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

The FIREWALL Act introduces a new refundable personal income tax credit to encourage homeowners to invest in disaster mitigation. This credit allows individuals to claim 50% of their qualified disaster mitigation expenditures, up to a lifetime maximum of $25,000 per taxpayer. The credit amount is subject to a phaseout for taxpayers with adjusted gross incomes exceeding $200,000. To be eligible, expenditures must be made on a qualified dwelling unit , defined as the taxpayer's principal residence located in areas with a recent federal natural disaster declaration, past FEMA hazard mitigation assistance, or designated as a community disaster resilience zone due to wildfires, hurricanes, windstorms, or floods. The bill outlines a comprehensive list of qualified disaster mitigation expenditures , including improvements for roof strength, water intrusion prevention, impact and fire resistance, structural reinforcement, and protection against wind-borne debris. Eligible expenditures also cover the installation of systems like check valves, flood vents, stormwater drainage, natural flood control features, and ignition-resistant construction materials for various parts of the home. Services such as creating defensible space through vegetation removal, fire maintenance procedures, and risk assessments are also included. The credit specifically excludes any expenditures that are already funded or reimbursed by federal, state, or local government entities, and taxpayers must provide adequate documentation to claim the credit.