,,ii #aahth ,,congress #b;d ,session ,s4 #dhga ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ca1 #bjbd,mr4 ,king 7for himself and ,mr4 ,cassidy7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide a credit for hazard mitigation projects in connection with certain working waterfront property4 #a4 ,short title ,this ,act may be cited as the ,working ,waterfront ,disaster ,mitigation ,tax ,credit ,act4 #b4 ,working waterfront disaster mitigation project credit 7a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #dh;,e the following new section3 #dh;,f4 ,working waterfront disaster mitigation project credit 7a7 ,in general ,for purposes of section #df1 the working waterfront disaster mitigation project for any taxable year is an amount equal to #cj percent of the qualified investment for such taxable year4 7b7 ,limitations 7#a7 ,dollar limitation 7,a7 ,in general ,the amount of the credit allowed under this section with respect to any taxpayer shall not exceed #cjj1jjj4 7,b7 ,aggregation rules ,all taxpayers treated as a single employer under subsection 7a7 or 7b7 of section #eb or subsection 7m7 or 7o7 of section #dad shall be treated as a single taxpayer for purposes of subparagraph 7,a74 7,c7 ,inflation adjustment ,in the case of any taxable year beginning after ,december #ca1 #bjbe1 the #cjj1jjj dollar amount in subparagraph 7,a7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 by substituting calendar year #bjbd for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,if any amount as increased under the preceding sentence is not a multiple of #aj1jjj1 such amount shall be rounded to the nearest multiple of #aj1jjj4 7#b7 ,time limitation ,no credit shall be allowed to a taxpayer for a taxable year if such taxpayer has been allowed a credit under this section 7other than qualified progress expenditures allowed under subsection 7c77#c77 for any taxable year in the #aj-year period ending with the last day of such taxable year4 7c7 ,qualified investment 7#a7 ,in general ,for purposes of this section1 the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying working waterfront disaster mitigation project4 7#b7 ,eligible property ,for purposes of this subsection1 the term eligible property means property-- 7,a7 which is tangible property1 7,b7 with respect to which depreciation 7or amortization in lieu of depreciation7 is allowable1 and 7,c7 which is-- 7i7 constructed1 reconstructed1 or erected by the taxpayer1 or 7ii7 acquired by the taxpayer if the original use of such property commences with the taxpayer4 7#c7 ,certain qualified progress expenditures rules made applicable ,rules similar to the rules of subsections 7c77#d7 and 7d7 of section #df 7as in effect on the day before the enactment of the ,revenue ,reconciliation ,act of #aiij7 shall apply for purposes of this section4 7#d7 ,coordination with rehabilitation credit ,the qualified investment with respect to any qualifying working waterfront disaster mitigation project for any taxable year shall not include that portion of the basis of any project which is attributable to qualified rehabilitation expenditures 7as defined in section #dg7;c77#b774 7d7 ,qualifying working waterfront disaster mitigation project ,for purposes of this section-- 7#a7 ,in general ,the term qualifying working waterfront disaster mitigation project means any project-- 7,a7 which is substantially designed in compliance with-- 7i7 in the case of any project placed in service before ,january #a1 #bjcb1 the #bjba ,international ,code ,council ,international ,building ,code1 and 7ii7 in the case of any project placed in service on or after such date1 the most recent applicable ,international ,code ,council model code which has been affirmed by the ,secretary for purposes of this section not later than #e years before the date such project is placed in service1 and 7,b7 which designed to prevent or mitigate damage to working waterfront property from natural hazards using one or more of the following3 7i7 ,structural elevation ,the elevation of continuous foundation walls1 the elevation of structures on open foundations 7such as piles1 piers1 posts or columns71 the elevation of structures on fill1 the conversion of the second story1 and other methods involving structural elevation as the ,secretary may prescribe4 7ii7 ,flood risk reduction ,stormwater management 7including the construction1 installation or modification of culverts1 drainage pipes1 pumping stations1 floodgates1 bioswales1 detention and retention basins1 and other stormwater management facilities71 flood diversion and storage measures1 slope stabilization or grading to direct flood waters away from businesses1 flood protection measures for water and sanitary sewer systems or other utility systems1 vegetation management for shoreline stabilization 7coastal1 riverine1 riparian and other littoral zones71 flood protection and stabilization measures for roads and bridges1 and such other flood risk reduction methods as the ,secretary may prescribe4 7iii7 ,shoreline stabilization ,reducing the risk to structures or infrastructure from erosion and landslides 7including through the installation of geosynthetics1 