,i  #aah? ,,congress  #b;d ,session  ,h4
 ,r4 #ghdi  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,m>* #bi1 #bjbd,mr4   
,?ompson ( ,cali=nia 7= himself & ,mr4  
,la,malfa7 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,ways &     
,means1 & 9 addition to ! ,committee on 
,transportation & ,infra/ructure1 = a   
p]iod to be subsequ5tly det]m9$ by !    
,speak]1 9 ea* case = consid]ation ( su*
 provisions z fall )9 ! jurisdiction ( !
 committee conc]n$  ,a ,,bill  ,to am5d 
! ,rob]t ,t4 ,/af=d ,disa/] ,relief &   
,em]g5cy ,assi/ance ,act to require !   
,presid5t to e/abli% an individual      
h\sehold disa/] mitigation program1 & = 
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,disa/] ,resili5cy &   
,cov]age ,act ( #bjbd4  #b4 ,individual 
h\sehold disa/] mitigation program      
,title ,,ii ( ! ,rob]t ,t4 ,/af=d       
,disa/] ,relief & ,em]g5cy ,assi/ance   
,act 7#db ,u4,s4,c4 #eaca et seq47 is   
am5d$ by add+ at ! end ! foll[+3  #bjf4 
,individual h\sehold disa/] mitigation  

program  7a7 ,e/abli%m5t ,! ,presid5t   
%all e/abli% a program to provide grants
 to ,/ates & ,indian tribal gov]nm5ts = 
qualify+ pre-disa/] mitigation          
activities on individual resid5tial     
h\seholds t are at risk ( be+ damag$ by 
a major disa/]4  7b7 ,e/abli%m5t (      
eligible disa/] areas ,9 c>ry+ out !    
program "u ?is section1 ! ,presid5t     
%all-- 7#a7 e/abli% eligible disa/]     
areas1 9 consultation ) ,/ates1 t !     
,presid5t det]m9es to be at risk ( a    
natural haz>d1 includ+-- 7,a7 a         
description ( ! type1 likelihood1 &     
sev]ity ( ea* pot5tial natural haz>d    
affect+ ea* su* risk area2 &  7,b7 by   
tak+ into acc\nt previ\sly decl>$ major 
disa/]s impact+ su* areas2 &  7#b7      
provide te*nical assi/ance to ! ,/ates  
or ,indian tribal gov]nm5ts 9 develop+ !
 plan describ$ 9 subsection 7c7 &       
adm9i/]+ grants provid$ = individual    
h\seholds "u ! program4  7c7 ,plan =    
eligible activities ,to be eligible = a 
grant "u ?is section1 a ,/ate or ,indian

 tribal gov]nm5t %all submit to !       
,presid5t a plan t includes-- 7#a7 ea*  
disa/] risk area e/abli%$ by ! ,presid5t
 "u subsection 7b7 9 :i* ! ,/ate or     
,indian tribal gov]nm5t proposes to     
provide funds "u ! program2  7#b7 an    
assessm5t ( ! /atus ( ! availability &  
af=dability ( home[n] insurance cov]age 
9 ea* su* risk area2  7#c7 a li/ ( ea*  
qualify+ mitigation activity t is       
eligible = funds 9 ea* su* risk area2   
7#d7 ! crit]ia by :i* a ,/ate or ,indian
 tribal gov]nm5t w evaluate applicants1 
:i* %all include consid]ation ( !       
h\sehold income ( ! applicant & :e!r !  
resid5ce is locat$ 9 a ,community       
,disa/] ,resili5ce ,zone2 &  7#e7 a     
f9ancial plan t includes maximum am\nts 
available to a h\sehold = ea* qualify+  
mitigation activity4  7d7 ,consultation 
,9 e/abli%+ ! program "u ?is section1 ! 
,presid5t %all consult ) ! ,director ( !
 ,f$]al ,insurance ,(fice to det]m9e :at
 qualify+ mitigation activities are     
likely to inc5tivize home[n] insurance  

