New Federal Law Extends Wildfire Tax Relief for 2026 Payments

A federal law signed Sept. 11, 2026 added Internal Revenue Code §139M, excluding certain qualifying wildfire-relief payments from gross income when they compensate individuals for wildfire-caused losses, expenses or damages that were not otherwise reimbursed. The provision applies to qualifying payments received in taxable years beginning after Dec. 31, 2025.

Action: Read Public Law 119-108 | Review the treatment of any settlement, grant or relief payment with a qualified tax professional.