Harder Backs Bill to Ensure PG&E Fire Victim Settlement Funds are Not Taxable

Press Release

Today, Representative Josh Harder backed a bipartisan bill that will exempt thousands of fire victims who are receiving compensation from the PG&E Fire Victim Trust from having to pay federal income tax on their settlement money. The Trust is a $13.5 billion settlement established in July 2020 for survivors of the 2015 Butte Fire, the 2017 North Bay Wildfires, and the 2018 Camp Fire.

In addition to protecting trust payments from federal taxes, the legislation would prevent survivors from having to pay taxes on the attorney fees that are included in the settlement. These fees account for roughly 30% of the compensation, meaning that without this legislation, survivors would be taxed on money that their attorneys keep. Although the deadline to file 2021 taxes is April 18, 2022, this legislation would allow survivors to be awarded their exemption retroactively.

"PG&E owes our communities billions for the damage they've caused and we're finally poised to make them pay up. With those payments on the horizon, we have to make sure every dollar ends up in the hands of actual families instead of getting paid to lawyers or taxed by the government," said Rep. Harder. "I'm backing this bill today so that the families and communities who have been devastated by PG&E's wildfires get every dollar they're entitled to receive. Our folks need that money. The federal government does not."

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