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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5863 Enrolled Bill (ENR)]

        H.R.5863

                     One Hundred Eighteenth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
         the third day of January, two thousand and twenty-four

                                 An Act

 
    To provide tax relief with respect to certain Federal disasters.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Federal Disaster Tax Relief Act of 
2023''.
SEC. 2. EXTENSION OF RULES FOR TREATMENT OF CERTAIN DISASTER-RELATED 
PERSONAL CASUALTY LOSSES.
    For purposes of applying section 304(b) of the Taxpayer Certainty 
and Disaster Tax Relief Act of 2020, section 301 of such Act shall be 
applied by substituting ``the Federal Disaster Tax Relief Act of 2023'' 
for ``this Act'' each place it appears.
SEC. 3. EXCLUSION FROM GROSS INCOME FOR COMPENSATION FOR LOSSES OR 
DAMAGES RESULTING FROM CERTAIN WILDFIRES.
    (a) In General.--For purposes of the Internal Revenue Code of 1986, 
gross income shall not include any amount received by an individual as 
a qualified wildfire relief payment.
    (b) Qualified Wildfire Relief Payment.--For purposes of this 
section--
        (1) In general.--The term ``qualified wildfire relief payment'' 
    means any amount received by or on behalf of an individual as 
    compensation for losses, expenses, or damages (including 
    compensation for additional living expenses, lost wages (other than 
    compensation for lost wages paid by the employer which would have 
    otherwise paid such wages), personal injury, death, or emotional 
    distress) incurred as a result of a qualified wildfire disaster, 
    but only to the extent the losses, expenses, or damages compensated 
    by such payment are not compensated for by insurance or otherwise.
        (2) Qualified wildfire disaster.--The term ``qualified wildfire 
    disaster'' means any federally declared disaster (as defined in 
    section 165(i)(5)(A) of the Internal Revenue Code of 1986) 
    declared, after December 31, 2014, as a result of any forest or 
    range fire.
    (c) Denial of Double Benefit.--Notwithstanding any other provision 
of the Internal Revenue Code of 1986--
        (1) no deduction or credit shall be allowed (to the person for 
    whose benefit a qualified wildfire relief payment is made) for, or 
    by reason of, any expenditure to the extent of the amount excluded 
    under this section with respect to such expenditure, and
        (2) no increase in the basis or adjusted basis of any property 
    shall result from any amount excluded under this subsection with 
    respect to such property.
    (d) Limitation on Application.--This section shall only apply to 
qualified wildfire relief payments received by the individual during 
taxable years beginning after December 31, 2019, and before January 1, 
2026.
    (e) Extension of Period of Limitation.--In the case of a claim for 
credit or refund which is properly allocable to the exclusion which is 
described in subsection (a)--
        (1) the period of limitation prescribed in section 6511(a) of 
    the Internal Revenue Code of 1986 for the filing of such claim 
    shall be treated as not expiring earlier than the date that is 1 
    year after the date of the enactment of this Act, and
        (2) any limitation described in section 6511(b)(2) of such Code 
    shall not apply.
SEC. 4. EAST PALESTINE DISASTER RELIEF PAYMENTS.
    (a) Disaster Relief Payments to Victims of East Palestine Train 
Derailment.--East Palestine train derailment payments shall be treated 
as qualified disaster relief payments for purposes of section 139(b) of 
the Internal Revenue Code of 1986.
    (b) East Palestine Train Derailment Payments.--For purposes of this 
section, the term ``East Palestine train derailment payment'' means any 
amount received by or on behalf of an individual as compensation for 
loss, damages, expenses, loss in real property value, closing costs 
with respect to real property (including realtor commissions), or 
inconvenience (including access to real property) resulting from the 
East Palestine train derailment if such amount was provided by--
        (1) a Federal, State, or local government agency,
        (2) Norfolk Southern Railway, or
        (3) any subsidiary, insurer, or agent of Norfolk Southern 
    Railway or any related person.
    (c) Train Derailment.--For purposes of this section, the term 
``East Palestine train derailment'' means the derailment of a train in 
East Palestine, Ohio, on February 3, 2023.
    (d) Effective Date.--This section shall apply to amounts received 
on or after February 3, 2023.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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