Doug LaMalfa Protect Innocent Victims of Taxation After Fire Extension Act
- Bill Number
- H.R. 7825
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-03-05: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-04-14T19:59:57Z
AI-Generated Summary
Purpose This legislation amends the Internal Revenue Code of 1986 to exclude certain payments received as compensation for wildfire-related losses from an individual's taxable gross income, aiming to prevent taxation on relief funds provided for damages from federally declared wildfire disasters.
Key Provisions
- Adds a new section (139M) to the tax code that excludes "qualified wildfire relief payments" from gross income.
- Defines a qualified wildfire relief payment as compensation for losses, expenses, or damages (such as additional living costs, lost wages not paid by an employer, personal injury, death, or emotional distress) from a qualified wildfire disaster, provided the amounts are not covered by insurance or other sources.
- A qualified wildfire disaster is any federally declared disaster resulting from a forest or range fire declared after December 31, 2014.
- Includes rules denying double benefits: no tax deductions, credits, or increases in property basis are allowed for amounts already excluded under this provision.
- The exclusion applies to amounts received after December 31, 2025, but does not apply to amounts received after December 31, 2032.
Significant Changes to Existing Law
- Introduces a new, time-limited tax exclusion specifically for wildfire relief payments, extending similar prior relief mechanisms by covering disasters declared after 2014 and payments received through 2032.
- Updates the table of sections in the Internal Revenue Code to include the new provision.
Potential Impacts
- On citizens: Individuals receiving wildfire relief payments may avoid federal income tax on those funds, potentially increasing the net value of assistance for victims.
- On government agencies: The Internal Revenue Service would administer the exclusion, which could result in reduced tax revenue from untaxed payments; the change applies only to qualifying wildfire events.
- No direct effects on international relations are outlined in the bill.
Main Stakeholders Affected
- Individuals and families impacted by wildfires who receive compensation payments.
- The Internal Revenue Service, responsible for implementing and enforcing the tax exclusion.
- Members of Congress and legislative committees, such as the House Committee on Ways and Means, involved in the bill's referral and consideration.
Notable Legal, Constitutional, or Political Implications
- The bill exercises Congress's authority under the tax code to define exclusions from gross income, consistent with existing disaster relief provisions.
- It includes explicit termination dates and anti-double-dipping rules to limit the scope and prevent overlapping tax benefits.
- The legislation is presented as an extension of prior wildfire tax relief measures, with no broader changes to constitutional tax powers or unrelated policy areas.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (7)
Rep. Moore, Blake D. [R-UT-1], Rep. Bynum, Janelle S. [D-OR-5], Rep. Bentz, Cliff [R-OR-2], Rep. Sherman, Brad [D-CA-32], Rep. McClintock, Tom [R-CA-5], Rep. Thompson, Mike [D-CA-4], Rep. Tokuda, Jill N. [D-HI-2]
Recent Actions
- 2026-03-05: Referred to the House Committee on Ways and Means.
- 2026-03-05: Introduced in House
- 2026-03-05: Introduced in House
Bill Versions
- Doug LaMalfa Protect Innocent Victims of Taxation After Fire Extension Act — issued 2026-03-05 — PDF (4 pages)