<p><strong>Hurricane Helene and Milton Tax Relief Act of 2025</strong></p><p>This bill increases the tax deduction for charitable contributions related to Hurricanes Helene and Milton relief efforts and&nbsp;makes changes related to distributions and loans from retirement plans and the earned income tax credit (EITC) for eligible individuals impacted by the hurricanes.</p><p>The bill increases the maximum&nbsp;tax deduction for charitable contributions to 100% of adjusted gross income for individuals and 20% of taxable income for corporations for qualified hurricane disaster contributions. Further, individuals may claim a deduction for qualified hurricane disaster contributions even if they do not itemize their tax deductions.</p><p>The bill defines <em>qualified hurricane disaster contributions</em>, as charitable contributions for Hurricanes Helene and Milton relief efforts made on or after September 28, 2024, and before December 31, 2025.&nbsp;</p><p>The bill also&nbsp;</p><ul><li>eliminates the 10% penalty on early distributions from a qualified retirement plan for up to $100,000 of qualified hurricane disaster distributions to an eligible individual,</li><li>allows eligible individuals to include qualified hurricane disaster distributions in income over three years, and</li><li>increases the loan amount that may be borrowed from a qualified retirement plan to $100,000 and allows such loans to be repaid over a longer time period.</li></ul><p>An <em>eligible individual</em> is an individual whose principal home during the incident&nbsp;period was in a qualified hurricane disaster area and who sustained economic loss due to Hurricanes Helene or Milton.</p><p>Finally, the bill allows eligible individuals to calculate the&nbsp;EITC for the 2024 tax year using 2023 earned income.&nbsp;</p>