,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #ecff  ,,in ,,the ,,house ,,of  
,,representatives  ,september #ae1 #bjbe
 ,mr4 ,steube 7for himself1 ,mr4        
,thompson of ,california1 ,mr4          
,la,malfa1 and ,mr4 ,panetta7 introduced
 the following bill2 which was referred 
to the ,committee on ,ways and ,means   
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to codify and   
extend the rules for personal casualty  
losses arising from major disasters and 
the rules for the exclusion from gross  
income of compensation for losses or    
damages resulting from certain          
wildfires4  #a4 ,short title ,this ,act 
may be cited as the ,federal ,disaster  
,tax ,relief ,act of #bjbe4  #b4        
,codification and extension of rules for
 casualty losses arising from major     
disasters  7a7 ,treatment of losses     
7#a7 ,in general ,section #afe7;h7 of   
the ,internal ,revenue ,code of #aihf is
 amended by adding at the end the       
following new paragraph3  7#f7 ,special 

rule for qualified disaster losses  7,a7
 ,in general ,if an individual has a    
qualified net disaster loss for any     
taxable year1 the amount determined     
under paragraph 7#b77;,a77ii7 shall be  
the sum of-- 7i7 such net disaster loss1
 and  7ii7 so much of the excess        
referred to in the matter preceding     
clause 7i7 of paragraph 7#b77;,a7       
7reduced by the amount in clause 7i7 of 
this subparagraph7 as exceeds #aj       
percent of the adjusted gross income of 
the individual4  7,b7 ,qualified net    
disaster loss ,for purposes of          
subparagraph 7,a71 the term qualified   
net disaster loss means the excess of   
qualified disaster-related personal     
casualty losses over personal casualty  
gains4  7,c7 ,qualified disaster-related
 personal casualty losses  7i7 ,in      
general ,for purposes of this           
subsection1 the term qualified          
disaster-related personal casualty      
losses means losses described in        
subsection 7c77#c7 7determined after    

application of paragraph 7#a77 which    
arise in a qualified disaster area on or
 after the first day of the incident    
period of the qualified disaster to     
which such area relates1 and which are  
attributable to such disaster4  7ii7    
,qualified disaster area ,the term      
qualified disaster area means any area  
with respect to which a major disaster  
has been declared by the ,president     
under section #dja of the ,robert ,t4   
,stafford ,disaster ,relief and         
,emergency ,assistance ,act if the      
incident period of the disaster with    
respect to which such declaration is    
made begins after ,july #d1 #bjbe1 and  
before ,january #a1 #bjbg4  7iii7       
,qualified disaster ,the term qualified 
disaster means1 with respect to any     
qualified disaster area1 the disaster by
 reason of which a major disaster was   
declared with respect to such area4     
7iv7 ,incident period ,for purposes of  
this paragraph1 the term incident period
 means1 with respect to any qualified   

disaster1 the period specified by the   
,federal ,emergency ,management ,agency 
as the period during which such disaster
 occurred4  4  7#b7 ,conforming         
amendment ,section #afe7;h77#e77;,b77ii7
 of such ,code is amended by inserting  
or 7#f7 after paragraph 7#b77;,a74  7b7 
,dollar limitation ,section #afe7;h77#a7
 of the ,internal ,revenue ,code of     
#aihf is amended by striking #ejj 7#ajj 
for taxable years beginning after       
,december #ca1 #bjji7 and inserting #ajj
 7#ejj in the case of any net disaster  
loss to which paragraph 7#c7 applies74  
7c7 ,standard deduction  7#a7 ,in       
general ,section #fc7;c77#a7 of the     
,internal ,revenue ,code of #aihf is    
amended by striking and at the end of   
subparagraph 7,a71 by striking the      
period at the end of subparagraph 7,b7  
and inserting and1 and by adding at the 
end the following new subparagraph3     
7,c7 the disaster loss deduction4  4    
7#b7 ,disaster loss deduction ,section  
#fc7;c7 of such ,code is amended by     

adding at the end the following new     
paragraph3  7#h7 ,disaster loss         
deduction ,for the purposes of paragraph
 7#a71 the term disaster loss deduction 
means the excess of qualified net       
disaster losses 7as defined in section  
#afe7;h77#f77;,b77 over the amount of   
personal casualty gains 7as defined in  
section #afe7;h77#c77;,a77 reduced by   
any portion of such gains taken into    
account under section                   
#afe7;h77#e77;,b77i74  4  7d7 ,treatment
 under alternative minimum tax ,section 
#ef7;b77#a77;,d7 of the ,internal       
,revenue ,code of #aihf is amended by   
inserting 7other than the disaster loss 
deduction7 after section #fc7;c74  7e7  
,effective date ,the amendments made by 
this section shall apply to losses      
incurred in taxable years beginning     
after ,december #ca1 #bjbd4  #c4        
,codification and extension of exclusion
 from gross income of compensation for  
losses or damages resulting from certain
 wildfires  7a7 ,in general ,part ,,iii 

of subchapter ,b of chapter #a of the   
,internal ,revenue ,code of #aihf is    
amended by inserting before section #adj
 the following new section3  #aci,m4    
,compensation for losses or damages     
resulting from certain wildfires  7a7   
,in general ,gross income shall not     
include any amount received by an       
individual as a qualified wildfire      
relief payment4  7b7 ,definitions2      
qualified wildfire relief payment ,for  
purposes of this section-- 7#a7 ,in     
general ,the term qualified wildfire    
relief payment means any amount received
 by or on behalf of an individual as    
compensation for losses1 expenses1 or   
damages 7including compensation for     
additional living expenses1 lost wages  
7other than compensation for lost wages 
paid by the employer which would have   
otherwise paid such wages71 personal    
injury1 death1 or emotional distress7   
incurred as a result of a qualified     
wildfire disaster1 but only to the      
extent the losses1 expenses1 or damages 

compensated by such payment are not     
compensated for by insurance or         
otherwise4  7#b7 ,qualified wildfire    
disaster ,the term qualified wildfire   
disaster means any ,federally declared  
disaster 7as defined in section         
#afe7;i77#e77;,a77 after ,december #ca1 
#bjad1 as a result of any forest or     
range fire4  7c7 ,denial of double      
benefit ,notwithstanding any other      
provision of this title--  7#a7 no      
deduction or credit shall be allowed 7to
 the person for whose benefit a         
qualified wildfire relief payment is    
made7 for1 or by reason of1 any         
expenditure to the extent of the amount 
excluded under this section with respect
 to such expenditure1 and  7#b7 no      
increase in the basis or adjusted basis 
of any property shall result from any   
amount excluded under this section with 
respect to such property4  7d7          
,limitation on application ,this section
 shall only apply to qualified wildfire 
relief payments received by the         

individual during taxable years         
beginning after ,december #ca1 #bjbe1   
and before ,january #a1 #bjca4  4  7b7  
,clerical amendment ,the table of       
sections for part ,,iii of subchapter ,b
 of chapter #a of such ,code is amended 
by inserting before the item related to 
section #adj the following new item3    
,sec4 #aci,m4 ,compensation for losses  
or damages resulting from certain       
wildfires4  4  7c7 ,effective date ,the 
amendments made by this section shall   
apply to payments received in taxable   
years beginning after ,december #ca1    
#bjbe4