Federal Disaster Tax Relief Act of 2023

Bill: 118-hr-5863
Sponsor: full_name: Rep. Steube, W. Gregory [R-FL-17]
Introduced: 2023-10-02
Policy area: Taxation
Subjects: Accidents

Disaster relief and insurance

Fires

Forests, forestry, trees

Income tax exclusion

Railroads
Latest action: action_date: 2024-12-12
text: Became Public Law No: 118-148.

Summaries:
action_date: 2023-10-02
action_desc: Introduced in House
text: <p> <strong>Federal Disaster Tax Relief Act of 2023</strong></p> <p>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.</p> <p>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.</p>

action_date: 2024-01-16
action_desc: Reported to House
text: <p><strong>Federal Disaster Tax Relief Act of 2023</strong></p> <p>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.</p> <p>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.</p>

action_date: 2024-12-12
action_desc: Public Law
text: <p><strong>Federal Disaster Tax Relief Act of 2023</strong></p><p>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.&nbsp;</p><p>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. &nbsp;A <em>qualified disaster area</em> is an area impacted by a major disaster during a specific period of time.&nbsp;</p><p>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.</p><p>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</p><ul><li>federal, state, or local government agencies;</li><li>Norfolk Southern Railway; or</li><li>any subsidiary, agent, or insurer of Norfolk Southern Railway.</li></ul><p>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.</p><p>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. &nbsp;</p>

tv_txt: I One Hundred Eighteenth Congress of the United States of America At the Second Session Begun and held at the City of Washington on Wednesday, the third day of January, two thousand and twenty-four H. R. 5863 AN ACT To provide tax relief with respect to certain Federal disasters.

1. Short title This Act may be cited as the Federal Disaster Tax Relief Act of 2023 . 2. Extension of rules for treatment of certain disaster-related personal casualty losses For purposes of applying section 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, section 301 of such Act shall be applied by substituting the Federal Disaster Tax Relief Act of 2023 for this Act each place it appears. 3. Exclusion from gross income for compensation for losses or damages resulting from certain wildfires (a) In general For purposes of the Internal Revenue 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), personal injury, death, or emotional distress) incurred as a result of a qualified wildfire disaster, but only to the extent the losses, expenses, or damages compensated by such payment are not compensated for by insurance or otherwise. (2) Qualified wildfire disaster The term qualified wildfire disaster means any federally 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 Notwithstanding 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 relief payment is made) for, or by reason of, any expenditure 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 received 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 allocable 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 expiring 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. 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 payments 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 realtor commissions), or inconvenience (including access to real property) resulting from the East Palestine train derailment if such amount was provided by— (1) a Federal, State, or local government agency, (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 section, the term East Palestine train derailment means the derailment of a train in East Palestine, Ohio, on February 3, 2023. (d) Effective date This section shall apply to amounts received on or after February 3, 2023.

Speaker of the House of Representatives. Vice President of the United States and President of the Senate.

tv_txt: IIB 118th CONGRESS 2d Session H. R. 5863 IN THE SENATE OF THE UNITED STATES May 22, 2024 Received; read twice and referred to the Committee on Finance AN ACT To provide tax relief with respect to certain Federal disasters.

1. Short title This Act may be cited as the Federal Disaster Tax Relief Act of 2023 . 2. Extension of rules for treatment of certain disaster-related personal casualty losses For purposes of applying section 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, section 301 of such Act shall be applied by substituting the Federal Disaster Tax Relief Act of 2023 for this Act each place it appears. 3. Exclusion from gross income for compensation for losses or damages resulting from certain wildfires (a) In general For purposes of the Internal Revenue 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), personal injury, death, or emotional distress) incurred as a result of a qualified wildfire disaster, but only to the extent the losses, expenses, or damages compensated by such payment are not compensated for by insurance or otherwise. (2) Qualified wildfire disaster The term qualified wildfire disaster means any federally 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 Notwithstanding 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 relief payment is made) for, or by reason of, any expenditure 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 received 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 allocable 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 expiring 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. 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 payments 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 realtor commissions), or inconvenience (including access to real property) resulting from the East Palestine train derailment if such amount was provided by— (1) a Federal, State, or local government agency, (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 section, the term East Palestine train derailment means the derailment of a train in East Palestine, Ohio, on February 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. Kevin F. McCumber, Clerk.

tv_txt: I 118th CONGRESS 2d Session H. R. 5863 IN THE HOUSE OF REPRESENTATIVES AN ACT To provide tax relief with respect to certain Federal disasters.

