(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.

(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:

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

(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.