Doug LaMalfa Federal Disaster Tax Relief Certainty Act

119 HR 5366 EH: Doug LaMalfa Federal Disaster Tax Relief Certainty Act U.S. House of Representatives text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IB 119th CONGRESS2d Session H. R. 5366

IN THE HOUSE OF REPRESENTATIVES 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.

1.Short titleThis Act may be cited as the Doug LaMalfa Federal Disaster Tax Relief Certainty Act.

2.Codification and extension of rules for casualty losses arising from major disasters (a)In generalSection 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 generalIf 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 lossFor 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 lossesFor purposes of this paragraph— (i)In generalThe term qualified disaster-related personal casualty losses means losses described in subsection (c)(3) (determined after application of paragraph (1)) which arise in a qualified disaster area on or after the first day of the incident period of the qualified disaster to which such area relates, and which are attributable to such disaster. (ii)Qualified disaster areaThe term qualified disaster area means any area with respect to which a major disaster has been declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act if the incident period of the disaster with respect to which such declaration is made begins on or after December 28, 2019, and before January 1, 2027. (iii)Qualified disasterThe term qualified disaster means, with respect to any qualified disaster area, the disaster by reason of which a major disaster was declared with respect to such area. (iv)Incident periodThe term incident period means, with respect to any qualified disaster, the period specified by the Federal Emergency Management Agency as the period during which such disaster occurred.. (b)Dollar limitationSection 165(h)(1) of such Code is amended by striking $500 ($100 for taxable years beginning after December 31, 2009) and inserting $100 ($500 in the case of any qualified disaster-related personal casualty losses (as defined in paragraph (6)(C)). (c)Deduction allowed to individuals who do not elect to itemize deductionsSection 63(b) of such Code is amended— (1)by striking and at the end of paragraph (6) and inserting a comma, (2)by striking the period at the end of paragraph (7) and inserting , and, and (3)by adding at the end the following new paragraph: (8)so much of the deduction allowed by section 165(a) as is attributable to the qualified net disaster loss (as defined in section 165(h)(6)(B)).. (d)Effective date (1)In generalThe amendments made by this section shall apply to taxable years beginning after December 31, 2024. (2)Coordination with superceded provisionsSection 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (division EE of Public Law 116–260) and section 70438 of Public Law 119–21 shall not apply to any taxable year beginning after December 31, 2024.

3.Codification and extension of exclusion from gross income of compensation for losses or damages resulting from certain wildfires (a)In generalPart III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: 139M.Compensation for losses or damages resulting from certain wildfires (a)In generalGross income shall not include any amount received by an individual as a qualified wildfire relief payment. (b)Qualified wildfire relief paymentFor purposes of this section— (1)In generalThe term qualified wildfire relief payment means any amount received by or on behalf of an individual as compensation for losses, expenses, or damages (including compensation for additional living expenses, lost wages (other than compensation for lost wages paid by the employer which would have otherwise paid such wages), personal injury, death, or emotional distress) incurred as a result of a qualified wildfire disaster, but only to the extent the losses, expenses, or damages compensated by such payment are not compensated for by insurance or otherwise. (2)Qualified wildfire disasterThe term qualified wildfire disaster means any Federally declared disaster (as defined in section 165(i)(5)(A)) declared after December 31, 2014, and before January 1, 2027, as a result of any forest or range fire. (c)Denial of double benefitNotwithstanding any other provision of this title— (1)no deduction or credit shall be allowed (to the individual for whose benefit a qualified wildfire relief payment is made) for, or by reason of, any expenditure to the extent of the amount excluded under this section with respect to such expenditure, and (2)no increase in the basis or adjusted basis of any property shall result from any amount excluded under this section with respect to such property.. (b)Clerical amendmentThe table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting before the item related to section 140 the following new item: Sec. 139M. Compensation for losses or damages resulting from certain wildfires.. (c)Effective dateThe amendments made by this section shall apply to payments received in taxable years beginning after December 31, 2025. Passed the House of Representatives April 27, 2026.Kevin F. McCumber,Clerk.

HR 5366 ENR: Doug LaMalfa Federal Disaster Tax Relief Certainty Act U.S. House of Representatives text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IB One Hundred Nineteenth Congress of the United States of AmericaAt the Second SessionBegun and held at the City of Washington on Saturday, the third day of January, two thousand and twenty-six H. R. 5366 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.