companies to (f]1 or increase cov]age (1
 home[n]s insurance to h\seholds locat$ 
9 eligible disa/] areas4  7e7           
,limitations  7#a7 ,high-risk areas     
,funds provid$ "u ?is section may only  
be us$ 9 eligible disa/] areas t ! ,/ate
 or ,indian tribal gov]nm5t det]m9es are
 at a high risk ( exp]i5c+ a major      
disa/] = ! major disa/] t pres5ts su* a 
risk4  7#b7 ,limitation bas$ on adju/$  
gross income ,an individual %all n be   
eligible to receive a grant "u ?is      
section if ! adju/$ gross income ( su*  
individual exce$s #bej1jjj 7#ejj1jjj 9 !
 case ( a jo9t tax return7 = ! taxable  
ye> end+ 9 ! cal5d> ye> imm$iately      
prec$+ ! cal5d> ye> ) respect to :i* a  
grant application is fil$4  7#c7        
,def9ition ( adju/$ gross income ,9 ?is 
section1 ! t]m adju/$ gross income has !
 mean+ giv5 su* t]m 9 section #fb7;a7 ( 
! ,int]nal ,rev5ue ,code ( #aihf4  7f7  
,multi-,ti]$ mitigation /&>ds  7#a7 ,9  
g5]al ,! ,presid5t1 act+ ?r\gh !        
,adm9i/rator ( ! ,f$]al ,em]g5cy        

,managem5t ,ag5cy1 %all e/abli%         
mitigation /&>ds = individual h\seholds 
t c>ry out ea* type ( qualify+          
mitigation activity eligible = funds "u 
! program1 :i* may include a multi-ti]$ 
/&>d4  7#b7 ,consid]ation ,9 e/abli%+ ! 
mitigation /&>ds "u p>agraph 7#a71 !    
,presid5t1 act+ ?r\gh ! ,adm9i/rator--  
7,a7 may consid] any /&>ds e/abli%$ by--
 7i7 ,insurance ,in/itute = ,bus9ess &  
,home ,safety2 &  7ii7 any o!r          
/&>d-issu+ entity det]m9$ appropriate2 &
  7,b7 may-- 7i7 adopt a /&>d consid]$  
"u subp>agraph 7,a72 or  7ii7 e/abli%   
alt]native /&>ds4  7g7 ,guidance to     
insurance provid]s ,to be eligible = a  
grant "u ! program "u ?is section1 a    
,/ate or ,indian tribal gov]nm5t %all   
e/abli%1 & make available to ! public1  
guidance to insurance provid]s t        
includes sugge/$ inc5tives = h\seholds t
 c>ry out disa/] mitigation activities  
"u ! program1 includ+-- 7#a7 !          
mitigation /&>ds e/abli%$ "u subsection 
7f72  7#b7 increas$ eligibility =       

insurance cov]age2 &  7#c7 disc\nts =   
h\seholds t c>ry out su* mitigation     
activities4  7h7 ,maximum am\nts ,a     
,/ate or ,indian tribal gov]nm5t may n  
provide m ?an an am\nt ( #aj1jjj1 n to  
exce$ ! actual co/ ( mitigation         
activities1 to any individual h\sehold  
"u ! program4 ,su* am\nt %all be        
increas$ ye>ly to reflect any increase 9
 ! ,consum] ,price ,index4  7i7 ,gross  
income ,= purposes ( ! ,int]nal ,rev5ue 
,code ( #aihf1 gross income %all n      
include am\nts provid$ "u ?is section4  
7j7 ,def9ition ( qualify+ mitigation    
activity ,9 ?is section1 ! t]m qualify+ 
mitigation activity means an activity   
relat+ to a h\s+ unit-- 7#a7 = prop]ty  
to-- 7,a7 improve ! /r5g? ( a ro( deck  
atta*m5t2  7,b7 create a second>y wat]  
b>ri] to prev5t wat] intrusion or       
mitigate aga9/ pot5tial wat] intrusion f
 w9d-driv5 ra92  7,c7 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]+2  7,d7 brace gable-end walls2     
7,e7 re9=ce ! connection betwe5 a ro( & 
support+ wall2  7,f7 protect op5+s f    
p5etration by w9d-borne debris2  7,g7   
protect ext]ior doors & g>ages f natural
 haz>ds2  7,h7 complete measures conta9$
 9 ! publication ( ! ,f$]al ,em]g5cy    
,managem5t ,ag5cy entitl$ ,w9d ,retr(it 
,guide = ,resid5tial ,build+s 7,p-#hjd72
  7,i7 elevate ! qualifi$ dwell+ unit1 z
 well z utilities1 ma*9]y1 or equipm5t1 
above ! base flood elevation or o!r     
applicable m9imum elevation requirem5t2 
7,j7 seal walls 9 ! basem5t ( ! qualifi$
 dwell+ unit us+ wat]pro(+ comp\nds2 or 
7,k7 protect propane tanks or o!r       
ext]nal fuel s\rces2  7#b7 to in/all--  
7,a7 *eck valves to prev5t flood wat] f 
back+ up into dra9s2  7,b7 flood v5ts1  
breakaway walls or op5 lattice = homes  
locat$ 9 ,v zones2  7,c7 a /ormwat]     
dra9age sy/em or improve an exi/+ sy/em2
  7,d7 natural or nature-bas$ features =
 flood control1 includ+ liv+ %orel9es2  
7,e7 ro( cov]+s1 %ea?+1 fla%+1 ro( &    

