All Roll Calls
Yes: 382 • No: 7
118-hr-5863118th CongressWALLET
Federal Disaster Tax Relief Act of 2023
Sponsored By: Representative Steube, W. Gregory [R-FL-17]
Became Law
Summary
Tax relief for wildfire and East Palestine disaster victims. This law excludes certain wildfire relief payments from taxable income, designates payments tied to the East Palestine train derailment as qualified disaster relief, and updates casualty-loss cross-references so the 2023 act controls those cross-referenced rules.
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- Families and wildfire victims: Wildfire relief payments for losses, expenses, or damages from federally declared wildfires after December 31, 2014 are excluded from gross income for payments received in tax years beginning after December 31, 2019 and before January 1, 2026. The law prevents deductions or increases in property basis for amounts that are excluded.
- East Palestine residents and property owners: Payments tied to the February 3, 2023 East Palestine train derailment qualify as disaster relief when provided by federal, state, or local governments, Norfolk Southern, its subsidiaries, insurers, or related parties. The designation covers amounts received on or after February 3, 2023.
- Tax treatment and claims: The act changes cross-references so casualty-loss rules under the 2020 Taxpayer Certainty and Disaster Tax Relief Act apply using the Federal Disaster Tax Relief Act of 2023 as the controlling reference. It also extends the refund or credit claim period tied to the wildfire exclusion so the limitation under section 6511(a) does not expire earlier than one year after enactment and removes the limitation in section 6511(b)(2).
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Tax-free East Palestine payments
You can exclude from income payments you get because of the East Palestine, Ohio train derailment on February 3, 2023. This includes payments for loss, damage, expenses, lower property value, closing costs (including realtor fees), or inconvenience. Payments must come from a government agency, Norfolk Southern, its insurer or agent, or a related person. The tax-free rule applies to amounts you receive on or after February 3, 2023.
Tax-free wildfire relief payments
You can exclude from income payments you get for losses or extra living costs from a federally declared forest or range fire. The disaster must be declared after December 31, 2014. This tax-free rule applies to payments in taxable years starting after December 31, 2019 and before January 1, 2026. It only covers amounts not paid back by insurance or other reimbursements. You cannot also claim a deduction or raise your property’s tax basis for the same excluded amount. You have at least one year after the law’s enactment to file refund claims tied to this exclusion.
Clearer tax rules for disaster losses
The law updates cross-references so disaster-related personal casualty loss rules point to this 2023 law. This clarifies how you claim losses under the earlier 2020 disaster framework. The change applies upon enactment.
Sponsors & CoSponsors
Sponsor
Steube, W. Gregory [R-FL-17]
FL • R
Cosponsors
Rep. LaMalfa, Doug [R-CA-1]
CA • R
Sponsored 10/3/2023
Rep. Thompson, Mike [D-CA-4]
CA • D
Sponsored 11/2/2023
Rep. Johnson, Bill [R-OH-6]
OH • R
Sponsored 11/6/2023
Rep. Diaz-Balart, Mario [R-FL-26]
FL • R
Sponsored 11/6/2023
Rep. Donalds, Byron [R-FL-19]
FL • R
Sponsored 11/6/2023
Rep. Brownley, Julia [D-CA-26]
CA • D
Sponsored 11/7/2023
Rep. Bonamici, Suzanne [D-OR-1]
OR • D
Sponsored 11/7/2023
Rep. Omar, Ilhan [D-MN-5]
MN • D
Sponsored 11/7/2023
Rep. Newhouse, Dan [R-WA-4]
WA • R
Sponsored 11/8/2023
Rep. Moran, Nathaniel [R-TX-1]
TX • R
Sponsored 11/8/2023
Rep. Franklin, Scott [R-FL-18]
FL • R
Sponsored 11/8/2023
Rep. Barr, Andy [R-KY-6]
KY • R
Sponsored 11/8/2023
Rep. Bice, Stephanie I. [R-OK-5]
OK • R
Sponsored 11/9/2023
Rep. Kelly, Mike [R-PA-16]
PA • R
Sponsored 11/9/2023
Rep. Tokuda, Jill N. [D-HI-2]
HI • D
Sponsored 11/13/2023
Rep. Rouzer, David [R-NC-7]
NC • R
Sponsored 11/13/2023
Rep. Waltz, Michael [R-FL-6]
FL • R
Sponsored 11/13/2023
Rep. Davids, Sharice [D-KS-3]
KS • D
Sponsored 11/13/2023
Rep. Kiley, Kevin [I-CA-3]
CA • I
Sponsored 11/14/2023
Rep. Bucshon, Larry [R-IN-8]
IN • R
Sponsored 11/14/2023
Rep. Harder, Josh [D-CA-9]
CA • D
Sponsored 11/14/2023
Rep. Costa, Jim [D-CA-21]
CA • D
Sponsored 11/14/2023
Rep. Hageman, Harriet M. [R-WY-At Large]
WY • R
Sponsored 11/21/2023
Rep. Caraveo, Yadira [D-CO-8]
CO • D
Sponsored 11/21/2023
Rep. Neguse, Joe [D-CO-2]
CO • D
Sponsored 11/21/2023
Rep. Case, Ed [D-HI-1]
HI • D
Sponsored 11/28/2023
Rep. Lieu, Ted [D-CA-36]
CA • D
Sponsored 11/28/2023
Rep. Porter, Katie [D-CA-47]
CA • D
Sponsored 11/28/2023
Rep. Miller, Carol D. [R-WV-1]
WV • R
Sponsored 11/29/2023
Rep. Armstrong, Kelly [R-ND-At Large]
ND • R
Sponsored 11/29/2023
Rep. Rutherford, John H. [R-FL-5]
FL • R
Sponsored 11/29/2023
Rep. Pfluger, August [R-TX-11]
TX • R
Sponsored 12/6/2023
Rep. Courtney, Joe [D-CT-2]
CT • D
Sponsored 12/12/2023
Rep. Goldman, Daniel S. [D-NY-10]
NY • D
Sponsored 12/12/2023
Rep. Stansbury, Melanie A. [D-NM-1]
NM • D
Sponsored 12/12/2023
Roll Call Votes
house vote • 5/21/2024
On Motion to Suspend the Rules and Pass, as Amended
Yes: 382 • No: 7