Sponsors (2)
The bill provides targeted tax incentives to help homeowners and small businesses invest in disaster-mitigation and resilience upgrades, but benefit limits, phaseouts, nonrefundable structure, geographic restrictions, and added paperwork mean many low-income households, very large or costly projects, and some eligible locations may receive limited or no practical support.
Homeowners (especially in disaster-impacted or designated resilience zones) can reduce out-of-pocket costs for eligible mitigation projects through a 25% tax credit that covers qualified materials, labor, and required inspections and can be carried forward up to 5 years.
Residents in disaster-impacted or resilience zones can undertake flood- and hazard-reducing upgrades (e.g., elevation, impact‑resistant roofing) with tax support, increasing property resilience and reducing future safety and damage risks.
The legislation targets mitigation incentives to locations identified in state/tribal mitigation plans, FEMA mitigation lists, recent-disaster areas, or designated resilience zones so funds focus on higher-risk communities and priorities.
Annual and per-dwelling caps plus phaseouts (homeowner caps, $5,000 cap for firms, and AGI or receipts-based phaseouts) mean many large or costly mitigation projects — and some taxpayers/firms — will receive only limited or no subsidy.
The homeowner credit is nonrefundable, so low-income homeowners with little or no income tax liability may be unable to use the full credit even if they make qualifying expenditures.
Documentation, compliance with consensus-based codes, inspection requirements, and new IRS rules increase administrative burden and upfront costs for homeowners, contractors, taxpayers, and federal tax administrators.
Based on analysis of 3 sections of legislative text.
Establishes 25% tax credits for qualifying disaster-mitigation spending for individuals and businesses, with caps, phaseouts, and documentation rules.
Introduced December 16, 2025 by Michael F. Bennet · Last progress December 16, 2025
Creates new tax credits to help homeowners and businesses pay for disaster-mitigation work on homes and places of business. Individuals get a nonrefundable credit equal to 25% of qualifying mitigation expenses with annual caps ($3,750 per taxpayer; $7,500 for joint filers) and overall per-dwelling limits; businesses get a 25% credit with a $5,000 annual cap and a gross-receipts phaseout. Credits apply only for work in specified disaster or FEMA hazard-mitigation areas, disallow double-dipping with other government reimbursements, require standards-based installation and documentation, and take effect for tax years beginning after December 31, 2025.