WASHINGTON, D.C. - This week, Congressman Vince Fong (CA-20) introduced the Doug LaMalfa Protect Innocent Victims of Taxation After Fire Extension Act. Re-introduced in memorial to the late Mr. LaMalfa, this bill would exempt wildfire relief payments made to victims from federal income tax. Congressman Fong was joined in this effort by Reps. Tom McClintock (CA-05), Brad Sherman (CA-32), Mike Thompson (CA-04), Blake Moore (UT-01), Cliff Bentz (OR-02), Janelle Bynum (OR-05), and Jill Tokuda (HI-02).

"In California, we are all too familiar with the devastation caused by wildfires," said Congressman Fong. "After these disasters strike in our community, survivors shouldn't have to worry about whether they will have to pay burdensome federal taxes as they work to recover and rebuild. Doug was a steadfast champion of rural California; it is an honor to continue his legacy and reintroduce this legislation in his memory so we can provide a lifeline to families as they navigate the most difficult of times. I look forward to getting this bill passed so we can ensure wildfire survivors receive the help they need without facing additional financial barriers."

"Californians are constantly under threat of wildfire," said Congressman Tom McClintock. "This bill reauthorizes commonsense protections and ensures victims are supported when tragedy strikes."

"Californians are all too familiar with the devastation caused by wildfires. In the wake of losing their homes and livelihoods, it is wrong to tax survivors on settlement money that is meant to help them rebuild their lives. Survivors can't afford to wait around for Congress to provide them retroactive relief," said Rep. Thompson. "Our late colleague Doug LaMalfa knew this well. I was proud to work with him to pass tax relief for fire victims in our communities in 2024, and I am proud to support this re-introduction of Doug's bill now to honor his work and to extend our tax relief so more victims can be compensated."

"After a catastrophic fire destroys their homes and livelihoods, the last thing wildfire victims should worry about is whether they will have to pay taxes on the disaster aid they receive to rebuild and recover," said Congressman Blake Moore. "I am proud to reintroduce the Doug LaMalfa Protect Innocent Victims of Taxation After Fire Extension Act, aptly named after my friend and a champion for rural Americans, to extend support for wildfire victims and ensure their recovery payments are exempt from federal taxes."

"The Palisades Fire in my district caused immense devastation, displaced many families and destroyed entire communities, and the last thing fire victims should face is a tax bill on their recovery assistance," said Congressman Brad Sherman. "I was proud to join my friend, the late Congressman Doug LaMalfa in introducing this legislation, which ensures that fire victims in my district and around the country are not unfairly taxed as they focus on rebuilding their lives and livelihoods. I am glad to be joining Rep. Fong in continuing this effort on behalf of Doug and fire victims."

"The horrific wildfires in the West have cost families their property, homes, and in some cases, their jobs," said Congressman Cliff Bentz. "Until late last year, the United States Tax Code added insult to injury by taxing settlement funds meant for recovery. People who lose their homes and wages due to wildfire should not be taxed on the funds they received as result of these disasters. By extending such protections through 2032, we are helping victims get at least a little closer to recovery from their losses."

"When wildfire survivors are trying to rebuild after a massive tragedy, the federal government shouldn't be taking a cut of their relief," said Congresswoman Bynum. "This bipartisan bill ensures that survivors aren't taxed on the money meant to help them pick up the pieces. I will work with anyone to pass legislation that supports communities and wildfire victims in the aftermath."

"My friend, the late Rep. Doug LaMalfa, and I knew all too well that a disaster doesn't end when the flames go out. Doug saw it in Paradise, and I saw it in Lahaina, that recovery can be undone if families lose access to the resources they need," said Rep. Tokuda. "Survivors shouldn't face a tax bill while they're still rebuilding their lives. By removing federal taxes from wildfire settlements, we can prevent the disaster after the disaster and give communities a real path to recovery. I'm proud to support Rep. Fong in continuing Doug's legacy of standing with our survivors."

This bill makes a targeted extension to the Federal Disaster Tax Relief Act of 2023 to allow for wildfire victims who receive disaster aid incurred from a qualified wildfire disaster to have that payment exempted from gross income filings. This would permanently exclude wildfire recovery payments - including compensation that covers living expenses, lost wages, personal injury, death, or emotional distress - from federal income taxation through 2032. Without this extension, victims of catastrophic wildfires would again have their wildfire relief payments subject to federal income tax obligations.