I
119THCONGRESS
1
STSESSION H. R. 1105
To amend the Robert T. Stafford Disaster Relief and Emergency Assistance
Act to require the President to establish an individual household disaster
mitigation program, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY6, 2025
Mr. T
HOMPSONof California (for himself, Mr. LAMALFA, Mrs. KIM, Mr.
O
BERNOLTE, Mr. VALADAO, Ms. BARRAGA´N, Ms. BROWNLEY, Mr.
C
ARBAJAL, Mr. CARTERof Louisiana, Mr. CASE, Ms. CASTORof Florida,
Ms. C
HU, Mr. CISNEROS, Mr. COSTA, Mr. FIELDS, Ms. LOISFRANKEL
of Florida, Mr. F
ROST, Mr. GARAMENDI, Mr. GOLDMANof New York,
Mr. H
ARDERof California, Mr. HUFFMAN, Ms. JACOBS, Ms. KAMLAGER-
D
OVE, Mr. KHANNA, Mr. LEVIN, Mr. LIEU, Ms. MATSUI, Mrs. MCIVER,
Mr. M
OSKOWITZ, Mr. MULLIN, Mr. NEGUSE, Ms. NORTON, Mr. PA-
NETTA, Ms. PETTERSEN, Mr. RUIZ, Ms. SCHRIER, Mr. TAKANO, Ms.
T
LAIB, Ms. TOKUDA, Mrs. TORRESof California, Mr. VASQUEZ, and Mr.
W
HITESIDES) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Transportation and Infrastructure, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To amend the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act to require the President to establish
an individual household disaster mitigation program, and
for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 2
•HR 1105 IH
SECTION 1. SHORT TITLE. 1
This Act may be cited as the ‘‘Disaster Resiliency and 2
Coverage Act of 2025’’. 3
SEC. 2. INDIVIDUAL HOUSEHOLD DISASTER MITIGATION 4
PROGRAM. 5
(a) E
STABLISHMENT OF PROGRAM.—Title II of the 6
Robert T. Stafford Disaster Relief and Emergency Assist-7
ance Act (42 U.S.C. 5131 et seq.) is amended by adding 8
at the end the following: 9
‘‘SEC. 207. INDIVIDUAL HOUSEHOLD DISASTER MITIGATION 10
PROGRAM. 11
‘‘(a) E
STABLISHMENT.—The President shall estab-12
lish a program to provide grants to States and Indian trib-13
al governments for qualifying pre-disaster mitigation ac-14
tivities on individual residential households that are at risk 15
of being damaged by a major disaster. 16
‘‘(b) E
STABLISHMENT OF ELIGIBLEDISASTER 17
A
REAS.—In carrying out the program under this section, 18
the President shall— 19
‘‘(1) establish eligible disaster areas, in con-20
sultation with States, that the President determines 21
to be at risk of a natural hazard, including— 22
‘‘(A) a description of the type, likelihood, 23
and severity of each potential natural hazard 24
affecting each such risk area; and 25
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 3
•HR 1105 IH
‘‘(B) by taking into account previously de-1
clared major disasters impacting such areas; 2
‘‘(2) provide technical assistance to the States 3
or Indian tribal governments in developing the plan 4
described in subsection (c) and administering grants 5
provided for individual households under the pro-6
gram; 7
‘‘(3) not less frequently than every 5 years, re-8
view and update the eligible disaster areas that the 9
President determines to be at risk of a natural dis-10
aster, including a description of the type and sever-11
ity of each potential natural disaster affecting each 12
such risk area; and 13
‘‘(4) consult with relevant governmental and 14
nongovernmental experts in order to ensure that 15
such determinations are made using current sci-16
entific standards and tools available in establishing, 17
reviewing, and updating the eligible disaster areas 18
that the President determines to be at risk of a nat-19
ural disaster. 20
‘‘(c) P
LAN FORELIGIBLEACTIVITIES.—To be eligi-21
ble for a grant under this section, a State or Indian tribal 22
government shall submit to the President a plan that in-23
cludes— 24
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 4
•HR 1105 IH
