Washington, D.C. (July 28, 2025) – In a letter to Representative Timothy Kennedy (D-NY), the American Institute of CPAs (AICPA) expressed support for H.R. 3975, the Tax Fairness for Disaster Victims Act, introduced by Kennedy. The legislation would allow individuals impacted by federally declared disasters to elect the prior year’s earned income for purposes of the Earned Income Tax Credit (EITC). The bill contains a lookback rule, which has been incorporated into multiple legislative packages in recent years but has not been made a permanent form of disaster relief. The Tax Fairness for Disaster Victims Act would make this relief permanent, which the AICPA has long advocated for.
The EITC is a refundable tax credit that requires taxpayers to have earned income below a certain threshold, which will depend on their filing status and the number of children they have. Federally declared disasters can disrupt work and reduces earned income, preventing taxpayers from claiming the EITC.
“When natural disasters devastate local economies and impact taxpayers’ ability to earn income, taxpayers should not lose eligibility for tax credits that would otherwise be available to them if not for their loss of income,” said Daniel Hauffe, Senior Manager for Tax Policy & Advocacy with the AICPA. “The AICPA supports this bill because it would make permanent a provision that has been in numerous disaster tax relief legislative packages and, therefore, would offer clarity and certainty to taxpayers and tax practitioners.”
About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with 397,000 members and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. A founding member of the Association of International Certified Professional Accountants, the AICPA sets ethical standards for the profession, attestation standards, and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state, and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, partners across the profession to build future talent, and drives continuing education to advance the vitality, relevance, and quality of the profession.
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Contact: Veronica L. Vera
202-434-9215
Veronica.Vera@aicpa-cima.com