1. Short title This Act may be cited as the Federal Disaster Tax Relief Act of 2023 . 2. Extension of rules for treatment of certain disaster-related personal casualty losses For purposes of applying section 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, section 301 of such Act shall be applied by substituting the Federal Disaster Tax Relief Act of 2023 for this Act each place it appears. 3. Exclusion from gross income for compensation for losses or damages resulting from certain wildfires (a) In general For purposes of the Internal Revenue 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), personal injury, death, or emotional distress) incurred as a result of a qualified wildfire disaster, but only to the extent the losses, expenses, or damages compensated by such payment are not compensated for by insurance or otherwise. (2) Qualified wildfire disaster The term qualified wildfire disaster means any federally 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 Notwithstanding 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 relief payment is made) for, or by reason of, any expenditure 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 received 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 allocable 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 expiring 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. 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 payments 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 realtor commissions), or inconvenience (including access to real property) resulting from the East Palestine train derailment if such amount was provided by— (1) a Federal, State, or local government agency, (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 section, the term East Palestine train derailment means the derailment of a train in East Palestine, Ohio, on February 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. Kevin F. McCumber, Clerk.

tv_txt: IB Union Calendar No. 284 118th CONGRESS 2d Session H. R. 5863 [Report No. 118–348] IN THE HOUSE OF REPRESENTATIVES October 2, 2023 Mr. Steube introduced the following bill; which was referred to the Committee on Ways and Means January 16, 2024 Additional sponsors: Mr. LaMalfa , Mr. Thompson of California , Mr. Johnson of Ohio , Mr. Diaz-Balart , Mr. Donalds , Ms. Brownley , Ms. Bonamici , Ms. Omar , Mr. Newhouse , Mr. Moran , Mr. Scott Franklin of Florida , Mr. Barr , Mrs. Bice , Mr. Kelly of Pennsylvania , Ms. Tokuda , Mr. Rouzer , Mr. Waltz , Ms. Davids of Kansas , Mr. Kiley , Mr. Bucshon , Mr. Harder of California , Mr. Costa , Ms. Hageman , Ms. Caraveo , Mr. Neguse , Mr. Case , Mr. Lieu , Ms. Porter , Mrs. Miller of West Virginia , Mr. Armstrong , Mr. Rutherford , Mr. Pfluger , Mr. Courtney , Mr. Goldman of New York , and Ms. Stansbury January 16, 2024 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on October 2, 2023 A BILL To provide tax relief with respect to certain Federal disasters.

1. Short title This Act may be cited as the Federal Disaster Tax Relief Act of 2023 . 2. Extension of rules for treatment of certain disaster-related personal casualty losses For purposes of applying section 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, section 301 of such Act shall be applied by substituting the Federal Disaster Tax Relief Act of 2023 for this Act each place it appears. 3. Exclusion from gross income for compensation for losses or damages resulting from certain wildfires (a) In general For purposes of the Internal Revenue 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), personal injury, death, or emotional distress) incurred as a result of a qualified wildfire disaster, but only to the extent the losses, expenses, or damages compensated by such payment are not compensated for by insurance or otherwise. (2) Qualified wildfire disaster The term qualified wildfire disaster means any federally 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 Notwithstanding 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 relief payment is made) for, or by reason of, any expenditure 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 received by the individual during taxable years beginning after December 31, 2019, and before January 1, 2026. 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 payments 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 realtor commissions), or inconvenience (including access to real property) resulting from the East Palestine train derailment if such amount was provided by— (1) a Federal, State, or local government agency, (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 section, the term East Palestine train derailment means the derailment of a train in East Palestine, Ohio, on February 3, 2023. (d) Effective date This section shall apply to amounts received on or after February 3, 2023.

January 16, 2024 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: I 118th CONGRESS 1st Session H. R. 5863 IN THE HOUSE OF REPRESENTATIVES October 2, 2023 Mr. Steube introduced the following bill; which was referred to the Committee on Ways and Means A BILL To provide tax relief with respect to certain Federal disasters.

1. Short title This Act may be cited as the Federal Disaster Tax Relief Act of 2023 . 2. Extension of rules for treatment of certain disaster-related personal casualty losses For purposes of applying section 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, section 301 of such Act shall be applied by substituting the Federal Disaster Tax Relief Act of 2023 for this Act each place it appears. 3. Exclusion from gross income for compensation for losses or damages resulting from certain wildfires (a) In general For purposes of the Internal Revenue 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 expenses or losses incurred as a result of a qualified wildfire disaster, but only to the extent any expense or loss compensated by such payment is not compensated for by insurance or otherwise. (2) Qualified wildfire disaster The term qualified wildfire disaster means any federally 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 any forest or range fire. (c) Denial of double benefit Notwithstanding 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 relief payment is made) for, or by reason of, any expenditure 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 received by the individual during taxable years beginning after December 31, 2019, and before January 1, 2026. 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 trail derailment payments 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 realtor commissions), or inconvenience (including access to real property) resulting from the East Palestine train derailment if such amount was provided by— (1) a Federal, State, or local government agency, (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 section, the term East Palestine train derailment means the derailment of a train in East Palestine, Ohio, on February 3, 2023. (d) Effective date This subsection shall apply to amounts received on or after February 3, 2023.