Last week, Congressman Vince Fong (CA-20) introduced the Doug LaMalfa Protect Innocent Victims of Taxation After Fire Extension Act. Re-introduced in memorial to the late Mr. LaMalfa, this bill would exempt wildfire relief payments made to victims from federal income tax. Congressman Fong was joined in this effort by Reps. Tom McClintock (CA-05), Brad Sherman (CA-32), Mike Thompson (CA-04), Blake Moore (UT-01), Cliff Bentz (OR-02), Janelle Bynum (OR-05), and Jill Tokuda (HI-02).
Specifically, the bill would make a targeted extension to the Federal Disaster Tax Relief Act of 2023 to allow for wildfire victims who receive disaster aid incurred from a qualified wildfire disaster to have that payment exempted from gross income filings. This would permanently exclude wildfire recovery payments – including compensation that covers living expenses, lost wages, personal injury, death, or emotional distress – from federal income taxation through 2032. Without this extension, victims of catastrophic wildfires would again have their wildfire relief payments subject to federal income tax obligations.
For more information, contact RCRC Senior Policy Advocate Staci Heaton.