This bill proposes to amend the Internal Revenue Code of 1986 by creating a new exclusion from gross income for certain payments. Specifically, it would exclude qualified catastrophe mitigation payments received by individuals from state-based programs. A qualified payment is defined as an amount used for property improvements solely to reduce damage from windstorms, earthquakes, or wildfires . These programs must be established by a state, political subdivision, joint powers authority, or a state-created entity with regulatory oversight for property insurance. The bill's provisions are retroactive , applying to taxable years beginning after December 31, 2020, and allow for claiming the exclusion via amended returns.