Protect Innocent Victims of Taxation After Fire Extension Act
Sponsored By: Senator Padilla, Alex [D-CA]
Introduced
Summary
This bill would make certain wildfire relief payments tax-free and block recipients from getting a duplicated tax benefit. It would add section 139M to the tax code to exclude qualified wildfire relief payments from gross income, define qualifying disasters and payments, and apply to amounts received after December 31, 2025.
Show full summary
- Families and households: Individuals who get payments for fire-related losses, extra living costs, or emotional distress would not report those amounts as taxable income. The exclusion covers only amounts not already paid by insurance and applies to federally declared forest or range fire disasters after Dec. 31, 2014.
- Workers: Lost-wage payments tied to wildfire relief would be tax-exempt, except for wages an employer would have paid anyway.
- Taxpayers with disaster losses: Excluded payments cannot be used to claim a deduction or credit for the same expense, and excluded amounts cannot increase a property's tax basis.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Tax relief for wildfire victims
This bill would exclude from gross income qualified wildfire relief payments received after December 31, 2025. It would cover payments that compensate losses, extra living costs, lost wages, injury, death, or emotional distress from a federally declared wildfire disaster declared after December 31, 2014. The exclusion would apply only to amounts not covered by insurance or other compensation. The bill would also bar you from claiming a deduction, credit, or an increase in property tax basis 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.
View on Congress.gov