The SAFE HOME Act creates a new tax credit to help homeowners pay for wildfire mitigation improvements to their primary residences. Homeowners can claim a refundable tax credit equal to 25 percent of their qualified wildfire mitigation expenses, up to a maximum credit of $25,000 per year, though this maximum phases out for higher-income taxpayers starting at $200,000 in adjusted gross income. Eligible expenses include improvements like fire-resistant roofing, ignition-resistant construction materials, exterior upgrades, sprinkler systems, vegetation removal around the home, and smoke-prevention equipment. To qualify, a home must be located in a U.S. area that has experienced a recent federal wildfire disaster declaration, received federal hazard mitigation assistance, or been designated a community disaster resilience zone, and the expenses cannot have been funded by government sources. The credit applies to tax years beginning after December 31, 2022, and expires after December 31, 2032, with dollar limits adjusted annually for inflation.
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