Federal Disaster Tax Relief Act of 2025
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The bill exempts codifies IRC Section 165(h)(6) creating special rules for qualified net disaster losses: losses bypass the 10% AGI threshold and can be deducted by non-itemizers through a new disaster loss deduction added, creates new IRC Section 139M excluding from gross income qualified wildfire relief payments: compensation for losses, expenses, damages (living expenses, lost wages, injury, death, emotional distress) from federally, and exempts full text of new IRC Section 139M establishing the wildfire compensation income exclusion. It relies on exemptions and tax deductions. The main policy areas are Taxation, Finance, and Energy.
Who Benefits and How
Wildfire Disaster Victims could see lower costs, Individuals in Presidentially Declared Disaster Areas could see lower costs, and Non-Itemizing Taxpayers in Disaster Areas could see lower costs.
Who Bears the Burden and How
U.S. Treasury could lose revenue opportunities.
Key Provisions
- Exempts codifies IRC Section 165(h)(6) creating special rules for qualified net disaster losses: losses bypass the 10% AGI threshold and can be deducted by non-itemizers through a new disaster loss deduction added...
- Creates new IRC Section 139M excluding from gross income qualified wildfire relief payments: compensation for losses, expenses, damages (living expenses, lost wages, injury, death, emotional distress) from federally...
- Exempts full text of new IRC Section 139M establishing the wildfire compensation income exclusion.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill exempts codifies IRC Section 165(h)(6) creating special rules for qualified net disaster losses: losses bypass the 10% AGI threshold and can be deducted by non-itemizers through a new disaster loss deduction added, creates new IRC Section 139M excluding from gross income qualified wildfire relief payments: compensation for losses, expenses, damages (living expenses, lost wages, injury, death, emotional distress) from federally, and exempts full text of new IRC Section 139M establishing the wildfire compensation income exclusion.
Key Policy Areas
Taxation, Finance, Energy
Primary Purpose
The bill exempts codifies IRC Section 165(h)(6) creating special rules for qualified net disaster losses: losses bypass the 10% AGI threshold and can be deducted by non-itemizers through a new disaster loss deduction added, creates new IRC Section 139M excluding from gross income qualified wildfire relief payments: compensation for losses, expenses, damages (living expenses, lost wages, injury, death, emotional distress) from federally, and exempts full text of new IRC Section 139M establishing the wildfire compensation income exclusion.
Policy Domains
Disaster Casualty Loss Deduction Rules
Identified Gains
- Wildfire Disaster Victims
- Individuals in Presidentially Declared Disaster Areas
- Non-Itemizing Taxpayers in Disaster Areas
- Litigation and Settlement Plaintiffs (Wildfire Cases)
Identified Costs
- U.S. Treasury
Sponsors
Legislative Progress
In CommitteeMr. Scott of Florida introduced the following bill; which was …
Read twice and referred to the Committee on Finance.
Introduced in Senate
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Individuals in Presidentially Declared Disaster Areas, Non-Itemizing Taxpayers in Disaster Areas, Wildfire Disaster Victims
Litigation and Settlement Plaintiffs (Wildfire Cases)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury (implied)
Key Definitions
Terms defined in this bill
The excess of qualified disaster-related personal casualty losses over personal casualty gains
Compensation for losses, expenses, or damages (living expenses, lost wages, injury, death, emotional distress) from a qualified wildfire disaster, to the extent not covered by insurance
Area with a presidentially declared major disaster under the Stafford Act with an incident period beginning after July 4, 2025, and before January 1, 2027
The period specified by FEMA as the period during which the disaster occurred
Excess of qualified net disaster losses over personal casualty gains, available to non-itemizers on top of the standard deduction
Any federally declared disaster after December 31, 2014, resulting from a forest or range fire
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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