[Congressional Record Volume 172, Number 73 (Monday, April 27, 2026)]
[House]
[Pages H3107-H3110]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DOUG LAMALFA FEDERAL DISASTER TAX RELIEF CERTAINTY ACT
Mr. SMITH of Missouri. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 5366) 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, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5366
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.
[[Page H3108]]
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.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Missouri (Mr. Smith) and the gentleman from California (Mr. Thompson)
each will control 20 minutes.
The Chair recognizes the gentleman from Missouri.
General Leave
Mr. SMITH of Missouri. Mr. Speaker, I ask unanimous consent that all
Members have 5 legislative days to revise and extend their remarks and
submit extraneous material on this bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Missouri?
There was no objection.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may
consume.
I rise in support of H.R. 5366, the Doug LaMalfa Federal Disaster Tax
Relief Certainty Act, bipartisan legislation introduced by
Representatives Greg Steube, Mike Thompson, and Jimmy Panetta and named
after our late colleague, Mr. Doug LaMalfa, who dedicated his life to
public service and was a very strong advocate for helping so many of
his constituents whose lives had been turned upside down by wildfires.
The chief sponsor of this legislation, Representative Steube, hails
from the State of Florida, which is no stranger to the worst of natural
disasters, including hurricanes that have devastated communities there
and everywhere.
The bipartisan work that has been done in advancing this legislation
speaks to the fact that no community in America is safe from a
potential natural disaster. Every Member of this body has had to or
will have to at some point respond to some level of devastation brought
to the doorsteps of the folks who they represent because of a natural
disaster.
This bill appropriately extends an existing provision within the law
that allows taxpayers to deduct personal casualty losses stemming from
a natural disaster while also excluding wildfire disaster relief
payments from taxable income. These are the commonsense measures that
ensure Americans recovering from a disaster have fewer tax burdens and
more resources to navigate their recovery.
Mr. Speaker, I reserve the balance of my time.
Mr. THOMPSON of California. Mr. Speaker, I yield myself such time as
I may consume.
Mr. Speaker, I rise today in support of the Doug LaMalfa Federal
Disaster Tax Relief Certainty Act. I thank Mr. Smith for his work on
this bill, and I thank Mr. Steube for his partnership.
I represent communities in northern California that have been on the
front lines of catastrophic wildfires for years. I sat with families
who have watched their homes burn to the ground. I spoke with small
business owners who lost not just their storefronts but their entire
livelihoods. I met with farmers and growers who saw generations of work
wiped out in a matter of hours.
After all of that, after the fire trucks leave, after the smoke
clears, after the cameras are gone, those families are left to navigate
through the aftermath.
They are dealing with insurance claims. They are trying to find
temporary housing. They are figuring out how to rebuild their lives.
Then they run into the tax code.
In northern California, my constituents had to fight tooth and nail
just to get basic, commonsense tax relief. Think about that.
Congressman LaMalfa and I had to fight to pass this relief, and we
worked to mobilize victims to speak out and demand that that tax relief
be forthcoming.
People who lost everything should not have to come to Washington,
D.C., to fight for relief. We should not be asking disaster victims to
lobby Congress in the middle of recovery. We should not be telling
families that the help they receive to build their homes might come
with a tax bill attached. We should not be forcing communities into
uncertainty every single time disaster strikes.
This legislation ensures that when Americans receive disaster relief
they are not penalized by paying tax on that relief.
{time} 1600
This is not just about the past. It is about what is happening right
now.
In Los Angeles, across southern California, in Hawaii, and in
Colorado, families reeling from devastating fires are being forced to
navigate the same uncertainty those in my district faced. They should
not have to come back to Congress and ask for relief that we already
know is necessary.
Disaster relief should not depend on your ability to navigate
Congress. It should be automatic. It should be fair, and it should be
there when you need it.
This bill is a step toward that goal. It reflects what we have
learned from northern California. It reflects the realities facing
communities in Los Angeles, Hawaii, and Colorado. This legislation is a
great first step, and we should now work to make this relief permanent
going forward.
Mr. Speaker, I urge my colleagues to support this legislation, and I
reserve the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield such time as he may
consume to the gentleman from Florida (Mr. Steube), the sponsor of this
legislation, who has been a very strong advocate for recovering from
natural disasters, including the citizens of his home State of Florida.
Mr. STEUBE. Mr. Speaker, I rise today in support of H.R. 5366, the
Doug LaMalfa Federal Tax Relief Certainty Act.
When hurricanes, wildfires, floods, tornadoes, and other disasters
strike, American families are left to rebuild their homes, their
businesses, their communities, and their lives. When these moments
arise, the last thing they need is the Federal Government making their
recovery harder by taxing relief payments or denying fair treatment for
disaster losses, nor should the government be creating uncertainty in
the tax code.
This legislation provides certainty to disaster victims by extending
and codifying commonsense tax relief for Americans impacted by
federally declared disasters. It allows individuals to deduct qualified
disaster-related casualty losses without having to itemize, removes
burdensome limitations that can prevent families from receiving relief,
and ensures certain wildfire relief payments are not treated as taxable
income.
