Central Louisiana News

U.S. Senators Bill Cassidy, Alex Padilla, Cynthia Lummis, and Jon Tester have introduced the Protect Innocent Victims Of Taxation After Fire Act, a bipartisan legislation aimed at providing tax relief for wildfire survivors who have received compensation for their losses and damages. The bill is also being championed in the House of Representatives by U.S. Representatives Doug LaMalfa and Mike Thompson.

Dr. Cassidy highlighted the importance of helping fellow Americans in times of need, stating, "This tax provision is a way for Americans to help fellow Americans who are trying to help themselves."

Senator Padilla emphasized the need to ensure that wildfire victims are not burdened with additional taxes, saying, "Wildfire victims should not be taxed on payments that don't cover their full losses and damages to begin with." He further expressed concern for the over 70,000 Californians impacted by the Butte, North Bay, and Camp wildfires who currently face uncertainty regarding the taxability of their assistance.

Senator Lummis echoed these sentiments, emphasizing that families affected by wildfires should not have to worry about setting aside money for taxes. She stated, "The Protect Innocent Victims of Taxation After Fire Act ensures that every last dollar from wildfire insurance will go to helping families rebuild their lives instead of padding tax coffers in Washington."

Senator Tester highlighted the increasing frequency and severity of wildfires, particularly in Montana, and stressed the importance of providing relief to those affected. He stated, "As fire seasons become longer and more extreme, we know that wildfires are becoming even more common in the Treasure State each year, which is why we need to ensure that those affected receive the relief they deserve."

The legislation specifically addresses the taxability of payments made from the Pacific Gas and Electric Company (PG&E) Fire Victim Trust, a multibillion-dollar settlement established in 2020 for the nearly 70,000 victims of the three major fires caused by PG&E equipment. Currently, the taxability of funds received from the Trust varies based on the type of loss being claimed, creating uncertainty for recipients. The Protect Innocent Victims Of Taxation After Fire Act aims to provide future wildfire survivors with the certainty that their settlement money will not be taxed.

Dr. Cassidy's commitment to assisting disaster survivors is evident in his previous efforts, such as introducing legislation to provide tax relief for those affected by Hurricane Ida. The proposed bill would allow victims of Hurricane Ida and other Presidentially-declared major natural disasters to deduct qualified disaster-related personal casualty losses from their income, even when taking the standard deduction.

With bipartisan support, this legislation aims to alleviate the financial burden on wildfire survivors and ensure that they can rebuild their lives without the added stress of taxes on their compensation.