HR-5366 — Doug LaMalfa Federal Disaster Tax Relief Certainty Act

This bill became law on 2026-09-11 as Public Law No. 119-108.

The summary below describes the bill at the version we last reviewed; the enacted text may differ.

YourVoice.Now Summary

Your MoneyTransparency & Accountability

You can write off more of a disaster loss — and owe no tax on wildfire relief money.

Your Money

Bigger disaster loss deduction — 10% of income no longer subtracted

Normally you can deduct casualty losses only above 10 percent of your income. That 10 percent cut does not apply to declared-disaster losses, starting with tax year 2025.

Disaster losses deductible without itemizing — standard deduction filers can claim too

Most filers take the standard deduction and cannot list losses one by one. This change lets them add a qualified disaster loss on top of the standard deduction.

More disasters covered — those starting before January 2027 now qualify

A disaster counts if the President declared it and the damage began on or after December 28, 2019. The law moves the window's close to January 1, 2027.

Wildfire payments stay tax-free — covers lost wages, damage, emotional distress

It covers forest and range fires the government declared a disaster from 2015 through 2026, for payments you get in 2026 or later. Insurance-paid losses and wages from your own employer stay taxable.

First $500 of each disaster loss — not deductible, versus $100 normally

Every casualty claim has a floor you subtract before you deduct. The law sets it at $500 for disaster losses and $100 for other ones.

Double tax breaks blocked — no deduction for costs already covered

If a tax-free wildfire payment covered a cost, you cannot also deduct or claim a credit for that same cost. Repairs paid for that way also do not count toward what you paid for the property.

Transparency & Accountability

Set end date for the relief — covers disasters through 2026

Both breaks are tied to disasters declared or starting before January 1, 2027. Congress would have to pass a new law to cover disasters after that.

More about this bill

If a declared disaster damaged your home or car, you can write off more of the loss. Normally you must first subtract 10 percent of your income from a casualty claim. That cut no longer applies to disaster losses. You can also claim the loss without itemizing, so standard-deduction filers qualify. These changes reach back to tax year 2025. A $500 floor applies to each disaster claim, up from $100. Wildfire victims get a separate break. Money paid to you after a government-declared forest or range fire does not count as income. That includes payments for lost wages, property damage, and emotional distress. It covers fires declared from 2015 through 2026, for payments you receive in 2026 or later. Insurance-covered losses do not qualify. You also cannot deduct costs the tax-free money already paid for. The President signed it into law on September 11, 2026.

Congressional Summary

Doug LaMalfa Federal Disaster Tax Relief Certainty Act This bill extends the federal tax deduction for qualified disaster-related personal casualty losses and the exclusion from gross income of qualified wildfire relief payments. Under current law, unreimbursed personal casualty losses arising in a qualified disaster area (qualified disaster-related personal casualty losses) are deductible (as an itemized tax deduction or as part of the standard tax deduction) if such losses exceed $500 per casualty. A qualified disaster area is an area with respect to which a major disaster has been declared during the period beginning in 2020 and ending 60 days after July 4, 2025, if the incident period begins on or after December 28, 2019, and on or before July 4, 2025. The bill extends the federal tax deduction for qualified disaster-related personal casualty losses by defining a qualified disaster area as an area with respect to which a major disaster has been declared if the incident period begins on or after December 28, 2019, and before January 1, 2027. The bill provides that the exclusion from gross income of qualified wildfire relief payments applies to such payments attributable to forest or range fires declared a federal disaster after 2014 and before 2027, regardless of when such payments are received. (Currently, qualified wildfire relief payments attributable to forest or range fires declared a federal disaster after 2014 and received after 2019 and before 2026 may be excluded from gross income.) The bill also provides statutory authority for several related tax rules.

Details

Congress: 119th
Chamber: House
Status: summarized
Action: Public Law
Action Date: 2026-09-11
Date Added: 2026-04-25
Source: Congress.gov →

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