Wildfire Victim Tax Relief and Recovery Act

This bill provides tax relief for individuals affected by five specific 2024 Texas Panhandle wildfires (Smokehouse Creek, Windy Deuce, Grape Vine Creek, 687 Reamer, and Roughneck Fires). It treats compensation received for fire-related losses - such as property damage, closing costs, or inconvenience - from government agencies, Xcel Energy, or their insurers as "qualified disaster relief payments" under tax code section 139(b), allowing victims to exclude these payments from taxable income. The bill also amends tax code provisions to explicitly include "fire" alongside "flood" for livestock-related tax relief, covering involuntary sales of livestock due to fire and proceeds from such sales. These changes apply to payments received on or after February 26, 2024, and taxable years beginning after December 31, 2023.