PRIA Logo™
119-hr-1169119th CongressWALLET

Wildfire Victim Tax Relief and Recovery Act

Sponsored By: Representative Jackson, Ronny [R-TX-13]

Introduced

Summary

This bill would make payments tied to five Texas Panhandle fires tax-free as qualified disaster relief under the tax code and extend flood-related tax rules to cover fire losses for livestock.

Show full summary
  • Residents and homeowners: People who receive compensation for loss, damages, expenses, loss in real property value, closing costs, or inconvenience from those fires would not owe federal tax on those payments. Covered payments include amounts from federal, state, or local agencies, Xcel Energy or related parties, and insurers for payments received on or after Feb 26, 2024.
  • Farmers and livestock owners: The bill would let involuntary conversion rules and the special sale-proceeds treatment that apply to floods also apply to fires. Those tax changes apply to taxable years beginning after Dec 31, 2023.
  • Defined scope: The measure defines "Texas Panhandle fire payments" and lists five fires occurring Feb 26 to Mar 3, 2024: Smokehouse Creek, Windy Deuce, Grape Vine Creek, 687 Reamer, and Roughneck.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Tax-free help for Texas Panhandle fire losses

If enacted, certain payments tied to five Texas Panhandle fires would be tax-free. Payments can cover losses, damages, expenses, lower property value, closing costs, or access issues. Money must come from a government agency, Xcel Energy, or its subsidiaries, insurers, agents, or related persons. Covered fires are Smokehouse Creek (Hutchinson, Feb 26, 2024), Windy Deuce (Moore, Feb 26, 2024), Grape Vine Creek (Gray, Feb 26, 2024), 687 Reamer (Hutchinson, Feb 27, 2024), and Roughneck (Hutchinson, Mar 3, 2024). The exclusion would apply to amounts received on or after February 26, 2024.

Fire loss tax relief for livestock owners

If enacted, farmers could use the same tax relief after fires that now applies after floods. For livestock sold or lost because of fire, you could defer gain and have more time to replace animals. These changes would apply to taxable years starting after December 31, 2023. You would need to show the sale or loss was due to the fire.

Sponsors & CoSponsors

Sponsor

Jackson, Ronny [R-TX-13]

TX • R

Cosponsors

  • Rep. Van Duyne, Beth [R-TX-24]

    TX • R

    Sponsored 2/25/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation