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A bill to exclude certain amounts relating to compensating victims of the Texas Panhandle fires, and for other purposes.
7/26/2024, 10:56 AM
Summary of Bill S 4806
The bill recognizes the significant impact that the fires have had on individuals and communities in the Texas Panhandle, and aims to provide financial assistance to those who have suffered losses as a result of the fires. By excluding these compensation amounts from being taxed as income, the bill aims to alleviate some of the financial burden that victims may face in the aftermath of the fires.
In addition to providing relief to victims of the Texas Panhandle fires, the bill also includes provisions for other purposes. While the specific details of these provisions are not outlined in the summary, it is clear that the bill aims to address a range of issues beyond just providing relief to fire victims. Overall, Bill 118 s 4806 seeks to provide much-needed support to individuals and communities affected by the Texas Panhandle fires, while also addressing other important issues. The bill reflects a bipartisan effort to provide assistance to those in need and demonstrates a commitment to helping communities recover from natural disasters.
Congressional Summary of S 4806
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.)
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).
