,,ii #aaith ,,congress #ast ,session ,s4 #acbc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #h1 #bjbe,mr4 ,schiff 7for himself and ,mr4 ,sheehy7 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 refundable credit against tax for disaster mitigation expenditures4 #a4 ,short title ,this ,act may be cited as the ,the ,facilitating ,increased ,resilience1 ,environmental ,weatherization ,and ,lowered ,liability 7,,firewall7 ,act4 #b4 ,refundable personal credit for disaster mitigation expenditures 7a7 ,in general ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to refundable credits7 is amended by inserting after section #cf;,b the following new section3 #cf;,c4 ,disaster mitigation expenditures 7a7 ,allowance of credit ,in the case of an individual1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to #ej percent of the qualified disaster mitigation expenditures made by the taxpayer during such taxable year4 7b7 ,maximum credit 7#a7 ,in general ,subject to paragraphs 7#b7 and 7#c71 the credit allowed under subsection 7a7 to any taxpayer for any taxable year shall not exceed the excess of-- 7,a7 #be1jjj 7or1 in the case of a married individual filing a separate return1 #ej percent of such amount71 over 7,b7 the amount of credit allowed to the taxpayer under this section for all preceding taxable years4 7#b7 ,phaseout ,the amount under paragraph 7#a7 for the taxable year shall be reduced 7but not below zero7 by an amount which bears the same ratio to the amount under such paragraph as-- 7,a7 the excess 7if any7 of-- 7i7 the taxpayer's adjusted gross income for such taxable year1 over 7ii7 #bjj1jjj1 bears to 7,b7 #ajj1jjj4 7#c7 ,limitation in the case of joint occupancy ,in the case of any dwelling unit with respect to which qualified disaster mitigation expenditures are made and which is jointly occupied and used during any calendar year as a residence by two or more individuals1 the following rules shall apply3 7,a7 ,maximum expenditures ,the maximum amount of such expenditures which may be taken into account under subsection 7a7 by all such individuals with respect to such dwelling unit during such calendar year shall be #be1jjj4 7,b7 ,allocation of expenditures ,the expenditures allocated to any individual for the taxable year in which such calendar year ends shall be an amount equal to the lesser of-- 7i7 the amount of expenditures made by such individual with respect to such dwelling during such calendar year1 or 7ii7 the maximum amount of such expenditures set forth in subparagraph 7,a7 multiplied by a fraction-- 7,i7 the numerator of which is the amount of such expenditures with respect to such dwelling made by such individual during such calendar year1 and 7,,ii7 the denominator of which is the total expenditures made by all such individuals with respect to such dwelling during such calendar year4 7#d7 ,inflation adjustment 7,a7 ,in general ,in the case of any taxable year after #bjbe1 the #be1jjj dollar amounts under paragraphs 7#a77;,a7 and 7#c71 the #bjj1jjj amount under paragraph 7#b77;,a77ii71 and the #ajj1jjj amount under paragraph 7#b7 7,b7 shall each 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 determined by substituting calendar year #bjbd for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7,b7 ,rounding ,if any reduction determined under subparagraph 7,a7 is not a multiple of #ej1 or any increase under subparagraph 7,b7 is not a multiple of #ej1 such amount shall be rounded to the nearest multiple of #ej4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,qualified disaster mitigation expenditure 7,a7 ,in general ,the term qualified disaster mitigation expenditure means an expenditure relating to a qualified dwelling unit-- 7i7 for property to-- 7,i7 improve the strength of a roof deck attachment1 7,,ii7 create a secondary water barrier to prevent water intrusion or mitigate against potential water intrusion from wind-driven rain1 7,,iii7 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 covering1 7,,iv7 brace gable-end walls1 7,v7 reinforce the connection between a roof and supporting wall1 7,,vi7 protect openings from penetration by wind-borne debris1 7,,vii7 protect exterior doors and garages from natural hazards1 7,,viii7 complete measures contained in the publication of the ,federal ,emergency ,management ,agency entitled ,wind ,retrofit ,guide for ,residential ,buildings 7,p-#hjd71 7,,ix7 elevate the qualified dwelling unit1 as well as utilities1 machinery1 or equipment1 above the base flood elevation or other applicable minimum elevation requirement1 7,x7 seal walls in the basement of the qualified dwelling unit using waterproofing compounds1 or 7,,xi7 protect propane tanks or other external fuel sources1 7ii7 to install-- 7,i7 check valves to prevent flood water from backing up into drains1 7,,ii7 flood vents1 breakaway walls or open lattice for homes located in ,v zones1 7,,iii7 a stormwater drainage system or improve an existing system1 7,,iv7 natural or nature-based features for flood control1 including living shorelines1 7,v7 roof coverings1 sheathing1 flashing1 roof and attic vents1 eaves1 or gutters that conform to ignition-resistant construction standards1 7,,vi7 wall components for wall assemblies that conform to ignition-resistant construction standards1 