Federal Disaster Tax Relief Act Becomes Law

Story by Danielle Shockey 12/13/24 (Tampa Free Press)

U.S. Representative Greg Steube (R-Fla.) celebrated a bipartisan milestone Friday as President Joe Biden signed the Federal Disaster Tax Relief Act (H.R. 5863) into law. This landmark legislation provides critical tax relief for Americans affected by natural disasters, aiming to ease the financial burdens of recovery and rebuilding.

“This is a victory for every American who has faced the devastating toll of a natural disaster,” said Rep. Steube. “From Florida to California, disasters don’t discriminate by state or party. This bipartisan legislation is a testament to what we can achieve when we work together to prioritize the needs of the American people.”

The legislation allows Americans to claim disaster-related losses without itemizing deductions and eliminates the 10% Adjusted Gross Income (AGI) threshold for claiming such losses. It also ensures settlements for disaster victims are tax-free. Notably, the law provides retroactive relief for victims of recent hurricanes, including Ian, Nicole, Idalia, Helene, Debby, and Milton, as well as wildfires in the West and the East Palestine, Ohio, train derailment.

Steube, who represents Florida’s 17th Congressional District, highlighted the law’s impact on Floridians, who have endured six major hurricanes in just two years. “For Florida, where we’ve faced the brunt of multiple hurricanes in recent years, this law means real help for families and businesses working to rebuild,” Steube said.

The 2024 Atlantic Hurricane season was particularly devastating, with three storms—Debby, Helene, and Milton—making landfall in Florida within three months. These hurricanes caused widespread flooding, record-breaking storm surges, and extensive damage far inland, displacing thousands of families.

The road to passing the Federal Disaster Tax Relief Act was marked by persistence and bipartisan collaboration. After its initial inclusion in the stalled Tax Relief for American Families and Workers Act, Steube used a rare legislative tool—a discharge petition—to force a vote on the bill in the House. It passed with overwhelming bipartisan support (382-7) in May 2024, becoming only the third successful discharge petition in Congressional history.

The new law addresses the needs of millions of Americans impacted by over 300 federally declared disasters since 2021, affecting nearly 90% of the country.

The law’s provisions extend beyond hurricanes, offering relief to wildfire victims and those affected by other natural disasters across the nation. Its passage represents a significant step forward in addressing the growing frequency and severity of natural disasters, which continue to strain communities and federal resources.

“The devastation caused by disasters doesn’t stop at state borders or political lines—it affects every Floridian and every American,” Steube said. “I will never stop fighting for Floridians and ensuring our communities come back stronger and more resilient than ever.”

With the signing of this legislation, millions of Americans are set to benefit from streamlined tax relief, marking a significant victory for disaster-affected communities and a rare moment of bipartisan achievement in Washington.