Doug LaMalfa Federal Disaster Tax Relief Certainty Act
Sponsored By: Representative Steube, W. Gregory [R-FL-17]
Passed House
Summary
This bill creates temporary tax rules that expand disaster-loss deductions and exclude certain wildfire relief payments from taxable income. It defines which disasters qualify and gives non-itemizers a new way to claim disaster losses.
Show full summary
- Households hit by declared disasters get a new "qualified net disaster loss" rule that changes how casualty losses are calculated. The law sets the dollar floor at $100 generally and $500 for qualified disaster-related losses and lets non-itemizers claim the portion of the casualty loss tied to these events.
- Wildfire survivors can exclude "qualified wildfire relief payments" from gross income when they receive compensation for property loss, extra living expenses, lost wages not paid by an employer, injury, death, or emotional distress. The exclusion prevents double benefits and applies to payments received in taxable years beginning after Dec 31, 2025.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Easier tax deduction for disaster losses
If enacted, this would change how you deduct personal losses after a Presidential major disaster. You would first deduct your qualified disaster loss. Only any remaining casualty loss over 10% of your adjusted gross income (AGI) would then count. You could claim the disaster loss even if you do not itemize. Each loss would face a $100 floor ($500 for qualified disaster-related personal losses). It would cover disasters with incident periods starting on or after 12/28/2019 and before 1/1/2027, and apply to tax years beginning after 12/31/2024.
Wildfire relief payments not taxed
If enacted, money you receive as qualified wildfire relief would not be taxed. This covers payments for wildfire losses, extra living costs, certain lost wages, injuries, or emotional distress. The disaster would need to be a federally declared wildfire after 12/31/2014 and before 1/1/2027. The exclusion would apply only to amounts not covered by insurance or other payments. You could not also deduct those costs or add them to a property's basis. This would apply to payments received in tax years beginning after 12/31/2025.
Sponsors & CoSponsors
Sponsor
Steube, W. Gregory [R-FL-17]
FL • R
Cosponsors
Thompson (CA)
CA • D
Sponsored 9/15/2025
LaMalfa
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
Crow
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
Bilirakis
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.
View on Congress.gov