Adam Schiff (D-Calif.) joined a Republican colleague in the first bill in the U.S. Senate to propose federal tax credits for certain homeowners who renovate and strengthen their homes against wildfires and other natural disasters.
Schiff introduced the measure together with freshman Senator Tim Sheehy (R-Mont.), founder of the U.S. Navy SEAL, air firefighting company Bridger Aerospace.
Schiff said the bill would help families earning less than $300,000 a year protect themselves and their homes by helping them afford the renovation, while also encouraging insurance companies to cover more homes in vulnerable areas that have expanded due to climate change.
Insurance policies in the insurance industry have become increasingly expensive and difficult to secure as the insurance industry reassesses the growing threat and potential costs of major climate-driven disasters, such as destroying parts of the Los Angeles area this year.
“The fires we're experiencing are truly unprecedented in scope and devastating. I hope my first bill will address their efforts, while also addressing the incredible risks of climate-related disasters in California and across the country.”
Schiff said the bill, titled as a bill that increases resilience, environmental weathering and reduced liability or firewall, is an effort to “help victims of Los Angeles fires rebuild victims and incorporate them into their reconstruction of different materials and technologies to help us survive further natural disasters, but can also help us survive. [to] Encourage and inspire others across the state and the country, whether affected by fires, floods or other disasters, to try to change their homes. ”
Schiff said the tax credit would cover half of the cost of eligible home upgrades, including states that declare disasters in states such as California and Montana, including new fire-resistant roofs.
Schiff said the bill clarifies qualified upgrades, including roof upgrades, water wall barriers, riot shelters and vegetation buffers, but those upgrades may expand over time.
He said the credit would be $25,000 for households with an annual income of less than $200,000, with a cap on inflation moving forward. For families who earn more than $200,000 a year, the cap will gradually decrease, and families will be eligible for credit when their income reaches $300,000 this year.
Sheehy also praised the bill and said in a statement that he “witted first-hand the devastating consequences of natural disasters to communities and families” as a former air firefighter.
“Given the unpredictability of natural disasters, this bipartisan bill ensures that the American people get the support they need to protect themselves from future disasters,” Sheehy said.
The fires that destroyed the Pacific Palisades and Altadna in January were one of the most expensive natural disasters in U.S. history, and the weather forecast service in January estimated total expected losses and economic losses for expected services ranging from $250 billion to $275 billion. The fire killed 30 people.
Many homeowners who lost their homes in the fire say insurers had abandoned their policies last year, exacerbating the damage.
California Governor Gavin Newsom and Los Angeles Mayor Karen Bass have issued orders to make it easier for people to rebuild and raise questions about how and whether homes should be rebuilt in areas that are prone to fire.
Schiff said he has no estimates of the bill’s spending, but he said research shows that such measures save taxpayers money in the long run by reducing the overall cost of disaster recovery – partly because every hardened home also helps protect those around.
“What we've seen during the Los Angeles fire is that you'll have embers going to travel a mile, go through the vents in someone's house, ignite the house, and then that house will be in the same neighborhood, the same neighborhood ignite other houses and soon the entire neighborhood disappears,” Schiff said. “If you can prevent the first home from catching fire, sometimes you can save the entire community.”
Schiff said he and Hiehy met during the new Senate member’s welcome period and “discovered that we had a strong interest in wildfire suppression and remedy.” Sheehy mentioned similar efforts in Montana when he proposed the idea of a tax credit, “It seemed very natural for both of us,” Schiff said.
Schiff said the bill is a good starting point for the face of climate change, which requires broader efforts to mask the insurance market.
“Their attitude will have to change because their voters will ask for it because their voters will not be able to ensure their homes and businesses ensure it,” Schiff said. “This has started to happen.”
This year, the California Forestry and Fire Department expanded its “moderate”, “high” and “very high” wildfire hazard areas, with nearly 6 million acres of land, or about 6% of the state, adding 2.8 million Californians to the population in such areas.
