Washington, D.C. — U.S. Senators Michael Bennet (D-Colo.) and Bill Cassidy (R-La.), alongside U.S. Representatives Brittany Pettersen (D-Colo.) and Maria Salazar (R-Fla.), reintroduced the bipartisan, bicameral Shelter Act to help families and small businesses protect their homes and properties from future natural disasters and combat rising insurance costs. The legislation would create a first-of-its-kind disaster mitigation tax credit for families and business owners in disaster-prone areas.
“Coloradans are all too familiar with increasingly devastating wildfires and other natural disasters that threaten their homes and businesses and drive up insurance costs,” said Bennet. “We can’t focus solely on helping communities recover after these disasters. Congress must do more to help them prepare. This bill helps taxpayers invest in tools and materials to safeguard their homes, businesses, and families from natural disasters before they occur.”
“Everybody in my state has lost someone or something they love because of flooding. This is another tool for families to minimize that loss,” said Cassidy.
“In Colorado, wildfire season has become a year-round problem and extreme weather events continue to harm more communities every year,” said Pettersen. “Our small businesses and families shouldn’t have to pay the price for the costly impact of wildfires, especially when rising costs are already squeezing Coloradans. As we combat the climate crisis, one of the best things we can do is make sure people can protect their homes and businesses before disaster strikes.”
“A single storm shouldn’t be able to erase a lifetime of work. The Shelter Act empowers families and small businesses to fortify their property before disaster strikes, making our communities safer, stronger, and more resilient,” said Salazar. “Miami families know the cost of preparedness all too well, and this bill helps ensure they’re not facing those challenges alone.”
The Shelter Act allows Americans to write off 25 percent of qualifying mitigation expenses, up to $3,750 per taxpayer, to help homes and businesses reinforce their properties against natural disasters such as flood, wildfire, hail, and wind. This would be the first-ever federal tax incentive to help families and businesses invest in disaster resilience and mitigation ahead of time, helping offset the hundreds of billions of taxpayer dollars spent on natural disaster recovery each year.
“Encouraging and incentivizing proactive measures that mitigate or safeguard homes and communities from the devastating impacts of disasters benefit all Americans,” said Dr. George Guszcza, President and CEO of the National Institute of Building Sciences. “Preventing or lessening damage from wildfires, earthquakes, and storms protects families across our nation, property owners benefit from less damage, taxpayers and government agencies avoid massive emergency aid payouts, and insurance companies face fewer claims.”
“With the understanding that disaster response and recovery is significantly more costly than mitigation and preparedness, the Colorado Resiliency Office (CRO) focuses much of its efforts on ensuring communities of all sizes and resources have the tools and education they need to be ready. The CRO supports the Shelter Act as an opportunity for households and small businesses to protect their homes and property from increasing natural hazard risks and build community resilience,” said Anne Miller, Director, Colorado Resiliency Office, Department of Local Affairs.
“The Boulder County Commissioners welcome Senator Bennet’s Shelter Act and the opportunities it creates for our community to receive federal tax credits as they protect their homes and businesses before a natural disaster strikes,” said Boulder County Commissioner Ashley Stolzmann. “In a time of climate-driven wildfires, Boulder County residents have felt first-hand the devastating impact of natural disasters. As we work to recover from the Marshall Fire – the most expensive and destructive wildfire in Colorado’s history – thousands of homeowners are taking action to harden their homes before wildfires ignite. We welcome Senator Bennet’s efforts to provide tax credits to help dramatically increase the pace and scale of our mitigation efforts in order to save billions of dollars of future home loss.”
“The National Association of Home Builders applauds Sens. Michael Bennet (D-Colo.) and Bill Cassidy (R-La.) for introducing the Shelter Act, bipartisan legislation that gives Americans the tools they need to make their homes more resilient and safer. As natural disasters grow more frequent, mitigation is an essential tactic to safeguard homes and communities. The Shelter Act empowers homeowners to invest in resilient construction by creating a targeted tax credit for disaster and mitigation upgrades,” said Buddy Hughes, Chairman, National Association of Home Builders.
