Bill to Exempt All Wildfire Relief Payments From Federal Income Taxes Passes Out of Ways and Means

(Washington, D.C.) – Today, the House Ways and Means Committee passed a disaster tax package that includes Congressmen Doug LaMalfa (R-CA) and Mike Thompson’s (D-CA) bill, H.R. 4970, the Protect Innocent Victims Of Taxation After Fire Act. In addition to exempting all wildfire relief payments from federal income taxes, this legislation exempts taxation on legal fees, emotional distress, lost wages, additional living expenses, and excludes compensation for losses resulting from the East Palestine, Ohio, train derailment earlier this year.

“This legislation is critical for disaster survivors throughout the nation, from hurricane survivors in Florida to Fire Victim Trust claimants in Northern California. Wildfire survivors have waited far too long with this cloud of uncertainty over their heads, not knowing if their settlement money will be taxed. This initiative has been a top priority for my office and it has gathered broad bipartisan support. I am hopeful that Congress will quickly pass the bill across the House floor, on to the Senate, and into law so that wildfire survivors can have financial certainty,”said Congressman LaMalfa.

“No wildfire survivors should be made to pay taxes on a settlement payment that does not even cover the full loss they experienced,”said Congressman Thompson.“Today, the Ways and Means Committee passed my bill to exempt PG&E Fire Victims Trust settlements from taxes, moving us one step closer to providing essential tax relief to fire survivors. This bill remains my top priority and I will continue to move it forward until President Biden signs it into law.”

Congressman Doug LaMalfa is a lifelong farmer representing California’s First Congressional District, including Butte, Colusa, Glenn, Lassen, Modoc, Shasta, Siskiyou, Sutter, Tehama and Yuba Counties.

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