Sponsors (61)
Introduced February 6, 2025 by Michael Thompson · Last progress February 6, 2025
This bill expands tax‑free mitigation grants, explicit tax exclusions, and a 30% mitigation tax credit to encourage resilience for homeowners, farmers, and low‑income recipients, but limits on grant size/eligibility, reduced federal revenue, and added administrative complexity mean many needs may remain unmet and some costs may be shifted elsewhere.
Homeowners in designated high-risk areas — with priority for low- and moderate-income households — can receive up to $10,000 (CPI‑indexed) in pre-disaster mitigation grants that are excluded from taxable income, lowering out‑of‑pocket cost for resilience upgrades.
States and tribal governments receive federal technical assistance, planning support, and guidance (including suggested insurer incentives) to design and run household mitigation programs, improving program capacity and encouraging insurer engagement.
Certain disaster‑related payments — including specified USDA/disaster assistance and emergency food‑assistance benefits — are explicitly excluded from taxable income, preserving more relief dollars for farmers, low‑income households, and other recipients and reducing IRS filing uncertainty.
The household mitigation grant is capped at $10,000 and eligibility is limited to designated high‑risk areas, which may be insufficient for expensive measures (e.g., elevation, major retrofits) and leave many at‑risk properties without needed support.
Excluding disaster and assistance payments from taxable income reduces federal receipts and could modestly increase the deficit or shift tax burden to other taxpayers, potentially leading to spending cuts or higher taxes elsewhere.
New program design requirements, technical standards, tax‑code interactions, and advisory processes create administrative complexity for states, tribes, taxpayers, and the IRS that may raise compliance costs and delay rollout and benefit delivery.
Based on analysis of 5 sections of legislative text.
Creates grants for household pre-disaster mitigation, adds tax exclusions for mitigation payments, expands tax-free farm disaster aid, and creates a 30% mitigation tax credit.
Creates a federal Individual Household Disaster Mitigation Program that pays grants to States and Indian tribal governments to help homeowners in scientifically identified high-risk disaster areas pay for pre-disaster mitigation measures. It also changes tax law to exclude certain mitigation payments from income, expands tax-free treatment for several farm disaster assistance programs, and creates a new tax credit equal to 30% of qualifying disaster mitigation expenditures for property owners, with rules to prevent double benefits.