attic v5ts1 eaves1 or gutt]s t con=m to 
ignition-resi/ant con/ruction /&>ds2    
7,f7 wall compon5ts = wall assemblies t 
con=m to ignition-resi/ant con/ruction  
/&>ds2  7,g7 a wall-to-f\ndation an*or  
or connector1 or a %e> transf] an*or or 
connector2  7,h7 wood /ructural panel   
%ea?+ = /r5g!n+ cripple walls2  7,i7    
an*orage ( ! masonry *imney to ! fram+2 
7,j7 prefabricat$ lat]al resi/+ sy/ems2 
7,k7 a /&by g5]ator sy/em consi/+ ( a   
/&by g5]ator & an automatic transf]     
swit*2  7,l7 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-- 7i7 ! publication
 ( ! ,f$]al ,em]g5cy ,managem5t ,ag5cy  
entitl$ ,safe ,rooms = ,tornadoes &     
,hurricanes 7,p-#cfa72 or  7ii7 !       
publication ( ! ,f$]al ,em]g5cy         
,managem5t ,ag5cy entitl$ ,tak+ ,%elt] f
 ! ,/orm 7,p-#cbj72  7,m7 a lightn+     
protection sy/em2  7,n7 ext]ior walls1  

doors1 w9d[s1 or o!r ext]ior dwell+ unit
 elem5ts t con=m to ignition-resi/ant   
con/ruction /&>ds2  7,o7 ext]ior deck or
 f5ce compon5ts t con=m to              
ignition-resi/ant con/ruction /&>ds2    
7,p7 /ructure-specific wat] hydration   
sy/ems1 includ+ fire mitigation sy/ems  
su* z int]ior & ext]ior spr9kl] sy/ems2 
7,q7 flood op5+s = fully enclos$ areas  
bel[ ! l[e/ floor ( ! dwell+ unit2  7,r7
 lat]al brac+ = wall elem5ts1 f\ndation 
elem5ts1 & g>age doors or o!r l>ge op5+s
 to resi/ seismic loads2 or  7,s7       
automatic %ut(f valves = wat] & gas     
l9es2 or  7#c7 = s]vices or equipm5t    
to-- 7,a7 create buff]s ar\nd ! qualifi$
 dwell+ unit ?r\gh ! removal or r$uction
 ( flammable vegetation1 includ+ v]tical
 cle>ance ( tree bran*es2  7,b7 create  
buff]s ar\nd ! dwell+ unit ?r\gh-- 7i7 !
 removal ( ext]ior deck or f5ce         
compon5ts or ignition-prone l&scape     
features2 or  7ii7 replacem5t ( !       
compon5ts or features describ$ 9 clause 
7i7 ) compon5ts or features t con=m to  

ignition-resi/ant con/ruction /&>ds2    
7,c7 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 breaks2 or  7,d7     
replace flammable vegetation ) less     
flammable species2  7#d7 = 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]ty2 or  7#e7 =   
any o!r haz>d mitigation activity :i*   
has be5 id5tifi$ by ! ,presid5t1 9      
consultation ) ! ,adm9i/rator ( ! ,f$]al
 ,em]g5cy ,managem5t ,ag5cy1 =          
mitigation ( a natural haz>d4  4  #c4   
,exclusion ( am\nts receiv$ f ,/ate-bas$
 cata/rophe loss mitigation programs    
7a7 ,9 g5]al ,section #aci ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ subsection 7h7 z subsection  
7i7 & by ins]t+ aft] subsection 7g7 !   

foll[+ new subsection3  7h7 ,/ate-,bas$ 
cata/rophe loss mitigation programs     
7#a7 ,9 g5]al ,gross income %all n      
include any am\nt receiv$ by an         
individual z a qualifi$ cata/rophe loss 
mitigation paym5t "u a program e/abli%$ 
or adm9i/]$ by a ,/ate1 or a political  
subdivision or in/rum5tality !re(1 = !  
purpose ( mak+ su* paym5ts4  7#b7       
,qualifi$ cata/rophe loss mitigation    
paym5t ,= purposes ( ?is section1 ! t]m 
qualifi$ cata/rophe loss mitigation     
paym5t means any am\nt :i* is receiv$ by
 an individual to make improvem5ts to   
su* individual's resid5ce = ! sole      
purpose ( haz>d mitigation ) respect to 
su* resid5ce4  7#c7 ,no increase 9 basis
 ,rules simil> to ! rules ( subsection  
7g77#c7 %all apply 9 ! case ( ?is       
subsection4  4  7b7 ,con=m+ am5dm5ts    
7#a7 ,section #aci7;d7 is am5d$ by /rik+
 & qualifi$ & ins]t+ 1 qualifi$         
cata/rophe mitigation paym5ts1 &        
qualifi$4  7#b7 ,section #aci7;i7 7z    
r$esignat$ by subsection 7a77 is am5d$  

