The Protecting Homeowners from Disaster Act removes limits on itemized tax deductions for unreimbursed personal casualty losses. Current law restricts the deduction to federally declared disasters through 2025. This bill repeals that limitation for losses after 2024, allowing taxpayers to deduct casualty losses from any disaster, not just those receiving federal declarations.
Latest Action
Referred to the House Committee on Ways and Means.
AI Summary
Plain-English explanation of this bill
The Protecting Homeowners from Disaster Act removes limits on itemized tax deductions for unreimbursed personal casualty losses. Current law restricts the deduction to federally declared disasters through 2025. This bill repeals that limitation for losses after 2024, allowing taxpayers to deduct casualty losses from any disaster, not just those receiving federal declarations.
Last updated: 12/30/2025
Official Summary
Congressional Research Service summary
<p><strong>Protecting Homeowners from Disaster Act of 2025 </strong></p><p>This bill repeals the limit on the itemized tax deduction for unreimbursed personal casualty losses. Specifically, the bill repeals a provision that generally limits the deduction for tax years 2018-2025 to losses that are attributable to a federally declared disaster. The bill applies to losses sustained after 2024. </p>
Key Points
Main provisions of the bill
Repeals limits on casualty loss tax deductions
Removes federally declared disaster requirement
Applies to losses sustained after 2024
Restores deduction for all personal casualty losses
Helps homeowners recover from local disasters
Expands tax relief beyond current federal disaster limitation
How This Impacts Americans
Potential effects on citizens and communities
This bill would significantly expand tax relief for disaster victims. Currently, only casualties from federally declared disasters qualify for deduction, leaving victims of local fires, floods, or storms without tax relief. The expanded deduction would help more disaster victims recover financially. However, it would reduce federal tax revenue. The change is particularly relevant as climate change increases the frequency of severe weather events that may not always receive federal disaster declarations.
Policy Areas
Primary Policy Area
Taxation
Related Subjects
Income tax deductions
Life, casualty, property insurance
Tax administration and collection, taxpayers
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
481, 119th Congress (2025). "Protecting Homeowners from Disaster Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-481
