Bill · S. 496· Senate(119-S-496)
Wildfire Victim Tax Relief and Recovery Act
- Introduced
- 2/10/2025
- Last activity
- 2/10/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Ted Cruz
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, known as the ``Wildfire Victim Tax Relief and Recovery Act,'' aims to provide tax relief for those affected by specific wildfires. It designates certain payments related to the Texas Panhandle fires as qualified disaster relief payments. These payments include compensation for losses, damages, expenses, or inconveniences resulting from specific fires such as the Smokehouse Creek Fire. Additionally, the bill amends the Internal Revenue Code to include "fire" alongside "flood" regarding livestock. This covers livestock sold due to fire and the replacement of livestock with other property.
Yes· 3 of 9
Would farmers be better off under this?+6
The bill explicitly allows livestock sold due to fire to be treated similarly to those sold due to flood for tax purposes.
Would business owners be better off under this?+5
The bill offers significant tax benefits for livestock owners and those receiving disaster compensation.
Does this cut taxes for middle-income families?+5
The bill excludes disaster relief payments from taxable income for those affected by the Texas Panhandle fires.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Tax-Free Disaster Relief: Under Section 2(a), payments related to the Texas Panhangle fires are treated as qualified disaster relief payments. This means compensation received for things like loss in property value, closing costs, or inconvenience is treated differently for tax purposes (Section 2(b)).
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Livestock Relief for Farmers and Ranchers: Section 3 amends the Internal Revenue Code to include "fire" in the same category as "flood" for livestock. This provides relief when livestock are sold on account of a fire or when livestock are replaced with other property (Section 3(a) and 3(b)).
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Tax Treatment of Proceeds: Section 4 amends the code to include "fire" alongside "flood" regarding proceeds from livestock sold on account of a fire (Section 4(a)).
Potential Negative Impacts for People
- There are no specific negative impacts or burdens described within the provided text of the bill.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Farmers+6Good For Business Owners+5Good For Rural Residents+4Good For Middle Class Households+3Good For Low Income Households+2
- Environment Energy And Infrastructure
- Improves Disaster Relief And F E M A+4Improves Rural Development+3
- Economy And Finance
- Reduces Middle Class Taxes+5
- Social Issues And Justice
- Improves Poverty Reduction+2
- 2/10/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.