← Back to Bills
H.R. 1270House118th Congress (2023-2025)In Committee

To exclude certain amounts relating to compensating victims of the East Palestine train derailment, and for other purposes.

Sponsored by Bill JohnsonRep. Bill Johnson (R-OH)
Introduced March 1, 2023

AI-Generated Summary

Updated January 20, 2026 at 4:14 AM UTC

The bill treats the February 3, 2023 train derailment in East Palestine, Ohio, as a qualified disaster for tax purposes. It makes any payments that compensate businesses for lost income because of the derailment tax‑free. The change applies to payments from federal, state, or local governments, Norfolk Southern Railway, its subsidiaries, insurers, or agents, and affects victims and businesses receiving those funds.

Key Provisions

  • Declares the East Palestine train derailment a qualified disaster under Internal Revenue Code section 139(c).
  • Excludes from gross income any business interruption payments made to compensate for lost business income resulting from the derailment, when paid by federal, state, or local agencies, Norfolk Southern Railway, its subsidiaries, insurers, or agents.
  • Defines the term “East Palestine train derailment” as the February 3, 2023 incident in East Palestine, Ohio.
  • Sets the effective date so the exclusion applies to amounts received on or after February 3, 2023.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

March 1, 2023

View full timeline
HouseIntro Referral

Introduced in House

March 1, 2023

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

March 1, 2023

Bill Text

Latest available legislative text

Reading Mode
Latest
Raw Text PDF XML
Introduced in HouseIssued March 1, 2023

I

118th CONGRESS

1st Session

H. R. 1270

IN THE HOUSE OF REPRESENTATIVES

March 1, 2023

Mr. Johnson of Ohio (for himself, Mr. Balderson, Mr. Miller of Ohio, Mr. Latta, Mr. Davidson, Mr. Joyce of Ohio, Mr. Wenstrup, Mrs. Sykes, Mr. Turner, Mr. Jordan, and Mr. Carey) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To exclude certain amounts relating to compensating victims of the East Palestine train derailment, and for other purposes.

1.

East Palestine disaster relief payments

(a)

Disaster relief payments to victims of East Palestine train derailment

The East Palestine train derailment is hereby deemed to be a qualified disaster for the purposes of section 139(c) of the Internal Revenue Code of 1986.

(b)

Exclusion from gross income of business interruption payments

For purposes of the Internal Revenue Code of 1986, gross income does not include any amounts provided to a taxpayer to compensate such taxpayer for lost business income resulting from the East Palestine train derailment by a—

(1)

Federal, State, or local government agency,

(2)

Norfolk Southern Railway, or

(3)

any subsidiary, insurer, or agent of Norfolk Southern Railway or any related person.

(c)

Train derailment

For purposes of this section, the term East Palestine train derailment means the derailment of a train in East Palestine, Ohio, on February 3, 2023.

(d)

Effective date

This section shall apply to amounts received on or after February 3, 2023.