H.R. 5863 FEDERAL DISASTER TAX RELIEF ACT OF 2023
May 21, 2024
The House passed this bill on May 21st
December 20, 2024
The Senate MUST pass this bill by December 20th
December 31, 2024
President Biden MUST sign this bill by December 31st
What does this comprehensive bill do for Disaster Tax Relief for Survivors?
Excludes recovery and relief payments from losses, damages and expenses including attorney fees from federal disaster wildfires as taxable income by the IRS
Extends special rules for deductibility of certain personal casualty losses including disaster-related losses by eliminating the minimum 10 percent loss threshold and the requirement to itemize deductions to receive this tax benefit
Extends the effective date of personal-casualty loss rules for disasters that were enacted as part of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, making several recent hurricanes qualifying disaster events
Includes 2023 East Palestine train derailment payments as qualified disaster relief payments
Includes coverage to over 300 disasters across 47 states
H.R. 5863 LEGISLATIVE TIMELINE
Houses passes H.R. 5863
The House passes H.R. 5863 Federal Disaster Tax Relief Act of 2023 with a bi-partisan overwhelming majority vote of 382 to 7. Tired of waiting on the Senate’s refusal to pass H.R. 7024, a bi-partisan coalition of 218 House members (189 Democrats and 29 Republicans) led by bill sponsor/author Rep. Greg Steube of Florida forced an historic discharge position on the House floor to force a vote on the bill as a standalone bill titled H.R. 5863 Federal Disaster Tax Relief Act of 2023. There have only been two other successful discharge positions in the 21st century, and both went on to pass easily in the Senate and signed into law by the President.
The Senate Finance Committee refuses to vote on this bill to send it to the Senate floor for a full vote as political retaliation for H.R. 7024 bill not being considered in the Senate Finance Committee. Meanwhile, millions of American Disaster survivors suffer while our lame duck Congress plays political games. Senate Finance Committee Ron Wyden of Oregon and the Democrats could easily put this up for a vote and send to the Senate Floor or Senate Majority Leader Chuck Schumer could bypass the Finance Committee and request unanimous consent to move the bill to a vote on the floor. We only have until December 20, 2024 when the Senate adjourns to pass this bill to send to the President’s Desk. WE MUST ACT NOW TO HELP OUR AMERICAN DISASTER SURVIVORS!
House passes H.R. 7024
The House of Representatives passed H.R.7024 Tax Relief for American Families and Workers Act of 2024 which included the Disaster Tax Relief Acts with a bi-partisan majority vote of 357-70. Senate Finance Committee Ranking Member Sen. Mike Crapo of Idaho and the Republicans strongly opposed this bill and held it up for a vote in the Committee so it would not go to the Senate floor for a full vote.
Tax bills added to H.R. 7024
The Federal Disaster Tax Relief Act and the Protect Innocent Victims of Taxation After Fire Act were incorporated into the bipartisan tax bill H.R. 7024 Tax Relief for American Families and Workers Act.
Rep. Steube intros H.R. 5863
Rep. Greg Steube of Florida introduced his sponsored bill H.R. 5863 Federal Tax Disaster Tax Relief Act after it was voted out of the House Ways and Means Committee.
Two more relief bills introduced
Rep. Bill Johnson Ohio introduced H.R. 1270 to exclude from gross income the compensation resulting from the East Palestine train derailment on February 3, 2023. Rep. Greg Steube of Florida introduced H.R. 1331 to treat Hurricane Ian as a qualified disaster area for purposes of the disaster-related casualty loss tax deduction.
California Reps intro bill
Reps. Doug LaMalfa and Mike Thompson of California introduced H.R. 176 to exclude from gross income of a taxpayer the compensation victims receive in connection to a qualifying wildfire disaster.