Protect Innocent Victims of Taxation After Fire Extension Act

This bill changes federal tax law so that payments people receive to make up for losses from certain wildfires are not counted as taxable income. It covers payments for things like extra living costs, lost wages, personal injury, death, or emotional distress, but only for losses not already covered by insurance or other sources. The wildfire must be a federally declared disaster caused by a forest or range fire declared after December 31, 2014. People cannot also claim a tax deduction or credit for expenses paid with the excluded money, and the money does not raise the tax basis of property. The change applies to payments received after December 31, 2025.

Full text and official record on Congress.gov

Sponsors

• Alex Padilla Democrat sponsor
• 3 cosponsors