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S496119th CongressWALLET

Wildfire Victim Tax Relief and Recovery Act

Sponsored By: Senator Cruz, Ted [R-TX]

Introduced

Summary

Targeted tax relief for Texas Panhandle wildfire victims and farmers. This bill would let farmers defer taxable gains from livestock sold because of fire and treat certain payments tied to named Texas Panhandle wildfires as tax-free disaster relief.

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  • Individuals who receive payments from federal, state, or local agencies or from Xcel Energy (or its subsidiaries, insurers, or agents) for losses, damages, expenses, loss in property value, closing costs, or inconvenience tied to any Texas Panhandle fire may exclude those amounts from gross income. The exclusion covers payments related to five named fires and applies to amounts received on or after Feb 26, 2024.
  • Farmers could treat livestock sales or exchanges caused by fire like flood-driven involuntary conversions, allowing deferral of taxable gain. That change may let qualifying livestock gains be deferred up to four years and applies for tax years beginning after Dec 31, 2023.

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Bill Overview

Analyzed Economic Effects

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

Tax timing relief for livestock owners

If enacted, farmers and ranchers could defer or change the timing of income when they sold livestock because of a fire. The bill adds "fire" alongside "flood" to the involuntary conversion and livestock timing rules. This change would apply to taxable years beginning after December 31, 2023.

Tax-free payments for Texas Panhandle wildfire victims

If enacted, you could exclude certain disaster payments from your taxable income. The payment must be for loss, damage, closing costs, or inconvenience from one of five named Texas Panhandle wildfires: Smokehouse Creek, Windy Deuce, Grape Vine Creek, 687 Reamer, or Roughneck. Payments must come from a federal, state, or local agency, Xcel Energy, or Xcel-related entities. This applies to amounts received on or after February 26, 2024.

Sponsors & CoSponsors

Sponsor

Cruz, Ted [R-TX]

TX • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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