U.S. Representative Greg Steube’s (R-Fla.) landmark legislation, H.R. 5863 The Federal Disaster Tax Relief Act, has passed the U.S. Senate, bringing long-awaited tax relief to millions of Americans affected by hurricanes, wildfires, floods, tornadoes, and the Ohio train derailment. The bill now heads to President Joe Biden’s desk for final approval.
The legislation, which has been years in the making, provides significant tax benefits to individuals and families recovering from federally declared disasters. It allows taxpayers to claim disaster-related losses without itemizing deductions and removes the requirement that losses exceed 10% of adjusted gross income to qualify.
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Rep. Steube emphasized the importance of the bill for his constituents and disaster-affected communities nationwide.
“More than two years ago, Hurricane Ian decimated my district. Due to inaction by Congress, millions of Americans have missed out on disaster tax deductions typically available after presidentially declared disasters,” Steube said. “Today, Congress delivered on my promise. “I applaud the Senate for putting this relief within arms-reach for Floridians – we’re talking about hundreds of millions of dollars in Floridians’ pockets thanks to my legislation. I expect President Biden will recognize the great impact my legislation will have on America’s families and sign my legislation into law.”
The Federal Disaster Tax Relief Act includes the following provisions:
- Hurricane Relief: Designates Hurricane Ian, along with Hurricanes Idalia, Nicole, Fiona, Debby, Helene, and Milton, as qualified disaster events for tax relief.
- Wildfire Compensation: Excludes income tax on compensation for expenses or losses due to qualified wildfire disasters declared after 2014.
- Ohio Train Derailment Relief: Excludes relief payments for losses resulting from the East Palestine, Ohio, train derailment on February 3, 2023.
- Broad Disaster Coverage: Extends relief to any major disaster occurring within six months of the President’s signature.
The bill faced numerous challenges before reaching the Senate. Initially passed by the House on January 31, 2024, as part of a broader tax package, it stalled in the Senate. Rep. Steube revived the legislation using a rarely invoked discharge petition, successfully gathering 218 signatures to force a vote on May 21, 2024.
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The act’s passage in the Senate marks a critical milestone for Steube, who has worked tirelessly to secure bipartisan support for the measure.
Since 2021, the Federal Emergency Management Agency (FEMA) has declared over 300 disasters, affecting nearly 90% of the United States. The bill’s provisions will provide relief to individuals across 47 states who have endured federally declared disasters, offering much-needed financial relief during the recovery process.
With the legislation now awaiting President Biden’s signature, advocates are optimistic about its final approval. If signed, the Federal Disaster Tax Relief Act will bring relief to countless disaster-affected Americans and serve as a critical step in addressing the financial burdens of recovery.
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