To amend the Internal Revenue Code of 1986 to establish a deduction for attorney fees awarded with respect to certain wildfire damages and to exclude from gross income settlement funds received with respect to such damages.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The bill creates above the line deduction for attorney fees relating to awards for property damage due to certain wildfires Section 62(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new, requires exclusion of certain wildfire settlement proceeds from gross income Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new, and requires certain wildfire settlement proceeds Gross income shall not include amounts paid by a qualified settlement fund established to compensate victims for losses or damages in connection with a qualifying wildfire. It relies on definition changes, compliance mandates, delegation of rulemaking, and grants. The main policy areas are Disaster Relief And Emergency Management and Criminal Justice.
Who Benefits and How
Public beneficiaries or protected communities affected by the clause could face reduced risk and Disaster response agencies and disaster-affected communities could face lower compliance burdens.
Who Bears the Burden and How
Federal, state, or local agencies responsible for implementing the clause would take on compliance duties, Disaster response agencies and disaster-affected communities would take on compliance duties, and Public beneficiaries or protected communities affected by the clause could face increased risk.
Key Provisions
- Creates above the line deduction for attorney fees relating to awards for property damage due to certain wildfires Section 62(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new...
- Requires exclusion of certain wildfire settlement proceeds from gross income Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new...
- Requires certain wildfire settlement proceeds Gross income shall not include amounts paid by a qualified settlement fund established to compensate victims for losses or damages in connection with a qualifying wildfire...
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill creates above the line deduction for attorney fees relating to awards for property damage due to certain wildfires Section 62(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new, requires exclusion of certain wildfire settlement proceeds from gross income Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new, and requires certain wildfire settlement proceeds Gross income shall not include amounts paid by a qualified settlement fund established to compensate victims for losses or damages in connection with a qualifying wildfire.
Key Policy Areas
Disaster Relief And Emergency Management, Criminal Justice
Primary Purpose
The bill creates above the line deduction for attorney fees relating to awards for property damage due to certain wildfires Section 62(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new, requires exclusion of certain wildfire settlement proceeds from gross income Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new, and requires certain wildfire settlement proceeds Gross income shall not include amounts paid by a qualified settlement fund established to compensate victims for losses or damages in connection with a qualifying wildfire.
Policy Domains
Whole bill
Identified Gains
- Public beneficiaries or protected communities affected by the clause
- Disaster response agencies and disaster-affected communities
Identified Costs
- Federal, state, or local agencies responsible for implementing the clause
- Disaster response agencies and disaster-affected communities
- Public beneficiaries or protected communities affected by the clause
Sponsors
Legislative Progress
IntroducedMr. LaMalfa (for himself, Mr. Thompson of California, Mr. McClintock, …
Impact analysis is available but no clear stakeholder effects identified. View clause-level analysis →
Bill Structure & Actor Mappings
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