Sponsor
Kevin Kiley
Representative · I-CA
Representative · I-CA
The bill provides a substantial, refundable tax credit to make wildfire‑hardening investments affordable for homeowners in high‑risk areas (including low‑income owners), but the incentive is temporary, limited for higher‑income taxpayers, excludes expenses reimbursed by other programs, and adds paperwork requirements.
Homeowners in designated high‑wildfire areas receive a refundable tax credit equal to 25% of qualified mitigation expenses (up to $25,000/year), lowering out‑of‑pocket costs and making home hardening measures more affordable — including providing cash benefit to low‑ and moderate‑income owners who have little or no tax liability.
Homeowners who undertake approved measures (roofing, defensible space, sprinklers, other mitigation) are incentivized to reduce property fire risk, which can lower likelihood of loss and future recovery costs for residents in high‑risk areas.
The benefit is targeted to properties in recently affected or otherwise high‑risk locations (e.g., within 10 years of a federal wildfire disaster, FEMA‑assisted areas, community disaster resilience zones), directing resources where mitigation needs are greatest.
The credit sunsets after 2032, creating uncertainty for homeowners and contractors and potentially reducing long‑term incentives for sustained mitigation investments.
Expenses already reimbursed by federal, state, or local programs are ineligible, which can prevent stacking of assistance and complicate coordination with existing disaster relief efforts.
Claiming the credit requires gathering and submitting documentation to the IRS, imposing recordkeeping and compliance burdens on homeowners and raising IRS processing workload.
Based on analysis of 2 sections of legislative text.
Creates a refundable tax credit equal to 25% of qualified wildfire mitigation expenses up to $25,000 per taxpayer, phased out above $200,000 AGI, effective 2025–2032.
Official title: To amend the Internal Revenue Code of 1986 to provide a refundable credit against tax for wildfire mitigation expenditures.
Introduced February 4, 2025 by Kevin Kiley · Last progress February 4, 2025
Creates a refundable individual tax credit equal to 25% of qualifying wildfire mitigation expenses for a taxpayer's primary residence, capped at $25,000 per taxpayer per year. The credit phases out for taxpayers with adjusted gross income (AGI) above $200,000 (phaseout over the next $100,000, indexed after 2024), applies to qualifying primary residences in the U.S. and territories that meet wildfire-location tests, requires documentation, disallows costs reimbursed by government, and applies to expenditures made after Dec 31, 2024 through Dec 31, 2032.