Max Baucus: “today, we will pass legislation in the Senate that provides tax relief to all Americans receiving disaster mitigation…”

“today, we will pass legislation in the Senate that provides tax relief to all Americans receiving disaster mitigation grants from the Federal Emergency Management Agency, FEMA. I am pleased that my good friend, Senator Grassley, and I, along with my colleagues, Senators Landrieu, Bond, Feinstein, Lott, Martinez, Nelson, and Vitter could work together to add a necessary and important amendment to H.R. 1134, which exempts disaster mitigation payments from taxation. For 15 years, FEMA has awarded natural disaster mitigation grants that assist citizens, businesses and communities to take steps to prevent or mitigate damages from future natural disasters. The grants go towards elevating buildings in floodplains, flood proofing, seismic reinforcement, acquisitions or relocations, wind protections for roofs and strengthening of window protections. These grants provide a long- term benefit to society by reducing future loss of life and increasing public safety. In addition to these life-saving benefits, mitigation grants also provide a net cost benefit to society. FEMA conducts a cost-benefit analysis prior to awarding a grant that ensures the cost of funding a project is less than the damages expected to occur in the event of a disaster. FEMA estimates that for every dollar spent on mitigation, an average of eight dollars is saved in the long run. Let me take a minute to explain the history of the tax issue at hand.…”