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119-hr-5366119th CongressWALLET

Doug LaMalfa Federal Disaster Tax Relief Certainty Act

Sponsored By: Representative Steube, W. Gregory [R-FL-17]

Became Law

Summary

Provides targeted tax relief for people who lose property in major disasters. It rewrites casualty-loss rules to let more disaster losses count and creates a tax exclusion for certain wildfire relief payments.

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  • Households with disaster damage see a new "qualified net disaster loss" rule that changes how casualty deductions are calculated so more of a loss can be claimed, and it lowers the general dollar floor to $100 while allowing a $500 floor for qualified disaster-related losses.
  • Taxpayers who do not itemize can claim the portion of the casualty deduction that comes from a qualified net disaster loss. This change applies to taxable years beginning after December 31, 2024.
  • People who receive certain wildfire relief payments do not have to include them in gross income for federally declared forest or range fires. The exclusion covers disasters declared after December 31, 2014 and before January 1, 2027 and bars double benefits by denying deductions, credits, or basis increases for amounts excluded.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 1 costs, 0 mixed.

More tax relief after major disasters

Starting with tax years that begin after December 31, 2024, the law expands how you deduct disaster losses. For personal losses from a Presidential major disaster with an incident period starting December 28, 2019 through December 31, 2026, a $500 floor applies. For other personal casualty losses, the floor is $100. If you have a qualified net disaster loss, you can deduct that amount first. You can also deduct any remaining casualty loss that is over 10% of your AGI after subtracting the disaster amount. You can claim the disaster-loss part even if you do not itemize.

Wildfire relief payments not taxed

For payments received in tax years that begin after December 31, 2025, you do not include qualified wildfire relief payments in income. These payments can cover losses, extra living costs, lost wages (not your regular employer-paid wages), injury, death, or emotional distress. The wildfire must be a federally declared disaster from a forest or range fire declared after December 31, 2014 and before January 1, 2027. Only amounts not covered by insurance are excluded. You cannot also deduct those same costs or add them to your property basis.

Old disaster tax rules end

For tax years that start after December 31, 2024, two earlier disaster tax relief rules named in prior laws no longer apply. If you planned to use those old rules, you cannot use them for those later years.

Sponsors & CoSponsors

Sponsor

Steube, W. Gregory [R-FL-17]

FL • R

Cosponsors

  • Rep. Thompson, Mike [D-CA-4]

    CA • D

    Sponsored 9/15/2025

  • Rep. LaMalfa, Doug [R-CA-1]

    CA • R

    Sponsored 9/15/2025

  • Rep. Panetta, Jimmy [D-CA-19]

    CA • D

    Sponsored 9/15/2025

  • Rep. Vindman, Eugene Simon [D-VA-7]

    VA • D

    Sponsored 9/30/2025

  • Rep. Neguse, Joe [D-CO-2]

    CO • D

    Sponsored 10/8/2025

  • Rep. Min, Dave [D-CA-47]

    CA • D

    Sponsored 12/18/2025

  • Rep. Crow, Jason [D-CO-6]

    CO • D

    Sponsored 12/18/2025

  • Rep. Tokuda, Jill N. [D-HI-2]

    HI • D

    Sponsored 1/8/2026

  • Rep. Donalds, Byron [R-FL-19]

    FL • R

    Sponsored 3/24/2026

  • Rep. Bilirakis, Gus M. [R-FL-12]

    FL • R

    Sponsored 3/25/2026

  • Rep. Diaz-Balart, Mario [R-FL-26]

    FL • R

    Sponsored 3/25/2026

  • Rep. Moore, Gwen [D-WI-4]

    WI • D

    Sponsored 3/25/2026

  • Rep. Bergman, Jack [R-MI-1]

    MI • R

    Sponsored 4/9/2026

  • Rep. Wilson, Joe [R-SC-2]

    SC • R

    Sponsored 4/9/2026

Roll Call Votes

No roll call votes available for this bill.

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