A Republican bill with 2 Democratic cosponsors · See all 4 cosponsors
Last activity — Read twice and referred to the Committee on Finance.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Federal Disaster Tax Relief Act of 2025 aims to update the Internal Revenue Code regarding disaster-related financial relief. It codifies and extends rules for personal casualty losses caused by major disasters. The bill establishes specific rules for qualified net disaster losses and relates them to qualified disaster areas. It also addresses the treatment of deductions and the alternative minimum tax. Additionally, the act seeks to exclude certain wildfire relief payments from gross income. This exclusion applies to compensation for losses or damages resulting from specific wildfire disasters.
Yes· 3 of 9
- Scored +6
Does this improve help for people hit by a disaster?
The bill codifies and extends rules for personal casualty losses and excludes wildfire relief payments from gross income.
- Scored +5
Does this cut taxes for middle-income families?
The bill increases the threshold for disaster loss deductions from $100 to $500 and provides a special rule for qualified net disaster losses.
- Scored +5
Does this cut taxes for small businesses?
The bill provides tax relief through adjusted deduction limits for qualified disaster losses.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Relief for Major Disaster Victims: The bill establishes a special rule for "qualified net disaster loss," which allows individuals to calculate their losses differently to provide relief (Section 2(a)).
-
Increased Deduction Limits for Disasters: The bill adjusts the dollar limitation so that there is a $500 threshold for net disaster losses, compared to the previous $100 limit (Section 2(b)).
-
Standard Deduction Inclusion: The bill adds a "disaster loss deduction" to the standard deduction, which can help individuals recovering from disasters (Section 2(c)).
-
Exclusion of Wildfire Relief from Income: Individuals receiving "qualified wildfire relief payments" will not have to include that money in their gross income, providing relief for expenses like additional living costs, lost wages, or personal injury (Section 3(a)).
Potential Negative Impacts for People
-
Restrictions on Wildfire Relief Deductions: To prevent a "double benefit," the bill states that no deduction or credit can be claimed for expenditures that have already been covered by the excluded wildfire relief payments (Section 3(c)(1)).
-
Property Basis Limitations: The bill prevents any increase in the basis or adjusted basis of property resulting from the amount excluded via the wildfire relief payments (Section 3(c)(2)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — The bill provides relief through increased disaster loss deduction thresholds and exclusion of wildfire relief from gross income. Would middle-income households be better off under this? — The bill increases the dollar limitation for qualifying net disaster losses to $500. Would people in rural areas be better off under this? — The bill provides specific relief for individuals experiencing qualified wildfire disasters, which often affect rural areas. Would people in cities be better off under this? — The bill provides relief through disaster-related tax deductions.
- Economy And Finance
- Does this cut taxes for middle-income families? — The bill increases the threshold for disaster loss deductions from $100 to $500 and provides a special rule for qualified net disaster losses. Does this cut taxes for small businesses? — The bill provides tax relief through adjusted deduction limits for qualified disaster losses. Is this likely to grow the economy? — Providing tax relief and excluding wildfire relief payments from gross income provides liquidity to disaster victims.
- Environment Energy And Infrastructure
- Does this improve help for people hit by a disaster? — The bill codifies and extends rules for personal casualty losses and excludes wildfire relief payments from gross income.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — The bill provides financial relief through tax deductions and income exclusions for those affected by disasters.
- 5/12/2026
- 2 Cosponsors added.
- 5/11/2026
- 1 Cosponsor added.
- 9/15/2025
- 1 Cosponsor added.
- 9/9/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Bill CassidyRepublican · Louisiana
Ashley MoodyRepublican · Florida
Alex PadillaDemocrat · California
Adam SchiffDemocrat · California