Bill would make it easier for homeowners to afford upgrades to protect from storm damage

A new bipartisan bill introduced in Congress aims to remove federal taxes on disaster mitigation grants, a move that could make stormproofing homes more affordable for North Carolinians.

The Disaster Mitigation and Tax Parity Act, co-sponsored by Rep. Greg Murphy, R-N.C., and Rep. Doug LaMalfa, R-Calif., would exclude catastrophe mitigation payments from taxable income, ensuring that homeowners who receive grants to strengthen their homes against hurricanes, floods and wildfires don’t face a tax burden.

“Catastrophe mitigation payments used to improve natural disaster resilience should not be treated as a source of income, and North Carolinians should not be taxed for them,” Murphy said in a statement.

The bill could have a major impact on North Carolina’s coast, where programs like Strengthen Your Roof provide grants to homeowners to fortify their roofs against hurricane-force winds. But currently, those grants are considered taxable income by the IRS.

Gina Hardy, CEO of the North Carolina Insurance Underwriting Association, said the tax burden has deterred some homeowners from applying for funding, even as the program has helped more than 15,000 homes become more storm resilient.

“We’ve had years where we had grant money that went unused,” Hardy said. “If this bill passes, more people will take advantage of these programs and be able to afford code-plus construction.”

A similar bipartisan bill was introduced in the Senate by Sen. Thom Tillis, R-N.C., highlighting growing momentum to eliminate federal taxes on resilience grants as natural disasters become more frequent and costly.

With North Carolina ranking second in the nation for fortified roofing efforts, advocates say the bill could expand participation and make coastal communities more resilient — a move that, according to Hardy, would benefit not just homeowners but the entire state.

“We know that for every dollar spent on resilience, you save $11 in disaster recovery,” Hardy said. “Investing in stronger homes now means fewer people displaced, fewer insurance claims and safer communities in the long run.”

The bill is expected to gain bipartisan support, with disaster-prone states watching closely. Meanwhile, resilience advocates in North Carolina will gather in Wilmington on March 21 to celebrate the milestone of 15,000 fortified roofs and push for policies that make disaster-proofing more accessible.