US SB336

Excludes from federal gross income any payments received from state-based catastrophe loss mitigation programs for property improvements to reduce damage from windstorms, earthquakes, floods, or wildfires

Eligible programs include those established by states, political subdivisions, joint powers authorities, or state-created entities ensuring property insurance availability (such as insurers of last resort)

Payments used for mitigation improvements do not increase the property's tax basis, preventing a double tax benefit

Applies retroactively to taxable years beginning after December 31, 2021, with the Treasury Secretary required to allow claims via amended returns

Introduced January 30, 2025 with bipartisan cosponsorship (Senators Tillis, Padilla, Cassidy, Schiff, Kennedy, Hickenlooper, Budd, Klobuchar, Wicker, Bennet, and Merkley)