Tax Relief for Victims of Crimes, Scams, and Disasters Act

S.1773, the Tax Relief for Victims of Crimes, Scams, and Disasters Act, was introduced in the Senate on May 15, 2025, and subsequently referred to the Committee on Finance. This bill proposes to amend the Internal Revenue Code of 1986 to reinstate the deduction for personal casualty losses, as it was prior to Public Law 115-97. The amendment would apply to taxable years beginning after December 31, 2017, and would extend the time to file claims for credit or refund related to this deduction. This bill does not authorize or appropriate any specific funding amount. Instead, its mechanism is a change to tax law, which could lead to increased demand for tax advisory and preparation services as individuals seek to claim retroactive deductions. The financial impact would be a reduction in tax revenue for the government, and a potential increase in revenue for companies providing tax services. There is a companion bill, H.R.3469, which is an identical measure introduced in the House and referred to the House Committee on Ways and Means, indicating a coordinated legislative effort. Structural beneficiaries of this legislation, if enacted, would be companies involved in tax preparation and financial software. $INTU, as a prominent provider of tax software and services, would be positioned to benefit from increased demand for assistance with amended tax returns and new deduction claims. The bill's retroactive nature to 2018 would create a significant window for taxpayers to revisit past filings, potentially driving sustained demand for these services. However, the bill is in the early stages, and its ultimate passage and form are uncertain. $INTU's recent market performance shows a current price of $417.36, with a 7-day change of -2.72% and a 30-day change of -10.59%. Its 52-week range is $349 to $813.7. The recent trend indicates a decline, with the stock closing at $425.87 on April 1, 2026, $422.48 on April 2, 2026, and $417.36 on April 6, 2026. Given the bill's early stage in the legislative process, with only an introduction and referral to committee, it is not a primary factor influencing $INTU's current market performance. Significant legislative steps, including committee hearings, potential markups, and votes in both chambers, remain. Key legislative steps remaining include consideration by the Senate Finance Committee, potential passage in the Senate, consideration by the House Ways and Means Committee (for the companion bill), potential passage in the House, and reconciliation of any differences between the two chambers before it can be sent to the President for signature. The presence of a companion bill in the House suggests a broader legislative effort, which could increase the probability of eventual passage compared to a standalone bill.