WASHINGTON, DC — Yesterday, Congressman Ronny Jackson (TX-13) and Senator Ted Cruz (TX) introduced the Wildfire Victim Tax Relief and Recovery Act to help individuals and livestock producers recover from the devastating effects of the wildfires that engulfed the Texas Panhandle earlier this year. This bill would designate any relief-related income individuals may have received due to the wildfires tax-free.

Jackson said: “While the flames that swept the Texas Panhandle earlier this year may finally be extinguished, the destruction caused by this historic disaster will remain for years to come. I am committed to making sure the farmers, ranchers, and communities affected by these wildfires have every resource possible to help in their recovery, including making common sense changes to the tax code to allow individuals with losses from the wildfires to focus on rebuilding their lives without worrying about the tax implications of relief they may have received. I am proud to lead this legislation to ensure that any assistance received by affected individuals due to this devastating disaster is used to rebuild homes and livelihoods, not to pay Uncle Sam.”

Cruz said: “I am proud to work alongside Rep. Jackson to introduce common-sense tax relief measures to help communities in the Texas Panhandle recover from the historic wildfires earlier this year. This disaster destroyed livelihoods, homes, and over a million acres of land across the Panhandle. Our legislation ensures Texans devastated by the wildfires receive needed tax relief to help recovery efforts.”

Kent Bacus, Executive Director at National Cattlemen’s Beef Association said: “The Texas Panhandle wildfires have highlighted the need to fix our tax code to provide much needed relief to cattle producers. The Wildfire Victim Tax Relief and Recovery Act, introduced in the House and Senate, would allow taxpayers to exclude from gross income any disaster relief payments received from federally declared wildfires in Texas. This legislation will bring much-needed relief to the multitude of cattle producers and rural communities who have been negatively impacted by recent wildfires in Texas. NCBA thanks Senator Ted Cruz and Congressman Ronny Jackson for leading this measure and calls for swift congressional passage.”

Russell Boening, President of Texas Farm Bureau said: “Texas Farm Bureau thanks Sen. Ted Cruz and Congressman Ronny Jackson for continuing their work in Congress to help panhandle wildfire victims in their recovery efforts. Providing flexibility in the U.S. tax code to maximize federal disaster assistance will tremendously help the many farm and ranch families impacted by the catastrophic wildfires. TFB appreciates Sen. Cruz and Congressman Jackson for their steadfast support and looks forward to working in Congress to enact this commonsense legislation.”

Carl Ray Polk, Jr., TSCRA President said: “As we continue to refine our approach to wildfire prevention, mitigation, and response, we need legislation that is impactful. Rep. Jackson and Sen. Cruz have done just that by offering practical solutions to a very real problem for ranchers and landowners.” 

Ben Weinheimer, President & CEO of Texas Cattle Feeders Association said: “Texas Cattle Feeders Association supports this bill and thanks Congressman Jackson and Sen. Cruz for their continuous efforts to assist those impacted by the Texas Panhandle wildfires. This bill is a commonsense approach to preventing what could become the tax disaster resulting from the wildfire disaster. Settlement payments and disaster assistance, like most insurance, should not be considered income. Neither should a literal “fire sale” of cattle, because the producer’s pasture was destroyed, be subject to capital grains.”

The full bill text can be found here. This legislation is supported by the National Cattlemen’s Beef Association, Texas Farm Bureau, Texas and Southwestern Cattle Raiser’s Association, and Texas Cattle Feeders Association. Additional background from Amarillo Pioneer can be found here.