# 119-s-2744: Federal Disaster Tax Relief Act of 2025

119-s-2744, Federal Disaster Tax Relief Act of 2025, is a 119th Congress bill sponsored by Sen. Scott, Rick [R-FL] (R-FL); status introduced; PRIA reads it as touching household money (as of 2026-05-14).

- Canonical: https://policyrisk.com/legislation/119-s-2744
- As of: 2026-05-14
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-2744
- Congress: 119
- Title: Federal Disaster Tax Relief Act of 2025
- Status: introduced
- Introduced: 2025-09-09
- Sponsor: Sen. Scott, Rick [R-FL] (R-FL)
- Cosponsors: 4
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-05-14

## Summary

**This bill creates federal tax relief for people hit by major disasters and wildfires by codifying a special casualty loss rule for disaster losses and excluding certain wildfire relief payments from taxable income.** - Households in declared disaster areas get a new "qualified disaster loss" rule that blends net disaster losses with an adjusted gross income (AGI) floor to set allowable casualty losses and adds a disaster-specific deduction tied to the standard deduction. It applies to losses in taxable years beginning after December 31, 2024. - Individuals who receive qualifying wildfire relief payments can exclude those payments from gross income, subject to anti-double-dipping rules that prevent taking deductions or basis increases for the same excluded amount. That exclusion applies to payments received in taxable years after December 31, 2025 and before January 1, 2031. - The bill preserves the disaster deduction when calculating the alternative minimum tax (AMT). It also defines "qualified disaster area," "incident period," and ties incident periods to Presidentially declared major disasters under the Stafford Act using FEMA timing. Enhanced loss treatment is limited to disasters declared after July 4, 2025 and before January 1, 2027.

## Cosponsors (4)

- Sen. Schiff, Adam B. [D-CA] (D-CA), 2025-09-15T00:00:00.000Z
- Sen. Moody, Ashley [R-FL] (R-FL), 2026-05-11T00:00:00.000Z
- Sen. Padilla, Alex [D-CA] (D-CA), 2026-05-12T00:00:00.000Z
- Sen. Cassidy, Bill [R-LA] (R-LA), 2026-05-12T00:00:00.000Z

## Provisions PRIA read

- More disaster loss tax relief: benefit, high. If enacted, you would be able to deduct more personal casualty losses from qualifying major disasters. The bill would create a new disaster loss deduction equal to your qualified net disaster losses minus personal casualty gains. For losses in qualifying disaster areas, the allowed loss could also…
- Wildfire relief payments tax-free: benefit, medium. If enacted, you would be able to exclude certain wildfire relief payments from your taxable income. The exclusion would cover compensation for losses, additional living expenses, some lost wages, injury, death, and emotional distress. It would apply only to amounts not paid by insurance or other re…

## Related bills

- 119-s-5066: Health Equity and Accountability Act of 2026
- 119-s-1816: Improving Seniors’ Timely Access to Care Act of 2025
- 119-s-558: Antisemitism Awareness Act of 2025
- 119-s-2120: Older Americans Act Reauthorization Act of 2025
- 119-s-1027: Military Spouse Hiring Act
- 119-s-1032: Major Richard Star Act

## Sources
- [119-s-2744 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/2744)

## Related
- [119-s-5066: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-s-5066)
- [119-s-1816: Improving Seniors’ Timely Access to Care Act of 2025](https://policyrisk.com/legislation/119-s-1816)
- [119-s-558: Antisemitism Awareness Act of 2025](https://policyrisk.com/legislation/119-s-558)
- [119-s-2120: Older Americans Act Reauthorization Act of 2025](https://policyrisk.com/legislation/119-s-2120)
- [119-s-1027: Military Spouse Hiring Act](https://policyrisk.com/legislation/119-s-1027)
- [119-s-1032: Major Richard Star Act](https://policyrisk.com/legislation/119-s-1032)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-2744 (as of 2026-05-14).