PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
Congressional Research Service
Version 00 · Introduced in House · Feb 6, 2025
Disaster Resiliency and Coverage Act of 2025
This bill establishes a grant program for certain hazard mitigation measures for homes in disaster risk areas and provides a tax credit for up to 30% of expenditures on such mitigation measures. It also excludes from taxable income certain payments for residential hazard mitigation and federal emergency agricultural assistance.
The bill requires the Federal Emergency Management Agency (FEMA) to award grants to states and Indian tribal governments for specified hazard mitigation activities on residential properties at a high risk of experiencing a major disaster. FEMA must establish and periodically update disaster risk areas in which homes are eligible for the grant funding. Individual residential households, subject to certain income limitations, may receive up to $10,000 (adjusted for inflation) for eligible hazard mitigation activities, such as reinforcing a roof, installing a flood control system, or reducing flammable vegetation near the home. The bill also provides an income tax credit to individuals and businesses for up to 30% of expenditures on the specified residential mitigation activities eligible under the grant program.
Showing the opening paragraphs of the official summary.
Additionally, under current law, payments for disaster relief and payments under federal hazard mitigation programs are excluded from taxable income. The bill specifically excludes from taxable income payments to an individual for hazard mitigation improvements to their residence under any program established or administered by a state or local government. The bill also excludes certain federal emergency and disaster agricultural assistance from taxable income as a type of disaster relief payment.
People & committees
Rep. Thompson, Mike [D-CA-4] · D–CA
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
Referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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: Sep 16, 2026. Consult Congress.gov for the current record.
AI Conversation Starters
Choose a perspective, copy a prompt, and paste it into your preferred AI. Each prompt includes the bill version and available official source links, and asks for counterarguments as well as supporting evidence.
Analyze H.R.1105 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
Examine H.R.1105 through a progressive lens, focusing on fairness, access, economic inequality, and effects on vulnerable communities. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and distinguish stated goals from demonstrated outcomes.
Examine H.R.1105 through a conservative lens, focusing on fiscal responsibility, institutional stability, federalism, and the scope of government. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and any provisions that challenge this perspective.
Examine H.R.1105 through a civil-liberties and limited-government lens. Consider individual rights, privacy, voluntary choice, accountability, and government power. Explain tradeoffs, possible safeguards, and the strongest counterarguments without assuming the proposal is beneficial or harmful.
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.
This bill proposes grants through states and tribal governments to help households pay for improvements that protect homes from disasters. Household grants would start at a maximum of $10,000, with income and geographic restrictions. Qualifying mitigation payments would not count as income for federal income-tax purposes. Assistance from six listed agricultural programs or authorities would be classified as qualified disaster relief payments for tax purposes, although the full tax effect cannot be determined from the supplied amendments alone. The bill also proposes a tax credit generally equal to 30% of qualifying mitigation expenses. These are proposed changes; the supplied record does not establish enactment.
The President shall establish a program to provide grants to States and Indian tribal governments for qualifying pre-disaster mitigation activities on individual residential households that are at risk of being damaged by a major disaster.
A State or Indian tribal government may not provide more than an amount of $10,000, not to exceed the actual cost of mitigation activities, to any individual household under the program.
(e) Limitations (1) High-risk areas Funds provided under this section may only be used in eligible disaster areas that the State or Indian tribal government determines are at a high risk of experiencing a major disaster for the major disaster that presents such a risk. (2) Limitation based on adjusted gross income An individual shall not be eligible to receive a grant under this section if the adjusted gross income of such individual exceeds $250,000 ($500,000 in the case of a joint tax return)
Gross income shall not include amounts received under section 207 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.
Gross income shall not include any amount received by an individual as a qualified catastrophe loss mitigation payment under a program established or administered by a State, or a political subdivision or instrumentality thereof, for the purpose of making such payments.
