Sen. Schiff introduces bill to create federal tax credit that will promote resilience to natural disasters

Following the Eaton and Palisades fires that became the costliest natural disaster in California's history, Sen. Adam Schiff and Sen. Tim Sheehy introduced a bill to create a new federal tax credit aimed at promoting community resilience to natural disasters.

On Tuesday, Schiff and Sheehy introduced the Facilitating Increased Resilience, Environmental Weatherization and Lowered Liability Act (FIREWALL). The bipartisan bill will create a tax credit that will cover 50% of eligible upgrades up to $25,000 for families who make less than $200,00 per year, and the credit will phase out for families making less than $300,000.

Schiff and Sheehy want to make sure the costs of making upgrades to the home are not a barrier for communities.

"As a former aerial firefighter, I've witnessed firsthand the devastating aftermath of natural disasters on communities and families," Sheehy said.

Eligible upgrades families can make to their homes include fire-resistant building materials, air filtration, stormwater barriers, and removing high-risk vegetation. Schiff's office said the credit will be fully refundable and will be adjusted for inflation starting in 2026.

"The credit is available to communities that have experienced a federally declared disaster in the last 10 years and will support Americans across the country in states like California, Montana, North Carolina, and Florida, as they navigate the aftermath of natural disasters," Schiff's office said in a statement.

The bill has received endorsement from several fire organizations, including the International Association of Fire Fighters, Western Fire Chiefs Association, California Fire Chiefs Association and the Alliance for Wildfire Resilience.

"Helping families make their homes more resilient to natural disasters will help reduce the level of damage inflicted by future disasters and save American taxpayers in the long run," Schiff said.