Section 1 Short title
This Act may be cited as the “Wildfire Victim Tax Relief and Recovery Act”.
Wildfire Victim Tax Relief and Recovery Act
A BILL
To exclude certain amounts relating to compensating victims of the Texas Panhandle fires, and for other purposes.
Sec. 2 Texas Panhandle fire disaster relief payments
In general— Texas Panhandle fire payments shall be treated as qualified disaster relief payments for purposes of section 139(b) of the Internal Revenue Code of 1986.
Texas Panhandle fire payments— For purposes of this section, the term “Texas Panhandle fire payment” means any amount received by or on behalf of an individual as compensation for loss, damages, expenses, loss in real property value, closing costs with respect to real property (including realtor commissions), or inconvenience (including access to real property) resulting from any Texas Panhandle fire if such amount was provided by—
a Federal, State, or local government agency,
Xcel Energy, or
any subsidiary, insurer, or agent of Xcel Energy or any related person.
Texas Panhandle Fire— For purposes of this section, the term “Texas Panhandle fire” means any of the following wildfires:
The Smokehouse Creek Fire that ignited in Hutchinson County, Texas, on February 26, 2024.
The Windy Deuce Fire that ignited in Moore County, Texas, on February 26, 2024.
The Grape Vine Creek Fire that ignited in Gray County, Texas, on February 26, 2024.
The 687 Reamer Fire that ignited in Hutchinson County, Texas, on February 27, 2024.
The Roughneck Fire that ignited in Hutchinson County, Texas, on March 3, 2024.
Effective date— This section shall apply to amounts received on or after February 26, 2024.
Sec. 3 Involuntary conversions of livestock
Livestock sold on account of fire—
In general— Section 1033(e)(1) of the Internal Revenue Code of 1986 is amended by inserting “fire” after “flood”.
Extension of replacement period— Section 1033(e)(2) of such Code is amended by inserting “fire” after “flood”.
Conforming amendment— The heading for section 1033(e) of such Code is amended by inserting “fire” after “flood”.
Replacement of livestock with other property— Section 1033(f) of such Code is amended by inserting “fire” after “flood”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2023.
Sec. 4 Proceeds from livestock sold on account of fire
In general— Section 451(g) of the Internal Revenue Code of 1986 is amended by inserting “fire” after “flood”.
Conforming amendment— The heading for section 451(g) of such Code is amended by inserting “fire” after “flood”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2023.