2020 Sierra National Forest Creek Fire in California
Credit: USFS
May 25, 2024 - The Rural County Representatives of California (RCRC) reports on Tuesday, May 21, the House voted 382-7 in favor of the Federal Disaster Tax Relief Act of 2023 (H.R. 5863). The bill's vote occurred only after a House majority led by Rep. Mike Thompson (D-Lake) signed a discharge petition seeking action on the bill, triggering a need to act by House Speaker Mike Johnson, R-La. The bill now goes to the Senate for a vote before going to President Biden’s desk for his signature.
The Federal Disaster Tax Relief Act excludes from taxpayer gross income, for income tax purposes, any amount received by an individual taxpayer as compensation for expenses or losses incurred due to a qualified wildfire disaster (a disaster declared after 2014 as a result of a forest or range fire).
The bill includes Rep. Thompson's legislation that would exempt thousands of qualified wildfire victims in California, including Pacific Gas and Electric fire victims, from having to pay federal income tax on their settlement money or pay tax on attorney fees that are included in the settlement. This relief would also apply retroactively to qualified victims.
“Fire survivors have been through enough in the wake of losing their homes and livelihoods to wildfires — it’s wrong to tax them on the settlement money meant to help them rebuild their lives,” said Rep. Thompson on Tuesday. “Today’s bipartisan vote to provide tax relief to fire survivors is an important step towards recovery for those who lost homes, businesses, and loved ones and sends a clear message to Senate Republicans: It’s time to work with us to pass much-needed relief for disaster victims.”
ABOUT RURAL COUNTY REPRESENTATIVES OF CALIFORNIA (RCRC)
The Rural County Representatives of California (RCRC) is a thirty-seven member county strong service organization that champions policies on behalf of California’s rural counties. RCRC is dedicated to representing the collective unique interests of its membership, providing legislative and regulatory representation at the State and Federal levels, and providing responsible services for its members to enhance and protect the quality of life in rural California counties. To learn more about RCRC, visit rcrcnet.org and follow @RuralCounties on Twitter, Facebook and Instagram.
Source: RCRC
