PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Ways and Means.
Congressional Research Service
Version 00 · Introduced in House · Feb 10, 2025
Wildfire Victim Tax Relief and Recovery Act
This 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.)
Showing the opening paragraphs of the official summary.
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 the
Smokehouse Creek, 687 Reamer, and Roughneck Fires (Hutchinson County, Texas, February and March 2024);
Windy Deuce Fire (Moore County, Texas, February 2024); and
Grape Vine Creek Fire (Gray County, Texas, February 2024).
People & committees
Rep. Jackson, Ronny [R-TX-13] · R–TX
Legislative record
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Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Dec 5, 2025. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-02-10 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposed Wildfire Victim Tax Relief and Recovery Act would give special federal disaster-relief tax treatment to certain compensation received by or for individuals affected by specified Texas Panhandle wildfires. It would also add fire to existing tax rules concerning livestock sales, replacement periods, and replacement property.
This Act may be cited as the Wildfire Victim Tax Relief and Recovery Act.
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.
(2) Extension of replacement period Section 1033(e)(2) of such Code is amended by inserting fire after flood.
(b) Replacement of livestock with other property Section 1033(f) of such Code is amended by inserting fire after flood.
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.
Section 2 would classify qualifying Texas Panhandle fire compensation as “qualified disaster relief payments,” a category governed by section 139(b) of the federal tax code.
(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.
Covered compensation would include amounts received by or for an individual for losses, damages, expenses, reduced real-property value, property closing costs including realtor commissions, and inconvenience including property access, resulting from a listed fire.
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
To qualify, the compensation would have to come from a federal, state, or local government agency; Xcel Energy; or a subsidiary, insurer, or agent of Xcel Energy or any related person.
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.
Section 2 would cover five fires: Smokehouse Creek, Windy Deuce, and Grape Vine Creek, which the bill identifies as igniting on February 26, 2024; 687 Reamer, on February 27, 2024; and Roughneck, on March 3, 2024.
(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.
The proposed disaster-payment treatment would apply to amounts received on or after February 26, 2024. This provision specifies no ending date.
(d) Effective date This section shall apply to amounts received on or after February 26, 2024.
Section 3 would insert “fire” after “flood” in existing tax provisions addressing livestock sales, extensions of the period for replacing livestock, and replacement of livestock with other property. It would also update the heading of section 1033(e).
(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 such Code is amended by inserting fire after flood.
Section 3's livestock amendments would apply to tax years beginning after December 31, 2023.
(c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2023.
Section 4 would insert “fire” after “flood” in section 451(g), concerning proceeds from livestock sales, and in its heading. These changes would apply to tax 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.
The supplied official-actions snapshot, updated December 5, 2025, records introduction in the House and referral to the House Committee on Ways and Means on February 10, 2025.
Source snapshot updated 2025-12-05T22:49:08Z. 2025-02-10: Referred to the House Committee on Ways and Means. 2025-02-10: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-02-10. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy change attached to appropriations was identified in the complete supplied introduced text. This conclusion is limited to that version.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion does not establish the absence of earmarks in other versions or accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The supplied introduced text contains narrowly targeted tax treatment within the bill's main wildfire-relief policy. This classification does not judge its justification.
Section 2 would give special disaster-relief tax treatment to individuals receiving compensation for five specifically named Texas Panhandle fires, with eligibility limited to payments from government agencies, Xcel Energy, or the listed associated sources. The targeted beneficiaries are the individual compensation recipients.
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.
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.
Full text preserved for this analysis. Legislative record snapshot: Dec 5, 2025. How PlainBill uses AI