H.R. 5225
119th CONGRESS 1st Session
To amend the Internal Revenue Code of 1986 to exclude qualified wildfire relief payments from gross income, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES · September 9, 2025 · Sponsor: Mr. LaMalfa · Committee: Committee on Ways and Means
Table of contents
Sec. 139M. Compensation for losses or damages resulting from wildfires.
- (a) In general
- Gross income shall not include any amount received by an individual as a qualified wildfire relief payment.
- (b) Qualified wildfire relief payment
- For purposes of this section—
- (1) In general
- The term
qualified wildfire relief paymentmeans 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
- (2) Qualified wildfire disaster
- The term
qualified wildfire disastermeans any federally declared disaster (as defined in section 165(i)(5)(A)) declared, after December 31, 2014, as a result of any forest or range fire.
- The term
- (c) Denial of double benefit
- Notwithstanding any other provision of this subtitle—
- no deduction or credit shall be allowed (to the individual 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.
- Notwithstanding any other provision of this subtitle—
- (d) Termination
- Subsection (a) shall not apply to amounts received after December 31, 2032.