S. 3261

Human Trafficking Survivor Tax Relief Act

Shown here: Introduced in Senate (2025-11-20)

To amend the Internal Revenue Code of 1986 to provide an exemption from gross income for mandatory restitution or civil damages as recompense for trafficking in persons.

1. Short title

This Act may be cited as the “Human Trafficking Survivor Tax Relief Act”.

2. Exempting from Federal income taxation restitution and civil damages awarded under sections 1593 and 1595 of title 18, United States Code

(a) In general

Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section:

139M. Certain amount received as restitution or civil damages as recompense for trafficking in persons
(a) Exclusion from gross income
Gross income shall not include any civil damages, restitution, or other monetary award (including compensatory or statutory damages and restitution imposed in a criminal matter) awarded—
(1) pursuant to an order of restitution under section 1593 of title 18, United States Code, or
(2) in an action under section 1595 of title 18, United States Code.

(b) Conforming amendment

The table of sections for part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before the item relating to section 140 the following new item:

Sec. 139M. Certain amount received as restitution or civil damages as recompense for trafficking in persons.

(c) Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Workspace/Typeset/Bill