,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #cdfb  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #be1 #bjai,mr4  
,bilirakis 7= himself & ,mr4 ,cri/7     
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to provide a cr$it aga9/  
tax = disa/] mitigation exp5ditures4    
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,,%elt] ,act4  #b4 ,nonrefundable     
p]sonal cr$it = disa/] mitigation       
exp5ditures  7a7 ,9 g5]al ,subp>t ,a (  
"p ,,iv ( sub*apt] ,a ( *apt] #a ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #be;,d ! foll[+  
new section3  #be;,e4 ,disa/] mitigation
 exp5ditures  7a7 ,all[ance ( cr$it ,9 !
 case ( an individual1 !re %all be all[$
 z a cr$it aga9/ ! tax impos$ by ?is    
*apt] = ! taxable ye> an am\nt equal to 
#be p]c5t ( ! qualifi$ disa/] mitigation
 exp5ditures made by ! taxpay] dur+ su* 
taxable ye>4  7b7 ,maximum cr$it  7#a7  
,9 g5]al ,subject to p>agraph 7#b71 !   

cr$it all[$ "u subsection 7a7 = any     
taxable ye> %all n exce$ #e1jjj4  7#b7  
,phase\t  7,a7 ,9 g5]al ,! am\nt "u     
p>agraph 7#a7 = ! taxable ye> %all be   
r$uc$ 7b n bel[ z]o7 by an am\nt :i*    
be>s ! same ratio to ! am\nt "u su*     
p>agraph z--  7i7 ! am\nt 7n less ?an   
z]o7 equal to ! adju/$ gross income ( ! 
taxpay] = su* taxable ye> m9us #hd1bjj1 
be>s to  7ii7 #dj1hjj4  7,b7 ,jo9t      
return ,= purposes ( det]m9+ ! am\nt (  
any r$uction "u subp>agraph 7,a7 = any  
taxable ye>1 if a jo9t return 0 fil$ =  
su* taxable ye>1 ea* ( ! doll> am\nts "u
 su* subp>agraph %all be d\bl$4  7,c7   
,inflation adju/m5t ,9 ! case ( any     
taxable ye> aft] #bjbj1 ea* ( ! doll>   
am\nts "u subp>agraph 7,a7 %all be      
increas$ by an am\nt equal to--  7i7 su*
 doll> am\nt1 multipli$ by  7ii7 !      
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye> 9 :i* !       
taxable ye> beg9s1 det]m9$ by sub/itut+ 
cal5d> ye> #bjai = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  7,d7 ,r\nd+ 

,if any r$uction det]m9$ "u subp>agraph 
7,a7 or 7,b7 is n a multiple ( #ej1 or  
any increase "u subp>agraph 7,c7 is n a 
multiple ( #ej1 su* am\nt %all be r\nd$ 
to ! ne>e/ multiple ( #ej4  7c7         
,def9itions ,= purposes ( ?is section-- 
7#a7 ,qualifi$ disa/] mitigation        
exp5diture  7,a7 ,9 g5]al ,! t]m        
qualifi$ disa/] mitigation exp5diture   
means an exp5diture relat+ to a qualifi$
 dwell+ unit--  7i7 = prop]ty to-- 7,i7 
improve ! /r5g? ( a ro( deck atta*m5t1  
7,,ii7 create a second>y wat] b>ri] to  
prev5t wat] intrusion or mitigate aga9/ 
pot5tial wat] intrusion f w9d-driv5 ra91
  7,,iii7 improve ! durability1 impact  
resi/ance 7n less ?an class #c or #d    
rat+71 or fire resi/ance 7n less ?an    
class ,a rat+7 ( a ro( cov]+1  7,,iv7   
brace gable-end walls1  7,v7 re9=ce !   
connection betwe5 a ro( & support+ wall1
  7,,vi7 protect op5+s f p5etration by  
w9d-borne debris1  7,,vii7 protect      
ext]ior doors & g>ages f natural haz>ds1
  7,,viii7 complete measures conta9$ 9 !

