other related matters through entering into bilateral 
income tax conventions, subject to the Senate’s ad-
vice and consent to ratification pursuant to article II 
of the Constitution. 
TITLE IV—ASSISTANCE FOR DIS-
ASTER-IMPACTED 
COMMU-
NITIES 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Federal Disaster Tax 
Relief Act of 2024’’. 
SEC. 402. EXTENSION OF RULES FOR TREATMENT OF CER-
TAIN DISASTER-RELATED PERSONAL CAS-
UALTY LOSSES. 
For purposes of applying section 304(b) of the Tax-
payer Certainty and Disaster Tax Relief Act of 2020, sec-
tion 301 of such Act shall be applied by substituting ‘‘the 
Federal Disaster Tax Relief Act of 2024’’ for ‘‘this Act’’ 
each place it appears. 
SEC. 403. EXCLUSION FROM GROSS INCOME FOR COM-
PENSATION FOR LOSSES OR DAMAGES RE-
SULTING FROM CERTAIN WILDFIRES. 
(a) IN GENERAL.—For purposes of the Internal Rev-
enue 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), per-
sonal injury, death, or emotional distress) incurred 
as a result of a qualified wildfire disaster, but only 
to the extent the losses, expenses, or damages com-
pensated by such payment are not compensated for 
by insurance or otherwise. 
(2) QUALIFIED
WILDFIRE
DISASTER.—The 
term ‘‘qualified wildfire disaster’’ means any feder-
ally 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.—Notwith-
standing 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 re-
lief payment is made) for, or by reason of, any ex-
penditure 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 re-
ceived by the individual during taxable years beginning 
after December 31, 2019, and before January 1, 2026. 
SEC. 404. 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 PAY-
MENTS.—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 real-
tor commissions), or inconvenience (including access to
real property) resulting from the East Palestine train de-
railment if such amount was provided by— 
(1) a Federal, State, or local government agen-
cy, 
(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 sec-
tion, the term ‘‘East Palestine train derailment’’ means 
the derailment of a train in East Palestine, Ohio, on Feb-
ruary 3, 2023. 
(d) EFFECTIVE DATE.—This section shall apply to 
amounts received on or after February 3, 2023. 
TITLE V—MORE AFFORDABLE 
HOUSING 
SEC. 501. STATE HOUSING CREDIT CEILING INCREASE FOR 
LOW-INCOME HOUSING CREDIT. 
(a) IN GENERAL.—Section 42(h)(3)(I) is amended— 
(1) by striking ‘‘and 2021,’’ and inserting 
‘‘2021, 2023, 2024, and 2025,’’, and 
(2) by striking ‘‘2018, 2019, 2020, AND 2021’’ in 
the heading and inserting ‘‘CERTAIN
CALENDAR 
YEARS’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years after 2022.
SEC. 502. TAX-EXEMPT BOND FINANCING REQUIREMENT. 
(a) IN GENERAL.—Section 42(h)(4) is amended by 
striking subparagraph (B) and inserting the following: 
‘‘(B) SPECIAL
RULE
WHERE
MINIMUM 
PERCENT
OF
BUILDINGS
IS
FINANCED
WITH 
TAX-EXEMPT
BONDS
SUBJECT
TO
VOLUME 
CAP.—For purposes of subparagraph (A), para-
graph (1) shall not apply to any portion of the 
credit allowable under subsection (a) with re-
spect to a building if— 
‘‘(i) 50 percent or more of the aggre-
gate basis of such building and the land on 
which the building is located is financed by 
1 or more obligations described in subpara-
graph (A), or 
‘‘(ii)(I) 30 percent or more of the ag-
gregate basis of such building and the land 
on which the building is located is financed 
by 1 or more qualified obligations, and 
‘‘(II) 1 or more of such qualified obli-
gations— 
‘‘(aa) are part of an issue the 
issue date of which is after December 
31, 2023, and 
‘‘(bb) provide the financing for 
not less than 5 percent of the aggre-
gate basis of such building and the 
land on which the building is located. 
