H.R. 7825

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7825 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7825

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

_______________________________________________________________________

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.

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 ``Doug LaMalfa Protect Innocent 
Victims of Taxation After Fire Extension Act''.

SEC. 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:

``SEC. 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.
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