Tax breaks for disaster victims extended through 2027.

What it does

The bill helps people in disaster areas deduct losses on their taxes. It removes the normal 10% income limit for disaster losses. Wildfire relief payments do not count as taxable income. These tax breaks last through the end of 2026.

Who it affects

People who lost homes or property in disasters and wildfires benefit. Disaster victims get lower taxes and keep relief payments without paying taxes on them.

One thing to notice

The tax breaks end on January 1, 2027. Congress will need to pass a new law to continue them after that.

From the analysis of the bill text, linked under Primary records below.

Where it stands

14 cosponsors: 8 Democrats, 6 Republicans.

• Sep 15, 2025 — Introduced · Congress.gov: “Introduced in House”
• Sep 15, 2025 — Referred to House Committee on Ways and Means and Senate Committee on Finance · Congress.gov: “Referred to the House Committee on Ways and Means”
• Mar 25, 2026 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Mar 25, 2026 — Reported out of committee · Congress.gov: “Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 43 - 0”
• Apr 27, 2026 — Passed the House · Congress.gov: “On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3107-3108)”
• Apr 27, 2026 — Floor vote scheduled · Congress.gov: “Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended”
• Aug 7, 2026 — Passed both chambers · Congress.gov: “Passed Senate without amendment by Unanimous Consent”
• Sep 3, 2026 — Sent to president · Congress.gov: “Presented to President”
• Sep 11, 2026 — Signed into law · Congress.gov: “Signed by President”

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

Money around this bill

1 groups reported lobbying about this bill. They filed 1 reports from Jun 2026 to Jun 2026.

Those reports show $40,000 in lobbying spending. Each report lists about 5 bills. So that money was not all for this bill.

More groups named this bill than 0% of bills with any report.

W. Steube, who sponsored the bill, received $601,500 from PACs for the 2026 election.

• Berkshire Hathaway Energy — $40,000 in 1 report

Lobbying is legal. These reports show who lobbied about this bill, not what changed.

Words to know

• deduct — subtract an amount from income before calculating taxes owed
• relief payments — money given to people to help them recover from loss or damage
• disaster areas — places where major disasters have caused widespread damage
• lobbying — Trying to influence lawmakers about a bill. Companies and groups pay people to do this.
• PACs — Groups that collect money and give it to candidates for office.
• sponsored — To sponsor a bill is to introduce it in Congress and put your name on it.