For families in Florida, this issue is not theoretical. We know all
too well
[[Page H3109]]
what it means to rebuild after hurricanes, flooding, storm surge, and
the aftermath of these disasters. Recovery does not happen overnight,
and families should not be forced to navigate a confusing tax code,
especially without certainty in what that code may be as they are still
trying to repair their homes, replace their belongings, and get back on
their feet.
No one understood this better than our former colleague Doug LaMalfa
of California. For 13 years, Doug served in Congress as a tireless
advocate for disaster victims and spent years fighting to ensure
families impacted by wildfires specifically receive fair treatment
under the tax code.
Last Congress, I was honored to fight along with Doug as I led a
bipartisan coalition alongside our colleagues on the floor with us
right now, Jimmy Panetta, Mike Thompson, and Jill Tokuda, as well
as former Representative Bill Johnson of Ohio.
Our historic efforts culminated with the Federal Disaster Tax Relief
Act of 2023 being signed into law on December 12, 2024, delivering
billions in disaster tax relief to millions of Americans across 48
States.
The bill we are voting on today builds upon that legislation. Today
is an opportunity to secure disaster relief certainty for the wildfire
victims that Doug LaMalfa spent years fighting for. It is also an
opportunity to secure relief for disaster survivors who have
experienced a tragic event since July 4, 2025, and who may experience
one in 2026.
With hurricane season on the horizon, it is critical that Floridians
have certainty in the tax code.
I thank Chairman Smith for his leadership in advancing this
legislation through the Ways and Means Committee with unanimous
bipartisan support. I also thank Senator Rick Scott for leading this
bill in the Senate and being a tireless leader on this issue.
I also thank my aforementioned colleagues on the other side of the
aisle, Jimmy Panetta, Mike Thompson, and Jill Tokuda, for their
commitment to securing disaster relief for their constituents and
Americans regardless of political affiliation or geography.
Finally, I thank Doug LaMalfa for being an ally, a friend, and a
fighter. Doug is deeply missed in this institution, and naming this
bill in his honor is a simple but meaningful tribute.
Mr. Speaker, when Americans are recovering from disaster, they
deserve clarity, certainty, and relief, not more red tape from
Washington. I urge my colleagues to support the Doug LaMalfa Federal
Disaster Tax Relief Certainty Act.
Mr. THOMPSON of California. Mr. Speaker, I yield 3 minutes to the
gentleman from California (Mr. Panetta), a valued member of the Ways
and Means Committee and someone who has seen firsthand what devastating
wildfires can do to your district.
Mr. PANETTA. Mr. Speaker, I thank Mr. Thompson and Mr. Steube for
allowing me to speak on this topic. I support the Doug LaMalfa Federal
Disaster Tax Relief Certainty Act.
I am a proud cosponsor, co-lead of this bill with Representatives
Greg Steube and Mike Thompson, a bill that would build on the Federal
Disaster Tax Relief Act which we passed last Congress, thanks to the
leadership of Representative Steube, a bill that would ensure that
those impacted by disasters nationwide have continued access to tax
relief.
This is one of those bills, as you are going to hear from
Representative Steube, from Mr. Thompson, and from Ms. Tokuda, that is
not a partisan topic when it comes to providing proper tax relief for
our constituents who have been affected by natural disasters, disasters
that don't just affect red States or blue States. They affect
all American States. That is why this bill is so important.
It would extend the provisions of the Federal Disaster Tax Relief Act
through 2026 to, one, ensure that those affected by fires and natural
disasters can claim the personal casualty loss deduction to help in the
recovery. Two, would exempt fire settlements from taxation to avoid
devastating tax bills on wildfire victims.
Unfortunately, after most natural disasters, there are limitations in
the tax code that make it very difficult for survivors to claim the
casualty loss deduction for uninsured losses.
Specifically, losses must be attributable to a federally declared
disaster and exceed 10 percent of adjusted gross income. That prevents
many from qualifying for tax relief. In fact, the tax code ends up
penalizing fire victims by treating settlements from fires as income
for tax purposes. That can trigger a bill, as we have heard, as large
as 37 percent of the settlement.
Now, the Federal Disaster Tax Relief Act that was signed into law
last Congress addresses those issues by ensuring that those who
received settlements for certain wildfires, including payments from the
Fire Victim Trust, do not have to pay taxes on those payments.
It also designates certain federally declared disasters as qualified
disasters for the purposes of determining personal casualty losses.
That ensures that families who incurred uninsured losses due to a
natural disaster, be it damage to their home or property, can declare
that loss and lower their tax bill.
If we do not pass this bill, the thousands of people who survived the
2025 Los Angeles fires, who received settlements, risk a devastating
tax bill and face limitations recouping uninsured losses.
That is why Congress is acting in a bipartisan way to prevent the tax
code from penalizing constituents who are trying to rebuild after such
disasters.
Mr. Speaker, I urge my colleagues to support this commonsense bill to
extend the Federal Disaster Tax Relief Act, to help families all across
America, from Hawaii to California to Florida and those in between, who
are struck by natural disasters and get the necessary tax relief to
recover, rebuild, and move forward with their lives.
