# Disaster Resiliency and Coverage Act of 2024

This bill creates a new federal grant program to help homeowners make their houses more resistant to natural disasters like hurricanes, floods, wildfires, and earthquakes. The government would give money to states and tribal governments, which would then distribute grants directly to individual households to pay for specific disaster-prevention improvements.

Here's what the program would actually do for homeowners: If you live in an area identified as high-risk for disasters, you could apply for up to $10,000 in grants (adjusted yearly for inflation) to make improvements like reinforcing your roof, installing storm shutters, elevating your home above flood levels, clearing flammable vegetation around your property, or installing backup generators. The bill covers a long list of specific improvements, from strengthening roof-to-wall connections to installing fire-resistant materials. However, there's an income limit—you can't earn more than $250,000 per year (or $500,000 on a joint tax return) to qualify.

The bill also includes tax benefits to encourage disaster mitigation. Money you receive from state disaster mitigation programs won't count as taxable income, and if you pay out of pocket for qualifying improvements, you can claim a 30 percent tax credit on your federal taxes. Additionally, the bill expands what counts as tax-free disaster relief to include certain agricultural assistance programs that help farmers recover from disasters.

The underlying goal is to reduce insurance costs and improve insurance availability in high-risk areas. States would be required to work with insurance companies to encourage them to offer discounts or better coverage to homeowners who complete these mitigation improvements, making insurance more affordable and accessible in disaster-prone regions.

Disaster Resiliency and Coverage Act of 2024

Disaster Resiliency and Coverage Act of 2024This bill establishes a grant program for certain hazard mitigation measures for homes in disaster risk areas and provides a tax credit for up to 30% of expenditures on such mitigation measures. It also excludes from taxable income certain payments for residential hazard mitigation and federal emergency agricultural assistance.&nbsp;The bill requires the Federal Emergency Management Agency (FEMA) to award grants to states and Indian tribal governments for specified hazard mitigation activities on residential properties at a high risk of experiencing a major disaster. FEMA must establish disaster risk areas in which homes are eligible for the grant funding. Individual residential households, subject to certain income limitations, may receive up to $10,000 (adjusted for inflation) for eligible hazard mitigation activities, such as reinforcing a roof, installing a flood control system, or reducing flammable vegetation near the home. The bill also provides an income tax credit to individuals and businesses for up to 30% of expenditures on the specified residential mitigation activities eligible under the grant program.Additionally, under current law, payments for disaster relief and payments under federal hazard mitigation programs are excluded from taxable income. The bill specifically excludes from taxable income payments to an individual for hazard mitigation improvements to their residence under any program established or administered by a state or local government. The bill also excludes certain federal emergency and disaster agricultural assistance from taxable income as a type of disaster relief payment.