Doug LaMalfa Federal Disaster Tax Relief Certainty Act

HR5366, titled the Federal Disaster Tax Relief Act of 2025, was placed on the Union Calendar, Calendar No. 525, on April 9, 2026. This action signifies that the bill has been reported out of committee and is now eligible for consideration by the full House of Representatives. The bill was reported (Amended) by the Committee on Ways and Means on the same day, following a committee consideration and mark-up session on March 25, 2026, where it was ordered to be reported by a vote of 43-0. This legislation does not involve direct government funding or appropriations. Instead, it amends the Internal Revenue Code of 1986 to provide tax relief. Specifically, it codifies and extends rules for personal casualty losses arising from major disasters and excludes from gross income compensation for losses or damages resulting from certain wildfires. The financial impact for individuals and businesses would be through reduced tax liabilities, rather than direct payments from the government. There are no explicit dollar amounts authorized or appropriated within the bill text. Structural beneficiaries of this bill would primarily be individuals and businesses located in areas declared as major disaster zones, particularly those affected by wildfires, who incur personal casualty losses. The bill's provisions would allow them to claim greater tax deductions or exclude certain compensation from their taxable income, thereby improving their financial recovery post-disaster. Companies involved in disaster recovery, insurance, and real estate could see indirect benefits as individuals and communities have more financial capacity to rebuild. However, no specific publicly traded companies are directly named or positioned to receive contracts or direct financial benefits from this tax-focused legislation. Given its placement on the Union Calendar, the next legislative step for HR5366 is a vote on the House floor. The unanimous committee vote (43-0) suggests strong bipartisan support within the Ways and Means Committee, which could indicate a higher likelihood of passage in the House. However, the bill would still need to pass the Senate and be signed by the President to become law. Related bills, including companion Senate bill S2744, indicate a broader legislative effort to address disaster tax relief.