Natural Disaster Property Protection Act of 2025
Key claim: HR1093 would raise the IRS Form 1099 information-reporting threshold from $600 to $5,000 specifically for payments related to natural disaster mitigation or repair of real property.
Abstract
(HR1093 · 119th Congress) Natural Disaster Property Protection Act of 2025 This bill increases to $5,000 (from $600) the dollar threshold at which a person engaged in a trade or business is required to file an information return (for federal tax purposes) reporting certain payments related to a natural disaster or extreme weather. Under current law, a person engaged in a trade or business (including a corporation, company, partnership, association, individual, estate, and trust) is required to file an information return for certain payments made during the tax year to another person (but generally not to a corporation) if such payments total (in the aggregate) $600 or more (information reporting threshold). Such payments are reported on the IRS Form 1099 series. Specifically, payments made to nonemployees in exchange for services are reported on IRS Form 1099-NEC (nonemployee compensation). (Some exceptions apply.) Under the bill, the information reporting threshold increases to $5,000 for (1) expenses incurred to mitigate the risk of damage to real property that may result from a natural disaster or extreme weather, and (2) expenses incurred to repair damage to real property caused by a natural disaster or extreme weather. Latest action (2025-02-06): Referred to the House Committee on Ways and Means.
Why this matters
This bill illustrates a growing legislative trend toward carving out category-specific exceptions to the long-standing $600 Form 1099 threshold rather than raising it across the board. If enacted, contractors and vendors performing disaster mitigation or property repair work would face reduced reporting paperwork, shifting compliance burden away from small transactions while narrowing IRS visibility into that payment stream.