For purposes of this section, the term qualified disaster relief payment shall include any assistance received under any of the following: (1) Assistance received under the Wildfires and Hurricanes Indemnity Program Plus under subpart O of part 760 of title 7, Code of Federal Regulations. (2) Assistance received under section 1501 of the Agricultural Act of 2014 (7 U.S.C. 9081). (3) Noninsured crop assistance under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333). (4) Assistance under a food assistance program under part 9 of title 7, Code of Federal Regulations. (5) Assistance under title IV of the Agricultural Credit Act of 1978 (16 U.S.C. 2201 et seq.). (6) Assistance under the Quality Loss Assistance Program.
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the expenditures paid for qualifying mitigation activities
Source snapshot updated 2026-09-16T08:09:22Z. 2025-02-06: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
Section 1 would name the bill the Disaster Resiliency and Coverage Act of 2025.
This Act may be cited as the Disaster Resiliency and Coverage Act of 2025.
Section 2 would require the President to establish grants to states and Indian tribal governments for work that reduces disaster risks to individual homes before a disaster occurs.
The President shall establish a program to provide grants to States and Indian tribal governments for qualifying pre-disaster mitigation activities on individual residential households that are at risk of being damaged by a major disaster.
The President would identify eligible areas in consultation with states, describe hazards and consider past declared major disasters. Areas would be reviewed at least every five years, using current scientific standards and expert consultation. States and tribal governments would receive technical assistance with plans and grant administration.
(1) establish eligible disaster areas, in consultation with States, that the President determines to be at risk of a natural hazard, including— (A) a description of the type, likelihood, and severity of each potential natural hazard affecting each such risk area; and (B) by taking into account previously declared major disasters impacting such areas;
(2) provide technical assistance to the States or Indian tribal governments in developing the plan described in subsection (c) and administering grants provided for individual households under the program;
(3) not less frequently than every 5 years, review and update the eligible disaster areas
(4) consult with relevant governmental and nongovernmental experts in order to ensure that such determinations are made using current scientific standards and tools available
States and Indian tribal governments seeking federal grants would have to submit plans to the President identifying areas and eligible improvements, assessing insurance availability and affordability, and analyzing factors that may worsen insurance access or cost. Plans would distinguish private coverage, state residual insurance markets, and state and federal insurance programs.
To be eligible for a grant under this section, a State or Indian tribal government shall submit to the President a plan that includes— (1) each disaster risk area established by the President under subsection (b) in which the State or Indian tribal government proposes to provide funds under the program; (2) an assessment of the availability and affordability of homeowner insurance coverage in each such risk area, including a breakdown of coverage offered by— (A) private insurance companies; (B) State residual markets; and (C) State and Federal insurance programs; (3) an analysis of factors that may be adversely impacting insurance availability and affordability; (4) a list of each qualifying mitigation activity that is eligible for funds in each such risk area;
State and tribal selection criteria would have to consider household income and whether a home is in a Community Disaster Resilience Zone. Plans would also set maximum household payments for each eligible activity.
(5) the criteria by which a State or Indian tribal government will evaluate applicants, which shall include consideration of the household income of the applicant and whether the residence is located in a Community Disaster Resilience Zone; and (6) a financial plan that includes maximum amounts available to a household for each qualifying mitigation activity.
Federal emergency-management and insurance officials would consult insurance regulators, industry participants, and consumer and environmental representatives about which improvements are likely to encourage residential insurance availability and purchases, and other financial risk-transfer mechanisms. This consultation requirement does not establish that insurance access would improve.
the President, acting through the Administrator of the Federal Emergency Management Agency and the Director of the Federal Insurance Office, shall consult with the chief insurance regulators from the 50 States, the District of Columbia, and the territories of the United States, insurance industry stakeholders, including insurers, reinsurers, agents, brokers, and insurance-funded research organizations, and consumer and environmental stakeholders to determine what qualifying mitigation activities are likely to incentivize the availability and purchase of residential property insurance and other financial risk transfer mechanisms in eligible disaster areas.