1.Short titleThis Act may be cited as the Doug LaMalfa Federal Disaster Tax Relief Certainty Act.

2.Codification and extension of rules for casualty losses arising from major disasters (a)In generalSection 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 generalIf 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 lossFor 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 lossesFor purposes of this paragraph— (i)In generalThe term qualified disaster-related personal casualty losses means losses described in subsection (c)(3) (determined after application of paragraph (1)) which arise in a qualified disaster area on or after the first day of the incident period of the qualified disaster to which such area relates, and which are attributable to such disaster. (ii)Qualified disaster areaThe term qualified disaster area means any area with respect to which a major disaster has been declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act if the incident period of the disaster with respect to which such declaration is made begins on or after December 28, 2019, and before January 1, 2027. (iii)Qualified disasterThe term qualified disaster means, with respect to any qualified disaster area, the disaster by reason of which a major disaster was declared with respect to such area. (iv)Incident periodThe term incident period means, with respect to any qualified disaster, the period specified by the Federal Emergency Management Agency as the period during which such disaster occurred.. (b)Dollar limitationSection 165(h)(1) of such Code is amended by striking $500 ($100 for taxable years beginning after December 31, 2009) and inserting $100 ($500 in the case of any qualified disaster-related personal casualty losses (as defined in paragraph (6)(C)). (c)Deduction allowed to individuals who do not elect to itemize deductionsSection 63(b) of such Code is amended— (1)by striking and at the end of paragraph (6) and inserting a comma, (2)by striking the period at the end of paragraph (7) and inserting , and, and (3)by adding at the end the following new paragraph: (8)so much of the deduction allowed by section 165(a) as is attributable to the qualified net disaster loss (as defined in section 165(h)(6)(B)).. (d)Effective date (1)In generalThe amendments made by this section shall apply to taxable years beginning after December 31, 2024. (2)Coordination with superceded provisionsSection 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (division EE of Public Law 116–260) and section 70438 of Public Law 119–21 shall not apply to any taxable year beginning after December 31, 2024.

3.Codification and extension of exclusion from gross income of compensation for losses or damages resulting from certain wildfires (a)In generalPart III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: 139M.Compensation for losses or damages resulting from certain wildfires (a)In generalGross income shall not include any amount received by an individual as a qualified wildfire relief payment. (b)Qualified wildfire relief paymentFor purposes of this section— (1)In generalThe term qualified wildfire relief payment means any amount received by or on behalf of an individual as compensation for losses, expenses, or damages (including compensation for additional living expenses, lost wages (other than compensation for lost wages paid by the employer which would have otherwise paid such wages), personal injury, death, or emotional distress) incurred as a result of a qualified wildfire disaster, but only to the extent the losses, expenses, or damages compensated by such payment are not compensated for by insurance or otherwise. (2)Qualified wildfire disasterThe term qualified wildfire disaster means any Federally declared disaster (as defined in section 165(i)(5)(A)) declared after December 31, 2014, and before January 1, 2027, as a result of any forest or range fire. (c)Denial of double benefitNotwithstanding any other provision of this title— (1)no deduction or credit shall be allowed (to the individual for whose benefit a qualified wildfire relief payment is made) for, or by reason of, any expenditure to the extent of the amount excluded under this section with respect to such expenditure, and (2)no increase in the basis or adjusted basis of any property shall result from any amount excluded under this section with respect to such property.. (b)Clerical amendmentThe table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting before the item related to section 140 the following new item: Sec. 139M. Compensation for losses or damages resulting from certain wildfires.. (c)Effective dateThe amendments made by this section shall apply to payments received in taxable years beginning after December 31, 2025. Speaker of the House of Representatives.Vice President of the United States and President of the Senate.

119 HR 5366 IH: Federal Disaster Tax Relief Act of 2025 U.S. House of Representatives 2025-09-15 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS1st Session H. R. 5366

IN THE HOUSE OF REPRESENTATIVES September 15, 2025 Mr. Steube (for himself, Mr. Thompson of California, Mr. LaMalfa, and Mr. Panetta) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL 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.

1.Short titleThis Act may be cited as the Federal Disaster Tax Relief Act of 2025.

