Lafayette Reporter

Senator John Kennedy of Louisiana has announced his support for the Disaster Mitigation and Tax Parity Act, which seeks to exempt state rebates from federal taxes for homeowners who take measures to protect their properties against natural disasters. This legislative move comes in collaboration with Senators Thom Tillis of North Carolina and Alex Padilla of California, among others.

Kennedy emphasized the importance of such tax exemptions, stating, "Louisianians invest their hard-earned money in protecting their homes from hurricanes and flooding. When states provide a rebate for this disaster mitigation, it’s foolish and unfair to tax it."

Currently, several states, including Louisiana, offer rebates as an incentive for citizens to fortify their homes against potential disasters. However, under existing law, these rebates are subject to federal taxation unless they originate from the federal government itself. The proposed act aims to eliminate this financial burden on homeowners by ensuring that state-provided rebates remain untaxed at the federal level.

Tillis highlighted the benefits of the legislation by saying, "This commonsense legislation takes a critical step toward empowering individuals and communities to better protect themselves from the devastating effects of natural disasters like Hurricane Helene." He further noted that excluding qualified catastrophe mitigation payments from income tax encourages property owners to make improvements that can reduce damage and save lives.

Padilla also pointed out the increasing frequency and severity of natural disasters due to climate change. "The devastating fires in Southern California underscored the urgent need to empower homeowners," he said. He advocated for incentivizing taxpayers rather than penalizing them when they take steps to safeguard their homes.

The full text of the bill is available for public review.