,,ii  #aai? ,,congress  #a/ ,session    
,s4 #acbc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #h1 #bjbe,mr4   
,s*iff 7= himself & ,mr4 ,%eehy7        
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide a      
refundable cr$it aga9/ tax = disa/]     
mitigation exp5ditures4  #a4 ,%ort title
 ,?is ,act may be cit$ z ! ,!           
,facilitat+ ,increas$ ,resili5ce1       
,environm5tal ,wea!rization ,& ,l[]$    
,liability 7,,firewall7 ,act4  #b4      
,refundable p]sonal cr$it = disa/]      
mitigation exp5ditures  7a7 ,9 g5]al    
,subp>t ,c ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf 7relat+ to refundable cr$its7 is  
am5d$ by ins]t+ aft] section #cf;,b !   
foll[+ new section3  #cf;,c4 ,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 #ej p]c5t ( ! qualifi$   
disa/] mitigation exp5ditures made by ! 
taxpay] dur+ su* taxable ye>4  7b7      
,maximum cr$it  7#a7 ,9 g5]al ,subject  
to p>agraphs 7#b7 & 7#c71 ! cr$it all[$ 
"u subsection 7a7 to any taxpay] = any  
taxable ye> %all n exce$ ! excess (--   
7,a7 #be1jjj 7or1 9 ! case ( a m>ri$    
individual fil+ a sep>ate return1 #ej   
p]c5t ( su* am\nt71 ov]  7,b7 ! am\nt ( 
cr$it all[$ to ! taxpay] "u ?is section 
= all prec$+ taxable ye>s4  7#b7        
,phase\t ,! am\nt "u p>agraph 7#a7 = !  
taxable ye> %all be r$uc$ 7b n bel[ z]o7
 by an am\nt :i* be>s ! same ratio to ! 
am\nt "u su* p>agraph z-- 7,a7 ! excess 
7if any7 (-- 7i7 ! taxpay]'s adju/$     
gross income = su* taxable ye>1 ov]     
7ii7 #bjj1jjj1 be>s to  7,b7 #ajj1jjj4  
7#c7 ,limitation 9 ! case ( jo9t        
occupancy ,9 ! case ( any dwell+ unit ) 
respect to :i* qualifi$ disa/]          
mitigation exp5ditures are made & :i* is
 jo9tly occupi$ & us$ dur+ any cal5d>   
ye> z a resid5ce by two or m            

individuals1 ! foll[+ rules %all apply3 
7,a7 ,maximum exp5ditures ,! maximum    
am\nt ( su* exp5ditures :i* may be tak5 
into acc\nt "u subsection 7a7 by all su*
 individuals ) respect to su* dwell+    
unit dur+ su* cal5d> ye> %all be        
#be1jjj4  7,b7 ,allocation ( exp5ditures
 ,! exp5ditures allocat$ to any         
individual = ! taxable ye> 9 :i* su*    
cal5d> ye> ends %all be an am\nt equal  
to ! less] (-- 7i7 ! am\nt ( exp5ditures
 made by su* individual ) respect to su*
 dwell+ dur+ su* cal5d> ye>1 or  7ii7 ! 
maximum am\nt ( su* exp5ditures set =? 9
 subp>agraph 7,a7 multipli$ by a        
fraction-- 7,i7 ! num]ator ( :i* is !   
am\nt ( su* exp5ditures ) respect to su*
 dwell+ made by su* individual dur+ su* 
cal5d> ye>1 &  7,,ii7 ! d5om9ator ( :i* 
is ! total exp5ditures made by all su*  
individuals ) respect to su* dwell+ dur+
 su* cal5d> ye>4  7#d7 ,inflation       
adju/m5t  7,a7 ,9 g5]al ,9 ! case ( any 
taxable ye> aft] #bjbe1 ! #be1jjj doll> 
am\nts "u p>agraphs 7#a77;,a7 & 7#c71 ! 

#bjj1jjj am\nt "u p>agraph              
7#b77;,a77ii71 & ! #ajj1jjj am\nt "u    
p>agraph 7#b7 7,b7 %all ea* 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> #bjbd =
 cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7
 !re(4  7,b7 ,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 ,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 remove flammable vegetation )9 #e  
feet ( a /ructure1  7,,vi7 det]m9e !    
risk ( natural disa/]s :i* may occur 9 !
 area 9 :i* ! qualifi$ dwell+ unit is   
locat$1 or  7,,vii7 prev5t smoke        
inhalation1 su* z air filt]s or o!r     
equipm5t design$ to prev5t smoke f ent]+
 ! dwell+ unit1  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]ty1 or  7v7 = any
 o!r haz>d mitigation activity :i* has  
be5 id5tifi$ by ! ,secret>y1 9          
consultation ) ! ,adm9i/rator ( ! ,f$]al
 ,em]g5cy ,managem5t ,ag5cy1 =          
mitigation ( a natural haz>d4  7,b7     
,exception ,! t]m qualifi$ 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 
means1 ) respect to any taxpay]1 a      
dwell+ unit :i* is-- 7,a7 locat$ 9 any  
,/ate or t]ritory-- 7i7 9 :i* a ,f$]al  
natural disa/] decl>ation has be5 made  
)9 ! prec$+ #aj-ye> p]iod ) respect to a
 wildfire1 hurricane1 w9d/orm or flood1 

7ii7 :i* includes an area :i*1 dur+ !   
taxable ye> or ! p]iod ( ! #aj taxable  
ye>s prec$+ su* taxable ye>1 has receiv$
 haz>d mitigation assi/ance ?r\gh !     
,f$]al ,em]g5cy ,managem5t ,ag5cy 9     
reg>d to any wildfire1 hurricane1       
w9d/orm or flood :i*1 ) respect to !    
exp5diture describ$ 9 p>agraph 7#a7 :i* 
is made by ! taxpay]1 is applicable to  
su* exp5diture1 or  7iii7 :i* includes  
an area :i*1 ) respect to any taxable   
ye>1 has be5 designat$ z a community    
disa/] resili5ce zone 7z def9$ 9 section
 #bjf7;a7 ( ! ,rob]t ,t4 ,/af=d ,disa/] 
,relief & ,em]g5cy ,assi/ance ,act 7#db 
,u4,s4,c4 #eacf7;a777 z ! result ( a    
wildfire1 hurricane1 w9d/orm or flood1 &
  7,b7 us$ z ! pr9cipal resid5ce 7)9 !  
mean+ ( section #aba7 ( ! taxpay]4  7d7 
,o!r rules  7#a7 ,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  7#b7 ,d5ial (   
d\ble b5efit ,no d$uction or o!r cr$it  
%all be all[$ = exp5ditures :i* h be5   
tak5 into acc\nt "u ?is section1 & !    
basis ( any prop]ty = :i* a cr$it is    
all[$ "u ?is section %all be r$uc$ by ! 
am\nt ( cr$it all[$4  4  7b7 ,con=m+    
am5dm5ts  7#a7 ,section                 
#fbaa7;b77#d77;,a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by ins]t+ 1      
#cf;,c aft] #cf;,b4  7#b7 ,section      
#acbd7;b77#b7 ( title #ca1 ,unit$ ,/ates
 ,code1 is am5d$ by ins]t+ 1 #cf;,c aft]
 #cf;,b4  7#c7 ,! table ( sections =    
subp>t ,c ( "p ,,iv ( sub*apt] ,a (     
*apt] #a ( su* ,code is am5d$ by ins]t+ 
aft] ! item relat+ to section #cf;,b !  
foll[+ new item3  ,sec4 #cf;,c4 ,disa/] 
mitigation exp5ditures4  4  7c7         
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbd4