This legislation aims to provide significant tax relief for individuals affected by major disasters and wildfires. It codifies and extends existing temporary tax provisions, making them permanent or extending their applicability for future events. Specifically, the bill amends the Internal Revenue Code to establish new rules for personal casualty losses arising from major disasters. For losses incurred in a qualified disaster area (declared by the President with an incident period between July 2025 and January 2027), individuals can claim a special "disaster loss deduction." This deduction is allowed in addition to the standard deduction and is explicitly excluded from calculations for the alternative minimum tax, providing greater financial relief for affected taxpayers. Furthermore, the bill addresses compensation received for losses or damages resulting from certain wildfires. It creates a new exclusion from gross income for qualified wildfire relief payments . These payments cover various losses, including living expenses, lost wages not from an employer, personal injury, or emotional distress, provided they are not compensated by insurance or other means and stem from a federally declared wildfire disaster after December 31, 2014. This exclusion applies to payments received between 2026 and 2030, with provisions to prevent double benefits.