[Congressional Record Volume 170, Number 18 (Wednesday, January 31, 2024)]
[Senate]
[Page S311]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. PADILLA (for himself, Mr. Cassidy, Mr. Tester, and Ms. 
        Lummis):
  S. 3711. A bill to provide tax relief with respect to certain 
wildfire relief payments; to the Committee on Finance.
  Mr. PADILLA. Madam President, I rise to introduce the Protect 
Innocent Victims Of Taxation After Fire Act. This legislation would 
provide tax relief for individuals and families who have received 
compensation for losses and damages suffered during a wildfire.
  The Protect Innocent Victims Of Taxation After Fire Act would exclude 
from gross income certain qualified wildfire relief payments, including 
compensation for losses, expenses, or damages, such as compensation for 
additional living expenses, lost wages, personal injury, death, or 
emotional distress.
  This legislation would provide much needed certainty and relief to 
victims by ensuring that any compensation they receive is not subject 
to Federal income tax and instead may be fully utilized for its 
intended purpose.
  Pacific Gas & Electric, or PG&E, equipment was found to be 
responsible for three major fires in 2015, 2017, and 2018. In 2019, 
PG&E and victims of these wildfires reached a settlement that set up a 
Fire Victim Trust, funded with $6.75 billion in cash and 477 million 
shares of PG&E stock, to compensate victims for losses and damages 
associated with these devastating wildfires.
  Unfortunately, the taxability of funds received from the trust varies 
based on what type of loss is being claimed, which makes it difficult 
for recipients to determine what amount of their claims can be used to 
rebuild their lives or replace their losses. This financial and legal 
uncertainty is the last thing wildfire victims should be worried about 
in the aftermath of such tragedy.
  This specific settlement is unfortunately no longer unique. Last 
Congress, I joined Senators Feinstein and Hickenlooper as well as our 
bipartisan House leads in introducing a version of this legislation 
designed to cover the Fire Victim Trust claimants. The bill introduced 
today expands protections to anyone receiving wildfire-related disaster 
aid payments. As the impacts of climate change continue to fuel the 
frequency and severity of wildfires across the Western United States, 
it is imperative that Congress enact this legislation and provide 
certainty to both past victims and those who may be impacted in the 
future.
  I would like to thank Representatives LaMalfa and Thompson for 
leading this bipartisan legislation in the House, and I hope my 
colleagues will join us in supporting this bill to ensure wildfire 
victims receive full and proper compensation to help rebuild their 
lives and communities.
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