Fire Victim Tax Relief – Settlement/Loss Income Exclusion Extension

Current understanding

S3372 (119th Congress), the Protect Innocent Victims of Taxation After Fire Extension Act, would extend existing federal tax protections for individuals receiving compensation for wildfire and other fire-related losses (building on prior relief that excluded qualified wildfire relief payments from gross income). It was referred to the Senate Finance Committee in December 2025. Status: introduced/referred; fire-loss recipients would pay less federal tax on covered settlement and relief payments if enacted.

Evidence log

• 2026-04-28 — Doug LaMalfa Federal Disaster Tax Relief Certainty Act: Doug LaMalfa Federal Disaster Tax Relief Certainty Act would extend the gross-income exclusion for qualified wildfire relief payments to federal disasters declared after 2014 and before 2027, alongside extending the qualified disaster personal casualty loss deduction through incidents beginning before 2027 — overlapping and reinforcing the wildfire-payment exclusion pathway addressed by S3372/HR7825. (novelty: 2)
• 2025-07-24 — Filing Relief for Natural Disasters Act: cross-connection with filing-relief-natural-disasters-act: Both address federal tax relief mechanisms for disaster-affected taxpayers; the Filing Relief Act provides the procedural deadline-postponement authority while Fire Victim Tax Relief addresses substantive income exclusions. (novelty: 3)
• 2025-02-06 — Disaster Resiliency and Coverage Act of 2025: cross-connection with disaster-hazard-mitigation-tax-credit: Both fit within the broader pattern of tax-code carve-outs for disaster-related payments and expenditures affecting individual taxpayers. (novelty: 3)
• 2026-03-05 — Doug LaMalfa Protect Innocent Victims of Taxation After Fire Extension Act: House companion HR7825 (LaMalfa), Protect Innocent Victims of Taxation After Fire Extension Act, referred to House Ways and Means Committee (March 2026), mirroring S3372’s extension of the gross-income exclusion for fire-victim settlement and loss payments. (novelty: 2)

Open questions

Related