‘‘(1) each disaster risk area established by the 1
President under subsection (b) in which the State or 2
Indian tribal government proposes to provide funds 3
under the program; 4
‘‘(2) an assessment of the availability and af-5
fordability of homeowner insurance coverage in each 6
such risk area, including a breakdown of coverage 7
offered by— 8
‘‘(A) private insurance companies; 9
‘‘(B) State residual markets; and 10
‘‘(C) State and Federal insurance pro-11
grams; 12
‘‘(3) an analysis of factors that may be ad-13
versely impacting insurance availability and afford-14
ability; 15
‘‘(4) a list of each qualifying mitigation activity 16
that is eligible for funds in each such risk area; 17
‘‘(5) the criteria by which a State or Indian 18
tribal government will evaluate applicants, which 19
shall include consideration of the household income 20
of the applicant and whether the residence is located 21
in a Community Disaster Resilience Zone; and 22
‘‘(6) a financial plan that includes maximum 23
amounts available to a household for each qualifying 24
mitigation activity. 25
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 5
•HR 1105 IH
‘‘(d) CONSULTATION.—In establishing the program 1
under this section, the President, acting through the Ad-2
ministrator of the Federal Emergency Management Agen-3
cy and the Director of the Federal Insurance Office, shall 4
consult with the chief insurance regulators from the 50 5
States, the District of Columbia, and the territories of the 6
United States, insurance industry stakeholders, including 7
insurers, reinsurers, agents, brokers, and insurance-fund-8
ed research organizations, and consumer and environ-9
mental stakeholders to determine what qualifying mitiga-10
tion activities are likely to incentivize the availability and 11
purchase of residential property insurance and other fi-12
nancial risk transfer mechanisms in eligible disaster areas. 13
‘‘(e) L
IMITATIONS.— 14
‘‘(1) H
IGH-RISK AREAS.—Funds provided under 15
this section may only be used in eligible disaster 16
areas that the State or Indian tribal government de-17
termines are at a high risk of experiencing a major 18
disaster for the major disaster that presents such a 19
risk. 20
‘‘(2) L
IMITATION BASED ON ADJUSTED GROSS 21
INCOME.—An individual shall not be eligible to re-22
ceive a grant under this section if the adjusted gross 23
income of such individual exceeds $250,000 24
($500,000 in the case of a joint tax return) for the 25
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 6
•HR 1105 IH
taxable year ending in the calendar year immediately 1
preceding the calendar year with respect to which a 2
grant application is filed. 3
‘‘(3) D
EFINITION OF ADJUSTED GROSS IN -4
COME.—In this section, the term ‘adjusted gross in-5
come’ has the meaning given such term in section 6
62(a) of the Internal Revenue Code of 1986. 7
‘‘(f) M
ULTI-TIEREDMITIGATIONSTANDARDS.— 8
‘‘(1) I
N GENERAL.—The President, acting 9
through the Administrator of the Federal Emer-10
gency Management Agency, shall establish mitiga-11
tion standards for individual households that carry 12
out each type of qualifying mitigation activity eligi-13
ble for funds under the program, which may include 14
a multi-tiered standard. 15
‘‘(2) C
ONSIDERATION.—In establishing the 16
mitigation standards under paragraph (1), the 17
President, acting through the Administrator— 18
‘‘(A) shall consider any standards estab-19
lished by— 20
‘‘(i) the Insurance Institute for Busi-21
ness and Home Safety; 22
‘‘(ii) the chief insurance regulators 23
from the 50 states, the District of Colum-24
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 7
•HR 1105 IH
bia, and the territories of the United 1
