People & Business

Buchanan Introduces Disaster Tax Relief Package for Hurricane Victims

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November 22, 2024 | Sarasota

Congressman Vern Buchanan, Vice Chairman of the House Ways and Means Committee, announced today that he has introduced the Hurricane Milton and Helene Tax Relief Act to provide much-needed tax relief for those in his district and across the country impacted by the recent back-to-back hurricanes. Buchanan was joined by 10 House colleagues, including several members of the key tax-writing committee, as original cosponsors from Florida, Georgia and North Carolina, all of which were hard-hit by Hurricanes Helene and Milton.

“Our constituents deserve the full support of the federal government as they work to recover and rebuild from these two devastating hurricanes which hit within two weeks of one another,” said Buchanan. “Many of my constituents incurred thousands of dollars in disaster-related expenses, with some losing everything, and the burdensome tax code should be the last thing standing in their way of receiving the support they need. I’m pleased to be joined by so many of my colleagues in introducing this critical legislation to provide commonsense solutions to help those still suffering and am hopeful that Congress can come together and support my proposal with broad bipartisan support.”

This legislation is cosponsored by fellow members of the Ways and Means Committee Reps. Drew Ferguson, Greg Steube, and Grey Murphy, as well as Reps. Gus Bilirakis, Sheila Cherfilus-McCormick, Neil Dunn, Scott Frankling, Laurel Lee, Anna Paulina Luna and Daniel Webster.

“Floridians take on disaster recovery and rebuilding expenses through no fault of their own. That’s why I’ve worked to deliver tax relief since Hurricane Ian with my House-passed Federal Disaster Tax Relief Act,” said Rep. Steube. “I’m glad to support the Hurricane Milton and Helene Tax Relief Act which eliminates the 10 percent adjusted gross income threshold requirement for claiming casualty loss deductions. This piece of our tax code has plagued Floridians for years, and this provision will be a welcomed, permanent change.”

Specifically, Buchanan’s legislation will incentive donations to hurricane relief efforts by raising the charitable donation cap for donations from 60 percent to 100 percent of adjusted gross income (AGI), making it easier for those who want to financially contribute to their communities’ recovery. The bill also expands benefits for people struggling financially in the aftermath of the storms by allowing individuals who qualify for the Earned Income Tax Credit (EITC) to use their 2023 income to file for 2024, which would help those whose income was impacted by the disaster.

Additionally, for those pulling from retirement savings to cover disaster-related expenses, the bill raises the amount they can withdraw penalty-free from $22,000 annually to $100,000 over tax years 2024 and 2025. It also removes the requirement that disaster victims must subtract 10 percent of their AGI from their total casualty losses when calculating the financial impact of federally declared disasters.

Several of these provisions have been included in previous disaster tax relief bills signed into law, such as the Katrina Emergency Tax Relief Act of 2005.

Buchanan has a strong record of supporting communities recovering from the impacts of these recent storms. In October, Buchanan led a letter signed by the entire bipartisan Florida Congressional delegation calling on President Biden to approve Gov. DeSantis’ request for an Expedited Major Disaster Declaration in the wake of Hurricane Milton. He also joined an earlier letter supporting DeSantis’ Expedited Major Disaster Declaration request for Hurricane Helene. Further, Buchanan led a bipartisan letter in November 2024 to Congressional leadership, co-signed by 32 members, calling for new funding to help replenish the Small Business Administration’s disaster loan program.

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