118 HR 5863 RH: Federal Disaster Tax Relief Act of 2023
U.S. House of Representatives
2024-01-16
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
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