Representative Doug LaMalfa introduced bipartisan legislation to extend protections for innocent victims of taxation after fires on Thursday.

The Protect Innocent Victims of Taxation After Fire Extension Act, or H.R. 5225, builds on laws passed as a part of the Federal Disaster Relief Act in December 2024, which “which ensures wildfire survivors aren’t taxed on payments meant to cover their certain disaster losses or costs, including living expenses, lost wages, or compensation for injury, death, or emotional distress,” according to LaMalfa.

The original bill allowed for taxation protections between 2020 and 2025, but LaMalfa’s bill would extend that until 2032. It would also allow victims to claim the exemption in the year they receive payments, rather than having to amend prior tax ret

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