119-hr1105

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1105 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1105

 To amend the Robert T. Stafford Disaster Relief and Emergency 
 Assistance Act to require the President to establish an individual 
 household disaster mitigation program, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 February 6, 2025

 Mr. Thompson of California (for himself, Mr. LaMalfa, Mrs. Kim, Mr. 
 Obernolte, Mr. Valadao, Ms. Barragan, Ms. Brownley, Mr. Carbajal, Mr. 
 Carter of Louisiana, Mr. Case, Ms. Castor of Florida, Ms. Chu, Mr. 
 Cisneros, Mr. Costa, Mr. Fields, Ms. Lois Frankel of Florida, Mr. 
 Frost, Mr. Garamendi, Mr. Goldman of New York, Mr. Harder of 
California, Mr. Huffman, Ms. Jacobs, Ms. Kamlager-Dove, Mr. Khanna, Mr. 
 Levin, Mr. Lieu, Ms. Matsui, Mrs. McIver, Mr. Moskowitz, Mr. Mullin, 
 Mr. Neguse, Ms. Norton, Mr. Panetta, Ms. Pettersen, Mr. Ruiz, Ms. 
Schrier, Mr. Takano, Ms. Tlaib, Ms. Tokuda, Mrs. Torres of California, 
 Mr. Vasquez, and Mr. Whitesides) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to the 
 Committee on Transportation and Infrastructure, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
 of such provisions as fall within the jurisdiction of the committee 
 concerned

_______________________________________________________________________

 A BILL

 To amend the Robert T. Stafford Disaster Relief and Emergency 
 Assistance Act to require the President to establish an individual 
 household disaster mitigation program, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Disaster Resiliency and Coverage Act 
of 2025''.

SEC. 2. INDIVIDUAL HOUSEHOLD DISASTER MITIGATION PROGRAM.

    (a) Establishment of Program.--Title II of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5131 et seq.) 
is amended by adding at the end the following:

``

SEC. 207. INDIVIDUAL HOUSEHOLD DISASTER MITIGATION PROGRAM.

 ``

    (a) Establishment.--The President shall establish a program to 
provide grants to States and Indian tribal governments for qualifying 
pre-disaster mitigation activities on individual residential households 
that are at risk of being damaged by a major disaster.
 ``

    (b) Establishment of Eligible Disaster Areas.--In carrying out 
the program under this section, the President shall--
 ``

    (1) establish eligible disaster areas, in consultation 
 with States, that the President determines to be at risk of a 
 natural hazard, including--
 ``
        (A) a description of the type, likelihood, and 
 severity of each potential natural hazard affecting 
 each such risk area; and
 ``
        (B) by taking into account previously declared 
 major disasters impacting such areas;
 ``

    (2) provide technical assistance to the States or Indian 
 tribal governments in developing the plan described in 
 subsection
            (c) and administering grants provided for individual 
 households under the program;
 ``

    (3) not less frequently than every 5 years, review and 
 update the eligible disaster areas that the President 
 determines to be at risk of a natural disaster, including a 
 description of the type and severity of each potential natural 
 disaster affecting each such risk area; and
 ``

    (4) consult with relevant governmental and 
 nongovernmental experts in order to ensure that such 
 determinations are made using current scientific standards and 
 tools available in establishing, reviewing, and updating the 
 eligible disaster areas that the President determines to be at 
 risk of a natural disaster.
 ``
            (c) Plan for Eligible Activities.--To be eligible for a grant 
under this section, a State or Indian tribal government shall submit to 
the President a plan that includes--
 ``

    (1) each disaster risk area established by the President 
 under subsection

    (b) in which the State or Indian tribal 
 government proposes to provide funds under the program;
 ``

    (2) an assessment of the availability and affordability 
 of homeowner insurance coverage in each such risk area, 
 including a breakdown of coverage offered by--
 ``
        (A) private insurance companies;
 ``
        (B) State residual markets; and
 ``
            (C) State and Federal insurance programs;
 ``

    (3) an analysis of factors that may be adversely 
 impacting insurance availability and affordability;
 ``

    (4) a list of each qualifying mitigation activity that is 
 eligible for funds in each such risk area;
 ``

    (5) the criteria by which a State or Indian tribal 
 government will evaluate applicants, which shall include 
 consideration of the household income of the applicant and 
 whether the residence is located in a Community Disaster 
 Resilience Zone; and
 ``

