AICPA supports disaster tax bill, presses for permanent relief

The AICPA is supporting federal disaster relief legislation that awaits the president’s signature after Senate approval and is urging Congress to provide permanent relief for victims.

The Doug LaMalfa Federal Disaster Tax Relief Certainty Act, H.R. 5366, would extend special disaster tax relief provisions for qualified disasters occurring after July 4, 2025, and before Jan. 1, 2027, and add those provisions to the Internal Revenue Code.

The bill would waive the 10%-of-adjusted-gross-income limitation, allow qualified disaster losses to be added to the standard deduction, and raise the deduction floor to $500 from $100.

The legislation also extends through the end of 2026 the exclusion of qualified wildfire relief payments. While most disaster relief bills are retroactive, this bill is the first in many years to be prospective, the AICPA release said.