New federal legislation poised to provide tax relief for Eaton Fire compensation payments; SCE payments now exceed $410 million.

Southern California Edison today highlighted continued participation in its Wildfire Recovery Compensation Program and pointed to federal legislation that could provide additional tax relief for community members impacted by the Eaton Fire.

The U.S. House and Senate have approved the bipartisan Doug LaMalfa Federal Disaster Tax Relief Certainty Act (H.R. 5366) and sent the legislation to President Trump's desk for signing. The measure extends the exclusion of qualified wildfire relief payments from gross income, including certain payments received after the prior exemption expired on Dec. 31, 2025. This would allow individuals to receive payments made by SCE through the Wildfire Recovery Compensation Program free from federal income tax.

“Community members are weighing many factors as they make decisions about recovery,” said Pedro J. Pizarro, president and CEO of Edison International, SCE’s parent company. “Once signed, this legislation can provide greater certainty as people consider their options and determine the path that’s right for them.”

The timing and tax treatment of compensation are important considerations for community members evaluating their recovery options. As part of the legislation, SCE would exclude all non-reportable payments as allowed by law from 1099-MISC reporting, including compensation for the following:

• Real property loss or damage
• Personal property loss or damage
• Physical injury or loss of life
• Non-economic loss
• Commercial property owners: Compensation for rebuilding or repairing commercial properties and tenant improvements
• Commercial tenants: Payments for lost or damaged personal property
• Lost rental income and business interruption

Claimants are encouraged to consult a qualified tax adviser as they consider their paths forward, as this information should not be construed as tax advice.

As of Aug. 14, 2026:

• More than 4,250 claims submitted, consisting of over 13,000 individuals, trusts and legal entities, with 39% submitted by attorneys or authorized representatives.
• More than 2,350 offers extended to over 5,800 claimants, totaling more than $820 million.
• Nearly 2,800 claimants paid, totaling more than $410 million, with many more in process.

Less than four months remain to submit a claim. Eligible community members who have not yet participated are encouraged to submit a claim by Nov. 30, 2026, so they can fully explore the compensation options available to them before making decisions about their path forward.

Prompt and Certain Compensation

The Wildfire Recovery Compensation Program is designed to offer compensation in line with settlement values for similar claims in past wildfire lawsuits, with a more streamlined and faster approach than litigation. Multiple program participants have chosen to share their experiences publicly, offering perspectives on their recovery and the role compensation has played in helping them move forward.

There’s no assurance that a claimant will receive more through a lawsuit. In fact, court proceedings are lengthy and uncertain. Even past wildfire settlement processes have been slow and expensive for all parties involved. Some claims from 2017 and 2018 fires, which involved significantly fewer plaintiffs than the Eaton Fire, are still pending today.

A January 2027 trial date would cover only five to 10 households out of more than 10,000 in the pending litigation. Even after a trial, the outcome may be subject to lengthy appeals, potentially adding years of additional delay before those plaintiffs receive a final resolution. Given the unprecedented number of litigants in the Eaton Fire case, resolving claims through the legal system or formal settlement processes used in prior cases could take many years.

Through the Wildfire Recovery Compensation Program, offers are being delivered within 35 days, on average, which is well within the 90-day commitment following submission of a substantially complete claim. Filing a claim does not waive a claimant's rights. Receiving and evaluating an offer does not waive rights either.

Payments are made within 30 days after all conditions in the settlement agreement have been satisfied, with many claimants receiving payment in as little as two to three weeks.

Get Started

• Visit the Wildfire Recovery Compensation Program web page.
• For one-on-one assistance in multiple languages, call 888-912-8528. In-person appointments are also available to guide claimants through the requirements and help them along the way.
• For firms representing multiple eligible claimants, a bulk intake process is available. Email the team to get started.

About Southern California Edison

An Edison International (NYSE: EIX) company, Southern California Edison is one of the nation’s largest electric utilities, serving a population of approximately 15 million via 5 million customer accounts in a 50,000-square-mile service area within Central, Coastal and Southern California.

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