    (6) a financial plan that includes maximum amounts 
 available to a household for each qualifying mitigation 
 activity.
 ``
            (d) Consultation.--In establishing the program under this 
section, the President, acting through the Administrator of the Federal 
Emergency Management Agency and the Director of the Federal Insurance 
Office, shall consult with the chief insurance regulators from the 50 
States, the District of Columbia, and the territories of the United 
States, insurance industry stakeholders, including insurers, 
reinsurers, agents, brokers, and insurance-funded research 
organizations, and consumer and environmental stakeholders to determine 
what qualifying mitigation activities are likely to incentivize the 
availability and purchase of residential property insurance and other 
financial risk transfer mechanisms in eligible disaster areas.
 ``

    (e) Limitations.--
 ``

    (1) High-risk areas.--Funds provided under this section 
 may only be used in eligible disaster areas that the State or 
 Indian tribal government determines are at a high risk of 
 experiencing a major disaster for the major disaster that 
 presents such a risk.
 ``

    (2) Limitation based on adjusted gross income.--An 
 individual shall not be eligible to receive a grant under this 
 section if the adjusted gross income of such individual exceeds 
 $250,000 ($500,000 in the case of a joint tax return) for the 
 taxable year ending in the calendar year immediately preceding 
 the calendar year with respect to which a grant application is 
 filed.
 ``

    (3) Definition of adjusted gross income.--In this 
 section, the term `adjusted gross income' has the meaning given 
 such term in 

section 62

    (a) of the Internal Revenue Code of 
 1986.
 ``

    (f) Multi-Tiered Mitigation Standards.--
 ``

    (1) In general.--The President, acting through the 
 Administrator of the Federal Emergency Management Agency, shall 
 establish mitigation standards for individual households that 
 carry out each type of qualifying mitigation activity eligible 
 for funds under the program, which may include a multi-tiered 
 standard.
 ``

    (2) Consideration.--In establishing the mitigation 
 standards under paragraph

    (1) , the President, acting through 
 the Administrator--
 ``
        (A) shall consider any standards established by--
 ``
            (i) the Insurance Institute for Business 
 and Home Safety;
 ``
            (ii) the chief insurance regulators from 
 the 50 states, the District of Columbia, and 
 the territories of the United States; and
 ``
            (iii) any other standard-issuing entity 
 determined appropriate; and
 ``
        (B) may--
 ``
            (i) adopt a standard considered under 
 subparagraph
        (A) ; or
 ``
            (ii) establish alternative standards.
 ``

    (g) Guidance to Insurance Providers.--To be eligible for a grant 
under the program under this section, a State or Indian tribal 
government shall establish, and make available to the public, guidance 
to insurance providers and consumers that includes suggested incentives 
for households that carry out disaster mitigation activities under the 
program, including--
 ``

    (1) the mitigation standards established under subsection

    (f) ;
 ``

    (2) increased consumer coverage choice; and
 ``

    (3) actuarially supported favorable pricing benefits such 
 as discounts, rebates, or premium credits.
 ``

    (h) Maximum Amounts.--A State or Indian tribal government may not 
provide more than an amount of $10,000, not to exceed the actual cost 
of mitigation activities, to any individual household under the 
program. Such amount shall be increased yearly to reflect any increase 
in the Consumer Price Index.
 ``
            (i) Definition of Qualifying Mitigation Activity.--In this 
section, the term `qualifying mitigation activity' means an activity 
relating to a housing unit--
 ``

    (1) for property to--
 ``
        (A) improve the strength of a roof deck 
 attachment;
 ``
        (B) create a secondary water barrier to prevent 
 water intrusion or mitigate against potential water 
 intrusion from wind-driven rain;
 ``
            (C) improve the durability, impact resistance 
 (not less than class 3 or 4 rating), or fire resistance 
 (not less than class A rating) of a roof covering;
 ``
            (D) brace gable-end walls;
 ``
        (E) reinforce the connection between a roof and 
 supporting wall;
 ``
        (F) protect openings from penetration by wind-
 borne debris;
 ``
        (G) protect exterior doors and garages from 
 natural hazards;
 ``
        (H) complete measures contained in the 
 publication of the Federal Emergency Management Agency 
 entitled `Wind Retrofit Guide for Residential 
 Buildings' (P-804);
 ``
            (I) elevate the qualified dwelling unit, as well 
 as utilities, machinery, or equipment, above the base 
 flood elevation or other applicable minimum elevation 
 requirement;
 ``
        (J) seal walls in the basement of the qualified 
 dwelling unit using waterproofing compounds; or
 ``
        (K) protect propane tanks or other external fuel 
 sources;
 ``

