~ U.S. Senate unanimously passed Federal Disaster Tax Relief Act, which includes Tokuda and Hirono legislation to lessen the tax burden on survivors of the Maui wildfires. The bill now heads to President Biden’s desk to be signed into law. ~
WASHINGTON, DC – Today, U.S. Senator Mazie K. Hirono (D-HI) and U.S. Representative Jill Tokuda (D-HI) applauded the unanimous Senate passage of the bipartisan Federal Disaster Tax Relief Act of 2023.
The legislation, which passed in the U.S. House in May, would exempt wildfire disaster relief payments received between January 1, 2020, and December 31, 2025, from taxable income. The Federal Disaster Tax Relief Act also includes language from Representative Tokuda and Senator 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 percent loss threshold, as well as the requirement to itemize deductions to receive this tax benefit.
“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 Senator 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.”
“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 Representative 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 bill now heads to President Joe Biden’s desk to be signed into law.
Following the devastating Maui wildfires, Senator Hirono has worked to support Lahaina in their recovery and rebuilding efforts, while also strengthening Hawaii’s natural disaster response. In August 2024, Senator Hirono delivered remarks on the Senate floor marking one year since the devastating wildfires. During her speech Senator Hirono paid tribute to the individuals lost in the fires, honored the resilience of those impacted by the fires, and also emphasized the need for Congress to pass a supplemental funding bill to provide the resources that Maui, and other communities across the country impacted by disasters will need. In May 2024, Senator Hirono announced that the U.S. Forest Service is awarding more than $5.6 million to help plan for and prevent wildfires in Hawaii. The announcement follows a letter Senator Hirono sent to U.S. Forest Service Chief Randy Moore in November 2023 in strong support of Hawaii’s applications for CWDG funding. In March 2024, Senator Hirono led the Hawaii Congressional delegation in urging the Internal Revenue Service (IRS) Commissioner, Danny Werfel, to extend the 2023 federal tax filing and payment deadlines for individuals and businesses impacted by the Maui wildfires.
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