Bills · HR 3975
IN COMMITTEE· 119TH CONGRESS
House BillHR 3975Taxation
Tax Fairness for Disaster Victims Act
INTRO JUN 12· LAST ACTION JUN 12
READING
4MIN
COSPONSORS
7
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenNatural disasters can devastate communities, often leading to job losses, reduced work hours, and significant financial hardship for victims. Under current tax law, if someone's income plummets due to a disaster, their eligibility for important tax credits, designed to help low-to-moderate income families, might also decrease. This can create a 'double penalty' where victims not only lose income but also crucial financial support.
This bill matters because it ensures that disaster victims are not financially penalized on their taxes for circumstances beyond their control. By allowing them to use their pre-disaster income for tax credit calculations, it provides a stable source of financial relief during recovery. If this bill becomes law, it could mean thousands of dollars in extra tax refunds for affected families, helping them cover essential expenses like housing, food, and medical care. If it doesn't pass, many disaster victims might receive smaller tax credits, making their recovery even more challenging.
KEY PROVISIONS
5AI-extractedPROVISION 01
Allows eligible disaster victims to choose to use their prior year's earned income to calculate the Earned Income Tax Credit (EITC) if their current year's income is lower due to a federally declared disaster.
This helps low-to-moderate income families get the full EITC, which is vital for financial stability, even if a disaster temporarily reduces their income.
PROVISION 02
Allows eligible disaster victims to choose to use their prior year's earned income or Social Security taxes to calculate the refundable portion of the Child Tax Credit (CTC) if their current year's amounts are lower due to a federally declared disaster.
This ensures families with children can access this significant credit, providing important financial support during their recovery from a disaster.
PROVISION 03
Defines an eligible individual as someone whose primary residence was located in a federally declared disaster area on the first day of the disaster period.
This provision clearly outlines who qualifies for these tax relief measures, providing clarity for both taxpayers and the IRS.
PROVISION 04
Stipulates that an incorrect use of this 'lookback' rule for earned income or Social Security taxes can be treated as a mathematical or clerical error by the IRS.
This allows the IRS to correct errors quickly without a lengthy audit process, making corrections more efficient.
PROVISION 05
Specifies that the changes made by this bill will apply to tax years beginning after the date it becomes law.
This sets the timeframe for when taxpayers can start using these new provisions.
SPONSORSHIP
1 + 7
D· New York
YRS IN OFFICE
2
BILLS LED
32
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 7 REP 0 IND 0
ACTION TIMELINE
2 EVENTSJUN 12
Introduced in House
JUN 12
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 3975
Congress119th
StatusIn Committee
IntroducedJun 12, 2025
Last actionJun 12, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED JUN 12, 2025
House BillHR 3975Taxation
Tax Fairness for Disaster Victims Act
INTRODUCED JUN 12, 2025· LAST ACTION JUN 12, 2025
PASSAGE CHANCES
—%
READING
4 min
COSPONSORS
7
COMPLEXITY
Moderate
