S. 3372

119 S3372 IS: Protect Innocent Victims of Taxation After Fire Extension Act
 U.S. Senate
 2025-12-04
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 3372  IN THE SENATE OF THE UNITED STATES   December 4, 2025   Mr. Padilla  (for himself,  Ms. Lummis ,  Mr. Wyden , and  Mr. Sheehy ) introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend the Internal Revenue Code of 1986 to exclude qualified wildfire relief payments from gross income, and for other purposes.
1.
Short title
This Act may be cited as the   Protect Innocent Victims of Taxation After Fire Extension Act  .
2.
Exclusion from gross income for compensation for losses or damages resulting from wildfires
(a)
In general
Part III of subchapter B of  chapter 1  of the Internal Revenue Code of 1986 is amended by inserting after section 139L the following new section:
139M.
Compensation for losses or damages resulting from wildfires
(a)
In general
Gross income shall not include any amount received by an individual as a qualified wildfire relief payment.
(b)
Qualified wildfire relief payment
For purposes of this section—
(1)
In general
The term  qualified wildfire relief payment  means any amount received by or on behalf of an individual as compensation for losses, expenses, or damages (including compensation for additional living expenses, lost wages (other than compensation for lost wages paid by the employer which would have otherwise paid such wages), personal injury, death, or emotional distress) incurred as a result of a qualified wildfire disaster, but only to the extent the losses, expenses, or damages compensated by such payment are not compensated for by insurance or otherwise.
(2)
Qualified wildfire disaster
The term  qualified wildfire disaster  means any federally declared disaster (as defined in section 165(i)(5)(A)) declared, after December 31, 2014, as a result of any forest or range fire.
(c)
Denial of double benefit
Notwithstanding any other provision of this subtitle—
(1)
no deduction or credit shall be allowed (to the individual for whose benefit a qualified wildfire relief payment is made) for, or by reason of, any expenditure to the extent of the amount excluded under this section with respect to such expenditure, and
(2)
no increase in the basis or adjusted basis of any property shall result from any amount excluded under this section with respect to such property.
 .
(b)
Clerical amendment
The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139L the following new item:
Sec. 139M. Compensation for losses or damages resulting from wildfires.
  .
(c)
Effective date
The amendments made by this section shall apply to amounts received after December 31, 2025.