Sponsors
The bill gives targeted, refundable tax credits to help homeowners in wildfire-risk areas afford home hardening now, but it increases federal costs, adds paperwork, and is temporary with limits on eligibility and coordination with other public assistance.
Homeowners in eligible wildfire-risk areas can receive a refundable credit equal to 25% of qualifying mitigation costs (up to $25,000) for their primary residence, reducing out-of-pocket costs to harden homes against wildfire.
Low- and middle-income homeowners benefit because the credit is refundable, so they receive tax value even if they owe little or no federal income tax, improving access for lower-income households.
Encourages wildfire-resilient home upgrades (roofs, siding, sprinklers, fuel management), which can lower future fire damage, property loss, and community insurance risk.
The refundable credit will raise federal spending and could increase deficits or require offsetting spending cuts or revenue increases, potentially affecting taxpayers broadly.
The credit sunsets after 2032, creating temporary incentives and reducing long-term predictability for homeowners, insurers, and communities planning multi-year mitigation.
Taxpayers must collect and submit documentation to the IRS for eligible expenses, creating paperwork burdens and potential compliance costs for homeowners and contractors.
Based on analysis of 2 sections of legislative text.
Creates a refundable tax credit equal to 25% (up to $25,000/year) of qualified wildfire mitigation expenses for primary residences in qualifying wildfire-risk areas.
Introduced February 4, 2025 by Kevin Kiley · Last progress February 4, 2025
Creates a refundable personal tax credit equal to 25% of qualified wildfire mitigation expenses for a taxpayer's primary residence in qualifying wildfire-risk areas, capped at $25,000 per taxpayer per year and phased out for higher-income earners. The credit applies to a range of hardening measures (ignition-resistant materials, sprinklers, vegetation management, smoke-prevention devices), requires IRS documentation, excludes government‑reimbursed costs, is indexed for inflation after 2024, and expires for expenses paid after December 31, 2032.