2.Codification and extension of rules for casualty losses arising from major disasters (a)Treatment of losses (1)In generalSection 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 disaster losses (A)In generalIf 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 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 lossFor purposes of subparagraph (A), the term qualified net disaster loss means the excess of qualified disaster-related personal casualty losses over personal casualty gains. (C)Qualified disaster-related personal casualty losses (i)In generalFor purposes of this subsection, the term qualified disaster-related personal casualty losses means losses described in subsection (c)(3) (determined after application of paragraph (1)) which arise in a qualified disaster area on or after the first day of the incident period of the qualified disaster to which such area relates, and which are attributable to such disaster. (ii)Qualified disaster areaThe term qualified disaster area means any area with respect to which a major disaster has been declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act if the incident period of the disaster with respect to which such declaration is made begins after July 4, 2025, and before January 1, 2027. (iii)Qualified disasterThe term qualified disaster means, with respect to any qualified disaster area, the disaster by reason of which a major disaster was declared with respect to such area. (iv)Incident periodFor purposes of this paragraph, the term incident period means, with respect to any qualified disaster, the period specified by the Federal Emergency Management Agency as the period during which such disaster occurred.. (2)Conforming amendmentSection 165(h)(5)(B)(ii) of such Code is amended by inserting or (6) after paragraph (2)(A). (b)Dollar limitationSection 165(h)(1) of the Internal Revenue Code of 1986 is amended by striking $500 ($100 for taxable years beginning after December 31, 2009) and inserting $100 ($500 in the case of any net disaster loss to which paragraph (3) applies). (c)Standard deduction (1)In generalSection 63(c)(1) of the Internal Revenue Code of 1986 is amended by striking and at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting and, and by adding at the end the following new subparagraph: (C)the disaster loss deduction.. (2)Disaster loss deductionSection 63(c) of such Code is amended by adding at the end the following new paragraph: (8)Disaster loss deductionFor the purposes of paragraph (1), the term disaster loss deduction means the excess of qualified net disaster losses (as defined in section 165(h)(6)(B)) over the amount of personal casualty gains (as defined in section 165(h)(3)(A)) reduced by any portion of such gains taken into account under section 165(h)(5)(B)(i).. (d)Treatment under alternative minimum taxSection 56(b)(1)(D) of the Internal Revenue Code of 1986 is amended by inserting (other than the disaster loss deduction) after section 63(c). (e)Effective dateThe amendments made by this section shall apply to losses incurred in taxable years beginning after December 31, 2024.

3.Codification and extension of exclusion from gross income of compensation for losses or damages resulting from certain wildfires (a)In generalPart III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: 139M.Compensation for losses or damages resulting from certain wildfires (a)In generalGross income shall not include any amount received by an individual as a qualified wildfire relief payment. (b)Definitions; qualified wildfire relief paymentFor purposes of this section— (1)In generalThe term qualified wildfire relief payment means any amount received by or on behalf of an individual as compensation for losses, expenses, or damages (including compensation for additional living expenses, lost wages (other than compensation for lost wages paid by the employer which would have otherwise paid such wages), personal injury, death, or emotional distress) incurred as a result of a qualified wildfire disaster, but only to the extent the losses, expenses, or damages compensated by such payment are not compensated for by insurance or otherwise. (2)Qualified wildfire disasterThe term qualified wildfire disaster means any Federally declared disaster (as defined in section 165(i)(5)(A)) after December 31, 2014, as a result of any forest or range fire. (c)Denial of double benefitNotwithstanding any other provision of this title— (1)no deduction or credit shall be allowed (to the person for whose benefit a qualified wildfire relief payment is made) for, or by reason of, any expenditure to the extent of the amount excluded under this section with respect to such expenditure, and (2)no increase in the basis or adjusted basis of any property shall result from any amount excluded under this section with respect to such property. (d)Limitation on applicationThis section shall only apply to qualified wildfire relief payments received by the individual during taxable years beginning after December 31, 2025, and before January 1, 2031.. (b)Clerical amendmentThe table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting before the item related to section 140 the following new item: Sec. 139M. Compensation for losses or damages resulting from certain wildfires.. (c)Effective dateThe amendments made by this section shall apply to payments received in taxable years beginning after December 31, 2025.

