Congress restores tax deduction for disaster and crime victims

What it does

This bill reinstates the federal tax deduction for personal casualty losses (damage from crimes, scams, disasters) that was eliminated in 2017. It allows taxpayers who lost the deduction to file amended returns and claim refunds for tax years 2018–2024, extending the normal filing deadline to the date this bill becomes law.

Why we flagged it

The bill's sole operative mechanism is to restore a tax deduction for personal casualty losses and extend the refund-claim window. It is a straightforward tax relief measure with no riders or hidden provisions.

What the text implies

• Retroactive relief (2018–2024) creates a one-time revenue cost to the Treasury as taxpayers file amended returns; the fiscal impact depends on how many eligible taxpayers claim the deduction and the average loss amounts.
• The extension of the refund-claim deadline (normally 3 years under IRC §6511(a)) to the date of enactment creates a narrow window for taxpayers to discover and file claims; those unaware of the bill's passage may still miss the deadline.
• The deduction applies only to personal casualty losses under IRC §165(c)(3), which excludes business property and certain other loss categories; the scope is narrower than a blanket casualty-loss restoration.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Taxpayers who suffered personal casualty losses (crime, fraud, disaster) regain a tax deduction they lost in 2017 and can recover overpaid taxes for prior years. The extension of the refund-filing deadline gives them a second chance to claim relief they were previously barred from accessing.

Named in the bill

Internal Revenue Code of 1986, IRC Section 165(h), IRC Section 165(c)(3), IRC Section 6511, Public Law 115-97 (Tax Cuts and Jobs Act of 2017)

Where it stands

63 cosponsors: 39 Democrats, 23 Republicans, 1 Independents.

• May 15, 2025 — Introduced · Congress.gov: “Introduced in House”
• May 15, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

4 lobbying clients named this bill on 5 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $21,859,000 in lobbying spend. A filing names 17 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 72% of bills with at least one filing.

W. Steube, the sponsor, reported $646,500 in PAC receipts in the 2026 cycle.

• National Association of Realtors — $14,580,000 on 1 filing
• AARP — $5,300,000 on 1 filing
• Aicpa Association of International Certified Professional Accountants — $1,449,000 on 1 filing
• American Land Title Association — $530,000 on 2 filings

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.