroactively for such period4