Funds could be used only in eligible areas that the state or tribal government determines face a high risk of a major disaster, and only for that disaster risk. Individuals would be ineligible if their adjusted gross income exceeded $250,000, or $500,000 on a joint return, for the tax year ending in the calendar year before the application year.
Funds provided under this section may only be used in eligible disaster areas that the State or Indian tribal government determines are at a high risk of experiencing a major disaster for the major disaster that presents such a risk.
An individual shall not be eligible to receive a grant under this section if the adjusted gross income of such individual exceeds $250,000 ($500,000 in the case of a joint tax return) for the taxable year ending in the calendar year immediately preceding the calendar year with respect to which a grant application is filed.
A household could receive no more than $10,000 or its actual mitigation costs, whichever is lower. The dollar cap would increase annually to reflect increases in the Consumer Price Index.
A State or Indian tribal government may not provide more than an amount of $10,000, not to exceed the actual cost of mitigation activities, to any individual household under the program. Such amount shall be increased yearly to reflect any increase in the Consumer Price Index.
The President, acting through the Federal Emergency Management Agency Administrator, would establish standards for funded improvements, potentially with multiple levels. Officials would have to consider standards from the Insurance Institute for Business and Home Safety, insurance regulators, and other appropriate standard-setting entities, but could adopt those standards or develop alternatives.
The President, acting through the Administrator of the Federal Emergency Management Agency, shall establish mitigation standards for individual households that carry out each type of qualifying mitigation activity eligible for funds under the program, which may include a multi-tiered standard.
(A) shall consider any standards established by— (i) the Insurance Institute for Business and Home Safety; (ii) the chief insurance regulators from the 50 states, the District of Columbia, and the territories of the United States; and (iii) any other standard-issuing entity determined appropriate; and (B) may— (i) adopt a standard considered under subparagraph (A); or (ii) establish alternative standards.
Participating states and tribal governments would publish guidance suggesting insurance incentives, including more coverage choices and actuarially supported discounts, rebates, or premium credits. The bill would preserve state insurance regulation and would not require insurers to change their underwriting, prices, or distribution practices.
a State or Indian tribal government shall establish, and make available to the public, guidance to insurance providers and consumers that includes suggested incentives for households that carry out disaster mitigation activities under the program, including— (1) the mitigation standards established under subsection (f); (2) increased consumer coverage choice; and (3) actuarially supported favorable pricing benefits such as discounts, rebates, or premium credits.
Nothing in this Act shall—
(2) be construed to preempt the State regulation of the business of insurance or require, by the Federal Government or any State government, any insurance provider to alter the underwriting, pricing, and distribution of insurance.
Eligible work would include stronger roof attachments, water barriers, specified roof-covering upgrades, wall bracing, stronger roof-to-wall connections, protection against wind-blown debris and hazards affecting doors and garages, and measures in FEMA's specified wind-retrofit guide.
(A) improve the strength of a roof deck attachment; (B) create a secondary water barrier to prevent water intrusion or mitigate against potential water intrusion from wind-driven rain; (C) improve the durability, impact resistance (not less than class 3 or 4 rating), or fire resistance (not less than class A rating) of a roof covering; (D) brace gable-end walls; (E) reinforce the connection between a roof and supporting wall; (F) protect openings from penetration by wind-borne debris; (G) protect exterior doors and garages from natural hazards; (H) complete measures contained in the publication of the Federal Emergency Management Agency entitled Wind Retrofit Guide for Residential Buildings (P–804);
Flood-related work would include raising homes and equipment above required elevations, basement waterproofing, valves to prevent drain backups, flood vents or specified alternatives for homes in V zones, drainage systems, nature-based flood protection, and flood openings below a home's lowest floor.
