Sen. Thom Tillis | Sen. Thom Tillis Official Website
Sen. Thom Tillis | Sen. Thom Tillis Official Website
Senators Thom Tillis, Alex Padilla, Bill Cassidy, and Adam Schiff have introduced the Disaster Mitigation and Tax Parity Act of 2025. This legislation aims to exclude qualified catastrophe mitigation payments from gross income for tax purposes. The initiative is designed to encourage property owners to invest in disaster-related improvements without facing additional taxes.
Senator Tillis emphasized the importance of this legislation in empowering communities against natural disasters such as Hurricane Helene. "By excluding qualified catastrophe mitigation payments from income tax, we are incentivizing property owners to make the necessary improvements that reduce damage and save lives," he stated.
Senator Padilla highlighted the impact of recent fires in Southern California, noting the urgency for homeowners to protect their properties. "As these disasters become more frequent and more extreme due to the climate crisis, we should incentivize — not penalize — taxpayers for protecting their homes," he said.
Dr. Cassidy pointed out the understanding Louisianans have regarding storm impacts and expressed support for providing tax relief to affected communities. Senator Schiff echoed this sentiment, stating that homeowners should not be taxed for taking steps to safeguard their homes.
The bill defines a "qualified catastrophe mitigation payment" as funds received for property improvements aimed at reducing damage from windstorms, earthquakes, floods, or wildfires. It has garnered co-sponsorship from several senators including John Hickenlooper, Michael Bennett, Jeff Merkley, Amy Klobuchar, John Kennedy, Roger Wicker, and Ted Budd.
Endorsements come from North Carolina Insurance Commissioner Mike Causey and the North Carolina Insurance Association (NCIUA). Causey supports the bill's potential impact on pre-disaster mitigation grants' effectiveness. Gina Hardy of NCIUA advocates for grant money remaining untaxed so policyholders can continue fortifying their homes.
The full text of the bill is available online.
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