IIB 

118TH CONGRESS 

2D SESSION H. R. 5863 

IN THE SENATE OF THE UNITED STATES 

MAY 22, 2024 

Received; read twice and referred to the Committee on Finance 

AN ACT 

To provide tax relief with respect to certain Federal 

disasters. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Federal Disaster Tax 

3 Relief Act of 2023’’. 

4 SEC. 2. EXTENSION OF RULES FOR TREATMENT OF CER5 TAIN DISASTER-RELATED PERSONAL CAS6 UALTY LOSSES. 

7 For purposes of applying section 304(b) of the Tax8 payer Certainty and Disaster Tax Relief Act of 2020, sec9 tion 301 of such Act shall be applied by substituting ‘‘the 

10 Federal Disaster Tax Relief Act of 2023’’ for ‘‘this Act’’ 

11 each place it appears. 

12 SEC. 3. EXCLUSION FROM GROSS INCOME FOR COMPENSA13 TION FOR LOSSES OR DAMAGES RESULTING 

14 FROM CERTAIN WILDFIRES. 

15 (a) IN GENERAL.—For purposes of the Internal Rev16 enue Code of 1986, gross income shall not include any 

17 amount received by an individual as a qualified wildfire 

18 relief payment. 

19 (b) QUALIFIED WILDFIRE RELIEF PAYMENT.—For 

20 purposes of this section— 

21 (1) IN GENERAL.—The term ‘‘qualified wildfire 

22 relief payment’’ means any amount received by or on 

23 behalf of an individual as compensation for losses, 

24 expenses, or damages (including compensation for 

25 additional living expenses, lost wages (other than 

26 compensation for lost wages paid by the employer 


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1 which would have otherwise paid such wages), per2 sonal injury, death, or emotional distress) incurred 

3 as a result of a qualified wildfire disaster, but only 

4 to the extent the losses, expenses, or damages com5 pensated by such payment are not compensated for 

6 by insurance or otherwise. 

7 (2) QUALIFIED WILDFIRE DISASTER.—The 

8 term ‘‘qualified wildfire disaster’’ means any feder9 ally declared disaster (as defined in section 

10 165(i)(5)(A) of the Internal Revenue Code of 1986) 

11 declared, after December 31, 2014, as a result of 

12 any forest or range fire. 

13 (c) DENIAL OF DOUBLE BENEFIT.—Notwith14 standing any other provision of the Internal Revenue Code 

15 of 1986— 

16 (1) no deduction or credit shall be allowed (to 

17 the person for whose benefit a qualified wildfire re18 lief payment is made) for, or by reason of, any ex19 penditure to the extent of the amount excluded 

20 under this section with respect to such expenditure, 

21 and 

22 (2) no increase in the basis or adjusted basis of 

23 any property shall result from any amount excluded 

24 under this subsection with respect to such property. 


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1 (d) LIMITATION ON APPLICATION.—This section 

2 shall only apply to qualified wildfire relief payments re3 ceived by the individual during taxable years beginning 

4 after December 31, 2019, and before January 1, 2026. 

5 (e) EXTENSION OF PERIOD OF LIMITATION.—In the 

6 case of a claim for credit or refund which is properly allo7 cable to the exclusion which is described in subsection 

8 (a)— 

9 (1) the period of limitation prescribed in section 

10 6511(a) of the Internal Revenue Code of 1986 for 

11 the filing of such claim shall be treated as not expir12 ing earlier than the date that is 1 year after the 

13 date of the enactment of this Act, and 

14 (2) any limitation described in section 

15 6511(b)(2) of such Code shall not apply. 

16 SEC. 4. EAST PALESTINE DISASTER RELIEF PAYMENTS. 

17 (a) DISASTER RELIEF PAYMENTS TO VICTIMS OF

18 EAST PALESTINE TRAIN DERAILMENT.—East Palestine 

19 train derailment payments shall be treated as qualified 

20 disaster relief payments for purposes of section 139(b) of 

21 the Internal Revenue Code of 1986. 

22 (b) EAST PALESTINE TRAIN DERAILMENT PAY23 MENTS.—For purposes of this section, the term ‘‘East 

24 Palestine train derailment payment’’ means any amount 

25 received by or on behalf of an individual as compensation 


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1 for loss, damages, expenses, loss in real property value, 

2 closing costs with respect to real property (including real3 tor commissions), or inconvenience (including access to 

4 real property) resulting from the East Palestine train de5 railment if such amount was provided by— 

6 (1) a Federal, State, or local government agen7 cy, 

8 (2) Norfolk Southern Railway, or 

9 (3) any subsidiary, insurer, or agent of Norfolk 

10 Southern Railway or any related person. 

11 (c) TRAIN DERAILMENT.—For purposes of this sec12 tion, the term ‘‘East Palestine train derailment’’ means 

13 the derailment of a train in East Palestine, Ohio, on Feb14 ruary 3, 2023. 

15 (d) EFFECTIVE DATE.—This section shall apply to 

16 amounts received on or after February 3, 2023. 

Passed the House of Representatives May 21, 2024. 

Attest: KEVIN F. MCCUMBER, 

Clerk. 


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