    (2) to install--
 ``
        (A) check valves to prevent flood water from 
 backing up into drains;
 ``
        (B) flood vents, breakaway walls or open lattice 
 for homes located in V zones;
 ``
            (C) a stormwater drainage system or improve an 
 existing system;
 ``
            (D) natural or nature-based features for flood 
 control, including living shorelines;
 ``
        (E) roof coverings, sheathing, flashing, roof and 
 attic vents, eaves, or gutters that conform to 
 ignition-resistant construction standards;
 ``
        (F) wall components for wall assemblies that 
 conform to ignition-resistant construction standards;
 ``
        (G) a wall-to-foundation anchor or connector, or 
 a shear transfer anchor or connector;
 ``
        (H) wood structural panel sheathing for 
 strengthening cripple walls;
 ``
            (I) anchorage of the masonry chimney to the 
 framing;
 ``
        (J) prefabricated lateral resisting systems;
 ``
        (K) a standby generator system consisting of a 
 standby generator and an automatic transfer switch;
 ``
            (L) a storm shelter that meets the design and 
 construction standards established by the International 
 Code Council and the National Storm Shelter Association 
 (ICC-500), or a safe room that satisfies the criteria 
 contained in--
 ``
            (i) the publication of the Federal 
 Emergency Management Agency entitled `Safe 
 Rooms for Tornadoes and Hurricanes' (P-361); or
 ``
            (ii) the publication of the Federal 
 Emergency Management Agency entitled `Taking 
 Shelter from the Storm' (P-320);
 ``
            (M) a lightning protection system;
 ``
        (N) exterior walls, doors, windows, or other 
 exterior dwelling unit elements that conform to 
 ignition-resistant construction standards;
 ``
        (O) exterior deck or fence components that 
 conform to ignition-resistant construction standards;
 ``
        (P) structure-specific water hydration systems, 
 including fire mitigation systems such as interior 
 sprinkler systems;
 ``
        (Q) flood openings for fully enclosed areas below 
 the lowest floor of the dwelling unit;
 ``
        (R) lateral bracing for wall elements, foundation 
 elements, and garage doors or other large openings to 
 resist seismic loads; or
 ``
        (S) automatic shutoff valves for water and gas 
 lines;
 ``

    (3) for services or equipment to--
 ``
        (A) create buffers around the qualified dwelling 
 unit through the removal or reduction of flammable 
 vegetation, including vertical clearance of tree 
 branches;
 ``
        (B) create buffers around the dwelling unit 
 through--
 ``
            (i) the removal of exterior deck or fence 
 components or ignition-prone landscape 
 features; or
 ``
            (ii) replacement of the components or 
 features described in clause
            (i) with 
 components or features that conform to 
 ignition-resistant construction standards;
 ``
            (C) perform fire maintenance procedures 
 identified by the Federal Emergency Management Agency 
 or the United States Forest Service, including fuel 
 management techniques such as creating fuel and fire 
 breaks; or
 ``
            (D) replace flammable vegetation with less 
 flammable species;
 ``

    (4) for property relating to satisfying the standards 
 required for receipt of a FORTIFIED designation from the 
 Insurance Institute for Business and Home Safety, provided that 
 the qualified dwelling unit receives such designation following 
 installation of such property;
 ``

    (5) for property relating to satisfying the standards 
 required for receipt of a Wildfire Prepared Homes designation 
 from the Insurance Institute for Business and Home Safety, 
 provided that the qualified dwelling unit receives such 
 designation following installation of such property; or
 ``

    (6) for any other hazard mitigation activity identified 
 by the President, in consultation with the Administrator of the 
 Federal Emergency Management Agency and the hazard mitigation 
 advisory committee established in subsection

    (k) , for 
 mitigation of a natural hazard.
 ``

    (j) Hazard Mitigation Advisory Committee.--The President shall 
establish a hazard mitigation advisory committee that shall--
 ``

    (1) consist of 50 representatives, including 
 representatives from--
 ``
        (A) the State Insurance Commissioners;
 ``
        (B) private insurance companies;
 ``
            (C) private reinsurance companies;
 ``
            (D) insurance broker companies;
 ``
        (E) insurance-funded research organizations;
 ``
        (F) consumer advocate organizations;
 ``
        (G) State, local, and tribal firefighting 
 agencies;
 ``
        (H) State-sponsored insurance plans;
 ``
            (I) realtor associations;
 ``
        (J) home builder associations;
 ``
        (K) State, local, and tribal emergency 
 responders;
 ``
            (L) State and tribal emergency managers;
 ``
            (M) State and tribal hazard mitigation officers;
 ``
        (N) relevant academic experts;
 ``
        (O) building code associations;
 ``
        (P) agricultural groups; and
 ``
        (Q) environmental organizations; and
 ``