States; and 2
‘‘(iii) any other standard-issuing enti-3
ty determined appropriate; and 4
‘‘(B) may— 5
‘‘(i) adopt a standard considered 6
under subparagraph (A); or 7
‘‘(ii) establish alternative standards. 8
‘‘(g) G
UIDANCE TOINSURANCEPROVIDERS.—To be 9
eligible for a grant under the program under this section, 10
a State or Indian tribal government shall establish, and 11
make available to the public, guidance to insurance pro-12
viders and consumers that includes suggested incentives 13
for households that carry out disaster mitigation activities 14
under the program, including— 15
‘‘(1) the mitigation standards established under 16
subsection (f); 17
‘‘(2) increased consumer coverage choice; and 18
‘‘(3) actuarially supported favorable pricing 19
benefits such as discounts, rebates, or premium 20
credits. 21
‘‘(h) M
AXIMUMAMOUNTS.—A State or Indian tribal 22
government may not provide more than an amount of 23
$10,000, not to exceed the actual cost of mitigation activi-24
ties, to any individual household under the program. Such 25
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 8
•HR 1105 IH
amount shall be increased yearly to reflect any increase 1
in the Consumer Price Index. 2
‘‘(i) D
EFINITION OFQUALIFYINGMITIGATIONAC-3
TIVITY.—In this section, the term ‘qualifying mitigation 4
activity’ means an activity relating to a housing unit— 5
‘‘(1) for property to— 6
‘‘(A) improve the strength of a roof deck 7
attachment; 8
‘‘(B) create a secondary water barrier to 9
prevent water intrusion or mitigate against po-10
tential water intrusion from wind-driven rain; 11
‘‘(C) improve the durability, impact resist-12
ance (not less than class 3 or 4 rating), or fire 13
resistance (not less than class A rating) of a 14
roof covering; 15
‘‘(D) brace gable-end walls; 16
‘‘(E) reinforce the connection between a 17
roof and supporting wall; 18
‘‘(F) protect openings from penetration by 19
wind-borne debris; 20
‘‘(G) protect exterior doors and garages 21
from natural hazards; 22
‘‘(H) complete measures contained in the 23
publication of the Federal Emergency Manage-24
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 9
•HR 1105 IH
ment Agency entitled ‘Wind Retrofit Guide for 1
Residential Buildings’ (P–804); 2
‘‘(I) elevate the qualified dwelling unit, as 3
well as utilities, machinery, or equipment, above 4
the base flood elevation or other applicable min-5
imum elevation requirement; 6
‘‘(J) seal walls in the basement of the 7
qualified dwelling unit using waterproofing com-8
pounds; or 9
‘‘(K) protect propane tanks or other exter-10
nal fuel sources; 11
‘‘(2) to install— 12
‘‘(A) check valves to prevent flood water 13
from backing up into drains; 14
‘‘(B) flood vents, breakaway walls or open 15
lattice for homes located in V zones; 16
‘‘(C) a stormwater drainage system or im-17
prove an existing system; 18
‘‘(D) natural or nature-based features for 19
flood control, including living shorelines; 20
‘‘(E) roof coverings, sheathing, flashing, 21
roof and attic vents, eaves, or gutters that con-22
form to ignition-resistant construction stand-23
ards; 24
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 10
•HR 1105 IH
‘‘(F) wall components for wall assemblies 1
that conform to ignition-resistant construction 2
standards; 3
‘‘(G) a wall-to-foundation anchor or con-4
nector, or a shear transfer anchor or connector; 5
‘‘(H) wood structural panel sheathing for 6
strengthening cripple walls; 7
‘‘(I) anchorage of the masonry chimney to 8
the framing; 9
‘‘(J) prefabricated lateral resisting sys-10
tems; 11
‘‘(K) a standby generator system con-12
sisting of a standby generator and an automatic 13
transfer switch; 14
