Austin News

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

Upon introducing the bill, Sen. Cruz stated, "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 added, "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 at National Cattlemen’s Beef Association (NCBA), commented on the bill: "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...would allow taxpayers to exclude from gross income any disaster relief payments received from federally declared wildfires in Texas."

Ben Weinheimer, President & CEO of Texas Cattle Feeders Association, expressed support: "Texas Cattle Feeders Association supports this bill and thanks Sen. Cruz for his continuous efforts...Settlement payments and disaster assistance...should not be considered income."

Russell Boening, President of Texas Farm Bureau (TFB), remarked: "Providing flexibility in the U.S. tax code...will tremendously help many farm and ranch families impacted by catastrophic wildfires."

Carl Ray Polk Jr., President of Texas and Southwestern Cattle Raisers Association (TSCRA), said: "As we continue to refine our approach...we need legislation that is impactful."

The proposed act exempts government relief payments and settlement payments from Xcel Energy from income taxes and provides tax relief for producers forced into livestock sales due to fires.

Sen. Cruz and Rep. Jackson have garnered support from several agricultural organizations upon introducing this legislative effort.