7,,vii7 a wall-to-foundation anchor or connector1 or a shear transfer anchor or connector1 7,,viii7 wood structural panel sheathing for strengthening cripple walls1 7,,ix7 anchorage of the masonry chimney to the framing1 7,x7 prefabricated lateral resisting systems1 7,,xi7 a standby generator system consisting of a standby generator and an automatic transfer switch1 7,,xii7 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-- 7aa7 the publication of the ,federal ,emergency ,management ,agency entitled ,safe ,rooms for ,tornadoes and ,hurricanes 7,p-#cfa71 or 7bb7 the publication of the ,federal ,emergency ,management ,agency entitled ,taking ,shelter from the ,storm 7,p-#cbj71 7,,xiii7 a lightning protection system1 7,,xiv7 exterior walls1 doors1 windows1 or other exterior dwelling unit elements that conform to ignition-resistant construction standards1 7,,xv7 exterior deck or fence components that conform to ignition-resistant construction standards1 7,,xvi7 structure-specific water hydration systems1 including fire mitigation systems such as interior and exterior sprinkler systems1 7,,xvii7 water capture and delivery systems to accommodate drought events or to decrease water use1 including the design of such systems1 7,,xviii7 flood openings for fully enclosed areas below the lowest floor of the dwelling unit1 7,,xix7 lateral bracing for wall elements1 foundation elements1 and garage doors or other large openings to resist seismic loads1 or 7,,xx7 automatic shutoff valves for water and gas lines1 or 7iii7 for services or equipment to-- 7,i7 create buffers around the qualified dwelling unit through the removal or reduction of flammable vegetation1 including vertical clearance of tree branches1 7,,ii7 create buffers around the dwelling unit through-- 7aa7 the removal of exterior deck or fence components or ignition-prone landscape features1 or 7bb7 replacement of the components or features described in item 7aa7 with components or features that conform to ignition-resistant construction standards1 7,,iii7 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 breaks1 7,,iv7 gather and analyze water and weather data to better understand the local climate and drought history1 7,v7 remove flammable vegetation within #e feet of a structure1 7,,vi7 determine the risk of natural disasters which may occur in the area in which the qualified dwelling unit is located1 or 7,,vii7 prevent smoke inhalation1 such as air filters or other equipment designed to prevent smoke from entering the dwelling unit1 7iv7 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 property1 or 7v7 for any other hazard mitigation activity which has been identified by the ,secretary1 in consultation with the ,administrator of the ,federal ,emergency ,management ,agency1 for mitigation of a natural hazard4 7,b7 ,exception ,the term qualified disaster mitigation expenditure shall not include any expenditure or portion thereof which is paid1 funded1 or reimbursed by a ,federal1 ,state1 or local government entity1 or any political subdivision1 agency1 or instrumentality thereof4 7#b7 ,qualified dwelling unit ,the term qualified dwelling unit means1 with respect to any taxpayer1 a dwelling unit which is-- 7,a7 located in any ,state or territory-- 7i7 in which a ,federal natural disaster declaration has been made within the preceding #aj-year period with respect to a wildfire1 hurricane1 windstorm or flood1 7ii7 which includes an area which1 during the taxable year or the period of the #aj taxable years preceding such taxable year1 has received hazard mitigation assistance through the ,federal ,emergency ,management ,agency in regard to any wildfire1 hurricane1 windstorm or flood which1 with respect to the expenditure described in paragraph 7#a7 which is made by the taxpayer1 is applicable to such expenditure1 or 7iii7 which includes an area which1 with respect to any taxable year1 has been designated as a community disaster resilience zone 7as defined in section #bjf7;a7 of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eacf7;a777 as the result of a wildfire1 hurricane1 windstorm or flood1 and 7,b7 used as the principal residence 7within the meaning of section #aba7 of the taxpayer4 7d7 ,other rules 7#a7 ,documentation ,any taxpayer claiming the credit under this section shall provide the ,secretary with adequate documentation regarding the specific qualified disaster mitigation expenditures made by the taxpayer during the taxable year1 as well as such other information or documentation as the ,secretary may require4 7#b7 ,denial of double benefit ,no deduction or other credit shall be allowed for expenditures which have been taken into account under this section1 and the basis of any property for which a credit is allowed under this section shall be reduced by the amount of credit allowed4 4 7b7 ,conforming amendments 7#a7 ,section #fbaa7;b77#d77;,a7 of the ,internal ,revenue ,code of #aihf is amended by inserting 1 #cf;,c after #cf;,b4 7#b7 ,section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 is amended by inserting 1 #cf;,c after #cf;,b4 7#c7 ,the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #cf;,b the following new item3 ,sec4 #cf;,c4 ,disaster mitigation expenditures4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbd4