WILTR Act of 2025

This bill seeks to encourage wildfire prevention efforts by providing specific tax incentives to landowners. It amends the Internal Revenue Code of 1986 to introduce two primary benefits related to hazardous fuel reduction activities and improvements on real property. First, the bill proposes to exclude from gross income any grants, awards, or services received by a taxpayer for undertaking hazardous fuel reduction activities or making related improvements. These activities include creating fuel breaks, firebreaks, or reducing hazardous fuels through methods like prescribed fire or mechanical thinning, while improvements cover additions for firefighting access, training, or equipment. Second, the legislation establishes a new tax deduction for amounts paid or incurred by taxpayers for qualified hazardous fuel reduction activities . To qualify for this deduction, the activities or improvements must be certified by a State, local, Tribal, or Federal fire management agency as effectively reducing hazardous fuels or enhancing firefighting capabilities and emergency evacuation. A provision is included to prevent taxpayers from claiming both the income exclusion and the deduction for the same expenditure, ensuring no double benefit.