This bill says certain wildfire relief payments to individuals would not count as taxable income. It defines a "qualified wildfire relief payment" as money paid to cover losses, expenses, or damages from a covered wildfire disaster, including payments for extra living costs, lost wages (not paid by an employer), personal injury, death, or emotional distress. A "qualified wildfire disaster" means a federally declared disaster after December 31, 2014, caused by a forest or range fire. The bill also prevents a person from taking a tax deduction or credit for amounts excluded under this rule and prevents those excluded amounts from increasing the tax basis of property. The change would apply to amounts received after December 31, 2025. The measure was introduced in the Senate and referred to the Committee on Finance.
If you get a qualifying wildfire relief payment for losses not covered by insurance, you would not include that payment in your taxable income. You could not also claim a tax deduction or credit for the same losses, and excluded payments would not raise your property basis. Payments for lost wages still paid by an employer are not covered by this exclusion.
No publicly available information on estimated costs or federal revenue effects is included in the bill text or provided metadata.
No publicly available information.
No publicly available information.