WASHINGTON, D.C. – This week, U.S. Senator Thom Tillis (R-NC) and a group of Senators introduced the bipartisan, bicameral Disaster Mitigation and Tax Parity Act, a bill that would make rebates that homeowners receive for making natural disaster mitigation improvements to their homes exempt from federal taxes.
North Carolina and California are among the states that provide rebates to homeowners who take steps to protect their homes from natural disasters. These improvements can include removing trees, bushes and other fire-prone vegetation close to homes that contribute to wildfires, strengthening foundations to protect against earthquakes and installing fortified roofs to withstand hurricanes.
However, homeowners are required to pay federal taxes on those rebates. In contrast, rebates for energy conservation improvements are already exempt from federal income taxes. This bill would place natural disaster mitigation efforts in a similar category.
“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.”
Read the full text of the bill here.
North Carolina and California are among the states that provide rebates to homeowners who take steps to protect their homes from natural disasters. These improvements can include removing trees, bushes and other fire-prone vegetation close to homes that contribute to wildfires, strengthening foundations to protect against earthquakes and installing fortified roofs to withstand hurricanes.
However, homeowners are required to pay federal taxes on those rebates. In contrast, rebates for energy conservation improvements are already exempt from federal income taxes. This bill would place natural disaster mitigation efforts in a similar category.
“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.”
Read the full text of the bill here.
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