Disaster Mitigation and Tax Parity Act of 2025
Official title: A bill to amend the Internal Revenue Code of 1986 to exclude from gross income amounts received from State-based catastrophe loss mitigation programs.
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Read twice and referred to the Committee on Finance.
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 purpose of reducing damage that would be done to the property by a windstorm, earthquake, flood, or wildfire.
Finally, the bill provides that such payments from a state catastrophe loss mitigation program do not increase the basis of the property for which the payments are made.
- Introduced in Senate Formatted Text PDF Formatted XML
- NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES
- AMERICAN PROPERTY CASUALTY INSURANCE ASSOCIATION FKA PROPERTY CASUALTY INSURERS ASSOC. OF AMERICA
- CARPI & CLAY, INC
- OGR
- REINSURANCE ASSN OF AMERICA
- INDEPENDENT INSURANCE AGENTS & BROKERS OF AMERICA
Bodies those filers lobbied
- HOUSE OF REPRESENTATIVES
- SENATE
- Treasury, Dept of
- Federal Housing Finance Agency (FHFA)
- Homeland Security, Dept of (DHS)
- Transportation, Dept of (DOT)
- Federal Emergency Management Agency (FEMA)
- White House Office
Cite this page
U.S. Congress. (2026). S. 336: Disaster Mitigation and Tax Parity Act of 2025. 119th Congress. Open America. https://openamerica.io/bill/119-S-336/
"S. 336: Disaster Mitigation and Tax Parity Act of 2025." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-S-336/.
S. 336, 119th Cong. (2026), https://openamerica.io/bill/119-S-336/.
[S. 336: Disaster Mitigation and Tax Parity Act of 2025](https://openamerica.io/bill/119-S-336/)