Details of Public Law 118-148, section 2 , Federal Disaster Tax Relief Act of 2023

The Taxpayer Certainty and Disaster Tax Relief Act (TCDTRA) of 2020 (part of the Consolidated Appropriations Act, 2021 (CAA, 2021), Public Law 116-260), provides special rules for individuals who had qualified disaster-related personal casualty losses in a Presidentially declared disaster area, that was declared a major disaster on or after 01/01/2020 and on or before 02/25/2021. The relief applied to disasters with an incident period beginning on or after 12/28/2019 and on or before 12/27/2020.

The Federal Disaster Tax Relief Act (FDTRA) of 2023 extends the disaster relief treatment for personal casualty losses provided under the TCDTRA to include Presidentially declared disasters that are declared a major disaster on or before 02/10/2025 with an incident period beginning on or after 12/28/2019 and on or before 12/12/2024.

The estimated revenue impact to conform to the above federal provisions would result in the following loss:

24/25 25/26 26/27 27/28 N/A ($22,000,000) ($17,000,000) ($15,000,000)