(I) elevate the qualified dwelling unit, as well as utilities, machinery, or equipment, above the base flood elevation or other applicable minimum elevation requirement; (J) seal walls in the basement of the qualified dwelling unit using waterproofing compounds;
(A) check valves to prevent flood water from backing up into drains; (B) flood vents, breakaway walls or open lattice for homes located in V zones; (C) a stormwater drainage system or improve an existing system; (D) natural or nature-based features for flood control, including living shorelines;
(Q) flood openings for fully enclosed areas below the lowest floor of the dwelling unit;
Fire-related work would include ignition-resistant roof and exterior materials, sprinkler and other building-specific water systems, removal or replacement of flammable landscaping and exterior components, and specified fire-maintenance work.
(E) roof coverings, sheathing, flashing, roof and attic vents, eaves, or gutters that conform to ignition-resistant construction standards; (F) wall components for wall assemblies that conform to ignition-resistant construction standards;
(N) exterior walls, doors, windows, or other exterior dwelling unit elements that conform to ignition-resistant construction standards; (O) exterior deck or fence components that conform to ignition-resistant construction standards; (P) structure-specific water hydration systems, including fire mitigation systems such as interior sprinkler systems;
(3) for services or equipment to— (A) create buffers around the qualified dwelling unit through the removal or reduction of flammable vegetation, including vertical clearance of tree branches; (B) create buffers around the dwelling unit through— (i) the removal of exterior deck or fence components or ignition-prone landscape features; or (ii) replacement of the components or features described in clause (i) with components or features that conform to ignition-resistant construction standards; (C) perform fire maintenance procedures identified by the Federal Emergency Management Agency or the United States Forest Service, including fuel management techniques such as creating fuel and fire breaks; or (D) replace flammable vegetation with less flammable species;
Other eligible work would include protection of external fuel sources, structural anchors and reinforcement, earthquake bracing, automatic water and gas shutoff valves, standby generators with automatic transfer switches, lightning protection, and storm shelters or safe rooms meeting the specified standards.
(K) protect propane tanks or other external fuel sources;
(G) a wall-to-foundation anchor or connector, or a shear transfer anchor or connector; (H) wood structural panel sheathing for strengthening cripple walls; (I) anchorage of the masonry chimney to the framing; (J) prefabricated lateral resisting systems;
(K) a standby generator system consisting of a standby generator and an automatic transfer switch; (L) a storm shelter that meets the design and construction standards established by the International Code Council and the National Storm Shelter Association (ICC–500), or a safe room that satisfies the criteria contained in— (i) the publication of the Federal Emergency Management Agency entitled Safe Rooms for Tornadoes and Hurricanes (P–361); or (ii) the publication of the Federal Emergency Management Agency entitled Taking Shelter from the Storm (P–320); (M) a lightning protection system;
(R) lateral bracing for wall elements, foundation elements, and garage doors or other large openings to resist seismic loads; or (S) automatic shutoff valves for water and gas lines;
Property improvements associated with obtaining the Insurance Institute for Business and Home Safety's FORTIFIED or Wildfire Prepared Homes designation would also qualify, provided the home actually received the relevant designation after installation.
(4) for property relating to satisfying the standards required for receipt of a FORTIFIED designation from the Insurance Institute for Business and Home Safety, provided that the qualified dwelling unit receives such designation following installation of such property; (5) for property relating to satisfying the standards required for receipt of a Wildfire Prepared Homes designation from the Insurance Institute for Business and Home Safety, provided that the qualified dwelling unit receives such designation following installation of such property;
The President would create a 50-member advisory committee representing insurance, consumer, emergency-response, housing, academic, agricultural, environmental, and other listed interests. It would advise on research and testing, recommend additional eligible activities, and review submitted systems, products, and designations. The bill also allows the President to identify additional activities through consultation, but that provision points to subsection (k) for the committee even though subsection (j) establishes it and subsection (k) contains rules of construction.
