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Bill

HR 5366

Federal Disaster Tax Relief Act of 2025

119th Congress Introduced by Gus Bilirakis and 11 co-sponsors

HR 5366 offers tax relief by clarifying rules for claiming personal casualty losses from major disasters and excluding wildfire compensation from gross income.

Committee Consideration and Mark-up Session Held
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Bill Summary · HR 5366

Summary of HR 5366

Bill Number: HR 5366
Title: To amend the Internal Revenue Code of 1986 to codify and extend the rules for personal casualty losses arising from major disasters and the rules for the exclusion from gross income of compensation for losses or damages resulting from certain wildfires.
Status: Introduced in House
Introduced Date: September 15, 2025
Classification: Bill

Purpose and Intent

The primary purpose of HR 5366 is to amend the Internal Revenue Code of 1986 to provide clearer guidelines and extended provisions regarding personal casualty losses that occur as a result of major disasters. Additionally, the bill aims to codify rules that allow for the exclusion of certain compensations related to losses or damages from wildfires from gross income. This legislative effort seeks to offer financial relief and support to individuals affected by such catastrophic events.

Key Provisions

  1. Codification of Casualty Loss Rules:

    • The bill seeks to formalize existing rules regarding personal casualty losses due to major disasters, ensuring that taxpayers can claim these losses on their tax returns.
    • It aims to clarify the criteria for what constitutes a major disaster, potentially expanding the scope of eligible events.

  2. Exclusion from Gross Income:

    • HR 5366 proposes to extend the provisions that allow individuals to exclude compensation received for losses or damages resulting from specific wildfires from their gross income.
    • This exclusion is intended to alleviate the tax burden on individuals who receive compensation for losses incurred due to these disasters.

  3. Impact on Taxpayers:

    • The bill is designed to benefit individuals who have suffered personal losses due to major disasters and wildfires, providing them with a more straightforward process for claiming deductions and exclusions on their taxes.
    • By codifying these rules, the bill aims to enhance the financial recovery process for affected individuals.

Who Would Be Affected

  • Individuals and Households: Taxpayers who have experienced personal casualty losses due to major disasters or wildfires will be the primary beneficiaries of this legislation.
  • Tax Professionals: The clarification and codification of rules may impact how tax professionals advise clients on claiming casualty losses and exclusions.

Procedural Aspects

  • Committee Referral: Upon introduction, HR 5366 was referred to the House Committee on Ways and Means for further consideration.
  • Next Steps: The bill will undergo discussions and potential amendments within the committee before it can be brought to the House floor for a vote.

Conclusion

HR 5366 represents a legislative effort to provide essential tax relief to individuals affected by major disasters and wildfires. By codifying existing rules and extending exclusions for compensation, the bill aims to streamline the recovery process for taxpayers facing significant financial challenges due to these catastrophic events. As the bill progresses through the legislative process, its impact on affected individuals and the broader tax landscape will become clearer.

Compiled from official sources — confirm details with the bill’s official record.

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