S. 2744

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to codify and extend the rules for personal casualty losses arising from major disasters and the rules for the exclusion from gross income of compensation for losses or damages resulting from certain wildfires.

IN THE SENATE OF THE UNITED STATES · September 9, 2025 · Sponsor: Mr. Scott of Florida · Committee: Committee on Finance

Table of contents

• S. 2744
  • Sec. 139M. Compensation for losses or damages resulting from certain wildfires.

Sec. 139M. Compensation for losses or damages resulting from certain wildfires.

• (a) In general
  • Gross income shall not include any amount received by an individual as a qualified wildfire relief payment.
• (b) Definitions; qualified wildfire relief payment
  • For purposes of this section—
    • 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.
    • The term qualified wildfire disaster means any Federally declared disaster (as defined in section 165(i)(5)(A)) after December 31, 2014, as a result of any forest or range fire.
• (c) Denial of double benefit
  • Notwithstanding any other provision of this title—
    • 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, and
    • 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.
• (d) Limitation on application
  • This section shall only apply to qualified wildfire relief payments received by the individual during taxable years beginning after December 31, 2025, and before January 1, 2031.