Disaster Resiliency and Coverage Act of 2025

Grants for Home Improvements: The bill establishes a program to provide grants to States and Indian tribal governments for qualifying pre-saster mitigation activities on individual residential households at risk of damage from a major disaster (Section 2, subsection a).

Tax-Free Disaster Grants: Amounts received under the individual household disaster mitigation program are not included in gross income (Section 2, subsection b; Section 139 of the Internal Revenue Code of 1986).

Tax-Free State Mitigation Payments: Payments received from State-based catastrophe loss mitigation programs for the sole purpose of hazard mitigation are excluded from gross income (Section 3, subsection a).

Tax-Free Agricultural Assistance: Certain types of emergency agricultural assistance are included in the definition of qualified disaster relief payments that are excluded from gross income (Section 4, subsection a).

Tax Credits for Mitigation: A tax credit is allowed for 30 percent of expenditures paid for qualifying mitigation activities regarding real property owned or leased by the taxpayer (Section 5, subsection a).

Income Eligibility Limits: An individual is not eligible to receive a grant under the individual household disaster mitigation program if their adjusted gross income exceeds $250,000 (or $500,000 for joint tax returns) for the preceding taxable year (Section 2, subsection e, paragraph 2).

Grant Amount Caps: A State or Indian tribal government may not provide more than $10,000 to any individual household under the program (Section 2, subsection h).