APCIA Applauds House Passage of the Doug LaMalfa Federal Disaster Tax Relief Certainty Act

WASHINGTON - The American Property Casualty Insurance Association (APCIA) today commended the U.S. House of Representatives for passing H.R. 5366, the Doug LaMalfa Federal Disaster Tax Relief Certainty Act, bipartisan legislation that provides critical tax certainty and relief to families and businesses recovering from natural disasters.

"H.R. 5366 recognizes the simple but critical reality: disaster survivors should not face unexpected tax burdens while trying to rebuild their lives and communities," said Sam Whitfield, APCIA's senior vice president of federal government relations and political engagement. "By extending and codifying disaster-related tax relieve, the House has taken an important step to help families recover more quickly, reduce financial strain, and support resilient rebuilding after catastrophic events."

The legislation delivers predictable tax relief for disaster survivors by making it easier to deduct personal losses from federally declared disasters through 2026, including for taxpayers who take the standard deduction. It also exempts qualifying wildfire compensation (such as payments for property loss, living expenses, or emotional distress) from federal taxes through 2030 while preventing duplicate tax benefits. These provisions are especially important as communities across the country confront increasingly frequent and severe natural disasters.

"Disaster recovery policies work best when they are paired with forward-looking measures that promote resilience and risk reduction before the next catastrophe strikes," Whitfield added. "APCIA encourages Congress to continue pairing recovery-focused tax relief with policies that support mitigation, smarter land-use decisions, stronger building codes, and investments that reduce losses and protect taxpayers over the long term."

APCIA thanks Representative Greg Steube and the many bipartisan cosponsors for their leadership and urges the Senate to advance this legislation promptly so it can be enacted into law and provide certainty for disaster survivors - while continuing bipartisan work to strengthen resilience nationwide.