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Tax Relief for Disaster Mitigation Payments

This act allows citizens to exclude from their taxable income any money received from state-based programs for protecting their homes against natural disasters like windstorms, earthquakes, or wildfires. This means if you get financial help to strengthen your property, you won't pay income tax on that amount. These changes apply to tax years starting from 2021, and individuals can claim this exclusion retroactively.
Key points
Money received for property improvements to reduce damage from windstorms, earthquakes, or wildfires is tax-free.
This applies to funds from state or local programs designed for disaster mitigation.
The changes are effective for tax years beginning after December 31, 2020, allowing for retroactive claims.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_1849
Sponsor: Rep. LaMalfa, Doug [R-CA-1]
Process start date: 2025-03-05
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Disaster Mitigation and Tax Parity Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_1849.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-03-05.

What are the main provisions?

Key points include:

  • Money received for property improvements to reduce damage from windstorms, earthquakes, or wildfires is tax-free.
  • This applies to funds from state or local programs designed for disaster mitigation.
  • The changes are effective for tax years beginning after December 31, 2020, allowing for retroactive claims.
What is the specific legal status?

The current status is Introduced.

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 Rep. LaMalfa, Doug [R-CA-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Taxes Real Estate Environment