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Tax Relief for Wildfire Victims: Compensation Excluded from Income

This act introduces changes allowing individuals affected by wildfires to receive compensation without it being subject to income tax. This means that funds intended to cover losses, such as living expenses, lost wages, or property damage, will go entirely to the victims, provided they are not already covered by insurance. These changes aim to facilitate recovery after a disaster.
Key points
Compensation for losses from qualified wildfire disasters will not be included in gross income for tax purposes.
This covers amounts received for additional living expenses, lost wages (excluding employer-paid wages), personal injury, death, or emotional distress.
No double benefits: deductions, credits, or basis increases will not be allowed for expenditures covered by the excluded payments.
The provisions apply to amounts received after December 31, 2025, for federally declared wildfire disasters after December 31, 2014.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_3372
Sponsor: Sen. Padilla, Alex [D-CA]
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Summarized by: gemini-2.5-flash
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_S_3372.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

What are the main provisions?

Key points include:

  • Compensation for losses from qualified wildfire disasters will not be included in gross income for tax purposes.
  • This covers amounts received for additional living expenses, lost wages (excluding employer-paid wages), personal injury, death, or emotional distress.
  • No double benefits: deductions, credits, or basis increases will not be allowed for expenditures covered by the excluded payments.
  • The provisions apply to amounts received after December 31, 2025, for federally declared wildfire disasters after December 31, 2014.
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 Sen. Padilla, Alex [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 2025-12-31.

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