(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.