By Emmy Powell
Communications Specialist

A bill that would provide tax relief to Panhandle wildfire victims who received disaster-related relief income was introduced by two Texas Congressional lawmakers.

U.S. Rep. Ronny Jackson and U.S. Sen. Ted Cruz introduced the bill, the Wildfire Victim Tax Relief and Recover Act. It would help individuals and livestock producers recover from the devastating effects of the wildfires that engulfed the Texas Panhandle earlier this year.

The Panhandle wildfires burned over 1.2 million acres, resulting in over $123 million in agricultural losses.

“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,” Jackson said. “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.”

The bill would ensure assistance to those who were affected and are currently rebuilding their homes and livelihoods.

“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,” Cruz said in a statement. “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.”

Texas Farm Bureau (TFB) and several other agricultural groups expressed support for the bill.

“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,” TFB President Russell Boening said. “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.”

The bill exempts government relief payments and Xcel Energy settlement payments from income taxes.