Will Congress give Californians tax breaks for disaster-proofing their homes?

David Lightman, The Sacramento Bee on Apr 9, 2025

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Upgrading a roof, air filtration or other items that will help protect your home against fires, storms and other disasters? Republicans and Democrats are proposing a tax break for the projects.

The Firewall Act, sponsored by Sens. Adam Schiff, D-California, and Tim Sheehy, R-Montana, is aimed at encouraging preventive measures against disasters.

In the House, Rep. Kevin Kiley, R-California, is proposing the Safe Homes Act, which would serve the same purpose.

The bills hit Congress as lawmakers have made no visible moves to provide disaster aid to the Los Angeles areas ravaged by wildfires in January. As many as 30 people died and tens of thousands were displaced from their homes..

Republican leaders continue to say that any disaster aid should include conditions that “minimize the chances of this happening again,” as House Appropriations Committee Chairman Tom Cole, R-Oklahoma, put it

In the meantime, the senators are proposing a federal tax credit that would cover half of eligible upgrades of up to $25,000 for families who earn less than $200,000 annually.

The amount of the credit would be gradually reduced for families with incomes of $200,000 to $300,000.

Upgrades can include fire resistant building materials and roofing, stormwater barriers, air filtration and the removal of vegetation posing a risk to a home, to list a few.

Starting next year, it would be adjusted for inflation.

Any area that’s experienced a federally declared disaster in the last 10 years is eligible, which would include any part of California.

Schiff’s office had no estimate of the cost of the bill.

Other tax relief ideas

Kiley’s proposal would create a 25% tax credit for preventive measures against wildfire. Maximum credit would be $25,000 a year, and would be adjusted for inflation.

Among projects that could qualify are roof coverings, sheathing, flashing, roof and attic vents, eaves or gutters that “conform to ignition-resistant construction standards.” Also eligible are exterior walls, doors, windows, deck or fence components, among other items.

In a separate bill, Schiff and Sens. Alex Padilla, D-California, and Thom Tillis, R-North Carolina, have proposed a federal tax break on rebates homeowners receive from state-based programs when they disaster-proof their homes.

It would apply to programs administered by states and local water authorities.

All these plans could be considered along with other proposals to help people in disaster-prone areas, possibly as part of a broader tax relief bill. Kiley introduced his bill in February and it was sent to the tax-writing House Ways and Means Committee, which will write tax legislation later this year.

Congress is planning a massive tax bill later this year, as most income and corporate tax breaks enacted in 2017 expire at the end of the year.