H.R. 5863, Federal Disaster Tax Relief Act of 2023
As ordered reported by the House Committee on Ways and Means on November 2, 2023
By Fiscal Year, Millions of Dollars
2024
2024-2028
2024-2033
Direct Spending (Outlays)
0
0
0
Revenues
-3,268
-4,921
-4,927
Increase or Decrease (-) in the Deficit
3,268
4,921
4,927
Spending Subject to Appropriation (Outlays)
*
*
not estimated
Increases net direct spending in any of the four consecutive 10-year periods beginning in 2034?
No
Statutory pay-as-you-go procedures apply?
Yes
Mandate Effects
Increases on-budget deficits in any of the four consecutive 10-year periods beginning in 2034?
No
Contains intergovernmental mandate?
No
Contains private-sector mandate?
No
* = between zero and $500,000.
The bill would
Allow losses from federally declared disasters that occur from January 1, 2020, through the date of enactment to be deducted from income taxes without itemizing and without a reduction based on adjusted gross income
Exclude compensation for losses from some wildfire disasters and the East Palestine, Ohio, train derailment from gross income
Estimated budgetary effects would mainly stem from
A reduction in revenues from an increase in income tax deductions
A reduction in revenues from taxpayers’ excluding certain compensation from gross income
Areas of significant uncertainty include
How many people would take tax deductions, and in what amounts, for losses related to federally declared disasters
The Congressional Budget Act of 1974, as amended, stipulates that revenue estimates provided by the staff of the Joint Committee on Taxation (JCT) will be the official estimates for all tax legislation considered by Congress. As such, CBO incorporates those estimates into its cost estimates of the effects of legislation. All of the estimates for the revenue provisions of H.R. 5863 were provided by JCT.
