North Carolina State Representative Gregory F. Murphy has said that catastrophe mitigation payments for disaster resilience should not be considered “income” or “taxed.” This statement was made in a press release on March 5, 2025.
“Catastrophe mitigation payments used to improve natural disaster resilience should not be treated as a source of income, and North Carolinians should not be taxed for them,” said F. Murphy.
Murphy, along with Representative Doug LaMalfa from California, introduced the Disaster Mitigation and Tax Parity Act. This bipartisan bill seeks to exempt qualified catastrophe mitigation payments from federal taxable income. According to the press release, the legislation aims to prevent homeowners from being taxed on funds used to strengthen their properties against natural disasters.
In North Carolina, the Strengthen Your Roof program provides grants to help residents reinforce their homes against wind damage. Over 4,500 households in the Third District have benefited from this initiative. However, the Internal Revenue Service (IRS) currently classifies these grants as taxable income. The proposed bill defines qualified catastrophe mitigation payments as funds used solely for reducing damage from windstorms, earthquakes, floods, or wildfires.
“Eastern North Carolina understands how deadly and damaging hurricanes can be, and the costs associated with rebuilding,” said Murphy. He emphasized that adequate preparation for storms is a valuable investment and should be incentivized rather than taxed. “This bill empowers individuals to protect themselves before disaster strikes, reducing or eliminating entirely, the risk of catastrophic damage to their homes,” he added.
Murphy is serving his third term as the representative for North Carolina’s Third Congressional District. He is a member of several committees including the House Ways and Means Committee and the House Veterans Affairs Committee. Additionally, he co-chairs the House GOP Doctors Caucus. Murphy holds degrees from Davidson College and the University of North Carolina’s School of Medicine and is noted as the only practicing surgeon in Congress.
