Representative Moore's Bill to Support Wildfire Victims in Honor of Doug LaMalfa Passes House
WASHINGTON – The House of Representatives unanimously passed the Doug LaMalfa Federal Disaster Tax Relief Certainty Act, which included Representatives Blake Moore (R-UT) and Vince Fong's (R-CA) Doug LaMalfa Protect Innocent Victims of Taxation After Fire Extension Act. Re-introduced in memory of the late California Representative Doug LaMalfa, this bill exempts wildfire relief payments made to victims from federal income tax.
Other original co-sponsors include Representatives Tom McClintock (R-CA), Brad Sherman (D-CA), Mike Thompson (D-CA), Cliff Bentz (R-OR), Janelle Bynum (D-OR), and Jill Tokuda (D-HI).
“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,” Rep. Moore said. “I am thrilled to see the Doug LaMalfa Protect Innocent Victims of Taxation After Fire Extension Act, aptly named after my friend and a champion for rural Americans, pass the House. This bill extends support for wildfire victims and ensures their recovery payments are exempt from federal taxes.”
This bill allows wildfire victims to exempt disaster aid incurred from a qualified wildfire disaster payment from gross income filings. This excludes wildfire recovery payments, including compensation that covers living expenses, lost wages, personal injury, death, or emotional distress, from federal income taxation. Having been passed by the House of Representatives, this bill will now move to the Senate for consideration.
“In California, we are all too familiar with the devastation caused by wildfires,” Rep. Fong said. “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 further 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 seeing this bill signed into law and urge the Senate to Act quickly to ensure wildfire survivors receive the help they need without facing additional financial barriers.”
“Californians are constantly under threat of wildfire,” Rep. McClintock said. “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 retroactive relief,” Rep. Thompson said. “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 we passed this bill now to honor his work and to extend our tax relief so more victims can be compensated.”
“The horrific wildfires in the West have cost families their property, homes, and in some cases, their jobs,” Rep. Bentz said. “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,” Rep. Bynum said. “This bipartisan bill ensures that survivors aren’t taxed on the money meant to help them pick up the pieces. Now, we’re one step closer to doing right by wildfire survivors.”