“The National Association of REALTORS® applauds Senator Bennet for reintroducing the Shelter Act,” said Kevin Sears, President, National Association of Realtors. “A changing global climate continues to necessitate innovation in our nation’s real estate industry. Policies incentivizing property owners to proactively manage climate risks are now more important than ever. NAR intends to continue working with Congress to reduce the financial burdens of this country’s increasingly frequent and severe natural disasters.”
“The Shelter Act will help make homes and communities more survivable and insurable by incentivizing resilient retrofits,” said Roy Wright, CEO, Insurance Institute for Business & Home Safety (IBHS). “The time is now for this investment.”
“Fire Adapted Colorado is a statewide NGO supporting a network of over 270 wildfire resilience leaders. Fire Adapted Colorado is a strong proponent of incentives for wildfire mitigation measures. Colorado has had a statewide tax incentive for hazardous fuel reduction near wildfire-prone homes since 2008, and this has proven to be a helpful tool for incentivizing wildfire mitigation. Local mitigation leaders are able to point to the tax credit, and it helps residents make the decision to prioritize completing their wildfire mitigation projects. With limited federal and state grant programs directly investing in hardening structures to withstand natural disasters, including wildfires, a federal tax credit would be a valuable tool to incentivize property owners to take personal responsibility for their disaster vulnerabilities,” said Rebecca Samulski, Executive Director, Fire Adapted Colorado.
“We know definitively that wildfire mitigation saves homes and communities, yet the upfront costs can put meaningful action out of reach for many residents. The Shelter Act is a smart, forward-looking solution that removes financial barriers and rewards homeowners for investing in proven risk-reduction measures. By helping close the gap that too often slows progress, this bill strengthens our collective ability to build resilience before the next fire. At the Wildfire Collaborative Roaring Fork Valley, we see every day how community-scale mitigation protects lives, landscapes, and local economies — benefits that extend far beyond a single property line. The Shelter Act represents the kind of federal leadership we need to accelerate the pace and scale of wildfire readiness across the West,” said Angie Davlyn, Executive Director, Roaring Fork Valley Wildfire Collaborative.
“In 2024, there were 27 individual weather and climate disasters, each causing at least $1 billion in damages. The Shelter Act can significantly reduce these losses—totaling over $180 billion—by protecting lives and property, reducing liability, increasing market confidence, and supporting recovery efforts. It achieves this by leveraging every $1 invested in resilience to save $13 in recovery costs. According to FEMA, 40 percent of small businesses do not reopen after experiencing a natural disaster and of the companies that do bounce back, 25 percent of them close within one year. The American Institute of Architects is proud to support this measure, as it establishes a critical standard in the resilience space and paves the way for stronger economies and safer communities,” said Illya Azaroff, President, American Institute of Architects, FAIA.
Bennet and Cassidy first introduced the Shelter Act in 2019. Bennet is a leading advocate for disaster recovery and mitigation support for families and business owners. This year, he reintroduced the Replacing Essential Passports and Licenses After Certain Emergencies (REPLACE) Act to automatically waive replacement fees for survivors who lose critical documents like passports in natural disasters. In 2024, Bennet reintroduced the Housing Survivors of Major Disasters Act to streamline the process for survivors of natural disasters seeking housing assistance. Earlier this year, Bennet joined Senator Schiff to introduce the Mortgage Relief for Disaster Survivors Act, granting federally-backed mortgage forbearance to disaster survivors.
The Shelter Act is supported by: National Institute of Building Sciences, Colorado Resiliency Office, National Association of Realtors, National Association of Home Builders, Insurance Institute for Business & Home Safety, Fire Adapted Colorado, Roaring Fork Valley Wildfire Collaborative, Federal Alliance for Safe Homes (FLASH), the American Property Casualty Insurance Association (APCIA), Reinsurance Association of America (RAA), Satellite Condominiums LLC, and WesternLaw Group LLC.
The text of the bill is available HERE. A summary of the bill is available HERE.