U.S. Representative Greg Steube announced that his legislation, H.R. 5863 The Federal Disaster Tax Relief Act, has passed the U.S. Senate. This bill aims to provide tax relief for Americans affected by hurricanes, wildfires, floods, tornadoes, and the train derailment in Ohio. The legislation now awaits President Joe Biden’s signature to become law.
“More than two years ago, Hurricane Ian decimated my district,” said Rep. Steube. “Due to inaction by Congress, millions of Americans have missed out on the disaster tax deductions that are typically available after presidentially-declared disasters.” He emphasized his commitment to delivering tax relief not only for his constituents but also for other Americans impacted by natural disasters nationwide.
The legislation classifies Hurricane Ian and several other hurricanes as qualified disaster events for determining tax treatment of certain disaster-related personal casualty losses. It allows affected individuals to claim these losses without itemizing deductions and without needing them to exceed 10% of their adjusted gross income.
Additionally, the bill excludes from taxpayer gross income any compensation received due to a qualified wildfire disaster or losses from the East Palestine, Ohio train derailment on February 3, 2023.
Since 2021, FEMA has declared over 300 disasters affecting nearly 90 percent of the country with covered disasters occurring in 47 states.
Hurricane Ian struck Florida on September 28, 2022, causing significant damage and is ranked as the third-most costly hurricane in U.S. history according to NOAA.
The Federal Disaster Tax Relief Act initially passed the U.S. House on May 21, 2024 after Rep. Steube utilized a legislative tactic known as a discharge petition which succeeded in forcing a vote on his legislation.
