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Tax Exclusion for State Disaster Mitigation Payments: Protecting Homes from Catastrophes

This Act excludes from gross income any money received from state-based programs aimed at mitigating property damage from natural disasters like floods, wildfires, or windstorms. This means citizens who receive funds to make improvements to their homes (e.g., installing storm shutters) will not have to pay federal income tax on that amount. The changes are retroactive to the beginning of 2022, allowing individuals to claim the exclusion via amended tax returns.
Key points
Payments received from state or local catastrophe mitigation programs are excluded from federal income tax.
The exclusion applies only to funds used for property improvements specifically designed to reduce damage from windstorms, earthquakes, floods, or wildfires.
The changes are retroactive, applying to tax years beginning after December 31, 2021, allowing taxpayers to file amended returns for past years.
The cost basis of the property is not increased by the amount of the excluded mitigation payment.
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_336
Sponsor: Sen. Tillis, Thomas [R-NC]
Process start date: 2025-01-30
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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_S_336.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-01-30.

What are the main provisions?

Key points include:

  • Payments received from state or local catastrophe mitigation programs are excluded from federal income tax.
  • The exclusion applies only to funds used for property improvements specifically designed to reduce damage from windstorms, earthquakes, floods, or wildfires.
  • The changes are retroactive, applying to tax years beginning after December 31, 2021, allowing taxpayers to file amended returns for past years.
  • The cost basis of the property is not increased by the amount of the excluded mitigation payment.
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 Sen. Tillis, Thomas [R-NC].

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 2025-12-31.

CATEGORIES

Taxes Real Estate Environment