THOMPSON, STEUBE, PANETTA, LAMALFA INTRODUCE BIPARTISAN BILL EXTENDING FEDERAL DISASTER TAX RELIEF

Washington, D.C. - Today, Rep. Mike Thompson (D-CA) and Reps. Greg Steube (R-FL), Jimmy Panetta (D-CA), and Doug LaMalfa (R-CA) announced the introduction of the Federal Disaster Tax Relief Act of 2025. This bill extends Thompson and Steube's landmark 2024 law providing tax relief for individuals impacted by federally declared disasters. The bill will permit victims to claim disaster-related personal casualty losses without having to itemize deductions through 2026.

"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."

"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."

"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."

"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."

BACKGROUND

Rep. Thompson serves as the Ranking Member of the Subcommittee on Tax for the Ways and Means Committee. He introduced the original legislation with Rep. Doug LaMalfa in the House of Representatives to provide tax relief to PG&E fire victims in the 117th Congress and worked with Senator Padilla and Rep. LaMalfa to advance the legislation.

Last year, Rep. Thompson and Rep. Steube led a bipartisan group of 218 Members of Congress to successfully advance a discharge petition which forced House Speaker Mike Johnson to bring the Federal Disaster Tax Relief Act of 2023 to the House floor for a vote. The historic advancement of Rep. Thompson and Rep. Steube's petition marked only the third time a House discharge petition had succeeded in the 21st Century. H.R. 5863 passed the Senate by unanimous consent and was signed into law by President Biden in December of 2024.

Today's legislation would build upon this landmark law. Read the full bill text here.