‘‘(L) a storm shelter that meets the design 15
and construction standards established by the 16
International Code Council and the National 17
Storm Shelter Association (ICC–500), or a safe 18
room that satisfies the criteria contained in— 19
‘‘(i) the publication of the Federal 20
Emergency Management Agency entitled 21
‘Safe Rooms for Tornadoes and Hurri-22
canes’ (P–361); or 23
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 11
•HR 1105 IH
‘‘(ii) the publication of the Federal 1
Emergency Management Agency entitled 2
‘Taking Shelter from the Storm’ (P–320); 3
‘‘(M) a lightning protection system; 4
‘‘(N) exterior walls, doors, windows, or 5
other exterior dwelling unit elements that con-6
form to ignition-resistant construction stand-7
ards; 8
‘‘(O) exterior deck or fence components 9
that conform to ignition-resistant construction 10
standards; 11
‘‘(P) structure-specific water hydration 12
systems, including fire mitigation systems such 13
as interior sprinkler systems; 14
‘‘(Q) flood openings for fully enclosed 15
areas below the lowest floor of the dwelling 16
unit; 17
‘‘(R) lateral bracing for wall elements, 18
foundation elements, and garage doors or other 19
large openings to resist seismic loads; or 20
‘‘(S) automatic shutoff valves for water 21
and gas lines; 22
‘‘(3) for services or equipment to— 23
‘‘(A) create buffers around the qualified 24
dwelling unit through the removal or reduction 25
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 12
•HR 1105 IH
of flammable vegetation, including vertical 1
clearance of tree branches; 2
‘‘(B) create buffers around the dwelling 3
unit through— 4
‘‘(i) the removal of exterior deck or 5
fence components or ignition-prone land-6
scape features; or 7
‘‘(ii) replacement of the components 8
or features described in clause (i) with 9
components or features that conform to ig-10
nition-resistant construction standards; 11
‘‘(C) perform fire maintenance procedures 12
identified by the Federal Emergency Manage-13
ment Agency or the United States Forest Serv-14
ice, including fuel management techniques such 15
as creating fuel and fire breaks; or 16
‘‘(D) replace flammable vegetation with 17
less flammable species; 18
‘‘(4) for property relating to satisfying the 19
standards required for receipt of a FORTIFIED 20
designation from the Insurance Institute for Busi-21
ness and Home Safety, provided that the qualified 22
dwelling unit receives such designation following in-23
stallation of such property; 24
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 13
•HR 1105 IH
‘‘(5) for property relating to satisfying the 1
standards required for receipt of a Wildfire Prepared 2
Homes designation from the Insurance Institute for 3
Business and Home Safety, provided that the quali-4
fied dwelling unit receives such designation following 5
installation of such property; or 6
‘‘(6) for any other hazard mitigation activity 7
identified by the President, in consultation with the 8
Administrator of the Federal Emergency Manage-9
ment Agency and the hazard mitigation advisory 10
committee established in subsection (k), for mitiga-11
tion of a natural hazard. 12
‘‘(j) H
AZARDMITIGATIONADVISORYCOMMITTEE.— 13
The President shall establish a hazard mitigation advisory 14
committee that shall— 15
‘‘(1) consist of 50 representatives, including 16
representatives from— 17
‘‘(A) the State Insurance Commissioners; 18
‘‘(B) private insurance companies; 19
‘‘(C) private reinsurance companies; 20
‘‘(D) insurance broker companies; 21
‘‘(E) insurance-funded research organiza-22
tions; 23
‘‘(F) consumer advocate organizations; 24
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 14
•HR 1105 IH
