This bill amends the Internal Revenue Code of 1986 to create a new exclusion from gross income for specific payments. It allows individuals to exclude "qualified catastrophe mitigation payments" received from state-based programs, which are funds provided to property owners for improvements solely aimed at reducing damage from natural disasters like windstorms, earthquakes, floods, or wildfires. These payments must originate from programs established by a State, its political subdivisions, joint powers authorities, or state-regulated entities involved in providing essential property insurance. The legislation aims to encourage proactive disaster preparedness by removing the tax burden on funds used for property resilience. The exclusion is applicable to taxable years beginning after December 31, 2021, and includes provisions for retroactive claims via amended tax returns.