H.R. 6645 — Working Families Disaster Tax Relief Act

This section establishes an election for disaster-affected taxpayers to determine eligibility for the child tax credit and earned income tax credit using earned income from the preceding taxable year (instead of the current taxable year). A disaster-affected taxpayer is one whose principal place of abode or principal place of work is located in a qualified disaster zone (i.e., the portion of a qualified disaster area warranting individual or individual and public assistance) during any part of a qualified disaster's incident period, or whose principal place of abode is in the qualified disaster area (i.e., area covered by a major disaster declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act) and who is displaced as a result. The amendments apply to taxable years beginning after December 31, 2024. (Thus, disaster victims with reduced current-year income due to a presidentially declared major disaster may preserve credit eligibility based on prior-year income.)