‘‘(G) State, local, and tribal firefighting 1
agencies; 2
‘‘(H) State-sponsored insurance plans; 3
‘‘(I) realtor associations; 4
‘‘(J) home builder associations; 5
‘‘(K) State, local, and tribal emergency re-6
sponders; 7
‘‘(L) State and tribal emergency managers; 8
‘‘(M) State and tribal hazard mitigation 9
officers; 10
‘‘(N) relevant academic experts; 11
‘‘(O) building code associations; 12
‘‘(P) agricultural groups; and 13
‘‘(Q) environmental organizations; and 14
‘‘(2) advise the President on developments in 15
emerging hazard mitigation research and testing and 16
recommend additions to the qualified hazard mitiga-17
tion activities eligible under this program, including 18
reviewing the effectiveness of hazard mitigation sys-19
tems, products, and designations submitted to the 20
advisory committee by private or nongovernmental 21
companies or organizations. 22
‘‘(k) R
ULES OFCONSTRUCTION.—Nothing in this 23
Act shall— 24
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 15
•HR 1105 IH
‘‘(1) require a State or any other entity to base 1
the assessment of the status of the availability of 2
homeowner insurance coverage required under sub-3
section (c)(2) on data not already collected by that 4
entity absent this requirement; and 5
‘‘(2) be construed to preempt the State regula-6
tion of the business of insurance or require, by the 7
Federal Government or any State government, any 8
insurance provider to alter the underwriting, pricing, 9
and distribution of insurance.’’. 10
(b) T
AXTREATMENT OF INDIVIDUALHOUSEHOLD 11
D
ISASTERMITIGATIONPROGRAM.— 12
(1) I
N GENERAL.—Section 139 of the Internal 13
Revenue Code of 1986 is amended by redesignating 14
subsection (h) as subsection (i) and by inserting 15
after subsection (g) the following new subsection: 16
‘‘(h) I
NDIVIDUALHOUSEHOLDDISASTERMITIGA-17
TIONPROGRAM.—Gross income shall not include amounts 18
received under section 207 of the Robert T. Stafford Dis-19
aster Relief and Emergency Assistance Act.’’. 20
(2) E
FFECTIVE DATE.—The amendment made 21
by this subsection shall apply to amounts received 22
after the date of the enactment of this Act. 23
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 16
•HR 1105 IH
SEC. 3. EXCLUSION OF AMOUNTS RECEIVED FROM STATE- 1
BASED CATASTROPHE LOSS MITIGATION 2
PROGRAMS. 3
(a) I
NGENERAL.—Section 139 of the Internal Rev-4
enue Code of 1986, as amended by the preceding provi-5
sions of this Act, is amended by redesignating subsection 6
(i) as subsection (j) and by inserting after subsection (h) 7
the following new subsection: 8
‘‘(i) S
TATE-BASEDCATASTROPHELOSSMITIGATION 9
P
ROGRAMS.— 10
‘‘(1) I
N GENERAL.—Gross income shall not in-11
clude any amount received by an individual as a 12
qualified catastrophe loss mitigation payment under 13
a program established or administered by a State, or 14
a political subdivision or instrumentality thereof, for 15
the purpose of making such payments. 16
‘‘(2) Q
UALIFIED CATASTROPHE LOSS MITIGA -17
TION PAYMENT.—For purposes of this section, the 18
term ‘qualified catastrophe loss mitigation payment’ 19
means any amount which is received by an indi-20
vidual to make improvements to such individual’s 21
residence for the sole purpose of hazard mitigation 22
with respect to such residence. 23
‘‘(3) N
O INCREASE IN BASIS.—Rules similar to 24
the rules of subsection (g)(3) shall apply in the case 25
of this subsection.’’. 26
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 17
•HR 1105 IH
(b) CONFORMINGAMENDMENTS.— 1
(1) Section 139(d) is amended by striking ‘‘and 2
qualified’’ and inserting ‘‘, qualified catastrophe 3
mitigation payments, and qualified’’. 4
(2) Section 139(i) (as redesignated by sub-5