(j) Hazard mitigation advisory committee The President shall establish a hazard mitigation advisory committee that shall— (1) consist of 50 representatives, including representatives from— (A) the State Insurance Commissioners; (B) private insurance companies; (C) private reinsurance companies; (D) insurance broker companies; (E) insurance-funded research organizations; (F) consumer advocate organizations; (G) State, local, and tribal firefighting agencies; (H) State-sponsored insurance plans; (I) realtor associations; (J) home builder associations; (K) State, local, and tribal emergency responders; (L) State and tribal emergency managers; (M) State and tribal hazard mitigation officers; (N) relevant academic experts; (O) building code associations; (P) agricultural groups; and (Q) environmental organizations;
advise the President on developments in emerging hazard mitigation research and testing and recommend additions to the qualified hazard mitigation activities eligible under this program, including reviewing the effectiveness of hazard mitigation systems, products, and designations submitted to the advisory committee by private or nongovernmental companies or organizations.
(6) for any other hazard mitigation activity identified by the President, in consultation with the Administrator of the Federal Emergency Management Agency and the hazard mitigation advisory committee established in subsection (k), for mitigation of a natural hazard.
(k) Rules of construction
The insurance-availability assessment would not require a state or another entity to use data it would not otherwise already collect.
Nothing in this Act shall— (1) require a State or any other entity to base the assessment of the status of the availability of homeowner insurance coverage required under subsection (c)(2) on data not already collected by that entity absent this requirement;
Payments from the proposed household grant program would be excluded from gross income for federal income-tax purposes. The exclusion would apply to payments received after enactment.
Gross income shall not include amounts received under section 207 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.
The amendment made by this subsection shall apply to amounts received after the date of the enactment of this Act.
Section 3 would exclude qualifying payments from state or local catastrophe-mitigation programs from individuals' gross income. Payments would have to fund improvements to the recipient's residence solely for reducing hazards. This exclusion would apply to tax years beginning after December 31, 2025.
Gross income shall not include any amount received by an individual as a qualified catastrophe loss mitigation payment under a program established or administered by a State, or a political subdivision or instrumentality thereof, for the purpose of making such payments.
the term qualified catastrophe loss mitigation payment means any amount which is received by an individual to make improvements to such individual’s residence for the sole purpose of hazard mitigation with respect to such residence.
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
Section 3 includes a rule headed 'No increase in basis.' It would apply rules similar to an existing tax-code provision, but the supplied bill does not reproduce that provision's operative details, so the full basis treatment cannot be established from this text alone.
(3) No increase in basis Rules similar to the rules of subsection (g)(3) shall apply in the case of this subsection.
Section 3 also directs wording changes to tax-code sections 139(d) and 139(i). These conforming amendments use 'qualified catastrophe mitigation payment' rather than the inserted definition's 'qualified catastrophe loss mitigation payment.' The reference to section 139(i) 'as redesignated' is also inconsistent with subsection (a), which moves the existing (i) to (j) and inserts a new (i). The supplied text does not resolve these inconsistencies or establish the full effects of the conforming amendments.
is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: (i) State-Based catastrophe loss mitigation programs
the term qualified catastrophe loss mitigation payment means any amount which is received by an individual to make improvements to such individual’s residence for the sole purpose of hazard mitigation with respect to such residence.
(b) Conforming amendments (1) Section 139(d) is amended by striking and qualified and inserting , qualified catastrophe mitigation payments, and qualified. (2) Section 139(i) (as redesignated by subsection (a)) is amended by striking or qualified and inserting , qualified catastrophe mitigation payment, or qualified.
Section 4 would add assistance under six listed programs or authorities to the tax-code definition of qualified disaster relief payments: Wildfires and Hurricanes Indemnity Program Plus; Agricultural Act of 2014 section 1501; noninsured crop assistance; food assistance under the specified federal regulation; Agricultural Credit Act of 1978 title IV; and the Quality Loss Assistance Program. The heading describes an exclusion from gross income, but the existing section 139 rules are not reproduced, so the complete tax consequences cannot be established from this bundle. The amendment would apply to tax years beginning after December 31, 2025.
