Reps. Panetta, Steube, Thompson Announce House Passage of Disaster Tax Relief Bill

Monterey, CA — U.S. Representatives Jimmy Panetta (CA-19), Greg Steube (FL-17), and Mike Thompson (CA-04) announced that the House of Representatives has passed the Doug LaMalfa Federal Disaster Tax Relief Certainty Act. The legislation would extend current law to deliver critical tax relief to Americans impacted by federally declared natural disasters.

Under this legislation, victims would more easily be able to deduct qualified casualty losses for federally declared disasters between July 4, 2025, and December 31, 2026. It also ensures certain disaster relief payments are not treated as taxable income. These provisions would ensure disaster victims are not penalized by the tax code as they recover from catastrophic events.

Companion legislation is led in the Senate by U.S. Senators Rick Scott (R-FL) and Adam Schiff (D-CA). After passing the House, the bill now heads to the Senate for consideration.

“The last thing families and communities recovering from natural disasters should have to worry about is an additional tax burden when they’re trying to get back on their feet,” said Rep. Panetta. “Our bipartisan bill would ensure that wildfire relief payments and hurricane losses continue to qualify for fair tax treatment. The House passage of this bill is a critical step toward providing disaster-impacted Americans the certainty, time, and tools they need to rebuild and move forward.”

“Floridians are far too familiar with the devastation and costly aftermath that natural disasters bring to their homes and communities,” said Rep. Steube. “They should not be forced to face additional hardship and uncertainty by navigating a confusing and burdensome tax code after surviving such events. This bill ensures that disaster victims across the country can focus on rebuilding their lives while receiving the relief they deserve. Congressman LaMalfa spent years leading on this issue, and naming this legislation in his honor is a meaningful way to carry that important work forward.”

“Californians are all too familiar with the devastation caused by wildfires. In the wake of losing their homes and livelihoods, it is wrong to tax survivors on settlement money that is meant to help them rebuild their lives. Survivors can’t afford to wait around for retroactive relief,” said Rep. Thompson. “Our late colleague Doug LaMalfa knew this well. I was proud to work with him to pass tax relief for fire victims in our communities in 2024, and I am proud we passed this bill now to honor his work and to extend our tax relief so more victims can be compensated.” 

The Federal Disaster Tax Relief Act of 2023 previously delivered billions in tax relief to Americans recovering from hurricanes, floods, wildfires, tornadoes, and other federally declared disasters. The Doug LaMalfa Federal Disaster Tax Relief Certainty Act builds on that effort by extending these provisions so disaster victims can continue to access relief under the tax code.

The legislation is supported by the National Fire Protection Association, the National Cattlemen’s Beef Association, Florida Citrus Mutual, and the Bipartisan Policy Center Action.

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