After two years of delays, the Federal Disaster Tax Relief Act of 2023 (H.R. 5863), endorsed by Congressman Byron Donalds (R-FL), has been signed into law by the President, providing crucial tax relief to disaster victims across the country, including Southwest Florida residents.
The legislation, signed into law on December 12, 2024, offers targeted tax relief for victims of over 300 federally-declared disasters since February 2021. These include major events like Hurricanes Ian, Milton, Helene, Idalia, Debby, Nicole, and Fiona, the Maui fires, recent California wildfires, and the East Palestine train derailment.
READ: Florida Rep. Byron Donalds Demands Answers From FEMA On Hurricane Helene, Milton Responses
Congressman Donalds celebrated the bill’s enactment, highlighting its importance for Floridians who have endured significant hardship.
“In 2022, then-Speaker Nancy Pelosi (D-CA) made a devastating decision to deny Southwest Floridians hurricane tax relief in our time of need,” said Donalds. “Over the past two years, I have fought alongside Rep. Greg Steube (R-FL) and Sen. Rick Scott (R-FL) to ensure that disaster tax relief reaches our community. We relentlessly proposed bill after bill until the Senate took action and the President signed this critical legislation into law. I am proud to have played a role in delivering this much-needed disaster tax relief to Southwest Florida, the Sunshine State, and affected communities across our nation.”
Key Provisions of H.R. 5863:
- AGI Threshold Removed: Section 2 eliminates the 10% Adjusted Gross Income (AGI) threshold for qualified disaster losses, allowing Americans to claim such losses without itemizing deductions.
- Retroactive Relief: Applies to federally qualified disasters dating back to February 2021, including Hurricanes Ian, Milton, Helene, and other major events.
- Future Disasters: Covers federally qualified disasters declared up to 60 days after the law’s enactment.
- Claiming Losses: Floridians can retroactively claim disaster-related losses for tax years 2021, 2022, and 2023 by filing amended returns. For the 2024 hurricane season, losses can be claimed on 2024 taxes.
READ: House Passes Florida Rep. Byron Donalds’ Bipartisan Bill To Streamline Fishery Disaster Relief
Congressman Donalds encouraged affected Floridians to consult with tax professionals to ensure they can fully utilize the relief provided by the bill.
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