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H.R. 5225House119th Congress (2025-2027)In Committee

Protect Innocent Victims of Taxation After Fire Extension Act

Sponsored by Doug LaMalfaRep. Doug LaMalfa (R-CA)
Introduced September 9, 2025

AI-Generated Summary

Updated November 23, 2025 at 10:10 PM UTC

The Protect Innocent Victims of Taxation After Fire Extension Act would amend the Internal Revenue Code to let individuals exclude certain wildfire relief payments from their taxable income. It targets people who receive compensation for losses and damages from federally declared wildfire disasters that aren’t already reimbursed by insurance. The exclusion starts for payments received after Dec 31 2025 and stops for payments received after Dec 31 2032, and it prevents double tax benefits on the same expenses.

Key Provisions

  • Adds a new tax provision (Section 139M) that makes qualified wildfire relief payments non‑taxable for individuals.
  • A “qualified wildfire relief payment” is any compensation for losses, expenses, damages, lost wages, personal injury, death, or emotional distress caused by a federally declared wildfire disaster (declared after Dec 31 2014) that is not already covered by insurance or other sources.
  • The tax exclusion applies only to payments received after Dec 31 2025 and ends for payments received after Dec 31 2032.
  • People who receive these payments cannot also claim a deduction or credit for the same expenses, and the excluded amounts do not increase the tax basis of any property.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 9, 2025

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HouseIntro Referral

Introduced in House

September 9, 2025

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 9, 2025

Bill Text

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Introduced in HouseIssued September 9, 2025

I

119th CONGRESS

1st Session

H. R. 5225

IN THE HOUSE OF REPRESENTATIVES

September 9, 2025

Mr. LaMalfa (for himself, Mr. Thompson of California, Mr. McClintock, Mr. Sherman, Mr. Bentz, Ms. Bynum, and Mr. Moore of Utah) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to exclude qualified wildfire relief payments from gross income, and for other purposes.

1.

Short title

This Act may be cited as the Protect Innocent Victims of Taxation After Fire Extension Act.

2.

Exclusion from gross income for compensation for losses or damages resulting from wildfires

(a)

In general

Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139L the following new section:

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 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.

(2)

Qualified wildfire disaster

The term qualified wildfire disaster means 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.

(c)

Denial of double benefit

Notwithstanding any other provision of this subtitle—

(1)

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

(2)

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)

Termination

Subsection (a) shall not apply to amounts received after December 31, 2032.

.

(b)

Clerical amendment

The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139L the following new item:

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

.

(c)

Effective date

The amendments made by this section shall apply to amounts received after December 31, 2025.