section (a)) is amended by striking ‘‘or qualified’’ 6
and inserting ‘‘, qualified catastrophe mitigation 7
payment, or qualified’’. 8
(c) E
FFECTIVEDATE.—The amendments made by 9
this section shall apply to taxable years beginning after 10
December 31, 2025. 11
SEC. 4. EXCLUSION FROM GROSS INCOME OF CERTAIN 12
EMERGENCY AGRICULTURAL ASSISTANCE. 13
(a) I
NGENERAL.—Section 139 of the Internal Rev-14
enue Code of 1986, as amended by the preceding provi-15
sions of this Act, is amended by redesignating subsection 16
(j) as subsection (k) and by inserting after subsection (i) 17
the following new subsection: 18
‘‘(j) C
ERTAINAGRICULTURAL ASSISTANCE.—For 19
purposes of this section, the term ‘qualified disaster relief 20
payment’ shall include any assistance received under any 21
of the following: 22
‘‘(1) Assistance received under the Wildfires 23
and Hurricanes Indemnity Program Plus under sub-24
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 18
•HR 1105 IH
part O of part 760 of title 7, Code of Federal Regu-1
lations. 2
‘‘(2) Assistance received under section 1501 of 3
the Agricultural Act of 2014 (7 U.S.C. 9081). 4
‘‘(3) Noninsured crop assistance under section 5
196 of the Federal Agriculture Improvement and 6
Reform Act of 1996 (7 U.S.C. 7333). 7
‘‘(4) Assistance under a food assistance pro-8
gram under part 9 of title 7, Code of Federal Regu-9
lations. 10
‘‘(5) Assistance under title IV of the Agricul-11
tural Credit Act of 1978 (16 U.S.C. 2201 et seq.). 12
‘‘(6) Assistance under the Quality Loss Assist-13
ance Program.’’. 14
(b) E
FFECTIVEDATE.—The amendments made by 15
this section shall apply to taxable years beginning after 16
December 31, 2025. 17
SEC. 5. CREDIT FOR DISASTER MITIGATION EXPENDI-18
TURES. 19
(a) I
NGENERAL.—Subpart B of part IV of sub-20
chapter A of chapter 1 of the Internal Revenue Code of 21
1986 is amended by inserting after section 27 the fol-22
lowing new section: 23
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 19
•HR 1105 IH
‘‘SEC. 28. DISASTER MITIGATION EXPENDITURES. 1
‘‘(a) I
NGENERAL.—There shall be allowed as a cred-2
it against the tax imposed by this chapter for the taxable 3
year an amount equal to 30 percent of the expenditures 4
paid for qualifying mitigation activities paid or incurred 5
by the taxpayer during such taxable year with respect to 6
real property owned or leased by the taxpayer. 7
‘‘(b) Q
UALIFIEDDISASTERMITIGATIONACTIVI-8
TIES.—For purposes of this section— 9
‘‘(1) Q
UALIFYING MITIGATION ACTIVITY .—The 10
term ‘qualifying mitigation activity’ has the meaning 11
given such term in section 207(j) of the Robert T. 12
Stafford Disaster Relief and Emergency Assistance 13
Act. 14
‘‘(2) T
REATMENT OF REIMBURSEMENTS .—Any 15
amount originally paid or incurred by the taxpayer 16
which is reimbursed by a State under a qualified 17
State disaster mitigation program shall be treated as 18
paid by such State (and not by such taxpayer). 19
‘‘(c) A
PPLICATIONWITHOTHERCREDITS.— 20
‘‘(1) B
USINESS CREDIT TREATED AS PART OF 21
GENERAL BUSINESS CREDIT .—So much of the credit 22
which would be allowed under subsection (a) for any 23
taxable year (determined without regard to this sub-24
section) that is attributable to expenditures made in 25
the ordinary course of the taxpayer’s trade or busi-26
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 20
•HR 1105 IH
ness (or, in the case of expenditures made by a 1
State, would have been expenditures made in the or-2
dinary course of the taxpayer’s trade or business if 3
made by the taxpayer) shall be treated as a credit 4
listed in section 38(b) for taxable year (and not al-5
lowed under subsection (a)). 6
‘‘(2) P
