Advocacy Alert: President Biden signs Federal Disaster Tax Relief Act

By FICPA Governmental Affairs

President Joe Biden on Thursday signed H.R. 5863, the “Federal Disaster Tax Relief Act of 2023,” which will designate a series of presidentially declared disasters as qualified disaster events.

The bill unanimously passed the U.S. Senate last week and was then sent to the president's desk.

The legislation, originally introduced by Rep. Greg Steube (R-FL), passed the U.S. House in May of this year, 382-7, following a highly uncommon discharge petition, which saw the bill bypass committee review and proceed directly to the House floor for a vote after receiving the backing of 218 members of Congress.

A White House release announcing that the bill had been signed specifically thanked Rep. Steube, along with Reps. Doug LaMalfa (R-CA) and Mike Thompson (D-CA) and Sens. Bill Cassidy (R-LA), Laphonza Butler (D-CA) and Alex Padilla (D-CA).

Rep. Steube celebrated the news via his X account on Thursday evening.

A release from Rep. Steube's office, issued last week, outlines the bill's specific impact:

[The] legislation designates that Hurricane Ian and other hurricanes including Hurricanes Idalia, Nicole, Fiona, Debby, Helene, and Milton should be treated as qualified disaster events for purposes of determining the tax treatment of certain disaster-related personal casualty losses. The legislation will cover any potential major disasters occurring up to 6 months after the President’s signature.

The legislation would allow Americans who were subjected to damages from hurricanes and other federally declared disasters to claim such losses without itemizing such deductions. Moreover, such losses would not have to exceed 10% of a claimant’s adjusted gross income to qualify.

Additionally, the bill excludes from taxpayer gross income, for income tax purposes, any amount received by an individual taxpayer as compensation for expenses or losses incurred due to a qualified wildfire disaster (a disaster declared after 2014 as a result of a forest or range fire). It also excludes relief payments for losses resulting from the East Palestine, Ohio, train derailment on February 3, 2023.

The FICPA once again thanks Rep. Steube and Sen. Rick Scott for their leadership and determination in securing this valuable relief for residents of the state of Florida and victims of disasters across the country.