S. 496

119 S496 IS: Wildfire Victim Tax Relief and Recovery Act
 U.S. Senate
 2025-02-10
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 496  IN THE SENATE OF THE UNITED STATES   February 10, 2025   Mr. Cruz  introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To exclude certain amounts relating to compensating victims of the Texas Panhandle fires, and for other purposes.
1.
Short title
This Act may be cited as the   Wildfire Victim Tax Relief and Recovery Act  .
2.
Texas panhandle fire disaster relief payments
(a)
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.
(b)
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—
(1)
a Federal, State, or local government agency,
(2)
Xcel Energy, or
(3)
any subsidiary, insurer, or agent of Xcel Energy or any related person.
(c)
Texas panhandle fire
For purposes of this section, the term  Texas Panhandle fire  means any of the following wildfires:
(1)
The Smokehouse Creek Fire that ignited in Hutchinson County, Texas, on February 26, 2024.
(2)
The Windy Deuce Fire that ignited in Moore County, Texas, on February 26, 2024.
(3)
The Grape Vine Creek Fire that ignited in Gray County, Texas, on February 26, 2024.
(4)
The 687 Reamer Fire that ignited in Hutchinson County, Texas, on February 27, 2024.
(5)
The Roughneck Fire that ignited in Hutchinson County, Texas, on March 3, 2024.
(d)
Effective date
This section shall apply to amounts received on or after February 26, 2024.
3.
Involuntary conversions of livestock
(a)
Livestock sold on account of fire
(1)
In general
 Section 1033(e)(1)  of the Internal Revenue Code of 1986 is amended by inserting  fire,  after  flood, .
(2)
Extension of replacement period
Section 1033(e)(2) of such Code is amended by inserting  fire,  after  flood, .
(3)
Conforming amendment
The heading for section 1033(e) of such Code is amended by inserting
fire,   after
flood,  .
(b)
Replacement of livestock with other property
 Section 1033(f)  of the Internal Revenue Code of 1986 is amended by inserting  fire,  after  flood, .
(c)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2023.
4.
Proceeds from livestock sold on account of fire
(a)
In general
 Section 451(g)  of the Internal Revenue Code of 1986 is amended by inserting  fire,  after  flood .
(b)
Conforming amendment
The heading for section 451(g) of such Code is amended by inserting
fire,   after
flood,  .
(c)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2023.