Protect Innocent Victims of Taxation After Fire Extension Act

This bill extends a provision that allows individuals who have lost property or suffered damages due to wildfires to exclude certain payments they receive from their gross income. Specifically, it defines ‘qualified wildfire relief payments’ as compensation for losses, expenses, or damages resulting from federally declared wildfires after 2014, provided those losses aren’t already covered by insurance. The bill also prevents taxpayers from claiming deductions or credits for expenses already covered by these relief payments, and it ensures that the basis of property isn’t increased due to these exclusions.