S.2744

Federal Disaster Tax Relief Act of 2025 amends the Internal Revenue Code to provide tax relief for individuals affected by wildfires.

The Federal Disaster Tax Relief Act of 2025 amends the Internal Revenue Code to provide tax relief for individuals affected by wildfires. It excludes qualified wildfire relief payments from gross income, prevents deductions or credits for these payments, and excludes them from property basis adjustments. It also modifies the treatment of personal casualty losses from major disasters, allowing a deduction for qualified net disaster losses exceeding 10% of adjusted gross income. The changes apply to payments received and losses incurred in taxable years beginning after December 31, 2024.