H.R. 1849 · On the floor · Taxation

Disaster Mitigation and Tax Parity Act of 2025

What it does

• Excludes from gross income payments an individual receives from a state catastrophe loss mitigation program to make property improvements that mitigate certain disasters.
• Covers programs established by a state, a political subdivision or instrumentality, a joint powers authority, or a state-created, state-regulated entity providing essential or basic property insurance.
• Requires the payments to be for improvements made solely to reduce damage from a windstorm, earthquake, flood, or wildfire.
• Provides that the payments do not increase the property's tax basis, matching the treatment of existing Stafford Act and flood insurance hazard mitigation payments.

Official summary

Disaster Mitigation and Tax Parity Act of 2025 This bill excludes from gross income, for federal income tax purposes, payments received from a state catastrophe loss mitigation program by an individual for the purpose of making improvements to the individual’s property that mitigate the impact of certain disasters. Under current law, individuals may exclude from gross income, for federal income tax purposes, payments received under the Robert T. Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) for hazard mitigation. (Some exceptions apply.) Further, under current law, such payments do not increase the basis of the property for which the payments are made. The bill allows a similar exclusion from gross income for certain payments received by an individual from a program established by a state (or any political subdivision or instrumentality of the state), a joint powers authority, or an entity that was established by the state to provide essential or basic property insurance and is regulated by the state. Under the bill, such payments must be for making improvements to the individual’s property for the sole…

Latest action

Feb 4, 2026: ASSUMING FIRST SPONSORSHIP - Mr. Murphy asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 1849, a bill originally introduced by Representative LaMalfa, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.

Committee: House Ways and Means