To amend the Internal Revenue Code of 1986 to exclude from gross income certain hazard mitigation assistance.

This bill would change federal tax law to ensure that homeowners and business owners do not have to pay income tax on grants received for disaster preparedness. Specifically, it excludes hazard mitigation assistance—money provided through the Stafford Act or the National Flood Insurance Act to help properties withstand future disasters—from being counted as taxable gross income. If enacted, this would allow individuals to use the full amount of their federal disaster mitigation grants for property improvements, such as elevating a home or wind-proofing a structure, without facing an unexpected tax bill on those funds.