Hurricane Tax Relief Act

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. Short title This Act may be cited as the Hurricane Tax Relief Act 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 (2) Hurricane Nicole disaster area The term Hurricane Nicole disaster area (3) Hurricane Fiona disaster area The term Hurricane Fiona disaster area (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) (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 $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 section 165(h)(3)(A) (3) Qualified disaster-related personal casualty losses For purposes of this subsection, the term qualified disaster-related personal casualty losses section 165(c)(3) (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 (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.

Summary: Hurricane Tax Relief Act 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.