Hurricane Helene and Milton Tax Relief Act of 2025

Hurricane Helene and Milton Tax Relief Act of 2025

This 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, and
• increases 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.