California reps introduce bill to keep federal wildfire survivor funds tax-free through 2032

Lawmakers introduced a bill last week to extend a program that exempts wildfire survivors from paying taxes on certain disaster aid used to fund recovery costs.

Rep. Doug LaMalfa, R-Richvale, introduced the bipartisan Protect Innocent Victims of Taxation After Fire Extension Act, H.R. 5225, which would extend provisions of the Federal Disaster Tax Relief Act passed in December 2024. Rep. Mike Thompson, D-St. Helena, is a co-author.