Skip to main content

Hurricane Risk Mitigation Blog

Go Search
Risk Mitigation
Home
  

Hurricane Risk Mitigation Blog > Posts > Coalition Letter Supporting Carper Amendment
Coalition Letter Supporting Carper Amendment

 

 

Consumer Federation of America

American Consumer Institute

National Wildlife Federation

Republicans for Environmental Protection

Competitive Enterprise Institute

American Insurance Association

National Association of Professional Insurance Agents

Reinsurance Association of America

Association of Bermuda Insurers and Reinsurers

Allianz of America

The Chubb Corporation

Liberty Mutual Group

SwissRe

 

January 26, 2009

 

Honorable Thomas Carper

United States Senator

Washington, D.C.  20510

 

Dear Senator Carper:

 

            We understand that you plan to offer an amendment to establish new hazard mitigation tax credits for individual taxpayers at tomorrow’s mark-up of the economic stimulus legislative package by the Senate Finance Committee.  We are writing to express our strong support for your amendment.

 

            A recent study by The University of Pennsylvania’s Wharton School’s Risk Management Center found that homeowners in residences built to wind-resistant standards experienced 60 percent fewer damage claims.  Even when wind damage could not be avoided, wind-resistant building practices reduced the damages by more than 40 percent.  The Institute of Business and Home Safety has estimated that every dollar invested in mitigation yields four to seven times that amount in savings.  Furthermore, a recent study by the Multihazard Mitigation Council reinforced these findings, showing that each dollar spent on mitigation saves society an average of four dollars, with positive benefit-cost ratios for all hazard types studied.

 

            As we understand it, the Carper Amendment creates a new mitigation tax credit program.  It provides a 30-percent credit for qualified hurricane, earthquake and tornado mitigation expenditures with respect to existing homes.  Under your Amendment, the maximum amount of the credit for aggregate eligible expenditures in any taxable year is not to exceed $1500.

 

            It is becoming increasingly clear that increased attention to risk reduction and mitigation should be at the heart of our planning for the future.  We are pleased to support your amendment, which offers an environmentally-responsible and fiscally-sound approach to hazard mitigation that will drive job creation at the local level.  Our message is that mitigation works.  It is prevention that will keep the cost of future Federal disaster relief lower.  We commend you for taking the lead in this effort and are pleased to endorse the Carper Amendment.

 

Very truly yours,

 

Consumer Federation of America

American Consumer Institute

National Wildlife Federation

Republicans for Environmental Protection

Competitive Enterprise Institute

American Insurance Association

National Association of Professional Insurance Agents

Reinsurance Association of America

Association of Bermuda Insurers and Reinsurers

Allianz of America

The Chubb Corporation

Liberty Mutual Group

Swiss Re

 

 

 

Comments

There are no comments yet for this post.