[119th Congress Public Law 108]
[From the U.S. Government Publishing Office]
[[Page 140 STAT. 1019]]
Public Law 119-108
119th Congress
An Act
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. <<NOTE: Sept. 11,
2026 - [H.R. 5366]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Doug LaMalfa
Federal Disaster Tax Relief Certainty Act.>>
SECTION 1. <<NOTE: 26 USC 1 note.>> 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 <<NOTE: 26 USC 165.>> is amended by adding at the end the
following new paragraph:
``(6) <<NOTE: Definitions.>> 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.
[[Page 140 STAT. 1020]]
``(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 <<NOTE: 26 USC 63.>> 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) <<NOTE: 26 USC 63 note.>> 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. <<NOTE: 26 USC 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) <<NOTE: Definitions.>> 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
[[Page 140 STAT. 1021]]
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 <<NOTE: 26 USC prec. 101.>> 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) <<NOTE: 26 USC 139M note.>> Effective Date.--The amendments made
by this section shall apply to payments received in taxable years
beginning after December 31, 2025.
Approved September 11, 2026.
LEGISLATIVE HISTORY--H.R. 5366:
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HOUSE REPORTS: No. 119-605 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 172 (2026):
Apr. 27, considered and passed House.
Aug. 7, considered and passed Senate.
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