Toxic Algae Tax Relief Act This bill amends the Internal Revenue Code to allow a deduction for losses of a trade or business operating in an area affected by toxic algal blooms. A "toxic algal bloom" is the existence of algae on or near the surface of water in quantities sufficient to cause anoxic (greatly deficient in oxygen) conditions in the water. The deduction applies to a trade or business that is operating in a toxic algae zone and has average annual gross receipts that do not exceed $25 million. "A toxic algae zone" is a census tract or political subdivision of a state that the Department of the Treasury has designated as experiencing economic hardship directly attributable to an act or event that exposes an area to toxic algal blooms.