Bill to Exempt All Wildfire Relief Payments from Federal Income Taxes Passes Out of Ways and Means

On November 2nd, the House Ways and Means Committee passed a disaster tax package, which includes the Protect Innocent Victims of Taxation After Fire Act (H.R. 4970) co-authored by Congressmen Doug LaMalfa (R-Richvale) and Mike Thompson (D-St. Helena). The bill excludes from gross income, for income tax purposes, any amount received after 2019 and before 2026 by an individual taxpayer as a qualified wildfire relief payment. The bill defines such payment as compensation for expenses or losses incurred as a result of a federally declared forest or range fire disaster. It now moves to the House floor for consideration.