Hurricane Tax Relief Act

Subjects: Taxation

Summary:  <p><strong>Hurricane Tax Relief Act </strong></p> <p>This bill modifies tax rules relating to personal casualty losses for taxpayers affected by Hurricanes Ian, Nicole, and Fiona. It eliminates the requirements that such taxpayers must itemize their tax deductions as a condition of eligibility for relief and that their losses exceed 10% of their adjusted gross income. The bill applies these modified requirements to residents of Puerto Rico affected by the Hurricanes.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 764 Introduced in Senate (IS)]

&lt;DOC&gt;






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.

    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 ``Hurricane Tax Relief Act''.

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

    (a) Definitions.--For purposes of this section--
            (1) Hurricane ian disaster area.--The term ``Hurricane Ian 
        disaster area'' means an area with respect to which a major 
        disaster has been declared by the President before the date of 
        the enactment of this section under section 401 of the Robert 
        T. Stafford Disaster Relief and Emergency Assistance Act by 
        reason of Hurricane Ian.
            (2) Hurricane nicole disaster area.--The term ``Hurricane 
        Nicole disaster area'' means an area with respect to which a 
        major disaster has been declared by the President before the 
        date of the enactment of this section under section 401 of the 
        Robert T. Stafford Disaster Relief and Emergency Assistance Act 
        by reason of Hurricane Nicole.
            (3) Hurricane fiona disaster area.--The term ``Hurricane 
        Fiona disaster area'' means an area with respect to which a 
        major disaster has been declared by the President before the 
        date of the enactment of this section under section 401 of the 
        Robert T. Stafford Disaster Relief and Emergency Assistance Act 
        by reason of Hurricane Fiona.
    (b) Special Rules for Qualified Disaster-Related Personal Casualty 
Losses.--
            (1) In general.--If an individual has a net disaster loss 
        for any taxable year--
                    (A) the amount determined under section 
                165(h)(2)(A)(ii) of the Internal Revenue Code of 1986 
                shall be equal to the sum of--
                            (i) such net disaster loss, and
                            (ii) so much of the excess referred to in 
                        the matter preceding clause (i) of section 
                        165(h)(2)(A) of such Code (reduced by the 
                        amount in clause (i) of this subparagraph) as 
                        exceeds 10 percent of the adjusted gross income 
                        of the individual,
                    (B) in the case of qualified disaster-related 
                personal casualty losses, section 165(h)(1) of such 
                Code shall be applied to by substituting ``$500'' for 
                ``$500 ($100 for taxable years beginning after December 
                31, 2009)'',
                    (C) the standard deduction determined under section 
                63(c) of such Code shall be increased by the net 
                disaster loss, and
                    (D) section 56(b)(1)(E) of such Code shall not 
                apply to so much of the standard deduction as is 
                attributable to the increase under subparagraph (C) of 
                this paragraph.
            (2) Net disaster loss.--For purposes of this subsection, 
        the term ``net disaster loss'' means the excess of qualified 
        disaster-related personal casualty losses over personal 
        casualty gains (as defined in section 165(h)(3)(A) of the 
        Internal Revenue Code of 1986).
            (3) Qualified disaster-related personal casualty losses.--
        For purposes of this subsection, the term ``qualified disaster-
        related personal casualty losses'' means losses described in 
        section 165(c)(3) of the Internal Revenue Code of 1986--
                    (A) which arise in the Hurricane Ian disaster area 
                on or after September 23, 2022, and which are 
                attributable to Hurricane Ian,
                    (B) which arise in the Hurricane Nicole disaster 
                area on or after November 7, 2022, and which are 
                attributable to Hurricane Nicole, or
                    (C) which arise in the Hurricane Fiona disaster 
                area on or after September 17, 2022, and which are 
                attributable to Hurricane Fiona.
    (c) Application to Puerto Rico.--
            (1) In general.--The Secretary of the Treasury shall pay to 
        Puerto Rico amounts estimated by the Secretary of the Treasury 
        as being equal to the aggregate benefits that would have been 
        provided to residents of Puerto Rico by reason of the 
        provisions of this section if a mirror code tax system had been 
        in effect in Puerto Rico. The preceding sentence shall not 
        apply with respect to Puerto Rico unless Puerto Rico has a 
        plan, which has been approved by the Secretary of the Treasury, 
        under which Puerto Rico will promptly distribute such payments 
        to its residents.
            (2) Definition and special rules.--
                    (A) Mirror code tax system.--For purposes of this 
                subsection, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (B) Treatment of payments.--For purposes of section 
                1324 of title 31, United States Code, the payments 
                under this subsection shall be treated in the same 
                manner as a refund due from a credit provision referred 
                to in subsection (b)(2) of such section.
                    (C) Coordination with united states income taxes.--
                In the case of any person with respect to whom a tax 
                benefit is taken into account with respect to the taxes 
                imposed by any possession of the United States by 
                reason of this section, the Internal Revenue Code of 
                1986 shall be applied with respect to such person 
                without regard to the provisions of this section which 
                provide such benefit.
                                 &lt;all&gt;
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