Wildfire Victim Tax Relief and Recovery Act
Wildfire Victim Tax Relief and Recovery Act
Plain Language Summary
# Wildfire Victim Tax Relief and Recovery Act (HR 1169) - Summary ## What the Bill Does This bill provides tax relief to farmers and individuals affected by wildfires in Texas. Specifically, it allows farmers to delay paying taxes on profits from selling livestock that had to be sold due to wildfires—similar to existing protections for livestock sales caused by drought or flooding. The bill also lets individuals exclude certain disaster relief payments from their taxable income if they received funds related to specific Texas wildfires. ## Who It Affects and Key Provisions The bill primarily benefits Texas farmers and ranchers who lost livestock in wildfires, as well as residents who received disaster relief payments. Under current law, farmers can already defer taxes on livestock sales caused by weather disasters for up to four years, but wildfires aren't explicitly included in that list.
This bill adds fire to those qualifying conditions. Additionally, disaster relief money that individuals received for wildfire damage would not count as taxable income, providing further financial relief during recovery. ## Current Status The bill is currently in committee, meaning it has been introduced but has not yet been debated or voted on by the full House of Representatives. It was sponsored by Representative Ronny Jackson (R-TX).
CRS Official Summary
Wildfire Victim Tax Relief and Recovery ActThis bill allows farmers to defer taxes on gain from the sale or exchange of livestock because of a fire. (Conditions apply.) The bill also allows individuals to exclude from gross income (for tax purposes) certain disaster relief payments received in connection with specific Texas wildfires.Currently, farmers may defer gain on the sale or exchange of livestock (other than poultry) held for draft, breeding, or dairy purposes due to drought, flood, or other weather-related conditions for two years (four years if attributable to a federally-declared disaster). Otherwise, under current law, gain on the sale of livestock (including poultry) due to such weather-related conditions attributable to a federally-declared disaster may be deferred for one year. (Conditions apply.)The bill adds fire to the list of circumstances for which the gain on the sale or exchange of livestock may be deferred, thus allowing farmers to defer such gains for up to four years (depending on the type of livestock and whether the sale is attributable to a federally-declared disaster).The bill also allows individuals to exclude from gross income payments received from federal, state, or local government agencies or Xcel Energy (or any subsidiary, insurer, or agent of Xcel Energy) as compensation for unreimbursed losses, damages, and certain expenses attributable to theSmokehouse Creek, 687 Reamer, and Roughneck Fires (Hutchinson County, Texas, February and March 2024);Windy Deuce Fire (Moore County, Texas, February 2024); andGrape Vine Creek Fire (Gray County, Texas, February 2024).
Latest Action
Referred to the House Committee on Ways and Means.