A Republican bill with 7 Democratic cosponsors · See all 12 cosponsors
Last activity — Read twice and referred to the Committee on Finance.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Disaster Mitigation and Tax Parity Act of 2025 seeks to amend the Internal Revenue Code of 1986. It proposes to exclude certain amounts from gross income if they are received from State-based catastrophe loss mitigation programs. These programs can be established by a State, a political subdivision, a joint powers authority, or specific entities created by State law to ensure property insurance availability. The exclusion applies to payments used by property owners to make improvements intended to reduce damage from windstorms, earthquakes, floods, or wildfires. The changes would apply to taxable years beginning after December 31, 2021.
Yes· 3 of 8
- Scored +5
Does this improve help for people hit by a disaster?
The bill provides a tax exclusion for payments used to mitigate damage from natural disasters like floods and wildfires.
- Scored +5
Does this cut taxes for middle-income families?
The bill excludes payments for property damage mitigation from gross income, providing tax relief to property owners.
- Scored +5
Does this leave more decisions to the states?
The bill recognizes and provides tax exclusions for programs established by States or their political subdivisions.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Relief for Property Improvements: Gross income will not include payments received for the purpose of making property improvements to reduce damage from windstorms, earthquakes, floods, or wildfires (Section 2(a)(1) and Section 2(a)(2)). This means individuals can use these payments to protect their homes without being taxed on the money received.
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Retroactive Benefits: The Secretary of the Treasury is directed to provide an opportunity for individuals to claim this exclusion, which can include through an amended return (Section 2(c)(2)). This allows people to potentially recover money paid in taxes for previous years.
Potential Negative Impacts for People
- No Negative Impacts Identified: The provided text does not contain any provisions that describe negative consequences or burdens for individuals or groups of people.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Environment Energy And Infrastructure
- Does this improve help for people hit by a disaster? — The bill provides a tax exclusion for payments used to mitigate damage from natural disasters like floods and wildfires. Does this better protect air, water and wildlife? — The bill incentivizes property improvements intended to reduce damage from windstorms, earthquakes, floods, or wildfires.
- Demographic And Interest Groups
- Would middle-income households be better off under this? — The bill provides tax relief for property owners to invest in disaster-resistant home improvements. Would people in rural areas be better off under this? — The bill may benefit rural property owners facing risks from wildfires or earthquakes. Would people in cities be better off under this? — The bill may benefit urban property owners facing risks from floods or other natural disasters.
- Economy And Finance
- Does this cut taxes for middle-income families? — The bill excludes payments for property damage mitigation from gross income, providing tax relief to property owners.
- Governance And Ideology
- Does this leave more decisions to the states? — The bill recognizes and provides tax exclusions for programs established by States or their political subdivisions.
- Social Issues And Justice
- Does this make housing cost less? — The bill helps property owners protect their homes against natural disasters through tax-free mitigation payments.
- 12/3/2025
- 1 Cosponsor added.
- 11/19/2025
- 1 Cosponsor added.
- 1/30/2025
- Read twice and referred to the Committee on Finance.
- 10 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Michael BennetDemocrat · Colorado
Ted BuddRepublican · North Carolina
Katie BrittRepublican · Alabama
Bill CassidyRepublican · Louisiana
Ruben GallegoDemocrat · Arizona
John HickenlooperDemocrat · Colorado
Amy KlobucharDemocrat · Minnesota
John KennedyRepublican · Louisiana
Jeff MerkleyDemocrat · Oregon
Alex PadillaDemocrat · California
Adam SchiffDemocrat · California
Roger WickerRepublican · Mississippi