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Tax Relief for East Palestine Train Derailment Victims

This bill aims to exclude certain payments received by victims of the East Palestine train derailment from federal income tax. This means that compensation for business losses and other relief payments will not be counted as taxable income, potentially helping affected individuals recover more quickly.
Key points
Relief payments to East Palestine train derailment victims are considered qualified disaster relief, making them tax-exempt.
Payments for lost business income from government agencies, Norfolk Southern Railway, or their insurers will not be taxed.
These changes apply to amounts received on or after February 3, 2023, the date of the derailment.
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Additional Information
Print number: 118_HR_1270
Sponsor: Rep. Johnson, Bill [R-OH-6]
Process start date: 2023-03-01