,,ii  #aagth ,,congress  #b;d ,session  
,s4 #dfff  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bh1     
#bjbb,mrs4 ,feinstein 7for herself1 ,mr4
 ,padilla1 and ,mr4 ,hickenlooper7      
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,finance  ,a ,,bill  ,to  
amend the ,internal ,revenue ,code of   
#aihf to establish a deduction for      
attorney fees awarded with respect to   
certain wildfire damages and to exclude 
from gross income settlement funds      
received with respect to such damages4  
#a4 ,above the line deduction for       
attorney fees relating to awards for    
property damage due to certain wildfires
  7a7 ,in general ,section #fb7;a7 of   
the ,internal ,revenue ,code of #aihf is
 amended by inserting after paragraph   
7#ba7 the following new paragraph3      
7#bb7 ,attorney fees and court costs    
relating to awards with respect to      
certain wildfires  7,a7 ,in general ,any
 deduction allowable under this chapter 

for attorney fees and court costs paid  
by1 or on behalf of1 the taxpayer in    
connection with any award with respect  
to a qualifying wildfire disaster4 ,the 
preceding sentence shall not apply to   
any deduction in excess of the amount   
includible in the taxpayer's gross      
income for the taxable year on account  
of a judgment or settlement 7whether by 
suit or agreement and whether as lump   
sum or periodic payments7 resulting from
 such claim4  7,b7 ,qualifying wildfire 
disaster ,for purposes of subparagraph  
7,a71 the term qualifying wildfire      
disaster means any forest or range fire 
that-- 7i7 is a federally declared      
disaster 7as defined in section         
#afe7;i77#e77;,a771  7ii7 occurs in a   
disaster area 7as defined in section    
#afe7;i77#e77;,b771 and  7iii7 occurs in
 calendar year #bjae or later4  4  7b7  
,effective date ,the amendment made by  
this section shall apply to attorney    
fees and court costs awarded after ,may 
#ca1 #bjbj4  #b4 ,exclusion of certain  

wildfire settlement proceeds from gross 
income  7a7 ,in general ,part ,,iii of  
subchapter ,b of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended by inserting after section      
#aci;,i the following new section3      
#aci;,j4 ,certain wildfire settlement   
proceeds  7a7 ,in general ,gross income 
shall not include amounts paid by a     
qualified settlement fund established to
 compensate victims for losses or       
damages in connection with a qualifying 
wildfire disaster 7as defined in section
 #fb7;a77#bb77;,b774  7b7 ,qualified    
settlement fund ,the term qualified     
settlement fund has the meaning given   
such term in ,treasury ,regulation      
#a4dfh;,b-#a4  4  7b7 ,clerical         
amendment ,the table of sections for    
part ,,iii of subchapter ,b of chapter  
#a of such ,code is amended by inserting
 after the item relating to section     
#aci;,i the following new item3  ,sec4  
#aci;,j4 ,wildfire settlement proceeds4 
4  7c7 ,effective date ,the amendment   

made by this section shall apply to     
amounts paid after ,may #ca1 #bjbj4