Lets people in major disaster areas deduct more of their losses and makes wildfire aid tax-free.
This bill would help people who lose property in major disasters or wildfires. It would let them deduct more of their personal losses on their taxes by removing certain income limits. It would also make payments received for wildfire damages tax-free, helping people keep more money to rebuild.
Today, if you have personal casualty losses from a major disaster, you can only deduct the amount that goes over 10 percent of your adjusted gross income (AGI), and only losses above $100. After this bill, for certain major disasters, you would be able to deduct "qualified net disaster losses" without meeting the 10 percent AGI rule, and the minimum loss amount for these specific losses would be $500. Also, payments for wildfire damages are currently not consistently tax-free, but this bill would make "qualified wildfire relief payments" tax-free for payments received between 2026 and 2030.
S 2744 · 119th Congress · September 9, 2025 · AI Summary by gemini-2.5-flash · 4/10
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Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.