1. Above the line deduction for attorney fees relating to awards for property damage due to certain wildfires (a) In general Section 62(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (22) Attorney fees and court costs relating to awards with respect to certain wildfires (A) In general Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any award with respect to a qualifying wildfire disaster. The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer's gross income for the taxable year on account of a judgment or settlement (whether by suit or agreement and whether as lump sum or periodic payments) resulting from such claim. (B) Qualifying wildfire disaster For purposes of subparagraph (A), the term qualifying wildfire disaster means any forest or range fire that— (i) is a federally declared disaster (as such term is defined in section 165(i)(5)(A)), (ii) occurs in a disaster area (as such term is defined in section 165(i)(5)(B)), and (iii) occurs in calendar year 2015 or later. . (b) Effective date The amendment made by this section shall apply to attorney fees and court costs awarded after May 31, 2020. 2. Exclusion of certain wildfire settlement proceeds from gross income (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section: 139J. Certain wildfire settlement proceeds (a) In general Gross income shall not include amounts paid by a qualified settlement fund established to compensate victims for losses or damages in connection with a qualifying wildfire disaster (as defined in section 62(a)(22)(B)). (b) Qualified settlement fund The term qualified settlement fund has the meaning given such term in Section 1.468B–1 of title 26, Code of Federal Regulations. . (b) Clerical amendment The table of sections for part III of