US SB3372

Excludes qualified wildfire relief payments from federal gross income, allowing victims to receive compensation tax-free for losses, expenses, damages, additional living costs, lost wages, personal injury, death, or emotional distress

Applies to federally declared disasters resulting from forest or range fires declared after December 31, 2014

Relief payments qualify only to the extent losses are not already compensated by insurance or other sources

Prevents double benefits by disallowing deductions, credits, or property basis increases for expenditures covered by excluded relief payments

Effective for amounts received after December 31, 2025