S.3372

Excludes qualified wildfire relief payments from gross income for losses due to federally declared wildfires.

The bill amends the Internal Revenue Code to exclude from gross income any qualified wildfire relief payments received by individuals. These payments compensate for losses, expenses, or damages from wildfires declared as federal disasters after December 31, 2014. The exclusion applies to compensation for additional living expenses, lost wages, personal injury, death, or emotional distress, but not if the lost wages would have been paid by the employer. The changes apply to amounts received after December 31, 2025.