House Passes Tax Relief Extension Bill Named for Doug LaMalfa

WASHINGTON DC — The Doug LaMalfa Federal Disaster Tax Relief Certainty Act would make permanent changes to federal tax rules that help people recover from major natural disasters. The legislation allows taxpayers to deduct unreimbursed personal casualty losses from qualified disasters without itemizing deductions on their returns. It also excludes certain wildfire relief payments from taxable income.

Congress renamed the bill to honor Representative Doug LaMalfa, the Republican from California’s rural First District who died on January 6, 2026. LaMalfa had long championed similar tax relief for wildfire victims in Northern California, where fires have destroyed homes and farmland for years. He served as an original cosponsor of earlier versions before his death from complications during emergency surgery.

The bill builds on a 2024 law that first created the breaks. Under current rules set to expire, individuals can claim qualified disaster losses above $500 per event as an above-the-line deduction even if they take the standard deduction. The new measure extends that option to disasters declared with incident periods beginning before January 1, 2027.

Wildfire relief payments also receive protection. The legislation excludes from gross income any compensation for losses or damages caused by forest or range fires declared federal disasters after December 31, 2014, and before January 1, 2027, regardless of when the money is received. Recipients cannot claim a deduction or credit for amounts already excluded.

California residents stand to benefit substantially. The state experiences frequent federally declared wildfires that trigger insurance claims, utility settlements, and government aid, often paid years later. Taxpayers can more easily offset property damage or living expenses without facing unexpected federal tax bills.

Lawmakers introduced the measure on September 15, 2025. The House Committee on Ways and Means reported the bill favorably on April 9, 2026, and the full House passed the legislation by voice vote on April 28, 2026.

The Senate received the bill the same day and referred it to the Finance Committee. Bipartisan sponsors in both chambers, including Representatives Mike Thompson of California and Greg Steube of Florida, plus Senators Adam Schiff of California and Rick Scott of Florida, continue to back the effort. The bill now awaits Senate action before it can reach the president’s desk.