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Version 49 · Public Law · Dec 12, 2024
Federal Disaster Tax Relief Act of 2023
This act extends the time period during which an area impacted by a major disaster may be considered a qualified disaster area, which allows certain taxpayers to qualify for an increased tax deduction for losses attributable to the disaster. This act also excludes East Palestine, Ohio, train derailment payments and qualified wildfire relief payments from income for federal tax purposes and extends the statute of limitations period for some refund or credit claims resulting from qualified wildfire relief payments.
Generally, individual taxpayers may claim an itemized tax deduction for unreimbursed personal casualty losses attributable to a federally declared disaster, to the extent that the loss exceeds $100 per casualty and total annual losses exceed 10% of adjusted gross income. However, personal casualty losses attributable to a qualified disaster area are deductible to the extent that they exceed $500 per casualty even if the taxpayer claims the standard deduction (rather than itemizing tax deductions) and are not subject to the 10% of adjusted gross income limitation. A qualified disaster area is an area impacted by a major disaster during a specific period of time.
Showing the opening paragraphs of the official summary.
The act extends the time period during which an area impacted by a major disaster may be considered a qualified disaster area and, therefore, allows disaster-related personal casualty losses sustained within those areas to be deducted to the extent such losses exceed $500 per casualty.
The act also treats East Palestine train derailment payments as qualified disaster relief payments, which allows such payments to be excluded from income for federal tax purposes. East Palestine train derailment payments include compensation received on or after February 3, 2023, for losses, damages, expenses, reduction in real property value, closing costs, or inconvenience resulting from the East Palestine train derailment if such amount was provided by
federal, state, or local government agencies;
Norfolk Southern Railway; or
any subsidiary, agent, or insurer of Norfolk Southern Railway.
Further, the act allows individuals to exclude from income qualified wildfire relief payments received between 2020 and 2025. Under the act, qualified wildfire relief payments include any unreimbursed amounts received in compensation for losses, expenses, or damages resulting from a forest or range fire that is a federally declared disaster declared after December 31, 2014. Damages include compensation for lost wages, personal injury, death, and emotional distress.
Finally, the act extends the statute of limitations for claiming a refund or credit related to qualified wildfire relief payments previously included in income on a federal tax return.
People & committees
Rep. Steube, W. Gregory [R-FL-17] · R–FL
Legislative record
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Became Public Law No: 118-148.
Became Public Law No: 118-148.
Signed by President.
Signed by President.
Presented to President.
Presented to President.
Message on Senate action sent to the House.
Passed Senate without amendment by Voice Vote. (consideration: CR S6813)
Passed/agreed to in Senate: Passed Senate without amendment by Voice Vote.
Senate Committee on Finance discharged by Unanimous Consent.
Senate Committee on Finance discharged by Unanimous Consent.
Received in the Senate and Read twice and referred to the Committee on Finance.
Motion to reconsider laid on the table Agreed to without objection.
On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 382 - 7 (Roll no. 219). (text: CR H3379)
House roll call 219 · Individual votesPassed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 382 - 7 (Roll no. 219). (text: CR H3379)
House roll call 219 · Individual votesConsidered as unfinished business. (consideration: CR H3387-3388)
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
DEBATE - The House proceeded with forty minutes of debate on H.R. 5863.
Considered under suspension of the rules. (consideration: CR H3379-3382)
Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
Placed on the Union Calendar, Calendar No. 284.
Reported (Amended) by the Committee on Ways and Means. H. Rept. 118-348.
Reported (Amended) by the Committee on Ways and Means. H. Rept. 118-348.
Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 38 - 0.
Committee Consideration and Mark-up Session Held
Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
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Source last updated: Aug 15, 2025. Consult Congress.gov for the current record.
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