The FIREWALL Act creates a new federal tax credit to help homeowners pay for disaster mitigation improvements to their primary residences. Individuals can claim a refundable credit equal to 50 percent of qualifying disaster mitigation expenses, up to a maximum of $25,000 per household per year (adjusted for inflation after 2025). The credit phases out for higher-income earners and applies only to homeowners living in areas that have experienced recent federal disaster declarations or received federal hazard mitigation assistance related to wildfires, hurricanes, windstorms, or floods. Eligible expenses include roof reinforcements, flood prevention measures, fire-resistant construction, storm shelters, backup power systems, and vegetation management around homes. The credit begins applying to tax years starting after December 31, 2024, and cannot be claimed for expenses already covered by insurance or government programs.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.