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Beginning in 2026, the OBBBA opens the door for itemized federal tax deductions on personal casualty losses from state-declared disasters — not just federally declared ones.

Beginning in 2026, the OBBBA opens the door for itemized federal tax deductions on personal casualty losses from state-declared disasters — not just federally declared ones.

That means if a governor declares a natural disaster in your state, the financial impact could now qualify for a federal tax deduction.

For those in the construction and restoration industries, this is a big deal.

It means:🔹 More clients will be able to afford recovery and rebuilding work.🔹 Faster greenlights for insurance-funded and tax-relief-driven projects.🔹 Greater clarity and stability in post-disaster planning and estimating.

This change could mean steadier demand and faster relief for contractors helping communities rebuild.