4. Exclusion from gross income of certain emergency agricultural assistance
For purposes of this section, the term qualified disaster relief payment shall include any assistance received under any of the following: (1) Assistance received under the Wildfires and Hurricanes Indemnity Program Plus under subpart O of part 760 of title 7, Code of Federal Regulations. (2) Assistance received under section 1501 of the Agricultural Act of 2014 (7 U.S.C. 9081). (3) Noninsured crop assistance under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333). (4) Assistance under a food assistance program under part 9 of title 7, Code of Federal Regulations. (5) Assistance under title IV of the Agricultural Credit Act of 1978 (16 U.S.C. 2201 et seq.). (6) Assistance under the Quality Loss Assistance Program.
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
Section 5 would create a tax credit generally equal to 30% of qualifying mitigation expenses for real property the taxpayer owns or leases. However, its definition points to proposed Stafford Act section 207(j), which establishes the advisory committee; the activity definition is actually labeled subsection (i). This mismatch leaves the credit's eligibility reference unresolved in the supplied text.
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the expenditures paid for qualifying mitigation activities paid or incurred by the taxpayer during such taxable year with respect to real property owned or leased by the taxpayer.
The term qualifying mitigation activity has the meaning given such term in section 207(j) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.
(i) Definition of qualifying mitigation activity
(j) Hazard mitigation advisory committee
For the tax credit, expenses reimbursed by a state under a qualified state disaster-mitigation program would count as paid by the state, not by the taxpayer. The proposed credit provision does not define 'qualified State disaster mitigation program.'
Any amount originally paid or incurred by the taxpayer which is reimbursed by a State under a qualified State disaster mitigation program shall be treated as paid by such State (and not by such taxpayer).
The business-related portion of the credit would be treated as a credit listed in tax-code section 38(b), including the specified treatment of state-paid expenses. The remaining portion would be treated as a personal tax credit. The existing rules governing those credit categories are not reproduced.
So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to expenditures made in the ordinary course of the taxpayer’s trade or business (or, in the case of expenditures made by a State, would have been expenditures made in the ordinary course of the taxpayer’s trade or business if made by the taxpayer) shall be treated as a credit listed in section 38(b) for taxable year (and not allowed under subsection (a)).
(2) Personal credit For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.
For an item partly paid for by a state, the credit rate would fall below 30% if the taxpayer paid less than 30% of the combined taxpayer-and-state cost. The replacement rate would equal the taxpayer's share of that combined cost.
If the expenditure percentage with respect to any item of expenditure described under subsection (a) is less than 30 percent, subsection (a) shall be applied by substituting the expenditure percentage for 30 percent with respect to such item of expenditure.
the term expenditure percentage means, with respect to any item of expenditure described under subsection (a) any portion of which is paid or incurred by a State, the ratio (expressed as a percentage) of— (A) the taxpayer’s expenditure for such item, divided by (B) the sum of the taxpayer’s and such State’s expenditures for such item.
Expenses attributable to timber the taxpayer sells or exchanges would generally be excluded from the credit calculation, whether paid by the taxpayer or a state. The exclusion would not apply to the portion exceeding the gain on the timber sale or exchange.
An expenditure shall not be taken into account for purposes of this section (whether made by the taxpayer or a State) if such expenditure is properly allocable to timber which is sold or exchanged by the taxpayer. The preceding sentence shall not apply to the extent that such amount exceeds the gain on such sale or exchange.
Where an eligible expense would otherwise be taken into account in determining a property's tax basis, the credit would reduce that basis by the credit allowed. Other deductions or credits for the same expense would also be reduced by the mitigation credit allowed.
if the basis of any property would (but for this paragraph) be determined by taking into account any expenditure described under subsection (a), the basis of such property shall be reduced by the amount of the credit allowed under subsection (a) with respect to such expenditure (determined without regard to subsection (c)).
The amount of any deduction or other credit allowable under this chapter for any expenditure for which a credit is allowable under subsection (a) shall be reduced by the amount of credit allowed under such subsection for such expenditure (determined without regard to subsection (c)).
