Washington, D.C. — U.S. Senator Adam Schiff (D-Calif.) joined Senator Alex Padilla (D-Calif.) and Senator Thom Tillis (R-N.C.), along with his Senate colleagues, to introduce the Disaster Mitigation and Tax Parity Act of 2025. This bipartisan bill will exempt federal taxes on rebates homeowners receive when protecting their home against natural disasters. Padilla co-led the bill’s introduction with Tillis.
“We have seen how natural disasters have devastated communities around the country, and we must ensure we have the resources and programs in place to respond,” said Senator Schiff. “Homeowners should not face additional taxes for wanting to protect their homes, and our bipartisan legislation will provide the needed tax relief to help affected Americans recover from these disasters.”
“This commonsense legislation takes a critical step toward empowering individuals and communities to better protect themselves from the devastating effects of natural disasters like Hurricane Helene,” said Senator Tillis. “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. This proactive approach to disaster preparedness not only helps families rebuild faster but strengthens our resilience in the face of future disasters.”
“The devastating fires in Southern California underscored the urgent need to empower homeowners to take proactive steps to keep their families and homes safe,” said Senator Padilla. “As these disasters become more frequent and more extreme due to the climate crisis, we should incentivize — not penalize — taxpayers for protecting their homes. That’s why the Disaster Mitigation and Tax Parity Act would provide a tax exemption on payments from state-based programs for homeowner investments in critical disaster-related improvements.”
“Louisianans understand the impact of devastating storms, but with the help of state and local programs, we have tools to rebuild and return to wholeness,” said Dr. Cassidy. “If communities need tax relief, let’s give it to them!”
This bill is co-sponsored by Senators John Hickenlooper (D-Colo.), Katie Britt (R-Ala.), Michael Bennett (D-Colo.), Jeff Merkley (D-Ore.), Amy Klobuchar (D-Minn.), John Kennedy (R-La.), Roger Wicker (R-Miss.), Ted Budd (R-N.C.), and Alex Padilla (D-Calif.).
Background:
In the wake of the recent fires in Los Angeles, Schiff has worked to ensure that affected communities have the aid and resources needed to rebuild and recover. Schiff and Senator Alex Padilla led 47 bipartisan members of the California Congressional delegation in successfully urging President Biden to grant Governor Gavin Newsom’s request for a major disaster declaration in response to these wildfires to expedite timely relief to residents impacted.
Schiff has also spoken out about the Trump Administration’s reckless decision to direct California officials to needlessly release billions of gallons of water.
Full text of the bill is available here.
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