surface and subsurface drainage1 stabilizing sod1 and vegetative buffer strips71 preserving mature vegetation1 decreasing slope angles1 stabilizing with riprap and other means of slope anchoring1 and other shoreline stabilization methods as the ,secretary may prescribe4 7iv7 ,floodproofing ,creating a space that is protected by walls that are substantially impermeable and resistant to flood loads1 the use of flood-damage-resistant materials and construction techniques to minimize flood damage to areas below the flood protection level of a structure4 7v7 ,retrofitting ,changes made to an existing structure to reduce or eliminate the possibility of damage to that structure from flooding1 erosion1 extreme temperatures1 high winds1 or other hazards4 7vi7 ,warning systems ,equipment and systems to warn residents of impending hazards 7including enhanced or reversed #iaa systems71 weather stations1 rain gauges1 flood alarms1 and such other warning systems as the ,secretary may prescribe4 7#b7 ,working waterfront property ,the term working waterfront property means real property-- 7,a7 which is located within the ,united ,states or a possession of the ,united ,states1 and 7,b7 which is used by the taxpayer to carry on an active trade or business-- 7i7 which meets the gross receipts test of paragraph 7#c71 and 7ii7 which-- 7,i7 provides access to navigable waters to persons engaged in commercial fishing1 recreational fishing and boating1 boatbuilding1 aquaculture1 dredging1 or other water-dependent activities1 and 7,,ii7 is used for or supports activities described in subclause 7,i74 7#c7 ,gross receipts test 7,a7 ,in general ,a trade or business meets the gross receipts test of this paragraph if the average annual gross receipts of such trade or business for the #c-taxable-year period preceding such taxable year does not exceed #dg1jjj1jjj4 7,b7 ,aggregation rules ,all trades or business of a taxpayer that are treated as a single employer under subsection 7a7 or 7b7 of section #eb or subsection 7m7 or 7o7 of section #dad shall be treated as one trade or business for purposes of subparagraph 7,a74 7,c7 ,other rules ,rules similar to the rules of section #ddh7;c77#c7 shall apply for purposes of this paragraph4 7,d7 ,inflation adjustment ,in the case of any taxable year beginning after ,december #ca1 #bjbe1 the dollar amount in subparagraph 7,a7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 by substituting calendar year #bjbd for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,if any amount as increased under the preceding sentence is not a multiple of #a1jjj1jjj1 such amount shall be rounded to the nearest multiple of #a1jjj1jjj4 7e7 ,regulations ,the ,secretary1 in consultation with the ,administrator of the ,federal ,emergency ,management ,agency1 shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section4 4 7b7 ,inclusion in investment credit ,section #df of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#f71 by striking the period at the end of paragraph 7#g7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#h7 the working waterfront disaster mitigation project credit4 4 7c7 ,conforming amendments 7#a7 ,section #di7;a77#a77;,c7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of clause 7vii71 by striking the period at the end of clause 7viii7 and inserting 1 and1 and by adding at the end the following3 7ix7 the basis of any property which is part of a qualifying working waterfront disaster mitigation project 7as defined in section #dh;,f7d77#b774 4 7#b7 ,section #ej7;a77#b77;,e7 of such ,code is amended by striking or #dh;,e7e7 and inserting #dh;,e7e71 or #dh;,f7c77#b74 7#c7 ,the table of sections for subpart ,e of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #dh;,e the following new item3 ,sec4 #dh;,f4 ,working waterfront disaster mitigation project credit4 4 7d7 ,treatment of possessions 7#a7 ,payments to possessions with mirror code tax systems ,the ,secretary of the ,treasury shall pay to each possession of the ,united ,states which has a mirror code tax system amounts equal to the loss 7if any7 to that possession by reason of the amendments made by this section4 ,such amounts shall be determined by the ,secretary of the ,treasury based on information provided by the government of the respective possession4 7#b7 ,payments to other possessions ,the ,secretary of the ,treasury shall pay to each possession of the ,united ,states which does not have a mirror code tax system amounts estimated by the ,secretary of the ,treasury as being equal to the aggregate benefits 7if any7 that would have been provided to residents of such possession by reason of the amendments made by this section if a mirror code tax system had been in effect in such possession4 ,the preceding sentence shall not apply unless the respective possession has a plan1 which has been approved by the ,secretary of the ,treasury1 under which such possession will promptly distribute such payments to its residents4 7e7 ,effective date ,the amendments made by this section shall apply to periods after ,december #ca1 #bjbd1 in taxable years ending after such date1 under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74