    (2) advise the President on developments in emerging 
 hazard mitigation research and testing and recommend additions 
 to the qualified hazard mitigation activities eligible under 
 this program, including reviewing the effectiveness of hazard 
 mitigation systems, products, and designations submitted to the 
 advisory committee by private or nongovernmental companies or 
 organizations.
 ``

    (k) Rules of Construction.--Nothing in this Act shall--
 ``

    (1) require a State or any other entity to base the 
 assessment of the status of the availability of homeowner 
 insurance coverage required under subsection
            (c) (2) on data not 
 already collected by that entity absent this requirement; and
 ``

    (2) be construed to preempt the State regulation of the 
 business of insurance or require, by the Federal Government or 
 any State government, any insurance provider to alter the 
 underwriting, pricing, and distribution of insurance.''.

    (b) Tax Treatment of Individual Household Disaster Mitigation 
Program.--

    (1) 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) Individual Household Disaster Mitigation Program.--Gross 
income shall not include amounts received under 

section 207 of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act.''.

    (2) Effective date.--The amendment made by this subsection 
 shall apply to amounts received after the date of the enactment 
 of this Act.

SEC. 3. EXCLUSION OF AMOUNTS RECEIVED FROM STATE-BASED CATASTROPHE LOSS 
 MITIGATION PROGRAMS.

    (a) In General.--

Section 139 of the Internal Revenue Code of 1986, 
as amended by the preceding provisions of this Act, is amended by 
redesignating subsection
            (i) as subsection

    (j) and by inserting after 
subsection

    (h) the following new subsection:
 ``
            (i) State-Based Catastrophe Loss Mitigation Programs.--
 ``

    (1) In general.--Gross income shall not include any 
 amount received by an individual as a qualified catastrophe 
 loss mitigation payment under a program established or 
 administered by a State, or a political subdivision or 
 instrumentality thereof, for the purpose of making such 
 payments.
 ``

    (2) Qualified catastrophe loss mitigation payment.--For 
 purposes of this section, the term `qualified catastrophe loss 
 mitigation payment' means any amount which is received by an 
 individual to make improvements to such individual's residence 
 for the sole purpose of hazard mitigation with respect to such 
 residence.
 ``

    (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) is amended by striking ``and qualified'' 
 and inserting ``, qualified catastrophe mitigation payments, 
 and qualified''.

    (2) Section 139
            (i) (as redesignated by subsection

    (a) ) is 
 amended by striking ``or qualified'' and inserting ``, 
 qualified catastrophe mitigation payment, or qualified''.
            (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.

SEC. 4. EXCLUSION FROM GROSS INCOME OF CERTAIN EMERGENCY AGRICULTURAL 
 ASSISTANCE.

    (a) In General.--

Section 139 of the Internal Revenue Code of 1986, 
as amended by the preceding provisions of this Act, is amended by 
redesignating subsection

    (j) as subsection

    (k) and by inserting after 
subsection
            (i) the following new subsection:
 ``

    (j) Certain Agricultural Assistance.--For purposes of this 
section, the term `qualified disaster relief payment' shall include any 
assistance received under any of the following:
 ``

    (1) Assistance received under the Wildfires and 
 Hurricanes Indemnity Program Plus under subpart O of part 760 
 of title 7, Code of Federal Regulations.
 ``

    (2) Assistance received under 

section 1501 of the 
 Agricultural Act of 2014 (7 U.S.C. 9081).
 ``

    (3) Noninsured crop assistance under 

section 196 of the 
 Federal Agriculture Improvement and Reform Act of 1996 (7 
 U.S.C. 7333).
 ``

    (4) Assistance under a food assistance program under part 
 9 of title 7, Code of Federal Regulations.
 ``

    (5) Assistance under title IV of the Agricultural Credit 
 Act of 1978 (16 U.S.C. 2201 et seq.).
 ``

    (6) Assistance under the Quality Loss Assistance 
 Program.''.

    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.

SEC. 5. CREDIT FOR DISASTER MITIGATION EXPENDITURES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 

section 27 the following new section:

``

SEC. 28. DISASTER MITIGATION EXPENDITURES.

