Sponsors (9)
Excludes certain hazardous-fuel-reduction grants from income and creates an above-the-line deduction for qualified fuel-reduction expenses with agency certification.
The bill makes wildfire fuel-reduction cheaper and more attractive for property owners—likely increasing mitigation and local firefighting preparedness—but reduces federal revenue, tends to favor wealthier landowners over renters and low-income households, and carries risks of environmental harm and administrative delays if not well managed.
Homeowners and other property owners pay less out-of-pocket for hazardous fuel-reduction because grants/services are excluded from taxable income and certified mitigation costs are deductible, increasing the net financial incentive to invest in mitigation.
Property owners are more likely to undertake prescribed burns, thinning, and clearing, which reduces wildfire risk and improves safety for residents in vulnerable communities.
Funds used for installation or maintenance of firefighting access (trails/roads) and for equipment are excluded, supporting local firefighting preparedness and potentially enabling faster emergency response.
All taxpayers face modestly lower federal revenue because the exclusion and deduction reduce tax receipts, which could increase deficits or crowd out other federal spending priorities.
Benefits are likely to skew toward wealthier homeowners who own land, can pay upfront, or itemize deductions, leaving renters and low-income households with little or no benefit.
Poorly implemented fuel-reduction activities (excessive thinning, road expansion, etc.) could harm ecosystems or cultural landscapes in rural areas.
Based on analysis of 3 sections of legislative text.
Official title: To amend the Internal Revenue Code of 1986 to provide incentives for wildfire prevention.
Introduced June 26, 2025 by Darrell Issa · Last progress June 26, 2025
Creates two tax incentives to encourage hazardous fuel reduction on private and other real property: (1) excludes from gross income grants, awards, or services paid to a taxpayer for carrying out hazardous fuel reduction activities or improvements; and (2) creates a new deduction for amounts taxpayers pay or incur for qualified hazardous fuel reduction activities, subject to certification by an eligible fire management agency. The bill defines covered fuel-reduction activities and improvements (mechanical thinning, prescribed fire, fuel breaks, firefighting infrastructure, access/evacuation improvements, and training facilitation) and applies both the exclusion and the deduction to amounts after enactment.