,i #aahth ,,congress #b;d ,session ,h4 ,r4 #ghdi ,,in ,,the ,,house ,,of ,,representatives ,march #bi1 #bjbd,mr4 ,thompson of ,california 7for himself and ,mr4 ,la,malfa7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,transportation and ,infrastructure1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act to require the ,president to establish an individual household disaster mitigation program1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,disaster ,resiliency and ,coverage ,act of #bjbd4 #b4 ,individual household disaster mitigation program ,title ,,ii of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eaca et seq47 is amended by adding at the end the following3 #bjf4 ,individual household disaster mitigation program 7a7 ,establishment ,the ,president shall establish a program to provide grants to ,states and ,indian tribal governments for qualifying pre-disaster mitigation activities on individual residential households that are at risk of being damaged by a major disaster4 7b7 ,establishment of eligible disaster areas ,in carrying out the program under this section1 the ,president shall-- 7#a7 establish eligible disaster areas1 in consultation with ,states1 that the ,president determines to be at risk of a natural hazard1 including-- 7,a7 a description of the type1 likelihood1 and severity of each potential natural hazard affecting each such risk area2 and 7,b7 by taking into account previously declared major disasters impacting such areas2 and 7#b7 provide technical assistance to the ,states or ,indian tribal governments in developing the plan described in subsection 7c7 and administering grants provided for individual households under the program4 7c7 ,plan for eligible activities ,to be eligible for a grant under this section1 a ,state or ,indian tribal government shall submit to the ,president a plan that includes-- 7#a7 each disaster risk area established by the ,president under subsection 7b7 in which the ,state or ,indian tribal government proposes to provide funds under the program2 7#b7 an assessment of the status of the availability and affordability of homeowner insurance coverage in each such risk area2 7#c7 a list of each qualifying mitigation activity that is eligible for funds in each such risk area2 7#d7 the criteria by which a ,state or ,indian tribal government will evaluate applicants1 which shall include consideration of the household income of the applicant and whether the residence is located in a ,community ,disaster ,resilience ,zone2 and 7#e7 a financial plan that includes maximum amounts available to a household for each qualifying mitigation activity4 7d7 ,consultation ,in establishing the program under this section1 the ,president shall consult with the ,director of the ,federal ,insurance ,office to determine what qualifying mitigation activities are likely to incentivize homeowner insurance companies to offer1 or increase coverage of1 homeowners insurance to households located in eligible disaster areas4 7e7 ,limitations 7#a7 ,high-risk areas ,funds provided under this section may only be used in eligible disaster areas that the ,state or ,indian tribal government determines are at a high risk of experiencing a major disaster for the major disaster that presents such a risk4 7#b7 ,limitation based on adjusted gross income ,an individual shall not be eligible to receive a grant under this section if the adjusted gross income of such individual exceeds #bej1jjj 7#ejj1jjj in the case of a joint tax return7 for the taxable year ending in the calendar year immediately preceding the calendar year with respect to which a grant application is filed4 7#c7 ,definition of adjusted gross income ,in this section1 the term adjusted gross income has the meaning given such term in section #fb7;a7 of the ,internal ,revenue ,code of #aihf4 7f7 ,multi-,tiered mitigation standards 7#a7 ,in general ,the ,president1 acting through the ,administrator of the ,federal ,emergency ,management ,agency1 shall establish mitigation standards for individual households that carry out each type of qualifying mitigation activity eligible for funds under the program1 which may include a multi-tiered standard4 7#b7 ,consideration ,in establishing the mitigation standards under paragraph 7#a71 the ,president1 acting through the ,administrator-- 7,a7 may consider any standards established