Tax credit helps wildfire-prone homeowners afford fire-resistant upgrades

What it does

This bill creates a new federal tax credit allowing homeowners to claim back 25% of wildfire mitigation expenses (up to $25,000 per year) on their taxes, phasing out for households earning over $200,000. Eligible expenses include fire-resistant roofing, vegetation removal, sprinkler systems, and smoke-prevention equipment on primary residences in wildfire-prone areas. The credit expires after 2032.

Why we flagged it

The bill's sole operative mechanism is a refundable personal income tax credit for fire-safety home improvements in disaster-declared areas. It is a straightforward public-safety subsidy delivered through the tax code.

What the text implies

• Credit availability depends on homeowner ability to front capital for improvements; renters and those without savings cannot access the benefit even if living in high-risk areas.
• Phaseout at $200,000 AGI may exclude some high-risk households in expensive real-estate markets (e.g., California coastal communities) where median incomes exceed the threshold.
• Excludes any expenses already funded by government disaster assistance, potentially creating gaps for households that received partial FEMA grants but need additional private investment.
• Documentation requirement places compliance burden on individual taxpayers; IRS enforcement capacity and audit rates will determine actual credit uptake.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Homeowners in wildfire-prone areas gain direct financial relief for fire-safety improvements, lowering the cost of protective measures. The credit phases out for higher earners, concentrating benefit on middle-income households most vulnerable to wildfire risk.

Who stands to gain

• homeowners in wildfire-prone areas
• roofing and construction contractors (indirect, through increased demand)
• fire-safety equipment manufacturers

Named in the bill

Internal Revenue Code of 1986, Federal Emergency Management Agency (FEMA), United States Forest Service, Robert T. Stafford Disaster Relief and Emergency Assistance Act, IRS (Secretary of the Treasury)

Where it stands

• Feb 4, 2025 — Introduced · Congress.gov: “Introduced in House”
• Feb 4, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

3 lobbying clients named this bill on 6 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $4,725,758 in lobbying spend. A filing names 125 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 61% of bills with at least one filing.

Kevin Kiley, the sponsor, reported $400,510 in PAC receipts in the 2026 cycle.

• American Property Casualty Insurance Association — $3,540,000 on 2 filings
• National Association of Mutual Insurance Companies — $1,005,758 on 2 filings
• Sierra Club — $180,000 on 2 filings

Lobbying Disclosure Act filings through Jul 22, 2026. A filing shows who paid to lobby on a bill it names, not what changed.