H.R. 5225 — Protect Innocent Victims of Taxation After Fire Extension Act

This section establishes an exclusion from gross income for qualified wildfire relief payments received by individuals after December 31, 2025, and before January 1, 2033. A qualified wildfire relief payment is any amount received as compensation for losses, expenses, or damages—including additional living expenses, lost wages (other than from an employer), personal injury, death, or emotional distress—resulting from a federally declared wildfire disaster after December 31, 2014, to the extent not compensated by insurance or otherwise; the exclusion also denies any related deductions, credits, or basis increases for such amounts.