Tokuda and Hirono celebrate progress on Natural Disaster Tax Relief Bill to make it easier for Maui fire victims to deduct disaster-related losses

US Rep. Jill Tokuda (HI-02) and US Sen. Mazie K. Hirono (D-HI) applauded the US Senate’s unanimous passage of the bipartisan Federal Disaster Tax Relief Act of 2023 (H.R. 5863). 

The bill, which passed in the US House in May, would exempt wildfire disaster relief payments received between Jan. 1, 2020, and Dec. 31, 2025, from taxable income. The Federal Disaster Tax Relief Act also includes language from Rep. Tokuda and Sen. Hirono’s Natural Disaster Tax Relief Act of 2023 to make it easier for Maui fire victims to deduct disaster-related losses by eliminating the minimum 10% loss threshold, as well as the requirement to itemize deductions to receive this tax benefit.   

“Since I introduced the Natural Disaster Tax Relief Act of 2023 last October, I have been fighting to provide financial relief to Lahaina fire survivors and natural disaster victims throughout the country. In a time of extreme partisanship, I’m proud that Republicans and Democrats in both the House and Senate came together on disaster relief and passed the Federal Disaster Tax Relief Act,” said Tokuda. “We urgently need President Biden to sign this critical bill, which will help disaster victims keep more money in their pockets and provide them with the financial support they will need for what we know will be a long recovery.”

“The Federal Disaster Tax Relief Act will help to ease the financial burden on communities impacted by wildfires, as well as other disasters, across our country,” said Hirono. “I’m glad the Senate has passed this legislation, which included language from our bill to support the people and families who have already lost so much in the wake of natural disasters. I will continue working to help ensure our communities have the necessary resources to support themselves and I look forward to President Biden signing this crucial legislation into law.”

“Any settlement money survivors receive belongs to them, not the federal government,” said US Sen. Brian Schatz. “We will continue to do everything we can to help survivors and the Maui community to recover and rebuild.”

Tokuda gave remarks on the House floor in May in favor of the bill’s passage. She continues her advocacy for federal disaster assistance funding to support recovery and rebuilding efforts in Lahaina. 

The bill now heads to President Joe Biden’s desk to be signed into law.