Doug LaMalfa Federal Disaster Tax Relief Certainty Act
What does the Doug LaMalfa Federal Disaster Tax Relief Certainty Act do?
HR 5366 is a House bill sponsored by Rep. W. Gregory Steube (R-FL). Federal tax law normally requires casualty losses to exceed 10% of your income before you can deduct them — but Congress has repeatedly carved out exceptions for federally declared disaster areas, letting affected taxpayers deduct unreimbursed losses above $500 per incident even without itemizing. This bill applies those disaster-specific deduction rules to disasters with incident periods beginning on or after December 28, 2019 and before January 1, 2027, and extends the exclusion of wildfire relief payments from taxable income — for forest or range fires federally declared a disaster after 2014 and before 2027 — to payments received in tax years 2026 and later.
Did HR 5366 pass? Where it stands
As of August 30, 2026, HR 5366 has passed the Senate.
Status: Passed Senate
Latest vote: Senate Passed by unanimous consent on August 7, 2026
Outlook: Likely
Key provisions
- Disaster Loss Deductions
- Applies to disasters with incident periods beginning on or after December 28, 2019 and before January 1, 2027
- Deductible without itemizing; disaster loss exempt from the 10% income floor
- Wildfire Relief Payments
- Relief payments for forest or range fires federally declared a disaster after 2014 and before 2027, excluded from gross income
- Exclusion now covers payments received in tax years 2026 and later; prior law covered payments received in tax years 2020 through 2025
Last updated August 12, 2026