II 

118TH CONGRESS 

1ST SESSION S. 764 

To amend the Internal Revenue Code of 1986 to provide special rules for 

casualty losses incurred by reason of Hurricane Ian, Hurricane Nicole, 

and Hurricane Fiona. 

IN THE SENATE OF THE UNITED STATES 

MARCH 9, 2023 

Mr. SCOTT of Florida (for himself and Mr. RUBIO) introduced the following 

bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

special rules for casualty losses incurred by reason of 

Hurricane Ian, Hurricane Nicole, and Hurricane Fiona. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Hurricane Tax Relief 

5 Act’’. 

6 SEC. 2. TAX RELIEF RELATED TO HURRICANE IAN, HURRI7 CANE NICOLE, AND HURRICANE FIONA. 

8 (a) DEFINITIONS.—For purposes of this section— 


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1 (1) HURRICANE IAN DISASTER AREA.—The 

2 term ‘‘Hurricane Ian disaster area’’ means an area 

3 with respect to which a major disaster has been de4 clared by the President before the date of the enact5 ment of this section under section 401 of the Robert 

6 T. Stafford Disaster Relief and Emergency Assist7 ance Act by reason of Hurricane Ian. 

8 (2) HURRICANE NICOLE DISASTER AREA.—The 

9 term ‘‘Hurricane Nicole disaster area’’ means an 

10 area with respect to which a major disaster has been 

11 declared by the President before the date of the en12 actment of this section under section 401 of the 

13 Robert T. Stafford Disaster Relief and Emergency 

14 Assistance Act by reason of Hurricane Nicole. 

15 (3) HURRICANE FIONA DISASTER AREA.—The 

16 term ‘‘Hurricane Fiona disaster area’’ means an 

17 area with respect to which a major disaster has been 

18 declared by the President before the date of the en19 actment of this section under section 401 of the 

20 Robert T. Stafford Disaster Relief and Emergency 

21 Assistance Act by reason of Hurricane Fiona. 

22 (b) SPECIAL RULES FOR QUALIFIED DISASTER-RE23 LATED PERSONAL CASUALTY LOSSES.— 

24 (1) IN GENERAL.—If an individual has a net 

25 disaster loss for any taxable year— 


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1 (A) the amount determined under section 

2 165(h)(2)(A)(ii) of the Internal Revenue Code 

3 of 1986 shall be equal to the sum of— 

4 (i) such net disaster loss, and 

5 (ii) so much of the excess referred to 

6 in the matter preceding clause (i) of sec7 tion 165(h)(2)(A) of such Code (reduced 

8 by the amount in clause (i) of this sub9 paragraph) as exceeds 10 percent of the 

10 adjusted gross income of the individual, 

11 (B) in the case of qualified disaster-related 

12 personal casualty losses, section 165(h)(1) of 

13 such Code shall be applied to by substituting 

14 ‘‘$500’’ for ‘‘$500 ($100 for taxable years be15 ginning after December 31, 2009)’’, 

16 (C) the standard deduction determined 

17 under section 63(c) of such Code shall be in18 creased by the net disaster loss, and 

19 (D) section 56(b)(1)(E) of such Code shall 

20 not apply to so much of the standard deduction 

21 as is attributable to the increase under sub22 paragraph (C) of this paragraph. 

23 (2) NET DISASTER LOSS.—For purposes of this 

24 subsection, the term ‘‘net disaster loss’’ means the 

25 excess of qualified disaster-related personal casualty 


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1 losses over personal casualty gains (as defined in 

2 section 165(h)(3)(A) of the Internal Revenue Code 

3 of 1986). 

4 (3) QUALIFIED DISASTER-RELATED PERSONAL

5 CASUALTY LOSSES.—For purposes of this sub6 section, the term ‘‘qualified disaster-related personal 

7 casualty losses’’ means losses described in section 

8 165(c)(3) of the Internal Revenue Code of 1986— 

9 (A) which arise in the Hurricane Ian dis10 aster area on or after September 23, 2022, and 

11 which are attributable to Hurricane Ian, 

12 (B) which arise in the Hurricane Nicole 

13 disaster area on or after November 7, 2022, 

14 and which are attributable to Hurricane Nicole, 

15 or 

16 (C) which arise in the Hurricane Fiona 

17 disaster area on or after September 17, 2022, 

18 and which are attributable to Hurricane Fiona. 

19 (c) APPLICATION TO PUERTO RICO.— 

20 (1) IN GENERAL.—The Secretary of the Treas21 ury shall pay to Puerto Rico amounts estimated by 

22 the Secretary of the Treasury as being equal to the 

23 aggregate benefits that would have been provided to 

24 residents of Puerto Rico by reason of the provisions 

25 of this section if a mirror code tax system had been 


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1 in effect in Puerto Rico. The preceding sentence 

2 shall not apply with respect to Puerto Rico unless 

3 Puerto Rico has a plan, which has been approved by 

4 the Secretary of the Treasury, under which Puerto 

5 Rico will promptly distribute such payments to its 

6 residents. 

7 (2) DEFINITION AND SPECIAL RULES.— 

8 (A) MIRROR CODE TAX SYSTEM.—For pur9 poses of this subsection, the term ‘‘mirror code 

10 tax system’’ means, with respect to any posses11 sion of the United States, the income tax sys12 tem of such possession if the income tax liabil13 ity of the residents of such possession under 

14 such system is determined by reference to the 

15 income tax laws of the United States as if such 

16 possession were the United States. 

17 (B) TREATMENT OF PAYMENTS.—For pur18 poses of section 1324 of title 31, United States 

19 Code, the payments under this subsection shall 

20 be treated in the same manner as a refund due 

21 from a credit provision referred to in subsection 

22 (b)(2) of such section. 

23 (C) COORDINATION WITH UNITED STATES

24 INCOME TAXES.—In the case of any person 

25 with respect to whom a tax benefit is taken into 


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1 account with respect to the taxes imposed by 

2 any possession of the United States by reason 

3 of this section, the Internal Revenue Code of 

4 1986 shall be applied with respect to such per5 son without regard to the provisions of this sec6 tion which provide such benefit. 

Æ 


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