H.R. 6645

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6645 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 6645

To amend the Internal Revenue Code of 1986 to allow disaster-affected 
taxpayers to use preceding taxable year earned income to determine 
eligibility for the earned income credit and the refundable portion of 
the child tax credit.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

December 11, 2025

Ms. Jacobs introduced the following bill; which was referred to the 
Committee on Ways and Means

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A BILL

To amend the Internal Revenue Code of 1986 to allow disaster-affected 
taxpayers to use preceding taxable year earned income to determine 
eligibility for the earned income credit and the refundable portion of 
the child tax credit.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Working Families Disaster Tax Relief 
Act''.

SEC. 2. ELECTION FOR DISASTER-AFFECTED TAXPAYERS TO USE PRECEDING YEAR 
EARNED INCOME TO DETERMINE CREDIT ELIGIBILITY.

(a) Election To Use Prior Year Income for Disaster-Affected 
Taxpayers With Respect to Child Tax Credit.--Section 24(d) of the 
Internal Revenue Code of 1986 is amended to read as follows:
``(4) Election to use prior year income for disaster-
affected taxpayers.--
``(A) In general.--A disaster-affected taxpayer may 
elect to apply paragraph (1) by substituting `the 
preceding taxable year' for `the taxable year' each 
place such term appears.
``(B) Disaster-affected taxpayer.--For purposes of 
this paragraph, the term `disaster-affected taxpayer' 
means, with respect to a taxable year--
``(i) a taxpayer whose principal place of 
abode or principal place of work, during any 
period in the taxable year which is part of the 
incident period of a qualified disaster, is 
located in a qualified disaster zone, or
``(ii) a taxpayer--
``(I) whose principal place of 
abode, during any period in the taxable 
year which is part of the incident 
period of a qualified disaster, is 
located in the qualified disaster area 
with respect to such qualified 
disaster, and
``(II) who is displaced from such 
principal place of abode during such 
taxable year as a result of such 
qualified disaster.
``(C) Definitions.--For purposes of this 
paragraph--
``(i) Qualified disaster.--The term 
`qualified disaster' means any disaster with 
respect to which a major disaster has been 
declared by the President under section 401 of 
the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act.
``(ii) Qualified disaster area.--The term 
`qualified disaster area' means, with respect 
to any qualified disaster, the area with 
respect to which the major disaster was 
declared under the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act.
``(iii) Qualified disaster zone.--The term 
`qualified disaster zone' means the portion of 
a qualified disaster area determined by the 
President to warrant individual or individual 
and public assistance from the Federal 
Government under the Robert T. Stafford 
Disaster Relief and Emergency Assistance 
Act.''.
(b) Election To Use Prior Year Income for Disaster-Affected 
Taxpayers With Respect to Earned Income Credit.--Section 32(c) of such 
Code is amended by adding at the end the following new paragraph:
``(5) Election to use prior year income for disaster-
affected taxpayers.--A disaster-affected taxpayer (as defined 
in section 24(d)(4)(B)) may elect to apply subsection (a)(1) by 
inserting `preceding' before `taxable year' in such 
paragraph.''.
(c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
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