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Version 00 · Introduced in House · Feb 6, 2025
Natural Disaster Property Protection Act of 2025
This bill increases to $5,000 (from $600) the dollar threshold at which a person engaged in a trade or business is required to file an information return (for federal tax purposes) reporting certain payments related to a natural disaster or extreme weather.
Under current law, a person engaged in a trade or business (including a corporation, company, partnership, association, individual, estate, and trust) is required to file an information return for certain payments made during the tax year to another person (but generally not to a corporation) if such payments total (in the aggregate) $600 or more (information reporting threshold). Such payments are reported on the IRS Form 1099 series. Specifically, payments made to nonemployees in exchange for services are reported on IRS Form 1099-NEC (nonemployee compensation). (Some exceptions apply.)
Showing the opening paragraphs of the official summary.
Under the bill, the information reporting threshold increases to $5,000 for (1) expenses incurred to mitigate the risk of damage to real property that may result from a natural disaster or extreme weather, and (2) expenses incurred to repair damage to real property caused by a natural disaster or extreme weather.
People & committees
Rep. Pettersen, Brittany [D-CO-7] · D–CO
Legislative record
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Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Jul 6, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-02-06 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposed Natural Disaster Property Protection Act of 2025 would raise certain tax information-reporting thresholds from $600 to $5,000 for payments covering disaster prevention or repairs to real estate. It would cover expenses related to natural disasters or extreme weather and affect reporting rules for business payments and payments for services.
This Act may be cited as the Natural Disaster Property Protection Act of 2025.
In the case of a payment for a qualified natural disaster expense, subsection (a) shall be applied by substituting $5,000 for $600.
the term qualified natural disaster expense means— (A) an expense incurred to mitigate the risk posed to real property by natural disasters or extreme weather, or (B) an expense incurred to repair damage done to real property by natural disasters or extreme weather.
(a) Returns regarding payment in course of trade or business Section 6041 of the Internal Revenue Code of 1986 is amended
(b) Returns regarding payments of remuneration for services Section 6041A of such Code is amended
For qualifying disaster-related payments, the bill would replace the $600 threshold with $5,000 when applying section 6041(a), an information-reporting provision concerning payments made in a trade or business.
(a) Returns regarding payment in course of trade or business Section 6041 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (h) Increased threshold for qualified natural disaster expenses (1) In general In the case of a payment for a qualified natural disaster expense, subsection (a) shall be applied by substituting $5,000 for $600.
The bill would also replace $600 with $5,000 when applying section 6041A(a)(2), concerning reporting of payments for services, if the payment covers a qualifying disaster-related expense. It would use the same expense definition as the business-payment reporting change.
(b) Returns regarding payments of remuneration for services Section 6041A of such Code is amended by adding at the end the following new subsection: (g) Increased threshold for qualified natural disaster expenses In the case of a payment for a qualified natural disaster expense (as defined in section 6041(h)(2)), subsection (a)(2) shall be applied by substituting $5,000 for $600.
Qualifying expenses would include both reducing risks to real estate from natural disasters or extreme weather and repairing damage those events caused. The definition does not expressly require a federal disaster declaration.
(2) Qualified natural disaster expense For purposes of this subsection, the term qualified natural disaster expense means— (A) an expense incurred to mitigate the risk posed to real property by natural disasters or extreme weather, or (B) an expense incurred to repair damage done to real property by natural disasters or extreme weather.
Both reporting changes would apply to amounts paid or incurred after the section's enactment date. This provision sets no calendar start date or expiration date.
(c) Effective date The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this section.
The supplied actions snapshot, updated July 6, 2026, records introduction in the House and referral to the House Committee on Ways and Means on February 6, 2025.
Source snapshot updated 2026-07-06T18:11:37Z. 2025-02-06: Referred to the House Committee on Ways and Means. 2025-02-06: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-02-06. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy change attached to appropriations was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The text contains an expense-specific exception to reporting thresholds. This classification describes the proposed treatment, not a judgment about its merits.
Payers with qualifying disaster-prevention or repair expenses would receive a higher reporting threshold under the two specified provisions: $5,000 instead of $600. This targeted reporting relief is the bill's central policy and is limited by the type of expense rather than by a named recipient or location.
In the case of a payment for a qualified natural disaster expense, subsection (a) shall be applied by substituting $5,000 for $600.
the term qualified natural disaster expense means— (A) an expense incurred to mitigate the risk posed to real property by natural disasters or extreme weather, or (B) an expense incurred to repair damage done to real property by natural disasters or extreme weather.
In the case of a payment for a qualified natural disaster expense (as defined in section 6041(h)(2)), subsection (a)(2) shall be applied by substituting $5,000 for $600.
Full text preserved for this analysis. Legislative record snapshot: Jul 6, 2026. How PlainBill uses AI