119 HR 5366 : Doug LaMalfa Federal Disaster Tax Relief Certainty Act U.S. House of Representatives 2026-04-28 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IIB119th CONGRESS2d SessionH. R. 5366IN THE SENATE OF THE UNITED STATESApril 28, 2026Received; read twice and referred to the Committee on FinanceAN ACTTo 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.1.Short titleThis Act may be cited as the Doug LaMalfa Federal Disaster Tax Relief Certainty Act.2.Codification and extension of rules for casualty losses arising from major disasters(a)In generalSection 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 generalIf 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 lossFor 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 lossesFor purposes of this paragraph—(i)In generalThe term qualified disaster-related personal casualty losses means losses described in subsection (c)(3) (determined after application of paragraph (1)) which arise in a qualified disaster area on or after the first day of the incident period of the qualified disaster to which such area relates, and which are attributable to such disaster.(ii)Qualified disaster areaThe term qualified disaster area means any area with respect to which a major disaster has been declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act if the incident period of the disaster with respect to which such declaration is made begins on or after December 28, 2019, and before January 1, 2027.(iii)Qualified disasterThe term qualified disaster means, with respect to any qualified disaster area, the disaster by reason of which a major disaster was declared with respect to such area.(iv)Incident periodThe term incident period means, with respect to any qualified disaster, the period specified by the Federal Emergency Management Agency as the period during which such disaster occurred..(b)Dollar limitationSection 165(h)(1) of such Code is amended by striking $500 ($100 for taxable years beginning after December 31, 2009) and inserting $100 ($500 in the case of any qualified disaster-related personal casualty losses (as defined in paragraph (6)(C)).(c)Deduction allowed to individuals who do not elect to itemize deductionsSection 63(b) of such Code is amended—(1)by striking and at the end of paragraph (6) and inserting a comma,(2)by striking the period at the end of paragraph (7) and inserting , and, and(3)by adding at the end the following new paragraph:(8)so much of the deduction allowed by section 165(a) as is attributable to the qualified net disaster loss (as defined in section 165(h)(6)(B))..(d)Effective date(1)In generalThe amendments made by this section shall apply to taxable years beginning after December 31, 2024.(2)Coordination with superceded provisionsSection 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (division EE of Public Law 116–260) and section 70438 of Public Law 119–21 shall not apply to any taxable year beginning after December 31, 2024.3.Codification and extension of exclusion from gross income of compensation for losses or damages resulting from certain wildfires(a)In generalPart III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section:139M.Compensation for losses or damages resulting from certain wildfires(a)In generalGross income shall not include any amount received by an individual as a qualified wildfire relief payment.(b)Qualified wildfire relief paymentFor purposes of this section—(1)In generalThe term qualified wildfire relief payment means any amount received by or on behalf of an individual as compensation for losses, expenses, or damages (including compensation for additional living expenses, lost wages (other than compensation for lost wages paid by the employer which would have otherwise paid such wages), personal injury, death, or emotional distress) incurred as a result of a qualified wildfire disaster, but only to the extent the losses, expenses, or damages compensated by such payment are not compensated for by insurance or otherwise.(2)Qualified wildfire disasterThe term qualified wildfire disaster means any Federally declared disaster (as defined in section 165(i)(5)(A)) declared after December 31, 2014, and before January 1, 2027, as a result of any forest or range fire.(c)Denial of double benefitNotwithstanding any other provision of this title— (1)no deduction or credit shall be allowed (to the individual for whose benefit a qualified wildfire relief payment is made) for, or by reason of, any expenditure to the extent of the amount excluded under this section with respect to such expenditure, and(2)no increase in the basis or adjusted basis of any property shall result from any amount excluded under this section with respect to such property..(b)Clerical amendmentThe table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting before the item related to section 140 the following new item:Sec. 139M. Compensation for losses or damages resulting from certain wildfires..(c)Effective dateThe amendments made by this section shall apply to payments received in taxable years beginning after December 31, 2025.Passed the House of Representatives April 27, 2026.Kevin F. McCumber,Clerk.

