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Tax Relief for Wildfire Victims: Deductions and Income Exclusion

This bill aims to ease the financial burden on individuals affected by wildfires. It allows for the deduction of legal fees related to wildfire damage awards and excludes settlement funds received from taxable income. This means victims can keep more of their compensation.
Key points
Allows taxpayers to deduct attorney fees and court costs related to awards for property damage from certain wildfires.
Excludes settlement funds received from qualified settlement funds for wildfire damages from gross income.
Applies to federally declared wildfire disasters occurring in a disaster area in 2015 or later.
Provisions are effective for attorney fees, court costs, and settlement amounts paid after May 31, 2020.
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Expired
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Additional Information
Print number: 118_HR_176
Sponsor: Rep. LaMalfa, Doug [R-CA-1]
Process start date: 2023-01-09
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

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 118_HR_176.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-01-09.

What are the main provisions?

Key points include:

  • Allows taxpayers to deduct attorney fees and court costs related to awards for property damage from certain wildfires.
  • Excludes settlement funds received from qualified settlement funds for wildfire damages from gross income.
  • Applies to federally declared wildfire disasters occurring in a disaster area in 2015 or later.
  • Provisions are effective for attorney fees, court costs, 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 Rep. LaMalfa, Doug [R-CA-1].

What is the latest detailed status?

The latest detailed status is: Sponsor introductory remarks on measure. (CR H120)

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-24.

CATEGORIES

Taxes Environment