Bill > S336

This bill amends the Internal Revenue Code to create a tax exemption for payments received through state-based catastrophe loss mitigation programs. Specifically, the bill allows individuals to exclude from their gross income any payments they receive to make property improvements that reduce potential damage from natural disasters like windstorms, earthquakes, floods, or wildfires. The payments must be made by a state, political subdivision, joint powers authority, or a state-created entity responsible for ensuring property insurance availability, and must be solely focused on mitigating potential disaster damage. The bill applies retroactively to taxable years beginning after December 31, 2021, and allows taxpayers to claim the exclusion through amended tax returns. By providing this tax exclusion, the bill aims to encourage and financially support homeowners and property owners in making proactive improvements to protect their properties from potential catastrophic damage, potentially reducing overall insurance and recovery costs associated with natural disasters.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/336/all-info