Section 1 Short title
This Act may be cited as the “Protect Innocent Victims Of Taxation After Fire Act”.
Protect Innocent Victims Of Taxation After Fire Act
A BILL
To provide an exclusion from gross income for compensation for expenses and losses resulting from certain wildfires.
Sec. 2 Exclusion from gross income for compensation for losses or damages resulting from certain wildfires
In general— For purposes of the Internal Revenue Code of 1986, gross income shall not include any amount received by an individual as a qualified wildfire relief payment.
Qualified wildfire relief payment— For purposes of this section—
In general— The term “qualified wildfire relief payment” means any amount paid to or for the benefit of an individual as compensation for expenses or losses incurred as a result of a qualified wildfire disaster, but only to the extent any expense or loss compensated by such payment is not otherwise compensated by insurance or otherwise.
Qualified wildfire disaster— The term “qualified wildfire disaster” means any federally declared disaster (as defined in section 165(i)(5)(A) of the Internal Revenue Code of 1986) declared, after December 31, 2014, as a result any forest or range fire.
Denial of double benefit— Notwithstanding any other provision of the Internal Revenue Code of 1986, no deduction or credit shall be allowed (to the person 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.
Limitation on application— This section shall only apply to qualified wildfire relief payments received by the individual during taxable years beginning after December 31, 2019, and before January 1, 2026.