West Florida News

U.S. Representative Greg Steube (R-Fla.) has announced that his legislation, H.R. 5863, The Federal Disaster Tax Relief Act, has advanced out of the House Committee on Ways and Means. The bill, which passed out of committee unanimously, aims to provide tax relief for losses due to federally declared disasters and extends rules for the treatment of certain disaster-related personal casualty losses.

In his remarks, Rep. Steube highlighted the urgent need for tax relief for his constituents in Florida who were financially impacted by Hurricane Ian. He emphasized that it has been over a year since Hurricane Ian hit Southwest Florida, and Floridians have been waiting for Congress to designate it as a qualified disaster. He stated, "Through no fault of their own, many of my constituents incurred hundreds to thousands of dollars in disaster-related expenses." Rep. Steube also noted that his legislation would provide tax relief to victims of other disasters, including Hurricane Idalia, Hurricane Nicole, Hurricane Fiona, the western U.S. wildfires, and the Ohio train derailment.

Chairman Smith of the Ways and Means Committee expressed his support for the legislation, acknowledging the devastating impact that disasters have had on families across the country. He stated, "The Federal Disaster Tax Relief Act will help communities rebuild following a devastating hurricane, wildfires, and the East Palestine, OH train derailment."

The legislation has garnered bipartisan support and is cosponsored by Rep. Doug LaMalfa (R-Calif.) and Bill Johnson (R-Ohio). Rep. LaMalfa emphasized the importance of the bill for disaster survivors throughout the nation, including wildfire survivors in California. He stated, "Wildfire survivors have waited far too long with this cloud of uncertainty over their heads, not knowing if their settlement money will be taxed."

Rep. Johnson highlighted the similarities between the situation faced by the victims of the East Palestine train derailment and those impacted by hurricanes and wildfires. He emphasized that those affected by the derailment should not be burdened with tax implications when receiving help and reimbursement for losses that were not their fault or choice. Rep. Johnson expressed his satisfaction with the progress of the legislation and his commitment to helping it become law.

The Federal Disaster Tax Relief Act designates Hurricane Ian, along with other federally declared disasters, as a qualified disaster for tax purposes. The legislation eliminates the requirement that personal casualty losses must exceed 10 percent of adjusted gross income to qualify for deduction. It also removes the need for taxpayers to itemize deductions to access this tax relief. Additionally, the bill excludes from gross income any compensation received by an individual taxpayer for expenses or losses incurred due to a qualified wildfire disaster or the East Palestine train derailment.

The advancement of this legislation is a significant step towards providing much-needed tax relief for individuals and communities affected by disasters. The bipartisan support and recognition of the urgency of this issue demonstrate a commitment to assisting disaster survivors and helping them rebuild their lives.

For additional details, please follow this link: https://steube.house.gov/press-releases/steube-legislation-to-provide-disaster-tax-relief-advances-out-of-ways-and-means-committee/