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Disaster Resiliency and Coverage Act of 2025
3/7/2025, 5:23 AM
Summary of Bill HR 1105
The bill emphasizes the importance of proactive measures to reduce the vulnerability of households to disasters, rather than just providing assistance after the fact. By establishing this program, the government aims to empower individuals to take steps to protect their homes and families from the devastating effects of natural disasters.
In addition to creating the individual household disaster mitigation program, the bill also includes provisions for other purposes related to disaster relief and emergency assistance. These additional measures are intended to enhance the overall effectiveness of disaster response efforts and ensure that resources are allocated efficiently and effectively. Overall, Bill 119 hr 1105 represents a proactive approach to disaster management and aims to prioritize prevention and mitigation strategies to reduce the impact of disasters on individual households. By requiring the President to establish this program, the bill seeks to improve the resilience of communities and reduce the need for costly disaster relief efforts in the future.
Congressional Summary of HR 1105
Disaster Resiliency and Coverage Act of 2025
This bill establishes a grant program for certain hazard mitigation measures for homes in disaster risk areas and provides a tax credit for up to 30% of expenditures on such mitigation measures. It also excludes from taxable income certain payments for residential hazard mitigation and federal emergency agricultural assistance.
The bill requires the Federal Emergency Management Agency (FEMA) to award grants to states and Indian tribal governments for specified hazard mitigation activities on residential properties at a high risk of experiencing a major disaster. FEMA must establish and periodically update disaster risk areas in which homes are eligible for the grant funding. Individual residential households, subject to certain income limitations, may receive up to $10,000 (adjusted for inflation) for eligible hazard mitigation activities, such as reinforcing a roof, installing a flood control system, or reducing flammable vegetation near the home. The bill also provides an income tax credit to individuals and businesses for up to 30% of expenditures on the specified residential mitigation activities eligible under the grant program.
Additionally, under current law, payments for disaster relief and payments under federal hazard mitigation programs are excluded from taxable income. The bill specifically excludes from taxable income payments to an individual for hazard mitigation improvements to their residence under any program established or administered by a state or local government. The bill also excludes certain federal emergency and disaster agricultural assistance from taxable income as a type of disaster relief payment.
