H.R. 5366
Doug LaMalfa Federal Disaster Tax Relief Certainty Act
Official summary
Written by the Congressional Research Service.
Doug LaMalfa Federal Disaster Tax Relief Certainty Act
This act extends the federal tax deduction for qualified disaster-related personal casualty losses and the exclusion from gross income of qualified wildfire relief payments.
Under current law, unreimbursed personal casualty losses arising in a qualified disaster area (qualified disaster-related personal casualty losses) are deductible (as an itemized tax deduction or as part of the standard tax deduction) if such losses exceed $500 per casualty. A qualified disaster area is an area with respect to which a major disaster has been declared during the period beginning in 2020 and ending 60 days after July 4, 2025, if the incident period begins on or after December 28, 2019, and on or before July 4, 2025.
The act extends the federal tax deduction for qualified disaster-related personal casualty losses by defining a qualified disaster area as an area with respect to which a major disaster has been declared if the incident period begins on or after December 28, 2019, and before January 1, 2027.
The act provides that the exclusion from gross income of qualified wildfire relief payments applies to such payments attributable to forest or range fires declared a federal disaster after 2014 and before 2027, regardless of when such payments are received. (Currently, qualified wildfire relief payments attributable to forest or range fires declared a federal disaster after 2014 and received after 2019 and before 2026 may be excluded from gross income.)
The act also provides statutory authority for several related tax rules.
Text of the bill
Where this section came from
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Sep 15, 2025 · Introduced in House Referred to House Committee on Ways and Means, Sep 15
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Apr 9, 2026 · Reported in House Marked up by House Committee on Ways and Means, Mar 25 Reported by House Committee on Ways and Means, Apr 9 Committee members' individual votes aren't in our records.
(a)
Treatment of losses. (1)
In general. Section 165(h) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
[Inserted into the law:
(6) Special rule for qualified net disaster losses.
(A) In general. If an individual has a qualified net disaster loss for any taxable year, the amount determined under paragraph (2)(A)(ii) shall be the sum of—
(i) such qualified net disaster loss, and
… 1 unchanged passage …
(B) Qualified net disaster loss. For purposes of subparagraph (A), the term qualified net disaster loss means the excess
(if any)
of
— (i)
qualified disaster-related personal casualty losses
,
over
(ii)
personal casualty gains
.
reduced by the portion of such gains taken into account under paragraph
(
5)(B)(i). (
C) Qualified disaster-related personal casualty losses.
(i) In general.
For purposes of this
subsection,
paragraph—
the
(i) In general. The
term qualified disaster-related personal casualty losses means losses described in subsection (c)(3) (determined after application of paragraph (1)) which arise in a qualified disaster area on or after the first day of the incident period of the qualified disaster to which such area relates, and which are attributable to such disaster. (ii) Qualified disaster area. The term qualified disaster area means any area with respect to which a major disaster has been declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act if the incident period of the disaster with respect to which such declaration is made begins
on or
after
July
December
4
28
,
2025
2019
, and before January 1, 2027.
… 1 unchanged passage …
(iv) Incident period.
For
The
purposes of this paragraph, the
term incident period means, with respect to any qualified disaster, the period specified by the Federal Emergency Management Agency as the period during which such disaster occurred.
]
(
2) Conforming amendment. Section 165(h)(5)(B)(ii) of such Code is amended by inserting or (6) after paragraph (2)(A). (
b) Dollar limitation. Section 165(h)(1) of
the
such
Internal Revenue
Code
of 1986
is amended by striking $500 ($100 for taxable years beginning after December 31, 2009) and inserting $100 ($500 in the case of any
net
qualified
disaster
-related
loss
personal
to
casualty
which
losses (as defined in
paragraph (
3)
6)(C)).
applies).
(c)
Standard
Deduction
deduction.
allowed
(1)
to
In
individuals
general
who do not elect to itemize deductions
. Section 63(
c)(1
b
) of
the
such
Internal Revenue
Code
of 1986
is amended
— (1)
by striking and at the end of
subparagraph
paragraph
(
A),
6) and inserting a comma, (2)
by striking the period at the end of
subparagraph
paragraph
(
B
7
) and inserting
,
and, and
(3)
by adding at the end the following new
subparagraph
paragraph
:
[Inserted into the law:
(
C
8
)
so much of
the
deduction allowed by section 165(a) as is attributable to the qualified net
disaster loss
deduction.
