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H.R. 3954 117th Congress House

Disaster Tax Relief Act of 2021

Official title: To amend the Internal Revenue Code of 1986 to provide disaster tax relief, exclude from gross income amounts received from State-based catastrophe loss mitigation programs, and for other purposes.

Introduced: June 16, 2021 Introduced by: Mike Thompson Democratic · California See on congress.gov
Taxation Agricultural prices, subsidies, creditBusiness expensesCharitable contributionsDisaster relief and insurance
More subjectsShow fewer subjects
Employee benefits and pensionsEnergy storage, supplies, demandFiresForests, forestry, treesGovernment lending and loan guaranteesHomelessness and emergency shelterHousing finance and home ownershipIncome tax creditsIncome tax deductionsIncome tax exclusionMotor fuelsNatural disastersResidential rehabilitation and home repairSmall Business AdministrationSmall businessSolid waste and recyclingState and local government operationsTax administration and collection, taxpayersU.S. territories and protectoratesWages and earnings
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This bill died when the 117th Congress ended
It never became law before the 117th Congress (2021–2022) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 3 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Jul 20, 2021
Referred to the Subcommittee on General Farm Commodities and Risk Management.
Jun 16, 2021
Introduced in House
Jun 16, 2021
Referred to the Committee on Ways and Means, and in addition to the Committees on Small Business, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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 Latest action July 20, 2021

Referred to the Subcommittee on General Farm Commodities and Risk Management.

 Plain-English summary Congressional Research Service

Disaster Tax Relief Act of 2021

This bill sets forth tax relief provisions for taxpayers residing in a disaster zone. Specifically, the bill

  • allows penalty-free qualified disaster distributions from tax-exempt retirement plans up to $100,000;
  • allows recontributions of distributions for home purchases cancelled due to disasters;
  • increases to $100,000 the limit on loans from retirement plans not treated as distributions;
  • allows an employee retention tax credit for 40% of wages paid by employers affected by a disaster;
  • expands eligibility for disaster-related personal casualty losses;
  • allows exclusions from gross income, for income tax purposes, of amounts received from state-based catastrophe loss mitigation programs and emergency agricultural assistance;
  • suspends the limitation on corporate charitable contributions;
  • allows the Small Business Administration to award grants to accomodate extraordinary occurrences having a catastrophic impact on small business concerns; and
  • allows a new tax credit for 30% of qualified wildfire mitigation expenditures.
 Related & companion bills 2
  • HR 4675 Disaster Mitigation and Tax Parity Act of 2021
  • S 2432 Disaster Mitigation and Tax Parity Act of 2021
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 4
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APA
U.S. Congress. (2026). H.R. 3954: Disaster Tax Relief Act of 2021. 117th Congress. Open America. https://openamerica.io/bill/117-HR-3954/
MLA
"H.R. 3954: Disaster Tax Relief Act of 2021." 117th Congress, 2026, Open America, https://openamerica.io/bill/117-HR-3954/.
Bluebook (legal)
H.R. 3954, 117th Cong. (2026), https://openamerica.io/bill/117-HR-3954/.
Markdown link
[H.R. 3954: Disaster Tax Relief Act of 2021](https://openamerica.io/bill/117-HR-3954/)
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