Details of Public Law 119-21, section 70438 , One Big Beautiful Bill Act

The Taxpayer Certainty and Disaster Tax Relief Act (TCDTRA) of 2020 (part of the Consolidated Appropriations Act, 2021 (CAA, 2021), Public Law (P.L.) 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 January 1, 2020 and on or before February 25, 2021. The relief applied to disasters with an incident period beginning on or after December 28, 2019, and on or before December 27, 2020.

The Federal Disaster Tax Relief Act (FDTRA) of 2023 (P.L. 118-148) extended 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 February 10, 2025, with an incident period beginning on or after December 28, 2019, and on or before December 12, 2024.

The One Big Beautiful Bill Act (OBBBA) of 2025 extends the disaster relief treatment for personal casualty losses provided under the TCDTRA to September 2, 2025. The relief applies to disasters with an incident period beginning on or after December 28, 2019, and on or before July 4, 2025.

Under the PITL, California generally conforms to IRC section 165 as of the specified date of January 1, 2025, and specifically does not conform to the special rules for individuals who had qualified disaster-related personal casualty losses arising in a qualified disaster area, as provided in the TCDTRA of 2020. As a result, California law does not conform to the changes of this provision extending the special rules for qualified disaster-related personal casualty losses arising in a qualified disaster area.