Disaster Mitigation and Tax Parity Act of 2025
Tax Exemption for Disaster Proofing Grants
The Disaster Mitigation and Tax Parity Act of 2025 is currently in the early stages of the legislative process. It is being reviewed by the House Committee on Ways and Means and has no upcoming votes scheduled at this time. The bill is still active, and the House recently updated its sponsorship records.
Legislative Progress
This bill has strong support from both parties and addresses a clear unfairness in the tax code that affects homeowners in many states. Disaster resilience is a popular topic that usually moves quickly through Congress.
Key Points
- This bill stops the federal government from taxing money that homeowners receive from state programs to protect their houses from natural disasters. It covers grants used to strengthen homes against wildfires, earthquakes, and windstorms.
- Homeowners who use state funds to install fire-resistant roofs or reinforce foundations would no longer have to report that money as taxable income. This ensures that the full amount of the grant goes toward making the home safer rather than paying the IRS.
- The change would go back to the 2021 tax year. This means people who already paid taxes on these types of grants in the last few years could file an amended tax return to get a refund from the government.
- By removing the tax burden, the bill aims to encourage more people to participate in state safety programs. It treats these state grants the same way federal disaster relief is already treated under the tax code.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
ASSUMING FIRST SPONSORSHIP - Mr. Murphy asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 1849, a bill originally introduced by Representative LaMalfa, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
Disaster Mitigation and Tax Parity Act of 2025
Data Sources
Sponsor
Cosponsors
(28)Analysis generated by AI. Always verify with official sources.