‘‘(C) QUALIFIED
OBLIGATION.—For pur-
poses of subparagraph (B)(ii), the term ‘quali-
fied obligation’ means an obligation which is de-
scribed in subparagraph (A) and which is part 
of an issue the issue date of which is before 
January 1, 2026.’’. 
(b) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendment made by 
this section shall apply to buildings placed in service 
in taxable years beginning after December 31, 2023. 
(2) REHABILITATION EXPENDITURES TREATED 
AS SEPARATE NEW BUILDING.—In the case of any 
building with respect to which any expenditures are 
treated as a separate new building under section 
42(e) of the Internal Revenue Code of 1986, for 
purposes of paragraph (1), both the existing building 
and the separate new building shall be treated as 
having been placed in service on the date such ex-
penditures are treated as placed in service under 
section 42(e)(4) of such Code.
TITLE VI—TAX ADMINISTRATION 
AND ELIMINATING FRAUD 
SEC. 601. INCREASE IN THRESHOLD FOR REQUIRING IN-
FORMATION REPORTING WITH RESPECT TO 
CERTAIN PAYEES. 
(a) IN GENERAL.—Sections 6041(a) is amended by 
striking ‘‘$600’’ and inserting ‘‘$1,000’’. 
(b) INFLATION
ADJUSTMENT.—Section 6041 is 
amended by adding at the end the following new sub-
section: 
‘‘(h) INFLATION ADJUSTMENT.—In the case of any 
calendar year after 2024, the dollar amount in subsection 
(a) shall be increased by an amount equal to— 
‘‘(1) such dollar amount, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for such calendar year, deter-
mined by substituting ‘calendar year 2023’ for ‘cal-
endar year 2016’ in subparagraph (A)(ii) thereof. 
If any increase under the preceding sentence is not a mul-
tiple of $100, such increase shall be rounded to the nearest 
multiple of $100.’’. 
(c) APPLICATION TO REPORTING ON REMUNERATION 
FOR SERVICES AND DIRECT SALES.—Section 6041A is 
amended—
(1) in subsection (a)(2), by striking ‘‘is $600 or 
more’’ and inserting ‘‘equals or exceeds the dollar 
amount in effect for such calendar year under sec-
tion 6041(a)’’, and 
(2) in subsection (b)(1)(B), by striking ‘‘is 
$5,000 or more’’ and inserting ‘‘equals or exceeds 
the dollar amount in effect for such calendar year 
under section 6041(a)’’. 
(d) APPLICATION TO BACKUP WITHHOLDING.—Sec-
tion 3406(b)(6) is amended— 
(1) by striking ‘‘$600’’ in subparagraph (A) 
and inserting ‘‘the dollar amount in effect for such 
calendar year under section 6041(a)’’, and 
(2) by striking ‘‘ONLY WHERE AGGREGATE FOR 
CALENDAR YEAR IS $600 OR MORE’’ in the heading 
and inserting ‘‘ONLY IF IN EXCESS OF THRESHOLD’’. 
(e) CONFORMING AMENDMENTS.— 
(1) The heading of section 6041(a) is amended 
by striking ‘‘OF $600 OR MORE’’ and inserting ‘‘EX-
CEEDING THRESHOLD’’. 
(2) Section 6041(a) is amended by striking 
‘‘taxable year’’ and inserting ‘‘calendar year’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to payments made 
after December 31, 2023.
SEC. 602. ENFORCEMENT PROVISIONS WITH RESPECT TO 
COVID-RELATED 
EMPLOYEE 
RETENTION 
CREDITS. 
(a) INCREASE IN ASSESSABLE PENALTY ON COVID– 
ERTC PROMOTERS FOR AIDING AND ABETTING UNDER-
STATEMENTS OF TAX LIABILITY.— 
(1) IN GENERAL.—If any COVID–ERTC pro-
moter is subject to penalty under section 6701(a) of 
the Internal Revenue Code of 1986 with respect to 
any 
COVID–ERTC 
document, 
notwithstanding 
paragraphs (1) and (2) of section 6701(b) of such 
Code, the amount of the penalty imposed under such 
section 6701(a) shall be the greater of— 
(A) $200,000 ($10,000, in the case of a 
natural person), or 
(B) 75 percent of the gross income derived 
(or to be derived) by such promoter with re-
spect to the aid, assistance, or advice referred 
to in section 6701(a)(1) of such Code with re-
spect to such document. 
