arrow_back Back to App

Tax Exemption for State Disaster Mitigation Payments to Homeowners.

This law exempts funds received from state-based programs for protecting property against natural disasters like wildfires, earthquakes, or windstorms from federal income tax. If you receive a grant to reinforce your home, you will not have to pay taxes on that money. These changes are retroactive, applying to tax years starting after December 31, 2020, allowing citizens to claim refunds.
Key points
Payments received for property improvements solely aimed at reducing damage from windstorms, earthquakes, or wildfires are now excluded from gross income.
The exclusion applies to funds provided by state or local government mitigation programs.
Citizens can file amended returns to claim this tax exclusion retroactively for 2021 and subsequent years.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_S_1953
Sponsor: Sen. Feinstein, Dianne [D-CA]
Process start date: 2023-06-13
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Disaster Mitigation and Tax Parity Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1953.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-06-13.

What are the main provisions?

Key points include:

  • Payments received for property improvements solely aimed at reducing damage from windstorms, earthquakes, or wildfires are now excluded from gross income.
  • The exclusion applies to funds provided by state or local government mitigation programs.
  • Citizens can file amended returns to claim this tax exclusion retroactively for 2021 and subsequent years.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Feinstein, Dianne [D-CA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Real Estate