II 

118TH CONGRESS 

2D SESSION S. 4806 

To exclude certain amounts relating to compensating victims of the Texas 

Panhandle fires, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 25, 2024 

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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Wildfire Victim Tax 

5 Relief and Recovery Act’’. 

6 SEC. 2. TEXAS PANHANDLE FIRE DISASTER RELIEF PAY7 MENTS. 

8 (a) IN GENERAL.—Texas Panhandle fire payments 

9 shall be treated as qualified disaster relief payments for 


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•S 4806 IS

1 purposes of section 139(b) of the Internal Revenue Code 

2 of 1986. 

3 (b) TEXAS PANHANDLE FIRE PAYMENTS.—For pur4 poses of this section, the term ‘‘Texas Panhandle fire pay5 ment’’ means any amount received by or on behalf of an 

6 individual as compensation for loss, damages, expenses, 

7 loss in real property value, closing costs with respect to 

8 real property (including realtor commissions), or inconven9 ience (including access to real property) resulting from 

10 any Texas Panhandle fire if such amount was provided 

11 by— 

12 (1) a Federal, State, or local government agen13 cy, 

14 (2) Xcel Energy, or 

15 (3) any subsidiary, insurer, or agent of Xcel 

16 Energy or any related person. 

17 (c) TEXAS PANHANDLE FIRE.—For purposes of this 

18 section, the term ‘‘Texas Panhandle fire’’ means any of 

19 the following wildfires: 

20 (1) The Smokehouse Creek Fire that ignited in 

21 Hutchinson County, Texas, on February 26, 2024. 

22 (2) The Windy Deuce Fire that ignited in 

23 Moore County, Texas, on February 26, 2024. 

24 (3) The Grape Vine Creek Fire that ignited in 

25 Gray County, Texas, on February 26, 2024. 


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1 (4) The 687 Reamer Fire that ignited in 

2 Hutchinson County, Texas, on February 27, 2024. 

3 (5) The Roughneck Fire that ignited in Hutch4 inson County, Texas, on March 3, 2024. 

5 (d) EFFECTIVE DATE.—This section shall apply to 

6 amounts received on or after February 26, 2024. 

7 SEC. 3. INVOLUNTARY CONVERSIONS OF LIVESTOCK. 

8 (a) LIVESTOCK SOLD ON ACCOUNT OF FIRE.— 

9 (1) IN GENERAL.—Section 1033(e)(1) of the 

10 Internal Revenue Code of 1986 is amended by in11 serting ‘‘fire,’’ after ‘‘flood,’’. 

12 (2) EXTENSION OF REPLACEMENT PERIOD.— 

13 Section 1033(e)(2) of such Code is amended by in14 serting ‘‘fire,’’ after ‘‘flood,’’. 

15 (3) CONFORMING AMENDMENT.—The heading 

16 for section 1033(e) of such Code is amended by in17 serting ‘‘FIRE,’’ after ‘‘FLOOD,’’. 

18 (b) REPLACEMENT OF LIVESTOCK WITH OTHER

19 PROPERTY.—Section 1033(f) of the Internal Revenue 

20 Code of 1986 is amended by inserting ‘‘fire,’’ after 

21 ‘‘flood,’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years beginning after 

24 December 31, 2023. 


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1 SEC. 4. PROCEEDS FROM LIVESTOCK SOLD ON ACCOUNT 

2 OF FIRE. 

3 (a) IN GENERAL.—Section 451(g) of the Internal 

4 Revenue Code of 1986 is amended by inserting ‘‘fire,’’ 

5 after ‘‘flood’’. 

6 (b) CONFORMING AMENDMENT.—The heading for 

7 section 451(g) of such Code is amended by inserting 

8 ‘‘FIRE,’’ after ‘‘FLOOD,’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2023. 

Æ 


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