Wildfire Victim Tax Relief and Recovery Act

Treats certain payments made because of specified wildfires in the Texas Panhandle as tax‑free "qualified disaster relief payments" and changes the tax rules for livestock sold because of fire. It extends and clarifies involuntary conversion (casualty sale) rules for livestock, including a longer replacement period and allowing replacement with other property, and updates related tax headings.

These tax changes apply to disaster payments received on or after February 26, 2024, and the livestock/involuntary conversion provisions apply for taxable years beginning after December 31, 2023. The changes reduce taxable income or delay recognition of income for affected ranchers, farmers, and other recipients of the specified payments and alter how proceeds from fire‑related livestock sales are reported and replaced for tax purposes.