 publication ( ! ,f$]al ,em]g5cy        
,managem5t ,ag5cy entitl$ ,w9d ,retr(it 
,guide = ,resid5tial ,build+s 7,p-#hjd71
  7,,ix7 elevate ! qualifi$ dwell+ unit1
 z well z utilities1 ma*9]y1 or         
equipm5t1 above ! base flood elevation  
or o!r applicable m9imum elevation      
requirem5t1  7,x7 seal walls 9 ! basem5t
 ( ! qualifi$ dwell+ unit us+ wat]pro(+ 
comp\nds1 or  7,,xi7 protect propane    
tanks or o!r ext]nal fuel s\rces1  7ii7 
to in/all-- 7,i7 *eck valves to prev5t  
flood wat] f back+ up into dra9s1       
7,,ii7 flood v5ts1 breakaway walls or   
op5 lattice = homes locat$ 9 ,v zones1  
7,,iii7 a /ormwat] dra9age sy/em or     
improve an exi/+ sy/em1  7,,iv7 natural 
or nature-bas$ features = flood control1
 includ+ liv+ %orel9es1  7,v7 ro(       
cov]+s1 %ea?+1 fla%+1 ro( & attic v5ts1 
eaves1 or gutt]s t con=m to             
ignition-resi/ant con/ruction /&>ds1    
7,,vi7 wall compon5ts = wall assemblies 
t con=m to ignition-resi/ant con/ruction
 /&>ds1  7,,vii7 a wall-to-f\ndation    

an*or or connector1 or a %e> transf]    
an*or or connector1  7,,viii7 wood      
/ructural panel %ea?+ = /r5g!n+ cripple 
walls1  7,,ix7 an*orage ( ! masonry     
*imney to ! fram+1  7,x7 prefabricat$   
lat]al resi/+ sy/ems1  7,,xi7 a /&by    
g5]ator sy/em consi/+ ( a /&by g5]ator &
 an automatic transf] swit*1  7,,xii7 a 
/orm %elt] t meets ! design &           
con/ruction /&>ds e/abli%$ by !         
,int]national ,code ,c\ncil & !         
,national ,/orm ,%elt] ,association     
7,,icc-#ejj71 or a safe room t satisfies
 ! crit]ia conta9$ 9--  7aa7 !          
publication ( ! ,f$]al ,em]g5cy         
,managem5t ,ag5cy entitl$ ,safe ,rooms =
 ,tornadoes & ,hurricanes 7,p-#cfa71 or 
7bb7 ! publication ( ! ,f$]al ,em]g5cy  
,managem5t ,ag5cy entitl$ ,tak+ ,%elt] f
 ! ,/orm 7,p-#cbj71  7,,xiii7 a lightn+ 
protection sy/em1  7,,xiv7 ext]ior      
walls1 doors1 w9d[s1 or o!r ext]ior     
dwell+ unit elem5ts t con=m to          
ignition-resi/ant con/ruction /&>ds1    
7,,xv7 ext]ior deck or f5ce compon5ts t 

con=m to ignition-resi/ant con/ruction  
/&>ds1  7,,xvi7 /ructure-specific wat]  
hydration sy/ems1 includ+ fire          
mitigation sy/ems su* z int]ior &       
ext]ior spr9kl] sy/ems1  7,,xvii7 wat]  
capture & deliv]y sy/ems to accommodate 
dr\ght ev5ts or to decrease wat] use1   
includ+ ! design ( su* sy/ems1          
7,,xviii7 flood op5+s = fully enclos$   
areas bel[ ! l[e/ floor ( ! dwell+ unit1
  7,,xix7 lat]al brac+ = wall elem5ts1  
f\ndation elem5ts1 & g>age doors or o!r 
l>ge op5+s to resi/ seismic loads1 or   
7,,xx7 automatic %ut(f valves = wat] &  
gas l9es1 or  7iii7 = s]vices or        
equipm5t to--  7,i7 create buff]s ar\nd 
! qualifi$ dwell+ unit ?r\gh ! removal  
or r$uction ( flammable vegetation1     
includ+ v]tical cle>ance ( tree bran*es1
  7,,ii7 create buff]s ar\nd ! dwell+   
unit ?r\gh-- 7aa7 ! removal ( ext]ior   
deck or f5ce compon5ts or ignition-prone
 l&scape features1 or  7bb7 replacem5t (
 ! compon5ts or features describ$ 9 item
 7aa7 ) compon5ts or features t con=m to

