[118th Congress Public Law 148]
[From the U.S. Government Publishing Office]



[[Page 138 STAT. 1675]]

Public Law 118-148
118th Congress

                                 An Act


 
         To provide tax relief with respect to certain Federal 
           disasters. <<NOTE: Dec. 12, 2024 -  [H.R. 5863]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Federal Disaster 
Tax Relief Act of 2023.>> 
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Disaster Tax Relief Act of 
2023''.
SEC. 2. <<NOTE: Applicability.>> EXTENSION OF RULES FOR TREATMENT 
                    OF CERTAIN DISASTER-RELATED PERSONAL CASUALTY 
                    LOSSES.

    For purposes of applying section 304(b) of the Taxpayer Certainty 
and Disaster Tax Relief Act of 2020, section 301 of such Act shall be 
applied by substituting ``the Federal Disaster Tax Relief Act of 2023'' 
for ``this Act'' each place it appears.
SEC. 3. EXCLUSION FROM GROSS INCOME FOR COMPENSATION FOR LOSSES OR 
                    DAMAGES RESULTING FROM CERTAIN WILDFIRES.

    (a) In General.--For purposes of the Internal Revenue Code of 1986, 
gross income shall not include any amount received by an individual as a 
qualified wildfire relief payment.
    (b) <<NOTE: Definitions.>> Qualified Wildfire Relief Payment.--For 
purposes of this section--
            (1) In general.--The term ``qualified wildfire relief 
        payment'' means any amount received by or on behalf of an 
        individual as compensation for losses, expenses, or damages 
        (including compensation for additional living expenses, lost 
        wages (other than compensation for lost wages paid by the 
        employer which would have otherwise paid such wages), personal 
        injury, death, or emotional distress) incurred as a result of a 
        qualified wildfire disaster, but only to the extent the losses, 
        expenses, or damages compensated by such payment are not 
        compensated for by insurance or otherwise.
            (2) Qualified wildfire disaster.--The term ``qualified 
        wildfire disaster'' means any federally declared disaster (as 
        defined in section 165(i)(5)(A) of the Internal Revenue Code of 
        1986) declared, after December 31, 2014, as a result of any 
        forest or range fire.

    (c) Denial of Double Benefit.--Notwithstanding any other provision 
of the Internal Revenue Code of 1986--
            (1) no deduction or credit shall be allowed (to the person 
        for whose benefit a qualified wildfire relief payment is made) 
        for, or by reason of, any expenditure to the extent of the

[[Page 138 STAT. 1676]]

        amount excluded under this section with respect to such 
        expenditure, and
            (2) no increase in the basis or adjusted basis of any 
        property shall result from any amount excluded under this 
        subsection with respect to such property.

    (d) <<NOTE: Time period.>> Limitation on Application.--This section 
shall only apply to qualified wildfire relief payments received by the 
individual during taxable years beginning after December 31, 2019, and 
before January 1, 2026.

    (e) Extension of Period of Limitation.--In the case of a claim for 
credit or refund which is properly allocable to the exclusion which is 
described in subsection (a)--
            (1) the period of limitation prescribed in section 6511(a) 
        of the Internal Revenue Code of 1986 for the filing of such 
        claim shall be treated as not expiring earlier than the date 
        that is 1 year after the date of the enactment of this Act, and
            (2) any limitation described in section 6511(b)(2) of such 
        Code shall not apply.
SEC. 4. <<NOTE: Definitions.>> EAST PALESTINE DISASTER RELIEF 
                    PAYMENTS.

    (a) Disaster Relief Payments to Victims of East Palestine Train 
Derailment.--East Palestine train derailment payments shall be treated 
as qualified disaster relief payments for purposes of section 139(b) of 
the Internal Revenue Code of 1986.
    (b) East Palestine Train Derailment Payments.--For purposes of this 
section, the term ``East Palestine train derailment payment'' means any 
amount received by or on behalf of an individual as compensation for 
loss, damages, expenses, loss in real property value, closing costs with 
respect to real property (including realtor commissions), or 
inconvenience (including access to real property) resulting from the 
East Palestine train derailment if such amount was provided by--
            (1) a Federal, State, or local government agency,
            (2) Norfolk Southern Railway, or
            (3) any subsidiary, insurer, or agent of Norfolk Southern 
        Railway or any related person.

    (c) Train Derailment.--For purposes of this section, the term ``East 
Palestine train derailment'' means the derailment of a train in East 
Palestine, Ohio, on February 3, 2023.

[[Page 138 STAT. 1677]]

    (d) Effective Date.--This section shall apply to amounts received on 
or after February 3, 2023.

    Approved December 12, 2024.

LEGISLATIVE HISTORY--H.R. 5863:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 118-348 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 170 (2024):
            May 21, considered and passed House.
            Dec. 4, considered and passed Senate.

                                  <all>