Doug LaMalfa Protect Innocent Victims of Taxation After Fire Extension Act

This bill would change federal tax law so that payments individuals receive as compensation for losses from wildfires are not counted as taxable income. Covered payments include compensation for living expenses, lost wages, personal injury, death, or emotional distress caused by a federally declared wildfire disaster declared after December 31, 2014, but only for losses not already covered by insurance or other sources. People could not also claim tax deductions or credits for expenses paid with these untaxed amounts, and the amounts would not raise the tax basis of property. The rule would apply to payments received after December 31, 2025, and would end for payments received after December 31, 2032.

Full text and official record on Congress.gov

Sponsors

• Vince Fong Republican sponsor
• 8 cosponsors