,,ii  #aag? ,,congress  #b;d ,session   
,s4 #dfff  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #bh1 #bjbb,mrs4  
,fe9/e9 7= h]self1 ,mr4 ,padilla1 & ,mr4
 ,hick5loop]7 introduc$ ! foll[+ bill2  
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 e/abli% a d$uction = attorney fees     
aw>d$ ) respect to c]ta9 wildfire       
damages & to exclude f gross income     
settlem5t funds receiv$ ) respect to su*
 damages4  #a4 ,above ! l9e d$uction =  
attorney fees relat+ to aw>ds = prop]ty 
damage due to c]ta9 wildfires  7a7 ,9   
g5]al ,section #fb7;a7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] p>agraph 7#ba7 ! foll[+ new       
p>agraph3  7#bb7 ,attorney fees & c\rt  
co/s relat+ to aw>ds ) respect to c]ta9 
wildfires  7,a7 ,9 g5]al ,any d$uction  
all[able "u ?is *apt] = attorney fees & 
c\rt co/s paid by1 or on behalf (1 !    
taxpay] 9 connection ) any aw>d )       
respect to a qualify+ wildfire disa/]4  

,! prec$+ s5t5ce %all n apply to any    
d$uction 9 excess ( ! am\nt includible 9
 ! taxpay]'s gross income = ! taxable   
ye> on acc\nt ( a judgm5t or settlem5t  
7:e!r by suit or agreem5t & :e!r z lump 
sum or p]iodic paym5ts7 result+ f su*   
claim4  7,b7 ,qualify+ wildfire disa/]  
,= purposes ( subp>agraph 7,a71 ! t]m   
qualify+ wildfire disa/] means any =e/  
or range fire t-- 7i7 is a f$]ally      
decl>$ disa/] 7z def9$ 9 section        
#afe7;i77#e77;,a771  7ii7 occurs 9 a    
disa/] area 7z def9$ 9 section          
#afe7;i77#e77;,b771 &  7iii7 occurs 9   
cal5d> ye> #bjae or lat]4  4  7b7       
,effective date ,! am5dm5t made by ?is  
section %all apply to attorney fees &   
c\rt co/s aw>d$ aft] ,may #ca1 #bjbj4   
#b4 ,exclusion ( c]ta9 wildfire         
settlem5t proce$s f gross income  7a7 ,9
 g5]al ,"p ,,iii ( sub*apt] ,b ( *apt]  
#a ( ! ,int]nal ,rev5ue ,code ( #aihf is
 am5d$ by ins]t+ aft] section #aci;,i ! 
foll[+ new section3  #aci;,j4 ,c]ta9    
wildfire settlem5t proce$s  7a7 ,9 g5]al

 ,gross income %all n include am\nts    
paid by a qualifi$ settlem5t fund       
e/abli%$ to comp5sate victims = losses  
or damages 9 connection ) a qualify+    
wildfire disa/] 7z def9$ 9 section      
#fb7;a77#bb77;,b774  7b7 ,qualifi$      
settlem5t fund ,! t]m qualifi$ settlem5t
 fund has ! mean+ giv5 su* t]m 9        
,treasury ,regulation #a4dfh;,b-#a4  4  
7b7 ,cl]ical am5dm5t ,! table ( sections
 = "p ,,iii ( sub*apt] ,b ( *apt] #a (  
su* ,code is am5d$ by ins]t+ aft] ! item
 relat+ to section #aci;,i ! foll[+ new 
item3  ,sec4 #aci;,j4 ,wildfire         
settlem5t proce$s4  4  7c7 ,effective   
date ,! am5dm5t made by ?is section %all
 apply to am\nts paid aft] ,may #ca1    
#bjbj4