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.

12/15/2023, 3:53 PM

Summary of Bill HR 176

Bill 118 hr 176, also known as the Wildfire Tax Relief Act, aims to make changes to the Internal Revenue Code of 1986 in order to provide tax relief for individuals who have incurred attorney fees related to wildfire damages. The bill proposes to establish a deduction for attorney fees that are awarded in connection with certain wildfire damages. This deduction would allow individuals to reduce their taxable income by the amount of attorney fees incurred.

Additionally, the bill seeks to exclude settlement funds received for wildfire damages from gross income. This means that individuals who receive settlement funds for damages caused by wildfires would not have to pay taxes on these funds. This provision aims to provide financial relief to individuals who have suffered losses due to wildfires and are seeking compensation through settlements.

Overall, the Wildfire Tax Relief Act is designed to provide assistance to individuals who have been affected by wildfires by reducing the financial burden of attorney fees and excluding settlement funds from taxable income. This bill aims to provide much-needed relief to individuals who have experienced losses due to wildfires and are seeking compensation for their damages.

Congressional Summary of HR 176

This bill allows a deduction from gross income (above the line deduction) for attorney fees and court costs awarded with respect to a qualifying wildfire disaster (i.e., any forest or range fire that is a federally declared disaster, occurs in a disaster area, and occurs in 2015 or later).

The bill excludes from the gross income of a taxpayer, for income tax purposes, amounts paid to compensate victims for losses or damages in connection with a qualifying wildfire disaster.

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Current Status of Bill HR 176

Bill HR 176 is currently in the status of Bill Introduced since January 10, 2023. Bill HR 176 was introduced during Congress 118 and was introduced to the House on January 9, 2023. Bill HR 176's most recent activity was Sponsor introductory remarks on measure. (CR H120) as of January 10, 2023

Bipartisan Support of Bill HR 176

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

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Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 176

Primary Policy Focus

Taxation

Alternate Title(s) of Bill HR 176

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.