119 HR 5366 RH: Doug LaMalfa Federal Disaster Tax Relief Certainty Act U.S. House of Representatives 2026-04-09 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IBUnion Calendar No. 525119th CONGRESS2d SessionH. R. 5366[Report No. 119–605]IN THE HOUSE OF REPRESENTATIVESSeptember 15, 2025Mr. Steube (for himself, Mr. Thompson of California, Mr. LaMalfa, and Mr. Panetta) introduced the following bill; which was referred to the Committee on Ways and MeansApril 9, 2026Additional sponsors: Mr. Vindman, Mr. Neguse, Mr. Min, Mr. Crow, Ms. Tokuda, Mr. Donalds, Mr. Bilirakis, Mr. Diaz-Balart, Ms. Moore of Wisconsin, Mr. Bergman, and Mr. Wilson of South CarolinaApril 9, 2026Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printedStrike out all after the enacting clause and insert the part printed in italicFor text of introduced bill, see copy of bill as introduced on September 15, 2025A BILLTo 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.1.Short titleThis Act may be cited as the Doug LaMalfa Federal Disaster Tax Relief Certainty Act.2.Codification and extension of rules for casualty losses arising from major disasters(a)In generalSection 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 generalIf 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 lossFor 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 lossesFor purposes of this paragraph—(i)In generalThe term qualified disaster-related personal casualty losses means losses described in subsection (c)(3) (determined after application of paragraph (1)) which arise in a qualified disaster area on or after the first day of the incident period of the qualified disaster to which such area relates, and which are attributable to such disaster.(ii)Qualified disaster areaThe term qualified disaster area means any area with respect to which a major disaster has been declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act if the incident period of the disaster with respect to which such declaration is made begins on or after December 28, 2019, and before January 1, 2027.(iii)Qualified disasterThe term qualified disaster means, with respect to any qualified disaster area, the disaster by reason of which a major disaster was declared with respect to such area.(iv)Incident periodThe term incident period means, with respect to any qualified disaster, the period specified by the Federal Emergency Management Agency as the period during which such disaster occurred..(b)Dollar limitationSection 165(h)(1) of such Code is amended by striking $500 ($100 for taxable years beginning after December 31, 2009) and inserting $100 ($500 in the case of any qualified disaster-related personal casualty losses (as defined in paragraph (6)(C)).(c)Deduction allowed to individuals who do not elect to itemize deductionsSection 63(b) of such Code is amended—(1)by striking and at the end of paragraph (6) and inserting a comma,(2)by striking the period at the end of paragraph (7) and inserting , and, and(3)by adding at the end the following new paragraph:(8)so much of the deduction allowed by section 165(a) as is attributable to the qualified net disaster loss (as defined in section 165(h)(6)(B))..(d)Effective date(1)In generalThe amendments made by this section shall apply to taxable years beginning after December 31, 2024.(2)Coordination with superceded provisionsSection 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (division EE of Public Law 116–260) and section 70438 of Public Law 119–21 shall not apply to any taxable year beginning after December 31, 2024.3.Codification and extension of exclusion from gross income of compensation for losses or damages resulting from certain wildfires(a)In generalPart III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section:139M.Compensation for losses or damages resulting from certain wildfires(a)In generalGross income shall not include any amount received by an individual as a qualified wildfire relief payment.(b)Qualified wildfire relief paymentFor purposes of this section—(1)In generalThe term qualified wildfire relief payment means any amount received by or on behalf of an individual as compensation for losses, expenses, or damages (including compensation for additional living expenses, lost wages (other than compensation for lost wages paid by the employer which would have otherwise paid such wages), personal injury, death, or emotional distress) incurred as a result of a qualified wildfire disaster, but only to the extent the losses, expenses, or damages compensated by such payment are not compensated for by insurance or otherwise.(2)Qualified wildfire disasterThe term qualified wildfire disaster means any Federally declared disaster (as defined in section 165(i)(5)(A)) declared after December 31, 2014, and before January 1, 2027, as a result of any forest or range fire.(c)Denial of double benefitNotwithstanding any other provision of this title— (1)no deduction or credit shall be allowed (to the individual for whose benefit a qualified wildfire relief payment is made) for, or by reason of, any expenditure to the extent of the amount excluded under this section with respect to such expenditure, and(2)no increase in the basis or adjusted basis of any property shall result from any amount excluded under this section with respect to such property..(b)Clerical amendmentThe table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting before the item related to section 140 the following new item:Sec. 139M. Compensation for losses or damages resulting from certain wildfires..(c)Effective dateThe amendments made by this section shall apply to payments received in taxable years beginning after December 31, 2025.April 9, 2026Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed