Wildfire Victim Tax Relief and Recovery Act

This bill provides tax relief for wildfire victims in Texas by treating certain compensation payments as tax-exempt under federal law. It specifically covers losses from five 2024 Texas wildfires (Smokehouse Creek, Windy Deuce, Grape Vine Creek, 687 Reamer, and Roughneck fires) for individuals receiving payments from government agencies or Xcel Energy. For livestock owners who sold animals due to fire, it modifies tax rules to allow deferring taxes on sale proceeds and extending the timeframe to replace the livestock. These provisions apply to payments received after February 26, 2024, and taxable years beginning after December 31, 2023.