 ignition-resi/ant con/ruction /&>ds1   
7,,iii7 p]=m fire ma9t5ance proc$ures   
id5tifi$ by ! ,f$]al ,em]g5cy ,managem5t
 ,ag5cy or ! ,unit$ ,/ates ,=e/ ,s]vice1
 includ+ fuel managem5t te*niques su* z 
creat+ fuel & fire breaks1  7,,iv7 ga!r 
& analyze wat] & wea!r data to bett]    
und]/& ! local climate & dr\ght hi/ory1 
7,v7 replace flammable vegetation ) less
 flammable species1 or  7,,vi7 det]m9e !
 risk ( natural disa/]s :i* may occur 9 
! area 9 :i* ! qualifi$ dwell+ unit is  
locat$1 or  7iv7 = prop]ty relat+ to    
satisfy+ ! /&>ds requir$ = receipt ( a  
,,=tifi$ designation f ! ,insurance     
,in/itute = ,bus9ess & ,home ,safety1   
provid$ t ! qualifi$ dwell+ unit        
receives su* designation foll[+         
in/allation ( su* prop]ty4  7,b7        
,exception ,! t]m qualifi$ disa/]       
mitigation exp5diture %all n include any
 exp5diture or portion !re( :i* is paid1
 fund$1 or reimburs$ by a ,f$]al1 ,/ate1
 or local gov]nm5t entity1 or any       
political subdivision1 ag5cy1 or        

in/rum5tality !re(4  7#b7 ,qualifi$     
dwell+ unit ,! t]m qualifi$ dwell+ unit 
means a dwell+ unit :i* is-- 7,a7       
locat$--  7i7 9 ! ,unit$ ,/ates or 9 a  
t]ritory ( ! ,unit$ ,/ates1 &  7ii7 9 an
 area--  7,i7 9 :i* a ,f$]al disa/]     
decl>ation has be5 made )9 ! prec$+     
#aj-ye> p]iod1 or  7,,ii7 :i* is adjac5t
 to an area describ$ 9 subclause 7,i71 &
  7,b7 us$ z a resid5ce by ! taxpay]4   
7d7 ,limitation  7#a7 ,9 g5]al ,9 ! case
 ( an exp5diture describ$ 9 clause 7i7  
or 7ii7 ( subsection 7c77#a77;,a71 su*  
exp5diture %all be tak5 into acc\nt 9   
det]m9+ ! qualifi$ disa/] mitigation    
exp5ditures made by ! taxpay] dur+ !    
taxable ye> only if ! onsite prep>ation1
 assembly1 or orig9al in/allation ( !   
prop]ty ) respect to :i* su* exp5diture 
is made has be5 complet$ 9 a mann] t is 
deem$ to be 9 compliance ) ! late/      
publi%$ editions ( relevant             
cons5sus-bas$ codes1 specifications1 &  
/&>ds or any m re/rictive ,f$]al1 ,/ate1
 or local floodpla9 managem5t /&>ds &   

consi/5t ) floodpla9 managem5t          
regulations = ! local jurisdiction 9 :i*
 ! qualifi$ dwell+ unit is locat$4  7#b7
 ,late/ publi%$ editions ,! t]m late/   
publi%$ editions means ) respect to     
relevant cons5sus-bas$ codes1           
specifications1 & /&>ds1 ei!r ( ! #b mo/
 rec5tly publi%$ editions4  7e7 ,labor  
co/s ,= purposes ( ?is section1         
exp5ditures = labor co/s prop]ly        
allocable to ! onsite prep>ation1       
assembly1 or orig9al in/allation ( !    
prop]ty describ$ 9 clause 7i7 or 7ii7 ( 
subsection 7c77#a77;,a7 %all be tak5    
into acc\nt 9 det]m9+ ! qualifi$ disa/] 
mitigation exp5ditures made by ! taxpay]
 dur+ ! taxable ye>4  7f7 ,inspection   
co/s ,= purposes ( ?is section1         
exp5ditures = ! co/ ( any inspection    
requir$ "u subsection 7d7 :i* is prop]ly
 allocable to ! inspection ( !          
prep>ation1 assembly1 or in/allation ( !
 prop]ty describ$ 9 clause 7i7 or 7ii7 (
 subsection 7c77#a77;,a7 %all be tak5   
into acc\nt 9 det]m9+ ! qualifi$ disa/] 

