I 
119TH CONGRESS 
1ST SESSION H. R. 1169 
To exclude certain amounts relating to compensating victims of the Texas 
Panhandle fires, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 10, 2025 
Mr. JACKSON of Texas introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To exclude certain amounts relating to compensating victims 
of the Texas Panhandle fires, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Wildfire Victim Tax 
Relief and Recovery Act’’. 
SEC. 2. TEXAS PANHANDLE FIRE DISASTER RELIEF PAY-
MENTS. 
(a) IN GENERAL.—Texas Panhandle fire payments 
shall be treated as qualified disaster relief payments for 
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purposes of section 139(b) of the Internal Revenue Code 
of 1986. 
(b) TEXAS PANHANDLE FIRE PAYMENTS.—For pur-
poses of this section, the term ‘‘Texas Panhandle fire pay-
ment’’ 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 inconven-
ience (including access to real property) resulting from 
any Texas Panhandle fire if such amount was provided 
by— 
(1) a Federal, State, or local government agen-
cy, 
(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. 
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(4) The 687 Reamer Fire that ignited in 
Hutchinson County, Texas, on February 27, 2024. 
(5) The Roughneck Fire that ignited in Hutch-
inson County, Texas, on March 3, 2024. 
(d) EFFECTIVE DATE.—This section shall apply to 
amounts received on or after February 26, 2024. 
SEC. 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 in-
serting ‘‘fire’’ after ‘‘flood’’. 
(2) EXTENSION OF REPLACEMENT PERIOD.— 
Section 1033(e)(2) of such Code is amended by in-
serting ‘‘fire’’ after ‘‘flood’’. 
(3) CONFORMING AMENDMENT.—The heading 
for section 1033(e) of such Code is amended by in-
serting ‘‘FIRE’’ after ‘‘FLOOD’’. 
(b) REPLACEMENT
OF LIVESTOCK WITH OTHER 
PROPERTY.—Section 1033(f) 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. 
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SEC. 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. 
Æ 
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