Washington, D.C. – Today, the U.S. House passed the Federal Disaster Tax Relief Act of 2023, cosponsored by Rep. Jill Tokuda (HI-02). The measure would make it easier for Maui Fire victims to deduct disaster-related losses by eliminating the minimum 10 percent loss threshold and the requirement to itemize deductions to receive this tax benefit. It would also exempt qualified wildfire disaster relief payments received between January 1, 2020, and December 31, 2025.
“This bill makes sure that every dollar meant to help disaster victims goes towards recovery and rebuilding. Sadly, we know there will never be enough to replace all that people lost, but anything we can do to lighten the tax burdens they face will go a long way to restoring hope,” said Rep. Tokuda.
The legislation includes the tax deduction loss parts of Rep. Tokuda’s bill, the Natural Disaster Tax Relief Act of 2023, which she introduced last October in response to stories shared by Maui wildfire survivors.
“Since then [October], too many people continue to struggle with recovery costs that no one could ever budget for, reaching deep into their savings and going into debt to feed their keiki, cover their mortgage, pay for education and health care costs, and rebuild their homes, businesses, and livelihoods,” said Rep. Tokuda on the House floor.
Today’s vote follows the House’s previous action in January to pass disaster survivor tax relief through the Tax Relief for American Families and Workers Act of 2024, which also included parts of Rep. Tokuda’s disaster tax relief bill.
For the full video of her remarks on the House floor, click here.
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