[Congressional Record Volume 167, Number 129 (Thursday, July 22, 2021)]
[Senate]
[Page S5052]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself, Mr. Burr, Mr. Padilla, and Mr. 
        Tillis):
  S. 2432. A bill to amend the Internal Revenue Code of 1986 to exclude 
from gross income amounts received from State-based catastrophe loss 
mitigation programs; to the Committee on Finance.
  Mrs. FEINSTEIN. Mr. President, I rise to speak in support of the 
``Disaster Mitigation and Tax Parity Act,'' which Senator Burr and I 
introduced today. Representative Mike Thompson (D-CA) has introduced 
companion legislation in the House of Representatives.
  Encouraging homeowners to take steps to reduce the risk of natural 
catastrophe damage to their homes has long been a goal of policy 
makers. In California, it has been a special challenge to incentivize 
individuals to purchase earthquake insurance and to harden their homes 
against potential earthquake damage.
  The threat of natural disasters and extreme weather events has become 
a much greater problem in recent years due to climate change, which is 
driving an increasing frequency and severity of wildfires, droughts, 
hurricanes, and other catastrophic events. This, in turn, is reducing 
the availability and increasing the costs of insurance for individuals 
and businesses.
  A growing number of states, including California, have begun offering 
rebates to homeowners to improve their homes to mitigate against damage 
from such events. Unfortunately, many homeowners are unaware that they 
are required to pay Federal income taxes on these rebates and are 
surprised to be stuck with that bill. Other homeowners who are aware of 
the tax implications are disincentivized from making these improvements 
to their homes.
  The ``Disaster Mitigation and Tax Parity Act'' would exempt such 
State rebates for disaster mitigation improvements from taxable income. 
This would eliminate the unexpected bill homeowners face, increasing 
the incentive to make these improvements, which benefit all of us.
  I also note that such State rebates for energy conservation 
improvements are already excluded from taxable income. Thus, our bill 
would simply put disaster mitigation rebates on par with energy 
conservation measures.
  I am pleased that Congress is exploring many ways to address climate 
change-related matters. Encouraging homeowners to make their properties 
more resistant to natural catastrophe damage is one way to help.
  I hope my colleagues will join me in support of this bill. Thank you, 
Mr. President, and I yield the floor.
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