U.S. Sen. Thom Tillis (R-NC) recently introduced a bipartisan bill to help taxpayers who decide to prepare their homes for natural disasters.
The Disaster Mitigation and Tax Parity Act would make rebates that homeowners receive for making natural disaster mitigation improvements to their homes exempt from federal taxes.
“North Carolinians who receive disaster mitigation payments, like many did after Hurricanes Matthew, Florence, and Dorian, receive the payments because they need the financial help to build back their homes and communities after a natural disaster,” said Senator Tillis. “They shouldn’t have to worry about surprise tax liabilities, and I am proud to work with my colleagues on both sides of the aisle to provide relief for many North Carolinians who need it.”
North Carolina and California are two of the states that give rebates to homeowners who take steps to protect their home from natural disasters, including removing trees, bushes, or other fire-prone vegetation near homes to prevent wildfires; strengthening foundations to protect against earthquakes; and installing fortified roofs that can withstand hurricanes.
Currently, homeowners are required to pay federal taxes on those rebates. Rebates for things like energy conservation improvements, however, are already exempt from federal income tax.
If passed, the tax credit would apply to rebates received after December 2021. The legislation is co-sponsored by U.S. Sens. Diane Feinstein (D-CA), Richard Burr (D-NC), and Alex Padilla (D-CA).
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