Amounts received in civil action arising from wildfire. (1) There shall be subtracted from federal taxable income any amount received in judgment or settlement of a civil action arising from a wildfire, as defined in ORS 477.089, and awarded to a plaintiff

(2) A subtraction under this section is allowed only for resolution of civil actions arising from a wildfire that:

(a) Is the subject of a state of emergency declared by the Governor;

(b) Occurs in an area subject to an executive order of the Governor invoking the Emergency Conflagration Act under ORS 476.510 to 476.610; or

(c) Is a federally declared disaster, as defined in section 165 of the Internal Revenue Code, whether located within Oregon or elsewhere.

(3) A subtraction under this section:

(a) Is not allowed for any amount described in subsection (1) of this section that is taken into account as a deduction or credit on the taxpayer’s federal income tax return for any tax year; and

(b) Is allowed only to the extent that losses, expenses or other damages compensated by the amount of the judgment or settlement are not compensated for by insurance or otherwise. [2024 c.50 §2]