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Tax Relief for Wildfire Victims: Compensation Excluded from Income

This bill aims to exclude compensation received by individuals for losses or damages resulting from qualified wildfire disasters from their gross income. This means that money received for expenses like additional living costs, lost wages, personal injury, or emotional distress will not be subject to income tax. This allows victims to fully utilize the support received to rebuild their lives without a tax burden.
Key points
Compensation for losses from qualified wildfire disasters (after 2014) will be excluded from gross income.
This includes additional living expenses, lost wages (not from employer), personal injury, death, or emotional distress.
No double benefits: deductions or basis increases are not allowed for expenses covered by excluded payments.
The exclusion applies to amounts received after December 31, 2025, but terminates for amounts received after December 31, 2032.
article Official text account_balance Process page
Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_5225
Sponsor: Rep. LaMalfa, Doug [R-CA-1]
Process start date: 2025-09-09
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Protect Innocent Victims of Taxation After Fire Extension Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_5225.

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 2025-09-09.

What are the main provisions?

Key points include:

  • Compensation for losses from qualified wildfire disasters (after 2014) will be excluded from gross income.
  • This includes additional living expenses, lost wages (not from employer), personal injury, death, or emotional distress.
  • No double benefits: deductions or basis increases are not allowed for expenses covered by excluded payments.
  • The exclusion applies to amounts received after December 31, 2025, but terminates for amounts received after December 31, 2032.
What is the specific legal status?

The current status is Introduced.

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: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

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