Disaster Mitigation and Tax Parity Act of 2025 excludes from gross income amounts received from State-based catastrophe loss mitigation programs.

The Disaster Mitigation and Tax Parity Act of 2025 amends the Internal Revenue Code to exclude from gross income any amount received by or paid for the benefit of an individual as a qualified catastrophe mitigation payment. This applies to payments made by a State, political subdivision, joint powers authority, or entity created by State law for essential property insurance. The exclusion applies to payments made to improve property to reduce damage from windstorms, earthquakes, or wildfires. The changes apply to taxable years beginning after December 31, 2020.

Disaster Mitigation and Tax Parity Act of 2025 excludes from gross income amounts received from State-based catastrophe loss mitigation programs.

The Disaster Mitigation and Tax Parity Act of 2025 amends the Internal Revenue Code to exclude from gross income any amount received by or paid for the benefit of an individual as a qualified catastrophe mitigation payment. This applies to payments made by a State, political subdivision, joint powers authority, or entity created by State law for essential property insurance. The exclusion applies to payments made to improve property to reduce damage from windstorms, earthquakes, or wildfires. The changes apply to taxable years beginning after December 31, 2020.