Bill · S. 3372· Senate(119-S-3372)
Protect Innocent Victims of Taxation After Fire Extension Act
- Introduced
- 12/4/2025
- Last activity
- 12/4/2025 — Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S8514)
- Sponsored by
- Alex Padilla
- Cosponsors
- - 1 - 2
- Introduced
- In Committee
What this bill would do
This bill, titled the "Protect Innocent Victims of Taxation After Fire Extension Act," seeks to amend the Internal Revenue Code of 1986. It aims to exclude qualified wildfire relief payments from an individual's gross income. These payments include compensation for losses, expenses, or damages caused by a qualified wildfire disaster. A qualified disaster is defined as a federally declared forest or range fire occurring after December 31, 2014. The exclusion applies only to the extent that the losses are not already covered by insurance. These changes are set to apply to amounts received after December 31, 2025.
Yes· 3 of 5
Would households on low incomes be better off under this?+5
The exclusion of disaster payments from gross income helps low-income individuals recover from wildfires.
Would middle-income households be better off under this?+5
The bill provides tax relief for middle-class individuals experiencing wildfire losses.
Would people in rural areas be better off under this?+5
The bill assists residents in areas prone to forest and range fires.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Relief for Fire Victims: Under Section 2(a), gross income will not include amounts received as a "qualified wildfire relief payment." This provides financial relief to individuals receiving compensation for things like additional living expenses, lost wages, personal injury, death, or emotional distress resulting from a wildfire (Section 2(a)(1)).
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Broad Coverage of Losses: The definition of a qualified wildfire relief payment includes various forms of compensation such as lost wages and personal injury, which helps people recover from the financial impact of a disaster (Section 2(a)(1)).
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Protection Against Double Recovery: The bill ensures that the exclusion only applies to the extent that the losses are not already compensated for by insurance, which clarifies the scope of the relief (Section 2(a)(1)).
Potential Negative Impacts for People
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Restrictions on Deductions and Credits: According to Section 2(c)(1), an individual cannot take a deduction or credit for any expenditure to the extent that the amount of that expenditure was excluded from gross income under this section.
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Impact on Property Basis: Section 2(c)(2) states that no increase in the basis or adjusted basis of any property will result from any amount excluded under this section.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+5Good For Middle Class Households+5Good For Rural Residents+5
- Economy And Finance
- Reduces Middle Class Taxes+5
- Environment Energy And Infrastructure
- Improves Disaster Relief And F E M A+5
- 12/4/2025
- Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S8514)
- 3 Cosponsors added.
- Introduced in Senate
4 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Cynthia LummisRepublican · Wyoming
Tim SheehyRepublican · Montana
Ron WydenDemocrat · Oregon