[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5366 Reported in House (RH)]
<DOC>
Union Calendar No. 525
119th CONGRESS
2d Session
H. R. 5366
[Report No. 119-605]
To amend the Internal Revenue Code of 1986 to codify and extend the
rules for personal casualty losses arising from major disasters and the
rules for the exclusion from gross income of compensation for losses or
damages resulting from certain wildfires.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 15, 2025
Mr. Steube (for himself, Mr. Thompson of California, Mr. LaMalfa, and
Mr. Panetta) introduced the following bill; which was referred to the
Committee on Ways and Means
April 9, 2026
Additional sponsors: Mr. Vindman, Mr. Neguse, Mr. Min, Mr. Crow, Ms.
Tokuda, Mr. Donalds, Mr. Bilirakis, Mr. Diaz-Balart, Ms. Moore of
Wisconsin, Mr. Bergman, and Mr. Wilson of South Carolina
April 9, 2026
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
September 15, 2025]
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to codify and extend the
rules for personal casualty losses arising from major disasters and the
rules for the exclusion from gross income of compensation for losses or
damages resulting from certain wildfires.
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 ``Doug LaMalfa Federal Disaster Tax
Relief Certainty Act''.
SEC. 2. CODIFICATION AND EXTENSION OF RULES FOR CASUALTY LOSSES ARISING
FROM MAJOR DISASTERS.
(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.
SEC. 3. CODIFICATION AND EXTENSION OF EXCLUSION FROM GROSS INCOME OF
COMPENSATION FOR LOSSES OR DAMAGES RESULTING FROM CERTAIN
WILDFIRES.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting before section
140 the following new section:
``SEC. 139M. COMPENSATION FOR LOSSES OR DAMAGES RESULTING FROM CERTAIN
WILDFIRES.
``(a) In General.--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)) declared after December 31,
2014, and before January 1, 2027, as a result of any forest or
range fire.
``(c) Denial of Double Benefit.--Notwithstanding any other
provision of this title--
``(1) no deduction or credit shall be allowed (to the
individual 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
section with respect to such property.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by inserting before
the item related to section 140 the following new item:
``Sec. 139M. Compensation for losses or damages resulting from certain
wildfires.''.
(c) Effective Date.--The amendments made by this section shall
apply to payments received in taxable years beginning after December
31, 2025.
Union Calendar No. 525
119th CONGRESS
2d Session
H. R. 5366
[Report No. 119-605]
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to codify and extend the
rules for personal casualty losses arising from major disasters and the
rules for the exclusion from gross income of compensation for losses or
damages resulting from certain wildfires.
_______________________________________________________________________
April 9, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed