Us Congress 2023-2024 Regular Session

Us Congress House Bill HB318

Introduced
1/12/23  

Caption

Protecting Homeowners from Disaster Act of 2023 This bill repeals the current limitation on tax deductions for personal casualty losses. Under current law, such losses are deductible in taxable years 2018-2025 only to the extent that they are attributable to a federally declared disaster.

Impact

If enacted, the repeal of the limitation on casualty loss deductions will significantly enhance tax relief for homeowners affected by various disasters, regardless of whether those disasters are federally recognized. This change could have a meaningful impact on homeowners who might suffer losses due to non-federally declared events, providing them with a financial cushion to recover more efficiently from personal property damages. This could encourage stronger disaster recovery efforts on a personal level and support local economic resilience in the aftermath of such events.

Summary

House Bill 318, titled the 'Protecting Homeowners from Disaster Act of 2023,' seeks to amend the Internal Revenue Code of 1986 by repealing the current limitation on deductions for personal casualty losses. This initiative aims to provide more comprehensive tax relief to homeowners who face property damage due to disasters. Under existing law, individuals could only claim deductions for these losses when they were related to federally declared disasters and were limited in their claim period to taxable years ranging from 2018 to 2025. By eliminating this limitation, HB318 intends to broaden the eligibility for tax relief directly linked to such losses.

Contention

There may be contention surrounding the financial implications of the bill on federal tax revenue, as eliminating these limitations could lead to increased claims and reduced tax income for the government. Opponents might argue that without a limit on the deductions, the government could face an unsustainable financial burden, especially if disasters occur frequently in non-declared settings. Proponents, however, would counter that the bill fosters a necessary support system for affected families and individuals, potentially reducing long-term reliance on government assistance by allowing households to recover more fully from disaster-related losses.

Companion Bills

No companion bills found.

Previously Filed As

US HB481

Protecting Homeowners from Disaster Act of 2025 This bill repeals the limit on the itemized tax deduction for unreimbursed personal casualty losses. Specifically, the bill repeals a provision that generally limits the deduction for tax years 2018-2025 to losses that are attributable to a federally declared disaster. The bill applies to losses sustained after 2024. 

US HB176

This bill allows a deduction from gross income (above the line deduction) for attorney fees and court costs awarded with respect to a qualifying wildfire disaster (i.e., any forest or range fire that is a federally declared disaster, occurs in a disaster area, and occurs in 2015 or later). The bill excludes from the gross income of a taxpayer, for income tax purposes, amounts paid to compensate victims for losses or damages in connection with a qualifying wildfire disaster.

US HB160

SALT Fairness Act of 2023 This bill repeals the temporary restrictions in taxable years 2018 through 2025 on the deductibility of state and local taxes.

US HB312

Emergency Savings Accounts Act of 2023 This bill allows an individual taxpayer occupying a residence a deduction from gross income for up to $5,000 of amounts paid into such taxpayer's emergency savings account. The bill defines emergency savings account as an account established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster mitigation expenses, disaster recovery expenses, public health emergency expenses, and unemployment-related expenses.

US HB313

Small Business Emergency Savings Accounts Act of 2023 This bill allows a new tax deduction from gross income for amounts paid into a small business emergency savings account. Such savings accounts are established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster loss replacement expenses, disaster recovery operations expenses, and public health emergency expenses.

US HB108

Small Business Prosperity Act of 2023 This bill modifies the tax deduction for qualified business income to (1) make such deduction permanent, (2) limit to 21% the top tax rate on qualified business income, (3) repeal the limitation on the deduction based on amount of wages paid, and (4) revise the definition of qualified trade or business to mean any trade or business other than the trade of business of performing services as an employee. The bill provides that a change in the organizational structure of a corporation is not a taxable event if there is no change among the owners, their ownership interests, or the assets of the organization, The bill repeals the estate tax after 2022.

US SB3043

Natural Disaster Tax Relief Act of 2023

US HB376

Puerto Rico Film, Television, and Theatre Production Act of 2023 This bill extends the expensing provisions for film, television, and theater productions to productions in Puerto Rico. (Expensing permits the write-off of property costs in the current taxable year rather than amortizing such costs over a period of years.)

US HB5343

Federal Disaster Responsibility Act

US HB4070

Disaster Mitigation and Tax Parity Act of 2023

Similar Bills

No similar bills found.