Legislation reintroduced to help with rebuilding after natural disasters
In 2020, the United States experienced 22 separate billion-dollar natural disasters and 14 such natural disasters in 2019. Every federal disaster declaration results in billions of dollars of unfunded disaster relief. Further compounding the problem, damaged structures are often rebuilt to their original standard, leaving them vulnerable to future disasters. United States Representatives Bill Pascrell, Jr. (D-NJ-09), Tom Reed (R-NY-23), Peter DeFazio (D-OR-04) and Mario Diaz-Balart (R-FL-25) reintroduced the Disaster Savings and Resilient Construction Act, bipartisan legislation that will create a $3,000 tax credit for homes and a $25,000 tax credit for businesses to help their owners rebuild after natural disasters.
“We applaud Rep. Bill Pascrell, Rep. Tom Reed, Chairman Peter DeFazio and Rep Mario Diaz Balart for introducing the Disaster Savings and Resilient Construction Act of 2021,” said International Code Council Chief Executive Officer Dominic Sims, CBO. “With natural disasters expected to increase in frequency and severity, this legislation would boost our national resilience by providing tax incentives to help Americans strengthen homes and businesses against wildfire, high winds, and other natural hazards through the use of modern building codes and standards.”
“One of the best ways to increase individual and business disaster resilience is through investments in residential and structural retrofits and disaster-resilient construction. The targeted tax incentives in the Disaster Savings and Resilient Construction Act of 2021 will encourage resilient construction techniques and building or home retrofits to withstand damage from strong winds and flooding and prevent losses from wildfires and seismic events. Through these investments, home- and business owners ultimately save money through tax savings and avoided recovery costs and losses in the next disaster,” said the BuildStrong Coalition.
“For two decades, IBHS has worked to identify practical, real-world solutions to help property owners prevent avoidable losses,” said Roy Wright, chief executive officer at the Insurance Institute for Business & Home Safety. Our research has demonstrated small changes in construction yield scientifically stronger, more disaster-resistant homes at an affordable cost. This bill nudges Americans to invest their own resources with a federal tax incentive.”
“APCIA supports a multi-pronged approach to address community and individual resiliency to natural disasters, including the development and enforcement of strong building codes and tax incentives to mitigate against losses. Enactment of the Disaster Savings and Resilient Construction Act would be an important component that would allow property owners to address their individual needs, while also improving the resiliency of communities more broadly,” said the American Property Casualty Insurance Association.
“On a near-daily basis we are reminded about the devasting impact growing climate risk has on our nation’s communities,” said Jimi Grande, senior vice president for government affairs, National Association of Mutual Insurance Companies. “In this vein, we applaud Rep. Bill Pascrell, along with Reps. Tom Reed, Peter DeFazio and Mario Diaz-Balart for their leadership in introducing the Disaster Savings and Resilient Construction Act of 2021. By creating new tools that encourage home and business owners to undertake targeted investments in resilient construction and mitigation, this important legislation will ensure individuals and communities across the country are better prepared ahead of the next catastrophe.”
“As recent events in Texas demonstrate, no season nor area of the country is immune to climatic disasters. In the critical effort to create more resilient communities, this legislation incentivizes the private sector to make the financial commitment to begin this necessary effort in the residential and commercial real estate markets,” said the EPDM Roofing Association.