Payments from Southern California Edison — the utility whose equipment is believed to have started the Eaton Fire — could help some families rebuild their destroyed homes. But those payments also could land homeowners with a huge tax bill.

To address this problem, California Sen. Alex Padilla has introduced a bill that would make existing tax exemptions permanent for wildfire survivors .

Congress passed exemptions one year ago, but they’re set to expire at the end of 2025. Unless Congress approves new exemptions, homeowners who accept wildfire compensation next year could have their payouts taxed.

“When a fire survivor is wading through the ashes of their former home and thinking about how to rebuild their life, the last thing they should have to worry about is how they’re going to

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