Protect Innocent Victims of Taxation After Fire Extension Act

This bill would change federal tax law so that individuals do not pay income tax on qualified wildfire relief payments. These are payments received as compensation for losses, expenses, or damages from a federally declared wildfire disaster declared after December 31, 2014, such as living expenses, lost wages, personal injury, death, or emotional distress, to the extent not covered by insurance or other sources. People could not also claim a deduction or credit, or increase a property's tax basis, for amounts that are excluded. The exclusion would apply to payments received after December 31, 2025, and would end for payments received after December 31, 2032.

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Sponsors

• 8 cosponsors