California Lawmakers Introduce Disaster Resiliency Bill to Aid State’s Insurance Issues

California representatives Mike Thompson (D-CA) and Doug LaMalfa (R-CA) introduced the Disaster Resiliency and Coverage Act of 2024.

H.R. 7849 would provide homeowners in disaster-prone regions with incentives to harden their properties against wildfires and other risks.

The legislation is intended to help address the ongoing insurance crisis in California and other states, as the rising frequency and intensity of natural disasters has led insurers to raise rates and, exit certain markets.

The bill includes four main provisions:

• A grant program, administered through state governments, through which individual households in designated disaster-prone regions are eligible for up to $10,000 for specified disaster resiliency work on their homes.
• Stipulates that payments from state-run disaster resiliency programs and payments from various federal emergency agricultural programs are not considered income for federal tax purposes.
• A 30% tax credit for qualified disaster risk mitigation activities conducted by individuals or businesses. The credit is meant to complement the grant program by providing assistance to larger property owners for whom mitigation activity costs would exceed $10,000.