by /rik+ or qualifi$ & ins]t+ 1 qualifi$
 cata/rophe mitigation paym5t1 or       
qualifi$4  7c7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjbd4  #d4 ,exclusion f gross     
income ( c]ta9 em]g5cy agricultural     
assi/ance  7a7 ,9 g5]al ,section #aci ( 
! ,int]nal ,rev5ue ,code ( #aihf1 z     
am5d$ by ! prec$+ provisions ( ?is ,act1
 is am5d$ by r$esignat+ subsection 7i7 z
 subsection 7j7 & by ins]t+ aft]        
subsection 7h7 ! foll[+ new subsection3 
7i7 ,c]ta9 agricultural assi/ance ,=    
purposes ( ?is section1 ! t]m qualifi$  
disa/] relief paym5t %all include any   
assi/ance receiv$ "u any ( ! foll[+3    
7#a7 ,assi/ance receiv$ "u ! ,wildfires 
& ,hurricanes ,indemnity ,program ,plus 
"u subp>t ,o ( "p #gfj ( title #g1 ,code
 ( ,f$]al ,regulations4  7#b7 ,assi/ance
 receiv$ "u section #aeja ( !           
,agricultural ,act ( #bjad 7#g ,u4,s4,c4
 #ijha74  7#c7 ,non9sur$ crop assi/ance 
"u section #aif ( ! ,f$]al ,agriculture 

,improvem5t & ,re=m ,act ( #aiif 7#g    
,u4,s4,c4 #gccc74  7#d7 ,assi/ance "u a 
food assi/ance program "u "p #i ( title 
#g1 ,code ( ,f$]al ,regulations4  7#e7  
,assi/ance "u title ,,iv ( !            
,agricultural ,cr$it ,act ( #aigh 7#af  
,u4,s4,c4 #bbja et seq474  7#f7         
,assi/ance "u ! ,quality ,loss          
,assi/ance ,program4  4  7b7 ,effective 
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjbd4  #e4 ,cr$it =      
disa/] mitigation exp5ditures  7a7 ,9   
g5]al ,subp>t ,b ( "p ,,iv ( sub*apt] ,a
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by ins]t+ aft] section  
#bg ! foll[+ new section3  #bh4 ,disa/] 
mitigation exp5ditures  7a7 ,9 g5]al    
,!re %all be all[$ z a cr$it aga9/ ! tax
 impos$ by ?is *apt] = ! taxable ye> an 
am\nt equal to #cj p]c5t ( ! exp5ditures
 paid = qualify+ mitigation activities  
paid or incurr$ by ! taxpay] dur+ su*   
taxable ye> ) respect to real prop]ty   
own$ or leas$ by ! taxpay]4  7b7        

,qualifi$ disa/] mitigation activities  
,= purposes ( ?is section-- 7#a7        
,qualify+ mitigation activity ,! t]m    
qualify+ mitigation activity has ! mean+
 giv5 su* t]m 9 section #bjf7;j7 ( !    
,rob]t ,t4 ,/af=d ,disa/] ,relief &     
,em]g5cy ,assi/ance ,act4  7#b7         
,treatm5t ( reimbursem5ts ,any am\nt    
orig9ally paid or incurr$ by ! taxpay]  
:i* is reimburs$ by a ,/ate "u a        
qualifi$ ,/ate disa/] mitigation program
 %all be treat$ z paid by su* ,/ate 7& n
 by su* taxpay]74  7c7 ,application )   
o!r cr$its  7#a7 ,bus9ess cr$it treat$ z
 "p ( g5]al bus9ess cr$it ,s mu* ( !    
cr$it :i* w\ld be all[$ "u subsection   
7a7 = any taxable ye> 7det]m9$ )\t reg>d
 to ?is subsection7 t is attributable to
 exp5ditures made 9 ! ord9>y c\rse ( !  
taxpay]'s trade or bus9ess 7or1 9 ! case
 ( exp5ditures made by a ,/ate1 w\ld h  
be5 exp5ditures made 9 ! ord9>y c\rse ( 
! taxpay]'s trade or bus9ess if made by 
! taxpay]7 %all be treat$ z a cr$it li/$
 9 section #ch7;b7 = taxable ye> 7& n   

