[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3711 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 3711

To provide tax relief with respect to certain wildfire relief payments.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 31, 2024

  Mr. Padilla (for himself, Mr. Cassidy, Mr. Tester, and Ms. Lummis) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide tax relief with respect to certain wildfire relief payments.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protect Innocent Victims Of Taxation 
After Fire Act''.

SEC. 2. EXCLUSION FROM GROSS INCOME FOR COMPENSATION FOR LOSSES OR 
              DAMAGES RESULTING FROM CERTAIN WILDFIRES.

    (a) In General.--For purposes of the Internal Revenue Code of 1986, 
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) of the Internal Revenue Code of 
        1986) declared, after December 31, 2014, as a result of any 
        forest or range fire.
    (c) Denial of Double Benefit.--Notwithstanding any other provision 
of the Internal Revenue Code of 1986--
            (1) no deduction or credit shall be allowed (to the person 
        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 
        subsection with respect to such property.
    (d) Limitation on Application.--This section shall only apply to 
qualified wildfire relief payments received by the individual during 
taxable years beginning after December 31, 2019, and before January 1, 
2026.
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