0
A bill to exclude certain amounts relating to compensating victims of the Texas Panhandle fires, and for other purposes.
2/11/2025, 11:56 AM
Summary of Bill S 496
The primary goal of this bill is to ensure that individuals who have suffered losses as a result of the fires are not further burdened by having to pay taxes on any compensation they receive. By excluding these amounts from taxable income, the bill aims to provide much-needed financial assistance to those who have been impacted by 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 seeks to address a range of issues related to the fires and their aftermath. Overall, Bill 119 s 496 represents a bipartisan effort to support individuals affected by the Texas Panhandle fires and provide them with the assistance they need to recover and rebuild. By excluding certain compensation amounts from taxable income, the bill aims to alleviate some of the financial strain faced by victims of the fires and help them on the path to recovery.
Congressional Summary of S 496
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).