Mr. SMITH of Missouri. Mr. Speaker, I yield 2 minutes to the
gentleman from California (Mr. Fong).
Mr. FONG. Mr. Speaker, I thank Congressman Steube for his leadership.
Mr. Speaker, I rise in support of the Doug LaMalfa Federal Disaster
Tax Relief Certainty Act, which includes my bill, the Doug LaMalfa
Protect Innocent Victims of Taxation after Fire Extension Act, which
was his bill that he originally fought for.
I thank the Ways and Means Committee chairman, Chairman Smith, the
members of the committee, and the committee staff who made this bill a
priority.
In California, we are all too familiar with the devastation caused by
wildfires. After these disasters strike in our community, survivors
shouldn't have to worry about burdensome Federal taxes as they work to
recover and rebuild.
Today, we have an opportunity to address that while honoring my
friend the late Doug LaMalfa, who was a tireless champion of rural
California and an advocate for those rebuilding after wildfires.
This section of the bill allows for wildfire victims to receive
disaster aid incurred from a wildfire to have that payment exempted
from gross income filings. This would exclude wildfire recovery
payments from Federal income taxation through 2032.
Without this extension, victims of catastrophic wildfires would again
have their relief payments subject to Federal income tax obligations.
For families and individuals who have lost everything, this can make
all the difference.
Mr. Speaker, I ask my colleagues to support this critical
legislation.
{time} 1610
Mr. THOMPSON of California. Mr. Speaker, I yield 3 minutes to the
gentlewoman from Hawaii (Ms. Tokuda). She has seen devastating wildfire
that impacted her district and her constituents, and she has done great
work to bring relief to them.
Ms. TOKUDA. Mr. Speaker, I thank the chair and my colleagues who have
co-led and provided leadership on this important bill: Representative
Steube, Representative Thompson, and Representative Panetta.
I rise today, like so many of my colleagues on both sides of the
aisle, to honor our friend Doug LaMalfa. He understood that the
disaster after the disaster happens when families cannot recover and
return to their hometowns because the funding and resources they
receive just don't stretch far enough or, worse, are taxed and taken
away from people who need absolutely every single dollar to be able to
rebuild.
[[Page H3110]]
On Saturday, I stood above Lahaina, and for a moment--the briefest of
moments--in the darkness, the town almost looked normal. Immediately,
you realize that something is missing: no warm glow from homes and
businesses, no kids riding bikes, and no neighbors gathering in
garages.
The people of Lahaina were not counting on that day. They did not
seek or ask to lose their homes, their businesses, their livelihoods,
their history, or their loved ones.
They should be able to count on this: that every dollar and every
resource meant to help them rebuild, recover, and return home stays
with them in their pockets, not in government coffers.
As I stand here today wearing Doug's pin above my heart, I know he is
up there smiling right now. Doug believed recovery should not come with
a tax bill, and the Doug LaMalfa Federal Disaster Tax Relief Certainty
Act makes sure of that.
As we all know too well, the burden of those touched by fire, flood,
hurricane, tornado, or disaster is already too much to bear. It is
already far too heavy. We should not be making it heavier.
Mr. Speaker, for my constituents, and disaster and wildfire survivors
everywhere, let's stand with them in this moment and every moment to
come. Let's show them some aloha. Let's make sure that we all vote
``yes'' on this bill.
Mr. SMITH of Missouri. Mr. Speaker, I am prepared to close, and I
reserve the balance of my time.
Mr. THOMPSON of California. Mr. Speaker, I yield myself the balance
of my time to close.
Mr. Speaker, this bill is about basic fairness. When Americans lose
their homes to wildfires or other disasters, the last thing they should
face is a tax bill on the help they received to rebuild that home.
My constituents in northern California had to fight for that relief.
Families in Los Angeles should not have to do the same, nor should they
in Colorado, Hawaii, or anyplace else.
Let's pass this bill today and then do the work to make these
protections permanent so no disaster victim has to come back to
Congress for relief ever again.
Mr. Speaker, this legislation is rightfully named after our former
colleague and friend, Doug LaMalfa, who worked hard to protect his fire
victims. We should pass this bill.
Mr. Speaker, I urge everyone to vote ``yes,'' and I yield back the
balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself the balance of my
time to close.
Mr. Speaker, in 2024, Congress acted to provide critical tax relief
for Americans hit hard by natural disasters. The goal was clear:
Provide relief to those who need it most.
With this legislation before us today, we have the opportunity to
continue ensuring victims of natural disasters, including wildfires,
continue to receive the relief that they deserve and the resources they
desperately need to recover and rebuild.
I thank Representative Steube for this bill and for his hard work to
appropriately pay tribute to our late colleague, Mr. LaMalfa, on an
issue that was such a passion for him.
Mr. Speaker, I encourage my colleagues to support this legislation,
and I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Hurd of Colorado). The question is on
the motion offered by the gentleman from Missouri (Mr. Smith) that the
House suspend the rules and pass the bill, H.R. 5366, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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