Disaster Mitigation and Tax Parity Act of 2023

HR 4070, the Disaster Mitigation and Tax Parity Act of 2023, excludes certain payments received from state disaster mitigation programs from taxable income. It directly affects homeowners who get funds from state or state-regulated programs to make property improvements specifically designed to reduce damage from windstorms, earthquakes, or wildfires (like installing fire-resistant roofing or seismic upgrades). The bill adds a new tax exclusion in the Internal Revenue Code, meaning these qualified mitigation payments won't be counted as gross income for tax purposes. This change applies to payments made after December 31, 2020, with options for retroactive tax filings.