Bipartisan tax deal that includes exemption of wildfire relief payments from federal income taxes posted by GOP leadership

Last night, the House Republican leadership posted the tax bill negotiated by House Ways and Means Committee and the Senate Finance Committee. This means that, as of now, the bill will be put on the House floor next week, when the House is back in session. The bill is to be passed under suspension of the rules, a streamlined process that sidesteps the Rules Committee’s approval and amendment process, but requires a two-thirds majority for passage. Bills need five days for consideration as part of the suspension calendar. On Friday, the bill was approved by the House Ways and Means Committee by 40-3 votes, with unanimous Republican support.

Congressman Doug LaMalfa’s bill with Congressman Mike Thompson to exempt all wildfire relief payments from federal income taxes and taxation on legal fees, emotional distress, lost wages, and additional living expenses has been included in the legislation. The legislation includes LaMalfa’s cowritten legislation, the Taxpayer Certainty and Disaster Tax Relief Act, which makes it easier to write off losses from disasters. The bill is fully paid for under this bipartisan agreement by repurposing funds previously authorized for COVID relief.

“I am optimistic that next week the House will vote on and pass this bipartisan bill,” LaMalfa said. “The bill is fully paid for by eliminating a wasteful spending program, includes tax reforms that will benefit small businesses, middle-income families and boosts competitiveness with China. It is also essential for the many Camp, Carr and Zogg fire survivors and other fire survivors across the nation who have had their settlement money that was supposed to help them rebuild unfairly highly taxed as income. Congress should pass it and get it to the President’s desk as soon as possible.”