AI-assisted analysis based on the official CRS summary. Source version: Sep 18, 2026. Analysis updated: Sep 20, 2026.
01 — The Text
What.
- Extends the federal tax deduction for unreimbursed personal casualty losses in qualified disaster areas through disasters declared before January 1, 2027 (previously limited to disasters declared by July 4, 2025).
- Expands the income exclusion for qualified wildfire relief payments to cover federal disaster declarations made after 2014 and before 2027, regardless of when payments are received.
- Previously, wildfire relief payments could only be excluded from income if received after 2019 and before 2026.
- Requires losses to exceed $500 per casualty to qualify for the deduction.
- Provides statutory authority for related tax rules supporting these provisions.
02 — The Stakes
So what?
- Taxpayers affected by federally declared disasters occurring between December 28, 2019 and January 1, 2027 may claim casualty loss deductions.
- Beneficiaries of wildfire relief payments from qualifying federal disasters (post-2014, pre-2027) can exclude these payments from taxable income without regard to when payments are actually received.
- The official summary does not quantify economic impact, specify affected populations, or project revenue effects.
- No endorsements, opposition, or distributional effects are documented in the official summary.
03 — The Path
Now what?
- Act was signed by President on September 11, 2026.
- Senate passed without amendment by Unanimous Consent on August 7, 2026.
- Senate Finance Committee was discharged on August 7, 2026.
- Bill was referred to Senate Finance Committee on April 28, 2026 after being received in Senate.
Legislative History
Actions.
- Sep 11, 2026 — Signed by President.
- Sep 3, 2026 — Presented to President.
- Aug 10, 2026 — Message on Senate action sent to the House.
- Aug 7, 2026 — Passed Senate without amendment by Unanimous Consent. (consideration: CR S4547)
- Aug 7, 2026 — Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.
- Aug 7, 2026 — Senate Committee on Finance discharged by Unanimous Consent.
- Aug 7, 2026 — Senate Committee on Finance discharged by Unanimous Consent.
- Apr 28, 2026 — Received in the Senate and Read twice and referred to the Committee on Finance.