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Trump signs disaster tax relief act on casualty losses and wildfire payments

By LexCircuit Desk · · AI-drafted, human-reviewed

President Trump signed the Doug LaMalfa Federal Disaster Tax Relief Certainty Act (H.R. 5366) on September 11, 2026. The law adds Internal Revenue Code section 165(h)(6), letting taxpayers deduct qualified disaster-related personal casualty losses from major disasters declared from December 28, 2019 through 2026 without itemizing, subject to a $500 per-casualty floor, for taxable years beginning after December 31, 2024. New section 139M excludes qualified wildfire relief payments from gross income for taxable years beginning after December 31, 2025.

Enrolled text (GovInfo (enrolled bill text)) → · The White House, Congressman Jimmy Panetta

Key points

  • New section 165(h)(6) covers major disasters declared on or after December 28, 2019 and before January 1, 2027.GovInfo (enrolled bill text)
  • Non-itemizers may add a qualified net disaster loss to the standard deduction under section 63(b)(8); the per-casualty floor is $500.GovInfo (enrolled bill text)
  • The casualty-loss rules apply to taxable years beginning after December 31, 2024, superseding section 304(b) of the 2020 disaster relief act.GovInfo (enrolled bill text)
  • New section 139M excludes qualified wildfire relief payments from gross income for taxable years beginning after December 31, 2025.GovInfo (enrolled bill text)
  • Panetta, Steube, and Thompson co-led the House bill, renamed for Rep. Doug LaMalfa, who died in January 2026.Congressman Jimmy Panetta

Sources3 articles across 3 outlets

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RegulationU.S.Doug LaMalfa Federal Disaster Tax Relief Certainty ActTaxFor practitionersFor governance