Wildfire Victim Tax Relief and Recovery Act

HR 1169, the Wildfire Victim Tax Relief and Recovery Act, provides tax relief for individuals affected by specific 2024 Texas Panhandle wildfires. It treats compensation received for losses from the Smokehouse Creek, Windy Deuce, Grape Vine Creek, 687 Reamer, and Roughneck fires as tax-free disaster relief payments, covering costs like property damage, closing fees, and inconvenience. The bill also amends tax code provisions to allow wildfire victims to defer capital gains taxes on livestock sold due to fire, similar to existing flood-related rules. These changes apply to payments received on or after February 26, 2024, and tax returns filed for 2024 and later. The law directly benefits Texas residents who suffered wildfire-related losses and received qualifying compensation from government agencies, Xcel Energy, or related entities.