 ``

    (a) In General.--There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to 30 
percent of the expenditures paid for qualifying mitigation activities 
paid or incurred by the taxpayer during such taxable year with respect 
to real property owned or leased by the taxpayer.
 ``

    (b) Qualified Disaster Mitigation Activities.--For purposes of 
this section--
 ``

    (1) Qualifying mitigation activity.--The term `qualifying 
 mitigation activity' has the meaning given such term in 

section 207

    (j) of the Robert T. Stafford Disaster Relief and Emergency 
 Assistance Act.
 ``

    (2) Treatment of reimbursements.--Any amount originally 
 paid or incurred by the taxpayer which is reimbursed by a State 
 under a qualified State disaster mitigation program shall be 
 treated as paid by such State (and not by such taxpayer).
 ``
            (c) Application With Other Credits.--
 ``

    (1) Business credit treated as part of general business 
 credit.--So much of the credit which would be allowed under 
 subsection

    (a) for any taxable year (determined without regard 
 to this subsection) that is attributable to expenditures made 
 in the ordinary course of the taxpayer's trade or business (or, 
 in the case of expenditures made by a State, would have been 
 expenditures made in the ordinary course of the taxpayer's 
 trade or business if made by the taxpayer) shall be treated as 
 a credit listed in 

section 38

    (b) for taxable year (and not 
 allowed under subsection

    (a) ).
 ``

    (2) Personal credit.--For purposes of this title, the 
 credit allowed under subsection

    (a) for any taxable year 
 (determined after application of paragraph

    (1) ) shall be 
 treated as a credit allowable under subpart A for such taxable 
 year.
 ``
            (d) Reduction of Credit Percentage Where Taxpayer Expenditures 
Less Than 30 Percent.--
 ``

    (1) In general.--If the expenditure percentage with 
 respect to any item of expenditure described under subsection

    (a) is less than 30 percent, subsection

    (a) shall be applied by 
 substituting `the expenditure percentage' for `30 percent' with 
 respect to such item of expenditure.
 ``

    (2) Expenditure percentage.--For purposes of this 
 section, the term `expenditure percentage' means, with respect 
 to any item of expenditure described under subsection

    (a) any 
 portion of which is paid or incurred by a State, the ratio 
 (expressed as a percentage) of--
 ``
        (A) the taxpayer's expenditure for such item, 
 divided by
 ``
        (B) the sum of the taxpayer's and such State's 
 expenditures for such item.
 ``

    (e) Special Rules.--
 ``

    (1) Treatment of expenditures related to marketable 
 timber.--An expenditure shall not be taken into account for 
 purposes of this section (whether made by the taxpayer or a 
 State) if such expenditure is properly allocable to timber 
 which is sold or exchanged by the taxpayer. The preceding 
 sentence shall not apply to the extent that such amount exceeds 
 the gain on such sale or exchange.
 ``

    (2) Basis reduction.--For purposes of this subtitle, if 
 the basis of any property would (but for this paragraph) be 
 determined by taking into account any expenditure described 
 under subsection

    (a) , the basis of such property shall be 
 reduced by the amount of the credit allowed under subsection

    (a) with respect to such expenditure (determined without regard 
 to subsection
            (c) ).
 ``

    (3) Denial of double benefit.--The amount of any 
 deduction or other credit allowable under this chapter for any 
 expenditure for which a credit is allowable under subsection

    (a) shall be reduced by the amount of credit allowed under such 
 subsection for such expenditure (determined without regard to 
 subsection
            (c) ).''.

    (b) Conforming Amendments.--

    (1) Section 38

    (b) of such Code is amended by striking 
 ``plus'' at the end of paragraph

    (40) , by striking the period 
 at the end of paragraph

    (41) and inserting ``, plus'', and by 
 adding at the end the following new paragraph:
 ``

    (42) the portion of the disaster mitigation expenditures 
 credit to which 

section 28
            (c) (1) applies.''.

    (2) Section 1016

    (a) of such Code is amended by 
 redesignating paragraphs

    (35) through

    (38) as paragraphs

    (36) through

    (39) , respectively, and by inserting after paragraph

    (34) the following new paragraph:
 ``

    (35) to the extent provided in 

section 28

    (e)

    (2) ,''.

    (3) The table of sections for subpart B of part IV of 
 subchapter A of chapter 1 of such Code is amended by inserting 
 after the item relating to 

section 27 the following new item:

``

Sec. 28. Qualified disaster mitigation expenditures.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred after the date of the enactment 
of this Act, in taxable years ending after such date.
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