119-hr4181

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4181 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 4181

 To amend the Internal Revenue Code of 1986 to provide incentives for 
 wildfire prevention.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 June 26, 2025

 Mr. Issa (for himself, Mr. Baumgartner, Mr. Gosar, Mr. Newhouse, and 
 Mr. LaMalfa) introduced the following bill; which was referred to the 
 Committee on Ways and Means

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to provide incentives for 
 wildfire prevention.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Wildfire Infrastructure and 
Landowner Tax Relief Act of 2025'' or the ``WILTR Act of 2025''.

SEC. 2. EXCLUSION OF GROSS INCOME RELATED TO HAZARDOUS FUEL REDUCTION 
 ACTIVITIES.

    (a) In General.--

Section 139 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
 ``
            (i) Hazardous Fuel Reduction Activities on and Improvements to 
Real Property.--
 ``

    (1) In general.--Gross income shall not include any grant 
 or award received by a taxpayer or services provided to the 
 taxpayer for the purpose of conducting hazardous fuel reduction 
 activities on or hazardous fuel reduction improvements to the 
 real property of such taxpayer.
 ``

    (2) === Definitions. ===
-For purposes of this section--
 ``
        (A) Hazardous fuel reduction activity.--The term 
 `hazardous fuel reduction activity' means an activity 
 the purpose of which is wildfire prevention through--
 ``
            (i) the installation of--
 ``
            (I) a natural or manmade change 
 in fuel characteristics that affects 
 fire behavior such that a fire can be 
 more readily controlled (commonly known 
 as a `fuel break)', or
 ``
            (II) a natural or constructed 
 barrier used to stop or check a fire or 
 to provide a control line from which to 
 work to stop or check a fire (commonly 
 known as a `firebreak'), or
 ``
            (ii) reduction of hazardous fuels, 
 including--
 ``
            (I) prescribed fire,
 ``
            (II) wildland fire use, and
 ``
            (III) the use of mechanical 
 methods such as crushing, tractor and 
 hand piling, thinning, pruning, 
 cutting, or otherwise removing 
 hazardous fuels.
 ``
        (B) Hazardous fuel reduction improvement.--The 
 term `hazardous fuel reduction improvement' means 
 additions or alterations to real property the purpose 
 of which is to enable firefighting preparation, 
 training, access, or fire suppression or emergency 
 evacuation relating to fire, including--
 ``
            (i) the installation of firefighting 
 equipment or infrastructure,
 ``
            (ii) the maintenance, expansion, or 
 alteration of trails or roads for the purposes 
 of firefighting access or fire-related 
 evacuation, and
 ``
            (iii) the facilitation of firefighter 
 training on such real property.
 ``
            (C) Hazardous fuel.--The term `hazardous fuel' 
 means any vegetative material that is susceptible to 
 burning, including--
 ``
            (i) trees,
 ``
            (ii) grasses,
 ``
            (iii) shrubs,
 ``
            (iv) sagebrush,
 ``
            (v) chaparral, and
 ``
            (vi) any dead vegetative material on or 
 near the ground.''.

    (b) Effective Date.--The amendment made by this section shall apply 
to amounts received after the date of the enactment of this Act.

SEC. 3. TREATMENT OF EXPENDITURES IN CONNECTION WITH HAZARDOUS FUEL 
 REDUCTION ACTIVITIES OR IMPROVEMENTS.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after 

section 199A the following new section:

``

SEC. 199B. DEDUCTION FOR HAZARDOUS FUEL REDUCTION ACTIVITIES OR 
 IMPROVEMENTS.

 ``

    (a) In General.--There shall be allowed as a deduction an amount 
equal to the amounts paid or incurred by the taxpayer for qualified 
hazardous fuel reduction activities during the taxable year.
 ``

    (b) Qualified Hazardous Fuel Reduction Activities.--For purposes 
of this section, the term `qualified hazardous fuel reduction 
activities' means improvements to the real property of the taxpayer 
which--
 ``

    (1) is a hazardous fuel reduction activity or hazardous 
 fuel reduction improvement described in 

section 139
            (i) (2) , and
 ``

    (2) a State, local, Tribal, or Federal fire management 
 agency certifies will reduce hazardous fuels or enable 
 firefighting preparation, training, access, or fire suppression 
 or emergency evacuation relating to fire.
 ``
            (c) Denial of Double Benefit.--No deduction shall be allowed 
under subsection

    (a) with respect to any expenditure to the extent that 
an amount is excludable under 

section 139
            (i) with respect to such 
expenditure.''.

    (b) Deduction Taken Into Account in Determining Adjusted Gross 
Income.--

Section 62

    (a) of such Code is amended by inserting after 
paragraph

    (21) the following new paragraph:
 ``

    (22) Expenditures in connection with qualified hazardous 
 fuel reduction activities.--The deduction allowed by 

section 199B.''.
            (c) Conforming Amendments.--

    (1) Section 263

    (a)

    (1) of such Code is amended by striking 
 ``or'' at the end of subparagraph
        (J) , by striking the period 
 at the end of subparagraph
        (K) and inserting ``, or'', and by 
 adding at the end the following new subparagraph:
 ``
            (L) expenditures for which a deduction is allowed 
 under 

section 200.''.

    (2) The table of sections for part VI of subchapter B of 
 chapter 1 of such Code is amended by inserting after the item 
 relating to 

section 199A the following new item:

``

Sec. 199B. Deduction for hazardous fuel reduction activities or 
 improvements.''.
            (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.
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