Washington – Today, Rep. Mike Thompson (CA-04) released the following statement after the House of Representatives voted to pass H.R. 7024, the Tax Relief for American Families and Workers Act of 2024. The bill includes Rep. Thompson’s legislation with Rep. Doug LaMalfa (CA-01) to make PG&E Fire Victims Trust settlements nontaxable.
“Today’s strong bipartisan vote to provide essential tax relief to fire survivors is an important step towards recovery for those who lost homes, businesses, and loved ones in disastrous wildfires,” said Thompson. “The Senate must swiftly consider and pass this bill so that our fire survivors receive the tax relief they desperately need.”
“Fire survivors have waited too long for certainty regarding the settlement with PG&E. To have to pay a huge portion to the government because the IRS deemed disaster aid as income adds insult to injury, especially paying the income tax on the lawyers’ fees. My staff and I have worked diligently on this initiative for many months to finally see it come to fruition. I thank Ways and Means Chairman Smith for negotiating this deal, and Speaker Johnson for getting it to the House Floor for a vote expeditiously. The Senate needs to quickly act quickly as the new tax period will be upon us soon.” said Rep. Doug LaMalfa.
"We are grateful for the leadership of Rep. Mike Thompson in spearheading tax justice for fire victims. Rep. Thompson has been a fierce supporter of fire victims since our devastating megafire disaster in October of 2017. Rep. Thompson's ability to work across the aisle with Rep. LaMalfa to get this over the line in the House is a testament to the critical importance to thousands of families," said Jennifer Gray Thompson, Founder and CEO of After the Fire USA. "This bill is the most important legislation ever passed for fire victims, affecting hundreds of thousands of disaster survivors and correcting a grave error in the tax code. Rep. Thompson's commitment to fire victims and bipartisanship on this issue is deeply appreciated by megafire victims at home and across the country. After the Fire USA is proud to work with Rep. Thompson in service to fire victims everywhere."
The bill now goes to the Senate for a vote before going to President Biden’s desk for his signature.