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119-s-3372119th CongressWALLET

Protect Innocent Victims of Taxation After Fire Extension Act

Sponsored By: Senator Padilla, Alex [D-CA]

Introduced

Summary

This bill would exclude certain wildfire relief payments from federal taxable income. It targets payments that compensate people for losses and expenses after federally declared forest or range fires and prevents double tax benefits.

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  • Families and individuals: People who get qualifying wildfire relief payments would not pay federal income tax on those amounts, but only for losses not already covered by insurance or other compensation. Payments can cover extra living expenses, lost wages paid to the individual (not wages paid by an employer), personal injury, death, or emotional distress.
  • Tax filers and property owners: Recipients could not claim tax deductions for expenses paid with excluded amounts, and excluded payments would not increase a property's tax basis.
  • Scope and timing: The exclusion would apply to disasters declared after Dec. 31, 2014, and to amounts received after Dec. 31, 2025.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Tax-free wildfire relief for households

If enacted, you would be able to exclude from your income any qualified wildfire relief payment you (or someone on your behalf) receive. The exclusion would apply to losses from federally declared forest or range fire disasters declared after December 31, 2014. The exclusion would only cover amounts not paid back by insurance or other payments and would not include lost wages if those wages were paid by an employer who would otherwise have paid them. The rule would apply to amounts received after December 31, 2025. At the same time, you would not be allowed to claim a deduction or credit, or increase the tax basis of property, for any amount excluded under this rule.

Sponsors & CoSponsors

Sponsor

Padilla, Alex [D-CA]

CA • D

Cosponsors

  • Sen. Lummis, Cynthia M. [R-WY]

    WY • R

    Sponsored 12/4/2025

  • Sen. Wyden, Ron [D-OR]

    OR • D

    Sponsored 12/4/2025

  • Sen. Sheehy, Tim [R-MT]

    MT • R

    Sponsored 12/4/2025

Roll Call Votes

No roll call votes available for this bill.

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