Exclusion of gross income related to hazardous fuel reduction activities

(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.