2021 Dixie Fire Night Operations near Taylorsville, California on August 25
Credit: USFS
December 8, 2024 - The Rural County Representatives of California (RCRC) reports on Wednesday December 4th, the U.S. Senate passed, by unanimous consent, the Federal Disaster Tax Relief Act (H.R. 5863), which will provide tax relief for individuals impacted by natural disasters. In May, the bill was brought to the floor of the House after 218 representatives signed on to a discharge petition, led by Representative Mike Thompson (D-Lake County). At that time, the House passed the measure by a vote of 382-7. Now that the measure has been passed by the Senate, it will head to President Biden's desk for signature.
The Act provides tax relief for those affected by hurricanes, wildfires, and other qualified disasters, and will apply retroactively to qualified victims. These deductions can be claimed along with the standard deduction, instead of requiring itemization.
The bipartisan legislation excludes from taxpayer gross income, for income tax purposes, any amount received by an individual taxpayer as compensation for expenses or losses incurred due to a qualified wildfire disaster (a disaster declared after 2014 as a result of a forest or range fire). It also exempts thousands of qualified wildfire victims in California, including Pacific Gas and Electric fire victims, from having to pay federal income tax on their settlement money or pay tax on attorney fees that are included in the settlement.
RCRC has been heavily engaged in advocacy on this measure to benefit residents of impacted member counties.
ABOUT RURAL COUNTY REPRESENTATIVES OF CALIFORNIA (RCRC)
The Rural County Representatives of California (RCRC) is a thirty-seven member county strong service organization that champions policies on behalf of California’s rural counties. RCRC is dedicated to representing the collective unique interests of its membership, providing legislative and regulatory representation at the State and Federal levels, and providing responsible services for its members to enhance and protect the quality of life in rural California counties. To learn more about RCRC, visit rcrcnet.org and follow @RuralCounties on Twitter, Facebook and Instagram.
Source: RCRC
