Bill > HR1849

This bill amends the Internal Revenue Code to create a new tax provision that excludes certain state-sponsored disaster mitigation payments from an individual's gross income. Specifically, the bill allows individuals to receive tax-free payments from state, local, or state-created entities aimed at helping property owners make improvements that reduce potential damage from natural disasters like windstorms, earthquakes, or wildfires. These "qualified catastrophe mitigation payments" must be used solely for property improvements designed to minimize potential damage from these specific types of catastrophic events. The bill applies retroactively to tax years beginning after December 31, 2020, and allows taxpayers to claim this exclusion even through amended tax returns. By creating this tax exclusion, the bill aims to encourage and financially support property owners in taking proactive steps to protect their property from potential natural disaster damage, without creating additional tax burdens for those who receive mitigation assistance from state-based programs.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1849/all-info