The Facilitating Increased Resilience, Environmental Weatherization And Lowered Liability (FIREWALL) Act

50% credit for home disaster upgrades

This bill would let homeowners in eligible disaster areas get a refundable tax credit equal to 50% of qualifying disaster-mitigation work on their main home. The credit would be capped each year at $25,000 (or $12,500 if married filing separately), with a shared $25,000 calendar-year cap for jointly occupied homes split by each person's share of spending. If your adjusted gross income is over $200,000, the yearly cap would be reduced by (AGI − $200,000) divided by $100,000. Work paid, funded, or reimbursed by federal, state, or local governments would not qualify. If you claim the credit, your property's tax basis would be reduced by the credit amount, which could raise tax when you sell. Taxpayers would need to keep documentation. The rules would apply to taxable years beginning after December 31, 2024, and some dollar limits would be indexed for inflation after 2025.