This week, Congressmen Doug LaMalfa (R-Butte) and Mike Thompson (D-Lake) introduced the Disaster Resiliency and Coverage Act of 2025 to provide homeowners in disaster-prone regions with incentives to harden their properties against wildfires and other risks. This legislation is intended to help address the ongoing insurance crisis in California and other states, as the rise in frequency and intensity of natural disasters has led insurers to raise rates and exit certain markets entirely.
The measure would create a grant program, administered through State governments, through which certain individual households in designated disaster-prone regions are eligible for up to $10,000 for specified disaster resiliency work on their homes. In addition, it stipulates that payments from State-run disaster resiliency programs and payments from various federal emergency agricultural programs are not considered income for federal tax purposes. Finally, this legislation provides a 30 percent tax credit for qualified disaster risk mitigation activities conducted by individuals or businesses. The credit is meant to complement the grant program by providing meaningful assistance to larger property owners for whom mitigation activity costs would far exceed $10,000.
For more information, contact RCRC Senior Policy Advocate Staci Heaton.