Disaster Tax Relief Act Enacted Draft

This Act may be cited as the ``Doug LaMalfa Federal Disaster Tax Relief Certainty Act’’.

Section 165(h) of the Internal Revenue Code of 1986 is amended to add a new paragraph regarding qualified net disaster losses.

A qualified net disaster loss is defined as the excess of qualified disaster-related personal casualty losses over personal casualty gains.

A qualified disaster area is any area with a major disaster declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, with an incident period beginning on or after December 28, 2019, and before January 1, 2027.

The bill amends Section 165(h)(1) by changing the dollar limitation to $100, or $500 for qualified disaster-related losses.

Section 63(b) of the Internal Revenue Code is amended to allow a deduction for qualified net disaster losses even for those who do not itemize.

The amendments apply to taxable years beginning after December 31, 2024.

The Act also extends the exclusion from gross income for compensation related to certain wildfires.