H.R.481 - Protecting Homeowners from Disaster Act of 2025 (119th Congress)
Summary
H.R.481, the "Protecting Homeowners from Disaster Act of 2025," proposes to amend the Internal Revenue Code of 1986 by repealing the limitation on deductions for personal casualty losses. This change would allow individuals to deduct the full amount of losses sustained due to disasters, without the existing restrictions. The bill aims to provide financial relief to homeowners affected by unforeseen events such as natural disasters.
Expected Effects
If enacted, this bill would eliminate the existing limitations on personal casualty loss deductions. Taxpayers who experience losses due to disasters would be able to deduct the full amount of their losses, potentially reducing their tax liability. The change would apply to losses sustained in taxable years beginning after December 31, 2024.
Potential Benefits
- Provides greater financial relief to homeowners who experience casualty losses due to disasters.
- Simplifies the tax filing process for individuals claiming casualty losses.
- Could encourage homeowners to invest in disaster preparedness and mitigation measures.
- May help to stabilize local economies after major disasters by providing increased financial resources to affected individuals.
- Could lead to increased consumer spending as homeowners recover from losses.
Most Benefited Areas:
Potential Disadvantages
- May increase the national debt due to reduced tax revenue.
- Could disproportionately benefit higher-income individuals who are more likely to itemize deductions.
- May create opportunities for fraudulent claims of casualty losses.
- Could complicate tax planning for individuals and businesses.
- The increased deficit could lead to cuts in other government programs.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the Constitution. The bill does not appear to infringe upon any specific constitutional rights or limitations. The power to create exceptions and regulations regarding taxation is generally accepted as a broad power of the legislative branch.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).