Central Louisiana News

U.S. Senators Bill Cassidy, Thom Tillis, Alex Padilla, and Adam Schiff have introduced the Disaster Mitigation and Tax Parity Act of 2025. This legislation aims to allow Americans to exclude qualified catastrophe mitigation payments made under state-based catastrophe loss mitigation programs from their income tax. The bill is designed to provide relief to homeowners affected by major floods or hurricanes.

"Louisianans understand the impact of devastating storms, but with the help of state and local programs, we have tools to rebuild and return to wholeness," said Dr. Cassidy. "If communities need tax relief, let's give it to them!"

Senator Tillis emphasized the importance of empowering individuals and communities against natural disasters like Hurricane Helene. "By excluding qualified catastrophe mitigation payments from income tax, we are incentivizing property owners to make necessary improvements that reduce damage and save lives," he stated.

Senator Padilla highlighted the urgency due to recent fires in Southern California. "As these disasters become more frequent and more extreme due to the climate crisis, we should incentivize — not penalize — taxpayers for protecting their homes," he remarked.

Senator Schiff pointed out the need for resources and programs in response to natural disasters nationwide. "Homeowners should not face additional taxes for wanting to protect their homes," he said.

The bill defines a qualified catastrophe mitigation payment as any amount received for improving an individual's property solely for reducing potential damage from floods, windstorms, earthquakes, or wildfires.

Joining Cassidy, Tillis, Padilla, and Schiff in cosponsoring this legislation are Senators John Hickenlooper, Katie Britt, Michael Bennett, Jeff Merkley, Amy Klobuchar, John Kennedy, Roger Wicker, and Ted Budd.