Disaster Mitigation and Tax Parity Act of 2025

Senate Bill

S. 336

119th Congress

Disaster Mitigation and Tax Parity Act of 2025

In Committee

Introduced:Jan 30, 2025

Primary Sponsor

Dan Sullivan

Senator

Republican

AK

Cosponsors

12

Quick Stats

Policy Area

Taxation

Summary

The Disaster Mitigation and Tax Parity Act excludes from taxable income payments received from state catastrophe loss mitigation programs for property improvements that reduce windstorm, earthquake, flood, or wildfire damage. This extends existing federal tax exclusions for hazard mitigation payments to include state-level programs, without increasing property basis.

Latest Action

Read twice and referred to the Committee on Finance.

SponsorDan Sullivan (R-AK)

Introduced1/30/2025

StatusRead twice and referred to the Committee on Finance.

ChamberSenate

Data from Congress.gov

See this page through your district lens

Enter ZIP to personalize representatives and vote context.

Stay on top of this issue

Subscribe for weekly bill and representative updates.

Vote Prediction

Disaster Mitigation and Tax Parity Act of 2025

The Disaster Mitigation and Tax Parity Act excludes from taxable income payments received from state catastrophe loss mitigation programs for property improvements that reduce windstorm, earthquake, flood, or wildfire damage. This extends existing federal tax

Community Breakdown

Pass

0%

Fail

0%

0 predictions

The Disaster Mitigation and Tax Parity Act excludes from taxable income payments received from state catastrophe loss mitigation programs for property improvements that reduce windstorm, earthquake, flood, or wildfire damage. This extends existing federal tax exclusions for hazard mitigation payments to include state-level programs, without increasing property basis.

Bill Number: 336
Sponsor: Dan Sullivan (R-AK)
Introduced: 1/30/2025
Status: Read twice and referred to the Committee on Finance.
Policy Area: Taxation

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: Disaster Mitigation and Tax Parity Act of 2025
Bill Number: 336
Sponsor: Dan Sullivan (R-AK)
Status: Read twice and referred to the Committee on Finance.
Introduced: 1/30/2025
Summary: The Disaster Mitigation and Tax Parity Act excludes from taxable income payments received from state catastrophe loss mitigation programs for property improvements that reduce windstorm, earthquake, flood, or wildfire damage. This extends existing federal tax exclusions for hazard mitigation payment

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

The Disaster Mitigation and Tax Parity Act excludes from taxable income payments received from state catastrophe loss mitigation programs for property improvements that reduce windstorm, earthquake, flood, or wildfire damage. This extends existing federal tax exclusions for hazard mitigation payments to include state-level programs, without increasing property basis.

Last updated: 1/4/2026

Official Summary

Congressional Research Service summary

Disaster Mitigation and Tax Parity Act of 2025This 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<ul><li>a state (or any political subdivision or instrumentality of the state),</li><li>a joint powers authority, or</li><li>an entity that was established by the state to provide essential or basic property insurance and is regulated by the state.</li></ul>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.

Key Points

Main provisions of the bill

Excludes state disaster mitigation payments from income
Covers windstorm, earthquake, flood, wildfire mitigation
Extends federal tax treatment to state programs
Applies to property improvement payments
No property basis increase from payments
Encourages participation in state mitigation programs

How This Impacts Americans

Potential effects on citizens and communities

This bill creates tax parity between federal and state disaster mitigation programs. When homeowners receive payments to strengthen their property against disasters, the tax treatment should not vary based on the programs source. The exclusion encourages participation in mitigation programs, which can reduce overall disaster losses and insurance claims. By not increasing basis, it simplifies tax treatment while still providing the exclusion benefit.

Policy Areas

Primary Policy Area

Taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

336, 119th Congress (2025). "Disaster Mitigation and Tax Parity Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-s-336

Public Opinions

Community submissions related to this bill.

Share your opinion

No public opinions yet. Be the first to submit one for this bill.

Related Bills in Taxation

HR 1827

Child Care Availability and Affordability Act

Referred to the House Committee on Ways and Means.

HR 2927

All-Americans Tax Relief Act of 2025

Referred to the House Committee on Ways and Means.

HR 2918

Family Business Legacy Act of 2025

Referred to the House Committee on Ways and Means.

S 1481

LOCAL Infrastructure Act

Read twice and referred to the Committee on Finance.