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Tax Exemption for Disaster Mitigation Payments

This act allows citizens to exclude from their taxable income any money received from state-based programs for making improvements to their homes to reduce damage from natural disasters like windstorms, earthquakes, or wildfires. This means if you get financial help to strengthen your home against such events, you won't have to pay taxes on that amount. The goal is to encourage actions that reduce property damage and enhance safety.
Key points
Money received for home improvements to reduce damage from windstorms, earthquakes, or wildfires will not be taxed.
This applies to support from state, local, or state-chartered programs.
The changes are effective for tax years beginning after December 31, 2021.
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Additional Information
Print number: 117_HR_4675
Sponsor: Rep. Thompson, Mike [D-CA-5]
Process start date: 2021-07-22