S. 3372 — 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. 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 disaster due to a forest or range fire after December 31, 2014, to the extent not compensated by insurance or otherwise; it also denies deductions or credits for related expenditures and prevents basis increases in property for excluded amounts.