On Wednesday, January 31st, the U.S. House of Representatives passed a $78 billion bipartisan tax package after extensive negotiations, with a vote of 357 to 70. The measure now heads to the Senate for consideration.
RCRC supports the $78 billion tax package, the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024), which holds particular significance for California. Notably, the legislation incorporates the Protect Innocent Victims of Taxation After Fire Act, a collaborative effort by Congress Members Doug LaMalfa (R-Richvale) and Mike Thompson (D-St. Helena) to exempt wildfire relief payments from federal income taxes, encompassing various elements such as legal fees, emotional distress, lost wages, and additional living expenses.
Additionally, H.R. 7024 incorporates Congress Member LaMalfa's jointly-drafted Taxpayer Certainty and Disaster Tax Relief Act, which streamlines the process for deducting losses incurred due to disasters. The funding for this comprehensive legislation is secured through a bipartisan agreement reallocating previously designated funds intended for COVID relief.
At the time of this writing, Senate Majority Leader Chuck Schumer (D-N.Y.) has expressed support for the legislation, while Minority Leader Mitch McConnell (R-Ky.) has not yet disclosed his stance. Senate Republican tax writers have indicated a preference for their own markup of the bill, potentially introducing amendments to the package.
For more information, contact RCRC Senior Policy Advocate, Staci Heaton.