Sponsors (2)
The bill makes substantial, refundable financial support available to help homeowners harden properties against disasters—especially benefiting lower-income and disaster-area residents—but includes caps, documentation requirements, and tax-basis effects that limit or complicate the benefit for some taxpayers.
Homeowners in FEMA-designated disaster areas receive a refundable tax credit equal to 50% of eligible mitigation work, substantially lowering out-of-pocket costs for hardening homes against floods, fires, storms, and earthquakes.
Low- and moderate-income taxpayers can get the benefit as a refundable payment even if they owe little or no income tax, improving equity of access to mitigation funding.
The credit covers a broad set of mitigation measures (roofing, floodproofing, vegetation management, generators, alarms, etc.), encouraging household safety and resilience and reducing future repair and insurance losses.
Costs already reimbursed by insurance or other government assistance cannot be claimed for the credit, meaning people who relied on prior reimbursements get less or no additional benefit.
The credit is capped at $25,000 per taxpayer and phases out above $200,000 AGI, limiting support for large projects and providing little help to higher-income households undertaking expensive mitigation.
Claimants must keep and submit documentation to the IRS and cannot also deduct expenses used to claim the credit, adding paperwork and preventing double tax benefits.
Based on analysis of 2 sections of legislative text.
Creates a refundable tax credit equal to 50% of eligible disaster-mitigation expenses for a taxpayer's principal residence, capped at $25,000 per taxpayer.
Introduced December 4, 2025 by Kevin Mullin · Last progress December 4, 2025
Creates a new refundable individual income tax credit equal to 50% of eligible disaster-mitigation expenses paid for a taxpayer’s principal residence in specified disaster-affected areas. The credit is limited to $25,000 per taxpayer ($12,500 if married filing separately), reduced by any credit claimed in prior years, excludes costs reimbursed by insurance or government, requires documentation, and applies to taxable years beginning after December 31, 2024.