U.S. Sen. Ron Wyden, D-Oregon, has passed legislation to provide immediate tax relief to Americans who lose their homes in federally declared natural disasters, including wildfires. The measure removes taxes on settlement payments received by victims of unpredictable natural disasters.
Background
The bill addresses tax provisions originally enacted under a 2017 tax bill. While the Senate successfully suspended these taxes in 2024, the protections were set to expire this year, potentially leaving disaster victims liable for taxes on their recovery funds.
Sen. Wyden emphasized that the bill is designed to support residents currently facing wildfire risks. The legislation now heads to the White House to be signed into law.
Original reporting: KTVZ (Central Oregon) — read the source article.
