H.R. 1849 – Disaster Mitigation and Tax Parity Act of 2025

AI-Generated Summary

Updated November 24, 2025 at 2:11 AM UTC

The Disaster Mitigation and Tax Parity Act of 2025 changes the Internal Revenue Code so that payments from state‑based programs that help property owners make improvements to protect against windstorms, earthquakes, or wildfires are not counted as taxable income. It applies to individuals who receive these qualified mitigation payments and lets them claim the benefit for tax years after 2020, including by filing amended returns. The bill also updates related sections of the tax code to reflect this new exclusion.

Key Provisions

Adds a new subsection to the tax code that excludes from gross income any payment an individual receives from a state‑run catastrophe loss mitigation program, provided the payment is used to improve property to reduce damage from windstorms, earthquakes, or wildfires.
Defines a “qualified catastrophe mitigation payment” as money paid to a property owner for the sole purpose of making such protective improvements.
Makes related technical changes to keep other parts of the code consistent with the new exclusion.
Applies the exclusion to taxable years beginning after Dec. 31, 2020 and allows individuals to claim the benefit retroactively by filing amended returns.

Legislative Activity

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2 earlier actions

HouseFloor Latest Action

ASSUMING FIRST SPONSORSHIP - Mr. Murphy asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 1849, a bill originally introduced by Representative LaMalfa, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.

February 4, 2026 • 4:15 PM

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HouseIntro Referral

Introduced in House

March 5, 2025

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

March 5, 2025

HouseFloor

ASSUMING FIRST SPONSORSHIP - Mr. Murphy asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 1849, a bill originally introduced by Representative LaMalfa, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.

February 4, 2026 • 4:15 PM

Floor Debate

1 member

What members said about H.R. 1849 on the floor

1 Republican

Rep. Gregory F. MurphyR-NC-3 · Feb 4, 2026

Mr. Speaker, I ask unanimous consent that I may hereafter be considered to be the first sponsor of H.R. 1849, a bill originally introduced by Representative LaMalfa of California, for the purpose of…

Bill Text

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Introduced in HouseIssued March 5, 2025

I

119th CONGRESS

1st Session

H. R. 1849

IN THE HOUSE OF REPRESENTATIVES

March 5, 2025

Mr. LaMalfa (for himself, Mr. Thompson of California, Mr. Murphy, Ms. Brownley, Mr. Rouzer, Mr. Davis of Illinois, Mr. Fitzgerald, Ms. Pettersen, Mr. Higgins of Louisiana, Mr. Peters, Mr. Mullin, Ms. Chu, Ms. Sewell, and Mr. Valadao) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide for the exclusion from gross income of amounts received from State-based catastrophe loss mitigation programs.

1.

Short title

This Act may be cited as the Disaster Mitigation and Tax Parity Act of 2025.

2.

Exclusion of amounts received from State-based catastrophe loss mitigation programs

(a)

In general

Section 139 of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:

(h)

State-Based catastrophe loss mitigation programs

(1)

In general

Gross income shall not include any amount received by or paid for the benefit of an individual as a qualified catastrophe mitigation payment under a program established by—

(A)

a State or any political subdivision or public instrumentality thereof,

(B)

a joint powers authority, or

(C)

an entity created by State law to ensure the availability of an adequate market of last resort for essential property insurance or basic property insurance, over which a State agency or State department of insurance has regulatory oversight,

for the purpose of making such payments.

(2)

Qualified catastrophe mitigation payment

For purposes of this section, the term qualified catastrophe mitigation payment means any amount which is received by or paid for the benefit of the owner of any property to make improvements to such property for the sole purpose of reducing the damage that would be done to such property by a windstorm, earthquake, or wildfire.

(3)

No increase in basis

Rules similar to the rules of subsection (g)(3) shall apply in the case of this subsection.

.

(b)

Conforming amendments

(1)

Section 139(d) of the Internal Revenue Code of 1986 is amended by striking and qualified and inserting , qualified catastrophe mitigation payments, and qualified.

(2)

Section 139(i) of such Code (as redesignated by subsection (a)) is amended by striking or qualified and inserting , qualified catastrophe mitigation payment, or qualified.

(c)

Effective date

(1)

In general

The amendments made by this section shall apply to taxable years beginning after December 31, 2020.

(2)

Retroactive applicability

The Secretary of the Treasury, or the Secretary’s delegate, shall provide an opportunity for individuals to claim the exclusion from gross income under section 139(h) of the Internal Revenue Code of 1986, as added by this section, including by amended return.