all[$ "u subsection 7a774  7#b7 ,p]sonal
 cr$it ,= purposes ( ?is title1 ! cr$it 
all[$ "u subsection 7a7 = any taxable   
ye> 7det]m9$ aft] application ( p>agraph
 7#a77 %all be treat$ z a cr$it all[able
 "u subp>t ,a = su* taxable ye>4  7d7   
,r$uction ( cr$it p]c5tage :]e taxpay]  
exp5ditures less ?an #cj p]c5t  7#a7 ,9 
g5]al ,if ! exp5diture p]c5tage )       
respect to any item ( exp5diture        
describ$ "u subsection 7a7 is less ?an  
#cj p]c5t1 subsection 7a7 %all be appli$
 by sub/itut+ ! exp5diture p]c5tage =   
#cj p]c5t ) respect to su* item (       
exp5diture4  7#b7 ,exp5diture p]c5tage  
,= purposes ( ?is section1 ! t]m        
exp5diture p]c5tage means1 ) respect to 
any item ( exp5diture describ$ "u       
subsection 7a7 any portion ( :i* is paid
 or incurr$ by a ,/ate1 ! ratio         
7express$ z a p]c5tage7 (-- 7,a7 !      
taxpay]'s exp5diture = su* item1 divid$ 
by  7,b7 ! sum ( ! taxpay]'s & su*      
,/ate's exp5ditures = su* item4  7e7    
,special rules  7#a7 ,treatm5t (        

exp5ditures relat$ to m>ketable timb]   
,an exp5diture %all n be tak5 into      
acc\nt = purposes ( ?is section 7:e!r   
made by ! taxpay] or a ,/ate7 if su*    
exp5diture is prop]ly allocable to timb]
 :i* is sold or ex*ang$ by ! taxpay]4 ,!
 prec$+ s5t5ce %all n apply to ! ext5t t
 su* am\nt exce$s ! ga9 on su* sale or  
ex*ange4  7#b7 ,basis r$uction ,=       
purposes ( ?is subtitle1 if ! basis (   
any prop]ty w\ld 7b = ?is p>agraph7 be  
det]m9$ by tak+ into acc\nt any         
exp5diture describ$ "u subsection 7a71 !
 basis ( su* prop]ty %all be r$uc$ by ! 
am\nt ( ! cr$it all[$ "u subsection 7a7 
) respect to su* exp5diture 7det]m9$ )\t
 reg>d to subsection 7c774  7#c7 ,d5ial 
( d\ble b5efit ,! am\nt ( any d$uction  
or o!r cr$it all[able "u ?is *apt] = any
 exp5diture = :i* a cr$it is all[able "u
 subsection 7a7 %all be r$uc$ by ! am\nt
 ( cr$it all[$ "u su* subsection = su*  
exp5diture 7det]m9$ )\t reg>d to        
subsection 7c774  4  7b7 ,con=m+        
am5dm5ts  7#a7 ,section #ch7;b7 ( su*   

,code is am5d$ by /rik+ plus at ! end ( 
p>agraph 7#dj71 by /rik+ ! p]iod at !   
end ( p>agraph 7#da7 & ins]t+ 1 plus1 & 
by add+ at ! end ! foll[+ new p>agraph3 
7#db7 ! portion ( ! disa/] mitigation   
exp5ditures cr$it to :i* section        
#bh7;c77#a7 applies4  4  7#b7 ,section  
#ajaf7;a7 ( su* ,code is am5d$ by       
r$esignat+ p>agraphs 7#ce7 ?r\gh 7#ch7 z
 p>agraphs 7#cf7 ?r\gh 7#ci71           
respectively1 & by ins]t+ aft] p>agraph 
7#cd7 ! foll[+ new p>agraph3  7#ce7 to !
 ext5t provid$ 9 section #bh7;e77#b71  4
  7#c7 ,! table ( sections = subp>t ,b (
 "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* 
,code is am5d$ by ins]t+ aft] ! item    
relat+ to section #bg ! foll[+ new item3
  ,sec4 #bh4 ,qualifi$ disa/] mitigation
 exp5ditures4  4  7c7 ,effective date ,!
 am5dm5ts made by ?is section %all apply
 to exp5ditures paid or incurr$ aft] !  
date ( ! enactm5t ( ?is ,act1 9 taxable 
ye>s end+ aft] su* date4