Climate disaster tax credit bill introduced to offer relief for families facing rising climate-related threats.
Senators Adam Schiff (D-Calif.) and Tim Sheehy (R-Mont.) unveiled the Firewall Act, which would establish a climate disaster tax credit to support homeowners making their homes more resilient to wildfires, hurricanes, floods, and tornadoes.
What the Bill Proposes
The legislation would reimburse up to 50% of the cost of home resiliency upgrades—up to $25,000 for families earning under $200,000 annually. The credit would phase out for higher-income households but still offer up to $12,500 for those making less than $300,000.
Covered improvements include:
- Fire-resistant roofing materials
- Automatic shutoff valves for gas and water
- Reinforced windows and doors
- Basement sealing and waterproofing
The bill targets homeowners in states that have experienced federally declared natural disasters in the past decade. It would apply retroactively and be fully refundable and indexed to inflation starting in 2026.
Addressing the Insurance Crisis and Rising Climate Threats
Schiff emphasized the need for this bill following devastating wildfires in Southern California, which killed over 30 people and destroyed more than 15,000 homes and businesses.
“This is a critical step to help families rebuild stronger and safer,” Schiff said, noting that the measure also addresses the ongoing home insurance crisis in states hit hard by natural disasters.
Co-sponsor Sheehy added, “This bill ensures American families have support to defend against future disasters.”
With natural disasters growing in frequency and cost due to climate change, the Firewall Act represents a proactive policy that could reduce long-term losses while helping vulnerable homeowners protect their properties.
Source: NBC News