Tax credit for disaster-proofing homes in disaster zones
S. 1323 — The Facilitating Increased Resilience, Environmental Weatherization And Lowered Liability (FIREWALL) Act · Filed by Adam Schiff (D-CA) · 1 cosponsor · Introduced Apr 8, 2025 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill creates a new federal tax credit allowing homeowners to claim 50% of their disaster-mitigation spending (up to $25,000 per year, phasing out for incomes above $200,000) as a refundable tax credit. Eligible expenditures include roof reinforcement, flood barriers, fire-resistant materials, storm shelters, generators, vegetation removal, and other hardening measures for homes in counties that have experienced federally declared disasters (wildfires, hurricanes, windstorms, floods) in the past decade or received FEMA hazard-mitigation assistance.
Why we flagged it
The bill's core mechanism is a refundable personal income-tax credit for homeowners undertaking disaster-mitigation improvements. It is a direct subsidy to individuals (not corporations or contractors), structured as a tax expenditure rather than an appropriation.
What the text implies
- The credit may incentivize over-investment in mitigation by homeowners in marginal risk zones, since the 50% subsidy reduces the perceived cost-benefit threshold for improvements that may not be actuarially justified.
- Refundability means the credit can exceed tax liability, creating a direct cash outlay from the Treasury for lower-income filers—effectively a transfer payment disguised as a tax credit, which may face budget-scoring scrutiny.
The full analysis lists 5 implications of this text.
Who stands to gain
homeowners in disaster-prone counties; roofing and construction contractors; building-material suppliers