The tax-credit amendments would apply to expenses paid or incurred after enactment, in tax years ending after enactment.
The amendments made by this section shall apply to expenditures paid or incurred after the date of the enactment of this Act, in taxable years ending after such date.
The supplied official-actions snapshot, updated September 16, 2026, records introduction in the House on February 6, 2025, and referrals that day to Ways and Means, Transportation and Infrastructure, and the Subcommittee on Economic Development, Public Buildings, and Emergency Management. This snapshot does not establish the bill's later status or enactment.
Source snapshot updated 2026-09-16T08:09:22Z. 2025-02-06: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management. 2025-02-06: Referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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 attachment to appropriations was identified after reviewing the complete supplied introduced version. This conclusion is limited to that text and does not establish absence in other versions or accompanying materials; no attachment history is inferred.
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 a particular recipient or place was identified after reviewing the complete supplied introduced version. This conclusion is limited to that text and does not establish absence in other versions or accompanying materials. Formal earmark status cannot be fully assessed without the missing disclosures and related records.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The supplied introduced text contains narrow statutory recognition and program-specific tax treatment that warrant scrutiny within the bill's disaster policy. This classification does not imply improper purpose or establish treatment in other versions.
The Insurance Institute for Business and Home Safety receives specific statutory recognition through eligibility pathways for property improvements obtaining its FORTIFIED or Wildfire Prepared Homes designations. Households using those pathways must receive the relevant designation after installation. These pathways are not exclusive: the bill also lists individual eligible improvements and permits additional activities to be identified, although the latter provision contains the committee cross-reference mismatch described above.
(4) for property relating to satisfying the standards required for receipt of a FORTIFIED designation from the Insurance Institute for Business and Home Safety, provided that the qualified dwelling unit receives such designation following installation of such property; (5) for property relating to satisfying the standards required for receipt of a Wildfire Prepared Homes designation from the Insurance Institute for Business and Home Safety, provided that the qualified dwelling unit receives such designation following installation of such property;
(i) Definition of qualifying mitigation activity In this section, the term qualifying mitigation activity means an activity relating to a housing unit— (1) for property to— (A) improve the strength of a roof deck attachment;
(6) for any other hazard mitigation activity identified by the President, in consultation with the Administrator of the Federal Emergency Management Agency and the hazard mitigation advisory committee established in subsection (k), for mitigation of a natural hazard.
(j) Hazard mitigation advisory committee
(k) Rules of construction
Section 4 singles out recipients of assistance under six listed agricultural programs or authorities for proposed favorable income-tax treatment: Wildfires and Hurricanes Indemnity Program Plus; Agricultural Act of 2014 section 1501; noninsured crop assistance; food assistance under 7 CFR part 9; Agricultural Credit Act of 1978 title IV; and the Quality Loss Assistance Program. The heading describes an income exclusion, and the operative amendment would include this assistance in the definition of qualified disaster relief payments. This is a program-specific tax benefit related to the bill's disaster-assistance policy. Because existing section 139 and the underlying program rules are absent, the complete tax consequences and recipient eligibility cannot be established from the supplied introduced text.
4. Exclusion from gross income of certain emergency agricultural assistance
For purposes of this section, the term qualified disaster relief payment shall include any assistance received under any of the following: (1) Assistance received under the Wildfires and Hurricanes Indemnity Program Plus under subpart O of part 760 of title 7, Code of Federal Regulations. (2) Assistance received under section 1501 of the Agricultural Act of 2014 (7 U.S.C. 9081). (3) Noninsured crop assistance under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333). (4) Assistance under a food assistance program under part 9 of title 7, Code of Federal Regulations. (5) Assistance under title IV of the Agricultural Credit Act of 1978 (16 U.S.C. 2201 et seq.). (6) Assistance under the Quality Loss Assistance Program.
Full text preserved for this analysis. Legislative record snapshot: Sep 16, 2026. How PlainBill uses AI