Disaster Mitigation and Tax Parity Act of 2021

Disaster Mitigation and Tax Parity Act of 2021

This bill excludes from gross income, for income tax purposes, any qualified catastrophe mitigation payment made under a state-based catastrophe loss mitigation program. A qualified catastrophe mitigation payment means any amount received for making improvements to an individual's residence for the sole purpose of reducing the damage that would be done to such residence by a windstorm, earthquake, or wildfire.

Bill 117 HR 4675, also known as the Disaster Mitigation and Tax Parity Act of 2021, aims to address issues related to disaster mitigation and tax policies in the United States. The bill focuses on providing support for communities affected by natural disasters and improving the tax treatment of disaster-related expenses.

One key aspect of the bill is the establishment of a Disaster Mitigation Fund, which would provide funding for projects aimed at reducing the impact of natural disasters on communities. This fund would support initiatives such as infrastructure improvements, early warning systems, and community preparedness programs.

Additionally, the bill seeks to address disparities in the tax treatment of disaster-related expenses. Currently, individuals and businesses can deduct certain disaster-related expenses from their taxes, but the rules for eligibility and the types of expenses that can be deducted vary. The Disaster Mitigation and Tax Parity Act of 2021 aims to streamline and clarify these rules, making it easier for individuals and businesses to claim deductions for disaster-related expenses. Overall, Bill 117 HR 4675 aims to improve disaster mitigation efforts and provide more equitable tax treatment for individuals and businesses affected by natural disasters. It seeks to support communities in preparing for and recovering from disasters, while also ensuring that taxpayers are able to receive the appropriate deductions for disaster-related expenses.