Doug LaMalfa Federal Disaster Tax Relief Certainty Act
Latest action (11 Sep 2026): Signed by President.
What this bill does
H.R. 5366, the Federal Disaster Tax Relief Act of 2025 (also referred to as the Doug LaMalfa Federal Disaster Tax Relief Certainty Act), would amend the Internal Revenue Code to permanently codify tax rules that have previously been extended on a temporary, disaster-by-disaster basis. It changes how individuals calculate personal casualty loss deductions for losses from federally declared major disasters occurring between July 4, 2025 and January 1, 2027, lowering the per-casualty dollar floor and removing the requirement that such losses exceed 10% of adjusted gross income to be deductible, including for people who take the standard deduction. It also creates a permanent exclusion from taxable income for wildfire relief payments (covering losses, living expenses, lost wages, injury, or emotional distress) received for federally declared wildfire disasters after 2014, for payments received in taxable years 2026 through 2030.
The bill affects individual taxpayers who experience losses from major disasters or wildfires, allowing more of their losses to be deducted or excluded from income, and simplifying rules that previously required separate legislation after each disaster.
Introduced in the House on 2025-09-15 by Rep. Steube, it has passed both the House and Senate, with the Senate passing it without amendment by unanimous consent on 2026-08-07. It next goes to the President for signature or veto before it could become law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Doug LaMalfa Federal Disaster Tax Relief Certainty Act
This act 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 act 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 act 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 act also provides statutory authority for several related tax rules.
Timeline
11 Sep 2026
Signed by President.
7 Aug 2026
Passed Senate without amendment by Unanimous Consent.
27 Apr 2026
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
25 Mar 2026
Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 43 - 0.
Common questions
- What does H.R. 5366 do?
- H.R. 5366, the Federal Disaster Tax Relief Act of 2025 (also referred to as the Doug LaMalfa Federal Disaster Tax Relief Certainty Act), would amend the Internal Revenue Code to permanently codify tax rules that have previously been extended on a temporary, disaster-by-disaster basis. It changes how individuals calculate personal casualty loss deductions for losses from federally declared major disasters occurring between July 4, 2025 and January 1, 2027, lowering the per-casualty dollar floor and removing the requirement that such losses exceed 10% of adjusted gross income to be deductible, including for people who take the standard deduction. It also creates a permanent exclusion from taxable income for wildfire relief payments (covering losses, living expenses, lost wages, injury, or emotional distress) received for federally declared wildfire disasters after 2014, for payments received in taxable years 2026 through 2030. The bill affects individual taxpayers who experience losses from major disasters or wildfires, allowing more of their losses to be deducted or excluded from income, and simplifying rules that previously required separate legislation after each disaster. Introduced in the House on 2025-09-15 by Rep. Steube, it has passed both the House and Senate, with the Senate passing it without amendment by unanimous consent on 2026-08-07. It next goes to the President for signature or veto before it could become law.
- Has H.R. 5366 become law?
- Yes. H.R. 5366 has been enacted. Status last updated 11 Sep 2026.
- Who sponsored H.R. 5366?
- H.R. 5366 was sponsored by Rep. Gregory Steube [R-FL17] (Republican-FL), with 14 cosponsors.
- What's the latest action on H.R. 5366?
- Signed by President. (11 Sep 2026).
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