Sen. Cruz, Rep. Jackson Introduce Tax Relief Bill for Victims of Panhandle Wildfires

WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) and Rep. Ronny Jackson (R-Texas-13) introduced the Wildfire Victim Tax Relief and Recovery Act to provide tax relief for victims of this year’s Panhandle wildfires. The bill provides tax relief for Panhandle residents who suffered significant losses when this wildfire burned more than 1.2 million acres, destroyed homes, and killed over 12,000 head of cattle.

Upon introduction, Sen. 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.

Rep. 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.”

Kent Bacus, Executive Director of Government Affairs, National Cattlemen’s Beef Association (NCBA) 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.”

Ben Weinheimer, President & CEO, Texas Cattle Feeders Association said, “Texas Cattle Feeders Association supports this bill and thanks Sen. Cruz for his 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.”

Russell Boening, President, Texas Farm Bureau (TFB) 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., President, Texas and Southwestern Cattle Raisers Association (TSCRA) 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.”

Read the full text of the legislation here.

BACKGROUND:

The Wildfire Victim Tax Relief and Recovery Act:

• Exempts government relief payments and settlement payments from Xcel Energy from income taxes.
• Provides tax relief to producers who were forced to sell livestock due to the Panhandle fires.

Sen. Cruz and Rep. Jackson received support from the Texas Cattle Feeders Association, Texas Farm Bureau, Texas & Southwestern Cattle Raisers, and National Cattlemen’s Beef Association upon introducing this comprehensive legislative effort.

###