ERSONAL CREDIT.—For purposes of this 7
title, the credit allowed under subsection (a) for any 8
taxable year (determined after application of para-9
graph (1)) shall be treated as a credit allowable 10
under subpart A for such taxable year. 11
‘‘(d) R
EDUCTION OFCREDITPERCENTAGEWHERE 12
T
AXPAYEREXPENDITURESLESSTHAN30 PERCENT.— 13
‘‘(1) I
N GENERAL.—If the expenditure percent-14
age with respect to any item of expenditure de-15
scribed under subsection (a) is less than 30 percent, 16
subsection (a) shall be applied by substituting ‘the 17
expenditure percentage’ for ‘30 percent’ with respect 18
to such item of expenditure. 19
‘‘(2) E
XPENDITURE PERCENTAGE .—For pur-20
poses of this section, the term ‘expenditure percent-21
age’ means, with respect to any item of expenditure 22
described under subsection (a) any portion of which 23
is paid or incurred by a State, the ratio (expressed 24
as a percentage) of— 25
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 21
•HR 1105 IH
‘‘(A) the taxpayer’s expenditure for such 1
item, divided by 2
‘‘(B) the sum of the taxpayer’s and such 3
State’s expenditures for such item. 4
‘‘(e) S
PECIALRULES.— 5
‘‘(1) T
REATMENT OF EXPENDITURES RELATED 6
TO MARKETABLE TIMBER .—An expenditure shall not 7
be taken into account for purposes of this section 8
(whether made by the taxpayer or a State) if such 9
expenditure is properly allocable to timber which is 10
sold or exchanged by the taxpayer. The preceding 11
sentence shall not apply to the extent that such 12
amount exceeds the gain on such sale or exchange. 13
‘‘(2) B
ASIS REDUCTION.—For purposes of this 14
subtitle, if the basis of any property would (but for 15
this paragraph) be determined by taking into ac-16
count any expenditure described under subsection 17
(a), the basis of such property shall be reduced by 18
the amount of the credit allowed under subsection 19
(a) with respect to such expenditure (determined 20
without regard to subsection (c)). 21
‘‘(3) D
ENIAL OF DOUBLE BENEFIT .—The 22
amount of any deduction or other credit allowable 23
under this chapter for any expenditure for which a 24
credit is allowable under subsection (a) shall be re-25
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 22
•HR 1105 IH
duced by the amount of credit allowed under such 1
subsection for such expenditure (determined without 2
regard to subsection (c)).’’. 3
(b) C
ONFORMINGAMENDMENTS.— 4
(1) Section 38(b) of such Code is amended by 5
striking ‘‘plus’’ at the end of paragraph (40), by 6
striking the period at the end of paragraph (41) and 7
inserting ‘‘, plus’’, and by adding at the end the fol-8
lowing new paragraph: 9
‘‘(42) the portion of the disaster mitigation ex-10
penditures credit to which section 28(c)(1) applies.’’. 11
(2) Section 1016(a) of such Code is amended 12
by redesignating paragraphs (35) through (38) as 13
paragraphs (36) through (39), respectively, and by 14
inserting after paragraph (34) the following new 15
paragraph: 16
‘‘(35) to the extent provided in section 17
28(e)(2),’’. 18
(3) The table of sections for subpart B of part 19
IV of subchapter A of chapter 1 of such Code is 20
amended by inserting after the item relating to sec-21
tion 27 the following new item: 22
‘‘Sec. 28. Qualified disaster mitigation expenditures.’’.
(c) EFFECTIVEDATE.—The amendments made by 23
this section shall apply to expenditures paid or incurred 24
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS 23
•HR 1105 IH
after the date of the enactment of this Act, in taxable 1
years ending after such date. 2
Æ
VerDate Sep 11 2014 22:40 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6301 E:\BILLS\H1105.IH H1105
ssavage on LAPJG3WLY3PROD with BILLS