Federal Disaster Tax Relief Act of 2023

Bill: 118-hr-5863
Sponsor: Rep. Steube, W. Gregory [R-FL-17]
Introduced: 2023-10-02 in the House
Policy area: Taxation
Subjects: Accidents
Disaster relief and insurance
Fires
Forests, forestry, trees
Income tax exclusion
Railroads

Summary:
action_date: 2023-10-02
text: 
 
Federal Disaster Tax Relief Act of 2023

 
This bill extends rules for the treatment of certain disaster-related personal casualty losses and provides tax relief for losses due to wildfires and a certain incident involving a train derailment.
 
Specifically, the bill excludes from taxpayer gross income, for income tax purposes, any amount received by an individual taxpayer as compensation for expenses or losses incurred due to a qualified wildfire disaster (a disaster declared after 2014 as a result of a forest or range fire). It also excludes relief payments for losses resulting from the East Palestine, Ohio, train derailment on February 3, 2023.

action_date: 2024-01-16
text: 

Federal Disaster Tax Relief Act of 2023

 
This bill extends rules for the treatment of certain disaster-related personal casualty losses and provides tax relief for losses due to wildfires and a certain incident involving a train derailment.
 
Specifically, the bill excludes from taxpayer gross income, for income tax purposes, any amount received by an individual taxpayer as compensation for expenses or losses incurred due to a qualified wildfire disaster (a disaster declared after 2014 as a result of a forest or range fire). It also excludes relief payments for losses resulting from the East Palestine, Ohio, train derailment on February 3, 2023.

action_date: 2024-12-12
text: 

Federal Disaster Tax Relief Act of 2023

This act extends the time period during which an area impacted by a major disaster may be considered a qualified disaster area, which allows certain taxpayers to qualify for an increased tax deduction for losses attributable to the disaster. This act also excludes East Palestine, Ohio, train derailment payments and qualified wildfire relief payments from income for federal tax purposes and extends the statute of limitations period for some refund or credit claims resulting from qualified wildfire relief payments. 

Generally, individual taxpayers may claim an itemized tax deduction for unreimbursed personal casualty losses attributable to a federally declared disaster, to the extent that the loss exceeds $100 per casualty and total annual losses exceed 10% of adjusted gross income. However, personal casualty losses attributable to a qualified disaster area are deductible to the extent that they exceed $500 per casualty even if the taxpayer claims the standard deduction (rather than itemizing tax deductions) and are not subject to the 10% of adjusted gross income limitation. A 
qualified disaster area
 is an area impacted by a major disaster during a specific period of time. 

The act extends the time period during which an area impacted by a major disaster may be considered a qualified disaster area and, therefore, allows disaster-related personal casualty losses sustained within those areas to be deducted to the extent such losses exceed $500 per casualty.

The act also treats East Palestine train derailment payments as qualified disaster relief payments, which allows such payments to be excluded from income for federal tax purposes. East Palestine train derailment payments include compensation received on or after February 3, 2023, for losses, damages, expenses, reduction in real property value, closing costs, or inconvenience resulting from the East Palestine train derailment if such amount was provided by

federal, state, or local government agencies;

Norfolk Southern Railway; or

any subsidiary, agent, or insurer of Norfolk Southern Railway.

Further, the act allows individuals to exclude from income qualified wildfire relief payments received between 2020 and 2025. Under the act, qualified wildfire relief payments include any unreimbursed amounts received in compensation for losses, expenses, or damages resulting from a forest or range fire that is a federally declared disaster declared after December 31, 2014. Damages include compensation for lost wages, personal injury, death, and emotional distress.

Finally, the act extends the statute of limitations for claiming a refund or credit related to qualified wildfire relief payments previously included in income on a federal tax return. 


Legislative actions:
action_date: 2024-12-12
text: Became Public Law No: 118-148.
action_date: 2024-12-12
text: Became Public Law No: 118-148.
action_date: 2024-12-12
text: Signed by President.
action_date: 2024-12-12
text: Signed by President.
action_date: 2024-12-10
text: Presented to President.
action_date: 2024-12-10
text: Presented to President.
action_date: 2024-12-05
text: Message on Senate action sent to the House.
action_date: 2024-12-04
text: Passed Senate without amendment by Voice Vote. (consideration: CR S6813)
action_date: 2024-12-04
text: Passed/agreed to in Senate: Passed Senate without amendment by Voice Vote.
action_date: 2024-12-04
text: Senate Committee on Finance discharged by Unanimous Consent.
action_date: 2024-12-04
text: Senate Committee on Finance discharged by Unanimous Consent.
action_date: 2024-05-22
text: Received in the Senate and Read twice and referred to the Committee on Finance.
action_date: 2024-05-21
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2024-05-21
text: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 382 - 7 (Roll no. 219). (text: CR H3379)
action_date: 2024-05-21
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 382 - 7 (Roll no. 219). (text: CR H3379)
action_date: 2024-05-21
text: Considered as unfinished business. (consideration: CR H3387-3388)
action_date: 2024-05-21
text: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
action_date: 2024-05-21
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 5863.
action_date: 2024-05-21
text: Considered under suspension of the rules. (consideration: CR H3379-3382)
action_date: 2024-05-21
text: Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
action_date: 2024-01-16
text: Placed on the Union Calendar, Calendar No. 284.
action_date: 2024-01-16
text: Reported (Amended) by the Committee on Ways and Means. H. Rept. 118-348.
action_date: 2024-01-16
text: Reported (Amended) by the Committee on Ways and Means. H. Rept. 118-348.
action_date: 2023-11-02
text: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 38 - 0.
action_date: 2023-11-02
text: Committee Consideration and Mark-up Session Held
action_date: 2023-10-02
text: Referred to the House Committee on Ways and Means.
action_date: 2023-10-02
text: Introduced in House
action_date: 2023-10-02
text: Introduced in House

Enacted as: number: 118-148