Bill > S3372

This bill amends the Internal Revenue Code to create a new tax provision that excludes certain wildfire relief payments from an individual's taxable gross income. Specifically, the bill defines "qualified wildfire relief payments" as compensation received for losses, expenses, or damages resulting from a federally declared wildfire disaster after December 31, 2014. These payments can cover various types of losses including additional living expenses, lost wages (except those already paid by an employer), personal injury, death, or emotional distress, but only to the extent that the losses are not already covered by insurance. To prevent potential double benefits, the bill stipulates that individuals cannot claim tax deductions or credits for expenses that are covered by these wildfire relief payments, and the payments will not increase the tax basis of any property. The tax exclusion will apply to amounts received after December 31, 2025, providing a mechanism to help individuals financially recover from wildfire-related damages without additional tax burden.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3372/all-info