by-- 7i7 ,insurance ,institute for ,business and ,home ,safety2 and 7ii7 any other standard-issuing entity determined appropriate2 and 7,b7 may-- 7i7 adopt a standard considered under subparagraph 7,a72 or 7ii7 establish alternative standards4 7g7 ,guidance to insurance providers ,to be eligible for a grant under the program under this section1 a ,state or ,indian tribal government shall establish1 and make available to the public1 guidance to insurance providers that includes suggested incentives for households that carry out disaster mitigation activities under the program1 including-- 7#a7 the mitigation standards established under subsection 7f72 7#b7 increased eligibility for insurance coverage2 and 7#c7 discounts for households that carry out such mitigation activities4 7h7 ,maximum amounts ,a ,state or ,indian tribal government may not provide more than an amount of #aj1jjj1 not to exceed the actual cost of mitigation activities1 to any individual household under the program4 ,such amount shall be increased yearly to reflect any increase in the ,consumer ,price ,index4 7i7 ,gross income ,for purposes of the ,internal ,revenue ,code of #aihf1 gross income shall not include amounts provided under this section4 7j7 ,definition of qualifying mitigation activity ,in this section1 the term qualifying mitigation activity means an activity relating to a housing unit-- 7#a7 for property to-- 7,a7 improve the strength of a roof deck attachment2 7,b7 create a secondary water barrier to prevent water intrusion or mitigate against potential water intrusion from wind-driven rain2 7,c7 improve the durability1 impact resistance 7not less than class #c or #d rating71 or fire resistance 7not less than class ,a rating7 of a roof covering2 7,d7 brace gable-end walls2 7,e7 reinforce the connection between a roof and supporting wall2 7,f7 protect openings from penetration by wind-borne debris2 7,g7 protect exterior doors and garages from natural hazards2 7,h7 complete measures contained in the publication of the ,federal ,emergency ,management ,agency entitled ,wind ,retrofit ,guide for ,residential ,buildings 7,p-#hjd72 7,i7 elevate the qualified dwelling unit1 as well as utilities1 machinery1 or equipment1 above the base flood elevation or other applicable minimum elevation requirement2 7,j7 seal walls in the basement of the qualified dwelling unit using waterproofing compounds2 or 7,k7 protect propane tanks or other external fuel sources2 7#b7 to install-- 7,a7 check valves to prevent flood water from backing up into drains2 7,b7 flood vents1 breakaway walls or open lattice for homes located in ,v zones2 7,c7 a stormwater drainage system or improve an existing system2 7,d7 natural or nature-based features for flood control1 including living shorelines2 7,e7 roof coverings1 sheathing1 flashing1 roof and attic vents1 eaves1 or gutters that conform to ignition-resistant construction standards2 7,f7 wall components for wall assemblies that conform to ignition-resistant construction standards2 7,g7 a wall-to-foundation anchor or connector1 or a shear transfer anchor or connector2 7,h7 wood structural panel sheathing for strengthening cripple walls2 7,i7 anchorage of the masonry chimney to the framing2 7,j7 prefabricated lateral resisting systems2 7,k7 a standby generator system consisting of a standby generator and an automatic transfer switch2 7,l7 a storm shelter that meets the design and construction standards established by the ,international ,code ,council and the ,national ,storm ,shelter ,association 7,,icc-#ejj71 or a safe room that satisfies the criteria contained in-- 7i7 the publication of the ,federal ,emergency ,management ,agency entitled ,safe ,rooms for ,tornadoes and ,hurricanes 7,p-#cfa72 or 7ii7 the publication of the ,federal ,emergency ,management ,agency entitled ,taking ,shelter from the ,storm 7,p-#cbj72 7,m7 a lightning protection system2 7,n7 exterior walls1 doors1 windows1 or other exterior dwelling unit elements that conform to ignition-resistant construction standards2 7,o7 exterior deck or fence components that conform to ignition-resistant construction standards2 7,p7 structure-specific water hydration systems1 including fire mitigation systems such as interior and exterior sprinkler systems2 7,q7 flood openings for fully enclosed areas below the lowest floor of the dwelling unit2 7,r7 lateral