Federal Disaster Tax Relief Act of 2023

Federal Disaster Tax Relief Act of 2023

This bill extends rules for the treatment of certain disaster-related personal casualty losses and provides tax relief for losses due to wildfires and a certain incident involving a train derailment.

Specifically, 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.

Bill 118 hr 5863, also known as the Federal Disaster Tax Relief Act of 2023, aims to provide tax relief to individuals and businesses affected by natural disasters in the United States. The bill includes provisions such as allowing for tax deductions for disaster-related expenses, providing tax credits for rebuilding efforts, and offering tax breaks for businesses that have been impacted by disasters.

Additionally, the bill seeks to streamline the process for claiming disaster-related tax benefits, making it easier for individuals and businesses to access the relief they need. It also includes measures to ensure that the tax relief provided is targeted towards those who have been most severely affected by disasters.

Overall, the Federal Disaster Tax Relief Act of 2023 is designed to help individuals and businesses recover from the financial impact of natural disasters by providing them with much-needed tax relief.