A bill to amend the Internal Revenue Code of 1954 to provide that an individual who suffers a casualty loss as a result of a major disaster may disregard the amount of any grant or cancellation of loan under a State disaster assistance program for purposes of determining the amount of that individual's casualty loss deduction and of determining his gross income.

Provides that an individual who suffers a casualty loss as a result of a major disaster, determined by the President to be entitled to assistance under the Disaster Relief Act, may disregard the amount of any grant or cancellation of loan under a State disaster assistance program when determining the amount of his or her casualty loss deduction or gross income under the Internal Revenue Code.