(2) NO INFERENCE.—Paragraph (1) shall not 
be construed to create any inference with respect to 
the proper application of the knowledge requirement 
of section 6701(a)(3) of the Internal Revenue Code 
of 1986.
(b) FAILURE TO COMPLY WITH DUE DILIGENCE RE-
QUIREMENTS TREATED AS KNOWLEDGE FOR PURPOSES 
OF ASSESSABLE PENALTY FOR AIDING AND ABETTING 
UNDERSTATEMENT OF TAX LIABILITY.—In the case of 
any COVID–ERTC promoter, the knowledge requirement 
of section 6701(a)(3) of the Internal Revenue Code of 
1986 shall be treated as satisfied with respect to any 
COVID–ERTC document with respect to which such pro-
moter provided aid, assistance, or advice, if such promoter 
fails to comply with the due diligence requirements re-
ferred to in subsection (c)(1). 
(c) ASSESSABLE PENALTY FOR FAILURE TO COMPLY 
WITH DUE DILIGENCE REQUIREMENTS.— 
(1) IN
GENERAL.—Any COVID–ERTC pro-
moter which provides aid, assistance, or advice with 
respect to any COVID–ERTC document and which 
fails to comply with due diligence requirements im-
posed by the Secretary with respect to determining 
eligibility for, or the amount of, any COVID-related 
employee retention tax credit, shall pay a penalty of 
$1,000 for each such failure. 
(2) DUE DILIGENCE REQUIREMENTS.—Except 
as otherwise provided by the Secretary, the due dili-
gence requirements referred to in paragraph (1)
shall be similar to the due diligence requirements 
imposed under section 6695(g). 
(3) RESTRICTION
TO
DOCUMENTS
USED
IN 
CONNECTION WITH RETURNS OR CLAIMS FOR RE-
FUND.—Paragraph (1) shall not apply with respect 
to any COVID–ERTC document unless such docu-
ment constitutes, or relates to, a return or claim for 
refund. 
(4) TREATMENT
AS
ASSESSABLE
PENALTY, 
ETC.—For purposes of the Internal Revenue Code of 
1986, the penalty imposed under paragraph (1) shall 
be treated in the same manner as a penalty imposed 
under section 6695(g). 
(5) SECRETARY.—For purposes of this sub-
section, the term ‘‘Secretary’’ means the Secretary 
of the Treasury or the Secretary’s delegate. 
(d) ASSESSABLE PENALTIES FOR FAILURE TO DIS-
CLOSE INFORMATION, MAINTAIN CLIENT LISTS, ETC.— 
For purposes of sections 6111, 6112, 6707 and 6708 of 
the Internal Revenue Code of 1986— 
(1) any COVID-related employee retention tax 
credit (whether or not the taxpayer claims such 
COVID-related employee retention tax credit) shall 
be treated as a listed transaction (and as a report-
able transaction) with respect to any COVID–ERTC
promoter if such promoter provides any aid, assist-
ance, or advice with respect to any COVID–ERTC 
document relating to such COVID-related employee 
retention tax credit, and 
(2) such COVID–ERTC promoter shall be 
treated as a material advisor with respect to such 
transaction. 
(e) COVID–ERTC PROMOTER.—For purposes of 
this section— 
(1) IN GENERAL.—The term ‘‘COVID–ERTC 
promoter’’ means, with respect to any COVID– 
ERTC document, any person which provides aid, as-
sistance, or advice with respect to such document 
if— 
(A) such person charges or receives a fee 
for such aid, assistance, or advice which is 
based on the amount of the refund or credit 
with respect to such document and, with respect 
to such person’s taxable year in which such per-
son provided such assistance or the preceding 
taxable year, the aggregate gross receipts of 
such person for aid, assistance, and advice with 
respect to all COVID-ERTC documents exceeds 
20 percent of the gross receipts of such person 
for such taxable year, or