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Disaster Tax Relief: New Rules for Losses and Compensation

This act introduces changes to tax regulations that will make it easier for citizens to recover financially after major disasters, such as wildfires. It means that affected individuals will be eligible for greater tax relief for personal losses and the exclusion of compensation for wildfire damages from taxable income. The goal is to reduce the financial burden on those impacted by natural disasters.
Key points
Increased tax relief for personal losses incurred due to Presidentially declared major disasters occurring after July 4, 2025, and before January 1, 2027.
Introduction of a disaster loss deduction that can be added to the standard deduction, potentially lowering taxable income.
Exclusion from gross income of compensation received for losses or damages resulting from certain wildfires, applicable to payments received after December 31, 2025, and before January 1, 2031.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_2744
Sponsor: Sen. Scott, Rick [R-FL]
Process start date: 2025-09-09
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Federal Disaster Tax Relief Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_2744.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-09-09.

What are the main provisions?

Key points include:

  • Increased tax relief for personal losses incurred due to Presidentially declared major disasters occurring after July 4, 2025, and before January 1, 2027.
  • Introduction of a disaster loss deduction that can be added to the standard deduction, potentially lowering taxable income.
  • Exclusion from gross income of compensation received for losses or damages resulting from certain wildfires, applicable to payments received after December 31, 2025, and before January 1, 2031.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Scott, Rick [R-FL].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes