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Tax Relief for Wildfire Victims: Settlements and Legal Fees

This bill introduces significant changes for individuals affected by certain forest and range fires. It allows taxpayers to deduct attorney fees and court costs related to awards for wildfire damages. Additionally, settlement funds received for such damages will be excluded from gross income, providing financial relief to victims.
Key points
You can deduct attorney fees and court costs if you received an award for damages from certain federally declared wildfire disasters occurring in 2015 or later.
Money received from qualified settlement funds for these wildfire damages will not be counted as taxable income.
These changes apply to attorney fees and settlement amounts paid after May 31, 2020.
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Expired
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Additional Information
Print number: 117_S_4666
Sponsor: Sen. Feinstein, Dianne [D-CA]
Process start date: 2022-07-28
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

A bill to amend the Internal Revenue Code of 1986 to establish a deduction for attorney fees awarded with respect to certain wildfire damages and to exclude from gross income settlement funds received with respect to such damages.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_4666.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-07-28.

What are the main provisions?

Key points include:

  • You can deduct attorney fees and court costs if you received an award for damages from certain federally declared wildfire disasters occurring in 2015 or later.
  • Money received from qualified settlement funds for these wildfire damages will not be counted as taxable income.
  • These changes apply to attorney fees and settlement amounts paid after May 31, 2020.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Feinstein, Dianne [D-CA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Environment