(as defined in section 165(h)(6)(B)).
]
(
2
d
)
Disaster
Effective
loss deduction
date
.
Section 63
(
c
1
)
of
In
such
general.
Code
The
is
amendments
amended
made
by
adding
this
at
section
the
shall
end
apply
the
to
following
taxable
new
years
paragraph:
beginning
[Inserted
after
into
December
the
31,
law: (8) Disaster loss deduction
2024
.
For the purposes of paragraph
(
1), the term disaster loss deduction means the excess of qualified net disaster losses (as defined in section 165(h)(6)(B)) over the amount of personal casualty gains (as defined in section 165(h)(3)(A)) reduced by any portion of such gains taken into account under section 165(h)(5)(B)(i). ] (d
2
)
Treatment
Coordination
under
with
alternative
superceded
minimum tax
provisions
. Section
56
304
(b
)(1)(D
) of the
Internal
Taxpayer
Revenue
Certainty
Code
and
of
Disaster
1986
Tax
is
Relief
amended
Act
by
of
inserting
2020
(
other
division
than
EE
the
of
disaster
Public
loss
Law
deduction
116–260
)
after
and
section
63(c).
70438
(e)
of
Effective
Public
date.
Law
The
119–21
amendments made by this section
shall
not
apply to
losses
any
incurred in
taxable
years
year
beginning after December 31, 2024.
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A markup is a committee meeting where members go through a bill and vote on changes before sending it to the full chamber.
(a) In general. Section 165(h) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
(6) Special rule for qualified net disaster losses
(A) In general. If an individual has a qualified net disaster loss for any taxable year, the amount determined under paragraph (2)(A)(ii) shall be the sum of—
(i) such qualified net disaster loss, and
(ii) so much of the excess referred to in the matter preceding clause (i) of paragraph (2)(A) (reduced by the amount in clause (i) of this subparagraph) as exceeds 10 percent of the adjusted gross income of the individual.
(B) Qualified net disaster loss. For purposes of subparagraph (A), the term qualified net disaster loss means the excess (if any) of—
(i) qualified disaster-related personal casualty losses, over
(ii) personal casualty gains reduced by the portion of such gains taken into account under paragraph (5)(B)(i).
(C) Qualified disaster-related personal casualty losses. For purposes of this paragraph—
(i) In general. The term qualified disaster-related personal casualty losses means losses described in subsection (c)(3) (determined after application of paragraph (1)) which arise in a qualified disaster area on or after the first day of the incident period of the qualified disaster to which such area relates, and which are attributable to such disaster.
(ii) Qualified disaster area. The term qualified disaster area means any area with respect to which a major disaster has been declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act if the incident period of the disaster with respect to which such declaration is made begins on or after December 28, 2019, and before January 1, 2027.
(iii) Qualified disaster. The term qualified disaster means, with respect to any qualified disaster area, the disaster by reason of which a major disaster was declared with respect to such area.
(iv) Incident period. The term incident period means, with respect to any qualified disaster, the period specified by the Federal Emergency Management Agency as the period during which such disaster occurred.
(b) Dollar limitation. Section 165(h)(1) of such Code is amended by striking $500 ($100 for taxable years beginning after December 31, 2009) and inserting $100 ($500 in the case of any qualified disaster-related personal casualty losses (as defined in paragraph (6)(C)).
(c) Deduction allowed to individuals who do not elect to itemize deductions. Section 63(b) of such Code is amended—
(1) by striking and at the end of paragraph (6) and inserting a comma,
(2) by striking the period at the end of paragraph (7) and inserting , and, and
(3) by adding at the end the following new paragraph:
(8) so much of the deduction allowed by section 165(a) as is attributable to the qualified net disaster loss (as defined in section 165(h)(6)(B)).
(d) Effective date
(1) In general. The amendments made by this section shall apply to taxable years beginning after December 31, 2024.
(2) Coordination with superceded provisions. Section 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (division EE of Public Law 116–260) and section 70438 of Public Law 119–21 shall not apply to any taxable year beginning after December 31, 2024.