mitigation exp5ditures made by ! taxpay]
 dur+ ! taxable ye>4  7g7 ,docum5tation 
,any taxpay] claim+ ! cr$it "u ?is      
section %all provide ! ,secret>y )      
adequate docum5tation reg>d+ ! specific 
qualifi$ disa/] mitigation exp5ditures  
made by ! taxpay] dur+ ! taxable ye>1 z 
well z su* o!r in=mation or docum5tation
 z ! ,secret>y may require4  4  7b7     
,con=m+ am5dm5t ,! table ( sections =   
subp>t ,a ( "p ,,iv ( sub*apt] ,a (     
*apt] #a ( su* ,code is am5d$ by ins]t+ 
aft] ! item relat+ to section #be;,d !  
foll[+ new item3  ,sec4 #be;,e4 ,disa/] 
mitigation exp5ditures4  4  7c7         
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjai4  #c4   
,bus9ess-relat$ cr$it = disa/]          
mitigation  7a7 ,9 g5]al ,subp>t ,d ( "p
 ,,iv ( sub*apt] ,a ( *apt] #a ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #de,s ! foll[+   
new section3  #de,t4 ,disa/] mitigation 
cr$it  7a7 ,g5]al rule ,= purposes (    

section #ch1 ! disa/] mitigation cr$it  
det]m9$ "u ?is section = any taxable ye>
 is an am\nt equal to #be p]c5t ( !     
qualifi$ disa/] mitigation exp5ditures  
made by ! taxpay] dur+ ! taxable ye>4   
7b7 ,maximum cr$it  7#a7 ,9 g5]al       
,subject to p>agraph 7#b71 ! am\nt ( !  
cr$it det]m9$ "u subsection 7a7 = any   
taxable ye> %all n exce$ #e1jjj4  7#b7  
,phase\t  7,a7 ,9 g5]al ,! am\nt "u     
p>agraph 7#a7 = ! taxable ye> %all be   
r$uc$ 7b n bel[ z]o7 by an am\nt :i*    
be>s ! same ratio to ! am\nt "u su*     
p>agraph z--  7i7 ! am\nt 7n less ?an   
z]o7 equal to ! av]age gross receipts ( 
! taxpay] ov] ! #c prec$+ taxable ye>s  
m9us #e1jjj1jjj1 be>s to  7ii7          
#e1jjj1jjj4  7,b7 ,inflation adju/m5t ,9
 ! case ( any taxable ye> aft] #bjbj1   
ea* ( ! doll> am\nts "u subp>agraph 7,a7
 %all be increas$ by an am\nt equal to--
  7i7 su* doll> am\nt1 multipli$ by     
7ii7 ! co/-(-liv+ adju/m5t det]m9$ "u   
section #a7;f77#c7 = ! cal5d> ye> 9 :i* 
! taxable ye> beg9s1 det]m9$ by         

sub/itut+ cal5d> ye> #bjai = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  7,c7
 ,r\nd+ ,if any r$uction det]m9$ "u     
subp>agraph 7,a7 is n a multiple ( #ej1 
or any increase "u subp>agraph 7,b7 is n
 a multiple ( #ej1 su* am\nt %all be    
r\nd$ to ! ne>e/ multiple ( #ej4  7c7   
,qualifi$ disa/] mitigation exp5diture  
,= purposes ( ?is section1 ! t]m        
qualifi$ disa/] mitigation exp5diture   
has ! same mean+ giv5 su* t]m "u        
p>agraph 7#a7 ( section #be;,e7c71      
except t place ( bus9ess %all be        
sub/itut$ = qualifi$ dwell+ unit ea*    
place x appe>s 9 su* p>agraph4  7d7     
,special rules ,rules simil> to ! rules 
( subsections 7d7 ?r\gh 7g7 ( section   
#be;,e %all apply = purposes ( ?is      
section4  4  7b7 ,con=m+ am5dm5ts  7#a7 
,section #ch7;b7 ( su* ,code is am5d$ by
 /rik+ plus at ! end ( p>agraph 7#ca71  
by /rik+ ! p]iod at ! end ( p>agraph    
7#cb7 & ins]t+ 1 plus1 & by add+ at !   
end ! foll[+ new p>agraph3  7#cc7 !     
disa/] mitigation cr$it det]m9$ "u      

section #de,t7a74  4  7#b7 ,! table (   
sections = subp>t ,d ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #de,s ! foll[+ new item3  ,sec4 
#de,t4 ,disa/] mitigation cr$it4  4  7c7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s     
beg9n+ aft] ,decemb] #ca1 #bjai4