Source: United States Senator John Kennedy (Louisiana)
WASHINGTON – Sen. John Kennedy (R-La.) joined Sens. Dianne Feinstein (D-Calif.), Thom Tillis (R-N.C.), Alex Padilla (D-Calif.) and Bill Cassidy (R-La.) and Reps. Doug LaMalfa (R-Calif.) and Mike Thompson (D-Calif.) in introducing the Disaster Mitigation and Tax Parity Act of 2023 to exempt from federal taxes rebates that homeowners receive for hardening their homes against natural disasters.
“No one knows the pain of having a home blown away or flooded like Louisianians. They shouldn’t face extra federal taxes when receiving a rebate for simply protecting their homes against vicious weather. The Disaster Mitigation and Tax Parity Act will not only do away with the federal tax, but it will also encourage more folks to protect their homes,” said Kennedy.
“Hardening one’s home against threats from natural disasters remains one of the best ways to mitigate damage from the increasing frequency of disasters like wildfires and hurricanes. Many states, including California, offer homeowners rebates for making these smart home improvements. Unfortunately, these rebates are subject to federal taxes. By exempting the rebates from federal taxes, our bill will make home improvements more affordable and encourage more homeowners nationwide to harden their homes,” said Feinstein.
“Federal taxes being taken out of a North Carolina homeowner’s rebate is the last thing they should have to think about after a natural disaster strikes and they need to be made whole again. I’m proud to work on this bipartisan bill to provide additional relief to the North Carolinians who need it,” said Tillis.
The legislation would exempt state rebates for wildfire, wind and earthquake mitigation measures from federal income tax.
The Disaster Mitigation and Tax Parity Act is available here.