bracing for wall elements1 foundation elements1 and garage doors or other large openings to resist seismic loads2 or 7,s7 automatic shutoff valves for water and gas lines2 or 7#c7 for services or equipment to-- 7,a7 create buffers around the qualified dwelling unit through the removal or reduction of flammable vegetation1 including vertical clearance of tree branches2 7,b7 create buffers around the dwelling unit through-- 7i7 the removal of exterior deck or fence components or ignition-prone landscape features2 or 7ii7 replacement of the components or features described in clause 7i7 with components or features that conform to ignition-resistant construction standards2 7,c7 perform fire maintenance procedures identified by the ,federal ,emergency ,management ,agency or the ,united ,states ,forest ,service1 including fuel management techniques such as creating fuel and fire breaks2 or 7,d7 replace flammable vegetation with less flammable species2 7#d7 for property relating to satisfying the standards required for receipt of a ,,fortified designation from the ,insurance ,institute for ,business and ,home ,safety1 provided that the qualified dwelling unit receives such designation following installation of such property2 or 7#e7 for any other hazard mitigation activity which has been identified by the ,president1 in consultation with the ,administrator of the ,federal ,emergency ,management ,agency1 for mitigation of a natural hazard4 4 #c4 ,exclusion of amounts received from ,state-based catastrophe loss mitigation programs 7a7 ,in general ,section #aci of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7h7 as subsection 7i7 and by inserting after subsection 7g7 the following new subsection3 7h7 ,state-,based catastrophe loss mitigation programs 7#a7 ,in general ,gross income shall not include any amount received by an individual as a qualified catastrophe loss mitigation payment under a program established or administered by a ,state1 or a political subdivision or instrumentality thereof1 for the purpose of making such payments4 7#b7 ,qualified catastrophe loss mitigation payment ,for purposes of this section1 the term qualified catastrophe loss mitigation payment means any amount which is received by an individual to make improvements to such individual's residence for the sole purpose of hazard mitigation with respect to such residence4 7#c7 ,no increase in basis ,rules similar to the rules of subsection 7g77#c7 shall apply in the case of this subsection4 4 7b7 ,conforming amendments 7#a7 ,section #aci7;d7 is amended by striking and qualified and inserting 1 qualified catastrophe mitigation payments1 and qualified4 7#b7 ,section #aci7;i7 7as redesignated by subsection 7a77 is amended by striking or qualified and inserting 1 qualified catastrophe mitigation payment1 or qualified4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbd4 #d4 ,exclusion from gross income of certain emergency agricultural assistance 7a7 ,in general ,section #aci of the ,internal ,revenue ,code of #aihf1 as amended by the preceding provisions of this ,act1 is amended by redesignating subsection 7i7 as subsection 7j7 and by inserting after subsection 7h7 the following new subsection3 7i7 ,certain agricultural assistance ,for purposes of this section1 the term qualified disaster relief payment shall include any assistance received under any of the following3 7#a7 ,assistance received under the ,wildfires and ,hurricanes ,indemnity ,program ,plus under subpart ,o of part #gfj of title #g1 ,code of ,federal ,regulations4 7#b7 ,assistance received under section #aeja of the ,agricultural ,act of #bjad 7#g ,u4,s4,c4 #ijha74 7#c7 ,noninsured crop assistance under section #aif of the ,federal ,agriculture ,improvement and ,reform ,act of #aiif 7#g ,u4,s4,c4 #gccc74 7#d7 ,assistance under a food assistance program under part #i of title #g1 ,code of ,federal ,regulations4 7#e7 ,assistance under title ,,iv of the ,agricultural ,credit ,act of #aigh 7#af ,u4,s4,c4 #bbja et seq474 7#f7 ,assistance under the ,quality ,loss ,assistance ,program4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbd4 #e4 ,credit for disaster mitigation expenditures 7a7 ,in general ,subpart ,b of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #bg the following new section3 #bh4 ,disaster mitigation expenditures 7a7 ,in general ,there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to #cj percent of the expenditures paid for qualifying mitigation activities paid or incurred by the taxpayer during such taxable year with respect to real property owned or leased by the taxpayer4 7b7 ,qualified disaster mitigation activities ,for purposes of this section-- 7#a7 ,qualifying mitigation activity ,the term qualifying mitigation activity has the meaning given such term in section #bjf7;j7 of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act4 7#b7 ,treatment of reimbursements ,any amount originally paid or incurred by the taxpayer which is reimbursed by a ,state under a qualified ,state disaster mitigation program shall be treated as paid by such ,state 7and not by such taxpayer74 7c7 ,application with other credits 7#a7 ,business credit treated as part of general business credit ,so much of the credit which would be allowed under subsection 7a7 for any taxable year 7determined without regard to this subsection7 that is attributable to expenditures made in the ordinary course of the taxpayer's trade or business 7or1 in the case of expenditures made by a ,state1 would have been expenditures made in the ordinary course of the taxpayer's trade or business if made by the taxpayer7 shall be treated as a credit listed in section #ch7;b7 for taxable year 7and not allowed under subsection 7a774 7#b7 ,personal credit ,for purposes of this title1 the credit allowed under subsection 7a7 for any taxable year 7determined after application of paragraph 7#a77 shall be treated as a credit allowable under subpart ,a for such taxable year4 7d7 ,reduction of credit percentage where taxpayer expenditures less than #cj percent 7#a7 ,in general ,if the expenditure percentage with respect to any item of expenditure described under subsection 7a7 is less than #cj percent1 subsection 7a7 shall be applied by substituting the expenditure percentage for #cj percent with respect to such item of expenditure4 7#b7 ,expenditure percentage ,for purposes of this section1 the term expenditure percentage means1 with respect to any item of expenditure described under subsection 7a7 any portion of which is paid or incurred by a ,state1 the ratio 7expressed as a percentage7 of-- 7,a7 the taxpayer's expenditure for such item1 divided by 7,b7 the sum of the taxpayer's and such ,state's expenditures for such item4 7e7 ,special rules 7#a7 ,treatment of expenditures related to marketable timber ,an expenditure shall not be taken into account for purposes of this section 7whether made by the taxpayer or a ,state7 if such expenditure is properly allocable to timber which is sold or exchanged by the taxpayer4 ,the preceding sentence shall not apply to the extent that such amount exceeds the gain on such sale or exchange4 7#b7 ,basis reduction ,for purposes of this subtitle1 if the basis of any property would 7but for this paragraph7 be determined by taking into account any expenditure described under subsection 7a71 the basis of such property shall be reduced by the amount of the credit allowed under subsection 7a7 with respect to such expenditure 7determined without regard to subsection 7c774 7#c7 ,denial of double benefit ,the amount of any deduction or other credit allowable under this chapter for any expenditure for which a credit is allowable under subsection 7a7 shall be reduced by the amount of credit allowed under such subsection for such expenditure 7determined without regard to subsection 7c774 4 7b7 ,conforming amendments 7#a7 ,section #ch7;b7 of such ,code is amended by striking plus at the end of paragraph 7#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 the portion of the disaster mitigation expenditures credit to which section #bh7;c77#a7 applies4 4 7#b7 ,section #ajaf7;a7 of such ,code is amended by redesignating paragraphs 7#ce7 through 7#ch7 as paragraphs 7#cf7 through 7#ci71 respectively1 and by inserting after paragraph 7#cd7 the following new paragraph3 7#ce7 to the extent provided in section #bh7;e77#b71 4 7#c7 ,the table of sections for subpart ,b of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #bg the following new item3 ,sec4 #bh4 ,qualified disaster mitigation expenditures4 4 7c7 ,effective date ,the amendments made by this section shall apply to expenditures paid or incurred after the date of the enactment of this ,act1 in taxable years ending after such date4