Congress is currently considering new legislation that could provide tax breaks to Californians and others who invest in disaster-proofing their homes. The bipartisan effort includes the Firewall Act, introduced by Senators Adam Schiff, D-Calif., and Tim Sheehy, R-Montana, and the Safe Homes Act, proposed by Representative Kevin Kiley, R-Roseville. These bills aim to encourage homeowners to upgrade their properties with features like fire-resistant materials and stormwater barriers.
The proposed legislation comes at a time when lawmakers have not yet provided disaster aid to Los Angeles areas affected by wildfires earlier this year. According to The Sacramento Bee, the Firewall Act would offer a federal tax credit covering half of eligible upgrades up to $25,000 for families earning less than $200,000 annually. The credit would decrease for families with incomes between $200,000 and $300,000. Eligible upgrades include fire-resistant building materials, air filtration systems, and vegetation removal.
Representative Kiley’s Safe Homes Act proposes a 25% tax credit for preventive measures against wildfires, with a maximum credit of $25,000 annually. Both bills could become part of a larger tax relief package Congress plans to consider later this year, as existing tax breaks are set to expire.
The bills are expected to face discussions in the House Ways and Means Committee, which is responsible for writing tax legislation. If passed, these measures would apply to areas that have experienced federally declared disasters in the past decade, including many parts of California.
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