U.S. Senator Mazie K. Hirono and U.S. Representative Jill Tokuda have expressed their approval following the unanimous passage of the Federal Disaster Tax Relief Act by the Senate. This bipartisan legislation, which had previously passed in the House of Representatives in May, is designed to provide tax relief for survivors of natural disasters, including those affected by the Maui wildfires.
The Federal Disaster Tax Relief Act exempts wildfire disaster relief payments received from January 1, 2020, to December 31, 2025, from being counted as taxable income. It incorporates provisions from Tokuda and Hirono’s own Natural Disaster Tax Relief Act of 2023, which allows Maui fire victims to deduct disaster-related losses more easily by removing the minimum loss threshold and itemization requirements for deductions.
“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."
Representative Tokuda also commented on the bill's passage: “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."
The legislation now awaits President Joe Biden's signature to become law.
Senator Hirono has been actively involved in supporting recovery efforts following the Maui wildfires. In August 2024, she addressed Congress about these efforts and emphasized additional funding needs for disaster-stricken communities like Maui. Earlier this year, she announced over $5.6 million in federal funds awarded by the U.S. Forest Service for wildfire prevention planning in Hawaii.