Sponsors (62)
The bill increases federal incentives and tax exclusions to encourage household, farm, and business disaster mitigation and to preserve assistance for low‑income recipients, but does so at the cost of reduced federal revenue, added administrative complexity, eligibility and cap limits that may leave some high‑need projects underfunded, and tax‑basis consequences that shift costs into the future.
Homeowners and property owners can claim a 30% tax credit for qualifying disaster mitigation work, substantially lowering the after‑tax cost of hardening homes and buildings.
Homeowners in designated high‑risk/eligible disaster areas can receive up to $10,000 (CPI‑indexed) in pre‑disaster mitigation grants, and those state catastrophe mitigation payments are excluded from taxable income, increasing the net funds available for hazard‑proofing homes.
Low‑ and moderate‑income households are prioritized by AGI eligibility caps (excludes applicants above specified high thresholds), focusing limited mitigation resources toward lower‑income recipients.
The tax exclusions and credits in the bill will modestly reduce federal revenue, which could increase the deficit or crowd out funding for other programs.
Implementation and compliance create administrative burdens and costs for States, tribes, taxpayers and the IRS (new plans, updated guidance, tracking reimbursements and basis adjustments), potentially delaying benefits and raising program overhead.
The $10,000 per‑home mitigation grant cap is likely insufficient for major projects (e.g., seismic retrofits, significant flood elevation), leaving many homeowners to pay substantial remaining costs out of pocket.
Based on analysis of 5 sections of legislative text.
Creates grants and a 30% tax credit for household disaster-mitigation measures, excludes certain disaster and farm-aid payments from taxable income, and sets program rules and eligibility.
Introduced February 6, 2025 by Michael Thompson · Last progress February 6, 2025
Creates a federal program and tax incentives to help homeowners reduce disaster risk before disasters happen. The bill authorizes grants to States and tribal governments to pay for qualifying pre-disaster mitigation work on individual residences in high-risk areas (with per-household caps and income limits), excludes certain disaster-mitigation payments from taxable income, expands tax-free treatment of specific farm disaster aid, and creates a 30% tax credit for qualifying mitigation expenditures. It sets program rules for eligibility, required state/tribal plans, a list of qualifying mitigation activities (flood, wildfire, seismic, and other measures), a hazard-mitigation advisory committee, and reviews of eligible areas; changes several Internal Revenue Code provisions to exclude certain disaster and agricultural payments from gross income and to offer a mitigation tax credit with basis-reduction and coordination rules with state reimbursements.