Bill · S. 2744· Senate(119-S-2744)
Federal Disaster Tax Relief Act of 2025
- Introduced
- 9/9/2025
- Last activity
- 9/9/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Rick Scott
- Cosponsors
- - 2 - 2
- 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
Does this improve help for people hit by a disaster?+6
The bill codifies and extends rules for personal casualty losses and excludes wildfire relief payments from gross income.
Does this cut taxes for middle-income families?+5
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?+5
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)).
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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)).
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Standard Deduction Inclusion: The bill adds a "disaster loss deduction" to the standard deduction, which can help individuals recovering from disasters (Section 2(c)).
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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)).
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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. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+4Good For Middle Class Households+4Good For Rural Residents+4Good For Urban Residents+2
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Small Business Taxes+5Improves Economic Growth+2
- Environment Energy And Infrastructure
- Improves Disaster Relief And F E M A+6
- Social Issues And Justice
- Improves Poverty Reduction+3
- 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