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H.R. 7825House119th Congress (2025-2027)In Committee

Doug LaMalfa Protect Innocent Victims of Taxation After Fire Extension Act

Sponsored by Vince FongRep. Vince Fong (R-CA)
Introduced March 5, 2026

AI-Generated Summary

Updated March 26, 2026 at 3:14 AM UTC

The Doug LaMalfa Protect Innocent Victims of Taxation After Fire Extension Act would change the tax code so that individuals who receive certain wildfire relief payments do not have to count that money as taxable income. It applies to payments for losses, expenses, or damages from federally declared wildfire disasters that occurred after December 31, 2014 and were not covered by insurance. The rule would be in effect for payments received after December 31, 2025 and would end after December 31, 2032.

Key Provisions

  • Creates a new tax provision (Section 139M) that excludes qualified wildfire relief payments from a person’s gross income.
  • Defines a qualified wildfire relief payment as compensation for losses, expenses, damages, lost wages (except employer‑paid wages), personal injury, death, or emotional distress caused by a federally declared wildfire disaster after Dec 31, 2014, to the extent not reimbursed by insurance.
  • Prevents taxpayers from also taking a deduction, credit, or basis increase for the same expenses that are excluded from income under this provision.
  • The exclusion applies only to payments received after Dec 31, 2025 and stops applying to payments received after Dec 31, 2032.

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

March 5, 2026

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HouseIntro Referral

Introduced in House

March 5, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

March 5, 2026

Bill Text

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Introduced in HouseIssued March 5, 2026

I

119th CONGRESS

2d Session

H. R. 7825

IN THE HOUSE OF REPRESENTATIVES

March 5, 2026

Mr. Fong (for himself, Mr. Moore of Utah, Ms. Bynum, Mr. Bentz, Mr. Sherman, Mr. McClintock, Mr. Thompson of California, and Ms. Tokuda) 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 Doug LaMalfa 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.