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 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 2023’’ for ‘‘this Act’’ 
each place it appears. 
SEC. 3. EXCLUSION FROM GROSS INCOME FOR COMPENSA-
TION FOR LOSSES OR DAMAGES RESULTING 
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. 
(e) EXTENSION OF PERIOD OF LIMITATION.—In the 
case of a claim for credit or refund which is properly allo-
cable 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 expir-
ing 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 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. 
Passed the House of Representatives May 21, 2024. 
Attest: 
Clerk.
118TH CONGRESS 
2D SESSION 
H. R. 5863 
AN ACT 
To provide tax relief with respect to certain Federal 
disasters.