Federal Disaster Tax Relief Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 5366 Referred in Senate (RFS)] <DOC> 119th CONGRESS 2d Session H. R. 5366 _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES April 28, 2026 Received; read twice and referred to the Committee on Finance _______________________________________________________________________ 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. 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 pu