Sarasota Review

U.S. Representative Greg Steube (R-Fla.) has introduced the Federal Disaster Tax Relief Act, aiming to extend tax relief for individuals affected by federally declared disasters through 2026. The bill allows victims to claim disaster-related personal casualty losses without itemizing deductions. Senator Rick Scott (R-Fla.) has put forward companion legislation in the Senate.

“Allowing taxpayers to write off damages from natural disasters is a no-brainer. Millions of Floridians have already benefited from my Federal Disaster Tax Relief Act as they rebuild from the last several hurricane seasons. This law provides a much-needed lifeline to families as they navigate the most difficult of times,” said Rep. Steube. “I am grateful to partner with Senator Rick Scott to extend this critical part of the federal government’s emergency response.”

“It is great to have bipartisan support on our common-sense legislation to provide tax relief to victims of natural disasters – this effort sends an important message to families that their federal government is here to support them after disaster strikes,” said Senator Scott. “We have seen the absolute heartbreak families experience after any natural disaster – whether that’s hurricanes, wildfires, or massive flooding – as they’ve lost everything and are working hard to get back on their feet. Our bill extends this relief through the end of 2026 to ensure relief is available for any victims, and expands support for the victims of wildfires like the California fires in January that took innocent lives and caused massive damage that families are still working to recover from. This legislation is an important step to ensure that when disaster strikes, Washington stands with survivors, not against them.”

The House version of the bill is co-led by Representatives Doug LaMalfa (R-Calif.), Mike Thompson (D-Calif.), and Jimmy Panetta (D-Calif.).

“Families who lose their homes and livelihoods in a wildfire shouldn’t be hit with the possibility of a tax bill on their equity affecting the very payments meant to help them recover,” said Rep. LaMalfa. “This bill ensures disaster relief is treated fairly and victims aren’t left fighting with the IRS on top of other challenges they may face. I’m pleased to join Congressman Steube in leading it.”

“After disaster strikes, survivors face not only the loss of their loved ones, homes, and livelihoods, but they also face the uncertainty of how to begin again,” said Rep. Thompson. “In those moments, the last thing a survivor should fear is whether they qualify for tax relief. I am proud to work with my colleagues to expand on our disaster tax relief work and ensure survivors have the certainty and support they deserve.”

“Families and communities recovering from natural disasters shouldn’t face the added burden of arbitrary deadlines that cut off their access to critical tax relief,” said Rep. Panetta. “Our bipartisan bill extends those deadlines and ensures that wildfire relief payments and hurricane losses continue to qualify for fair tax treatment. By providing this certainty, we can give disaster-impacted Americans the time and tools they need to rebuild and move forward.”

The Federal Disaster Tax Relief Act was first enacted after Representative Steube led a bipartisan coalition including Representatives LaMalfa, Thompson, and Panetta in achieving one of only three successful public discharge petitions in congressional history before being signed into law on December 12, 2024.