Protect Innocent Victims Of Taxation After Fire Act

This bill excludes certain wildfire relief payments from taxable income for individuals affected by federally declared wildfires. It applies to payments covering uninsured losses like property damage, additional living expenses, or emotional distress resulting from qualified wildfires (declared after 2014). The exclusion prevents double tax benefits by disallowing deductions for expenses already covered by these payments. The policy change applies only to payments received between 2020 and 2025.