Harris, Feinstein Reintroduce Legislation to Protect Earthquake Preparedness Incentives

Statement

U.S. Senators Kamala D. Harris and Dianne Feinstein (both D-CA) on Wednesday announced the Earthquake Mitigation Incentive and Tax Parity Act, legislation to prevent homeowners from being taxed at the federal level for undertaking measures to protect their homes from earthquakes.

Companion legislation will also be introduced in the House by Representatives by Mike Thompson (D-CA).

"Homeowners in earthquake-prone areas understand that they need to be prepared for potential disaster, and the federal government must work with them as a supportive partner," said Senator Harris. "This legislation would ensure that homeowners in California and across the country aren't unfairly penalized for investing in new projects to protect their homes."

"The federal government should be doing everything it can to help make homes earthquake-safe," said Senator Feinstein. "Incentivizing homeowners for participating in state and local earthquake home-improvement programs will make these vital upgrades more affordable and encourage families to make these lifesaving improvements."

"Nearly five years ago, my constituents were rocked by the South-Napa Earthquake, which left more than 1,500 homes seriously damaged -- many were shaken from their foundations. Disasters in our district and across our nation are devastating and we must do everything we can right now to prepare and mitigate their harmful impacts," said Representative Thompson. "That's why I am proud to reintroduce the bipartisan and bicameral Earthquake Mitigation Incentive and Tax Parity Act, which allows homeowners to more easily retrofit their homes to better withstand earthquakes. This saves the taxpayer money upfront, keeps people safer, and saves the government money when it comes time to clean up after a disaster. These incentives have already been widely successful in California and I look forward to making this our policy nation-wide."

Since 2011, Californians have been able to take advantage of the California Residential Mitigation Program, which helps homeowners retrofit their property to improve seismic stability. For example, the Earthquake Brace + Bolt Program provides homeowners with up to $3,000 toward completing a home retrofit. Under current law, homeowners who take advantage of state earthquake mitigation assistance are subject to federal taxes on the grants they receive, which provides a disincentive to taking proactive steps towards earthquake preparation.

The Earthquake Mitigation and Tax Parity Act removes this disincentive by exempting state earthquake loss mitigation grants from federal taxation. The bill will ensure that homeowners are not penalized at the federal level for steps that they take to protect their homes and make themselves safer in the event of an earthquake.

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