Hurricane Helene and Milton Tax Relief Act of 2025

The Hurricane Helene and Milton Tax Relief Act of 2025 would provide tax benefits to individuals and businesses affected by these hurricanes. The bill would increase the maximum tax deduction for charitable contributions to hurricane relief efforts to 100% of adjusted gross income for individuals and 20% of taxable income for corporations. Notably, eligible individuals could claim these deductions even without itemizing their taxes, making the benefit available to more people. These provisions would apply to donations made between September 28, 2024, and December 31, 2025.

The bill would also ease access to retirement savings for affected individuals. It would eliminate the 10% early withdrawal penalty on up to $100,000 taken from retirement plans, allow individuals to spread these distributions over three years for tax purposes, and increase the maximum loan amount from retirement plans to $100,000 with extended repayment periods. Additionally, eligible individuals could calculate their earned income tax credit for 2024 using their 2023 income, which could benefit those whose earnings were disrupted by the hurricanes.

To qualify for these benefits, individuals would need to have had their principal home in a designated hurricane disaster area and sustained economic loss from Hurricanes Helene or Milton. The bill is currently in committee and has not yet been voted on by the full House.