Getting your Trinity Audio player ready...

By Congressman Gregory F. Murphy

In September of 2018, Eastern North Carolina was hit by Hurricane Florence, a historic storm that caused devastating loss to our communities. Homes, memories, and livelihoods were forever changed, and efforts to restore and rebuild continue to this day. Unfortunately, hurricanes are an unavoidable reality, and we must improve our preparedness accordingly.

To help improve resilience for future catastrophes, the North Carolina Insurance Underwriting Association (NCIUA) created the Strengthen Your Roof and Strengthen Your Coastal Roof, similar to the Pre-Disaster Mitigation Grant Program offered by FEMA. Policyholders of NCIUA can apply for grants to help cover the cost of installing a stronger roof to provide more protection during future hurricanes. These types of pre-disaster are valuable investments in safeguarding communities from disasters ranging from earthquakes to wildfires.  The National Institute for Building Sciences determined that for every $1 spent on mitigation, up to $13 can be saved in future disaster costs.

North Carolina is one of sixteen states that have implemented or have proposed grant programs for homeowners vulnerable to storm damage – an essential lifeline to many at-risk households. However, our tax code currently subjects state grants to federal income tax. The average NCIUA grant in the Outer Banks and Barrier Islands is $10,000, carrying with it a burdensome tax liability. As a result, the incentive for homeowners to utilize this program is diminished and its intent is not being fully realized.

Catastrophe mitigation payments used to improve natural disaster resilience should not be treated as a source of income. I am proud to introduce the Disaster Mitigation and Tax Parity Act, bipartisan and bicameral legislation to exempt grants for state pre-disaster programs from federal taxes. Specifically, the bill exempts any funds received for property enhancements aimed at reducing damage from windstorms, earthquakes, floods, or wildfires.

Many regions across the country cannot escape the danger that natural disasters pose, particularly our coastal communities in Eastern North Carolina. Allowing the federal government to take part of this state funding that is intended for at-risk residents undermines the entire purpose of the program. Even FEMA’s program is exempt from being counted as taxable income by the federal government.

With fewer than 100 days until hurricane season begins, we must ensure our coastal communities have the support they need to stay protected. Eastern North Carolina understands how deadly and damaging hurricanes can be, and the costs associated with rebuilding. Over 4,500 households in the Third District have participated in the Strengthen Your Roof and Strengthen Your Coastal Roof programs.

Adequate preparation is a valuable investment and should be strongly incentivized. The Disaster Mitigation and Tax Parity Act empowers individuals to protect themselves before disaster strikes by making each grant go further, reducing or eliminating the risk of catastrophic damage to their homes.

Congressman Gregory F. Murphy, M.D., represents district NC-03.

READ ABOUT NEWS AND EVENTS HERE.

SUBSCRIBE TO THE COASTLAND TIMES TODAY!