[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5863 Engrossed in House (EH)]

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118th CONGRESS
  2d Session
                                H. R. 5863

_______________________________________________________________________

                                 AN ACT


 
    To provide tax relief with respect to certain Federal disasters.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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 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.

SEC. 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.

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 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.

            Attest:

                                                                 Clerk.
118th CONGRESS

  2d Session

                               H. R. 5863

_______________________________________________________________________

                                 AN ACT

    To provide tax relief with respect to certain Federal disasters.