[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3975 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 3975
To amend the Internal Revenue Code of 1986 to provide a lookback rule
in the case of certain federally declared disasters for amounts related
to earned income for purposes of determining certain tax credits.
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IN THE HOUSE OF REPRESENTATIVES
June 12, 2025
Mr. Kennedy of New York (for himself, Mr. Huffman, Ms. Barragan, Ms.
Norton, Mr. Neguse, Ms. Tokuda, Ms. Tlaib, and Ms. Chu) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a lookback rule
in the case of certain federally declared disasters for amounts related
to earned income for purposes of determining certain tax credits.
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 ``Tax Fairness for Disaster Victims
Act''.
SEC. 2. LOOKBACK RULE IN CASE OF CERTAIN FEDERALLY DECLARED DISASTERS
FOR AMOUNTS RELATED TO EARNED INCOME FOR PURPOSES OF
DETERMINING CERTAIN TAX CREDITS.
(a) In General.--Section 32 of the Internal Revenue Code of 1986 is
amended by inserting after subsection (f) the following new subsection:
``(g) Lookback Rule for Determining Amounts Related to Earned
Income in Case of Certain Federally Declared Disasters.--
``(1) In general.--In the case of a qualified individual
who elects the application of this subsection (at such time and
in such manner as the Secretary may provide)--
``(A) if the earned income of the taxpayer for the
taxable year which includes the applicable date is less
than the earned income of the taxpayer for the
preceding taxable year, the credits allowed under this
section and section 24(d) shall be determined by
substituting--
``(i) such earned income for the preceding
taxable year, for
``(ii) such earned income for the taxable
year which includes the applicable date, and
``(B) if the social security taxes of the taxpayer
for the taxable year which includes the applicable date
is less than the social security taxes of the taxpayer
for the preceding taxable year, the credit allowed
under section 24(d) shall be determined by
substituting--
``(i) such social security taxes for the
preceding taxable year, for
``(ii) such social security taxes for the
taxable year which includes the applicable
date.
``(2) Definitions.--For purposes of this subsection--
``(A) Qualified individual.--The term `qualified
individual' means any individual whose principal place
of abode on the applicable date was located in a
disaster area with respect to a federally declared
disaster.
``(B) Applicable date.--The term `applicable date'
means, with respect to any federally declared disaster,
the first day of the period specified by the Federal
Emergency Management Agency as the period during which
such disaster occurred.
``(C) Federally declared disaster; disaster area.--
The terms `federally declared disaster' and `disaster'
have the respective meanings given such terms by
section 165(i)(5).
``(D) Social security taxes.--The term `social
security taxes' has the meaning given such term by
section 24(d)(2).
``(3) Application to joint returns.--For purposes of
paragraph (1), in the case of a joint return--
``(A) such paragraph shall apply if either spouse
is a qualified individual,
``(B) 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 year,
and
``(C) the social security taxes of the taxpayer for
the preceding taxable year shall be the sum of the
social security taxes of each spouse for such preceding
taxable year.
``(4) Uniform application of election.--Any election made
under paragraph (1) shall apply for all purposes of paragraph
(1).
``(5) No effect on determination of gross income, etc.--
Except as otherwise provided in this subsection, this title
shall be applied without regard to any substitution under
paragraph (1).''.
(b) Treatment as Mathematical or Clerical Errors.--Section
6213(g)(2) of such Code is amended by striking ``and'' at the end of
subparagraph (U), by striking the period at the end of subparagraph (V)
and inserting ``, and'', and by inserting after subparagraph (V) the
following new subparagraph:
``(W) an incorrect use of earned income or social
security taxes pursuant to section 32(g).''.
(c) Effective Date.--The amendments made by this section shall
apply to determinations of earned income and social security taxes for
taxable years beginning after the date of the enactment of this Act.
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