,,ii #aai? ,,congress #a/ ,session ,s4 #cdig ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #af1 #bjbe,mr4 ,b5net 7= himself & ,mr4 ,cassidy7 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 cr$it aga9/ tax = disa/] mitigation exp5ditures4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,%elt] ,act4 #b4 ,nonrefundable p]sonal cr$it = disa/] mitigation exp5ditures 7a7 ,9 g5]al ,subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$ by section #gjdaa ( ,public ,law #aai-ba1 is am5d$ by ins]t+ aft] section #be;,f ! foll[+ new section3 #be;,g4 ,disa/] mitigation exp5ditures 7a7 ,all[ance ( cr$it 7#a7 ,9 g5]al ,9 ! case ( an individual1 !re %all be all[$ z a cr$it aga9/ ! tax impos$ by ?is *apt] = ! taxable ye> an am\nt equal to #be p]c5t ( ! qualifi$ disa/] mitigation exp5ditures made by ! taxpay] dur+ su* taxable ye>4 7#b7 ,annual limitation ,subject to subsection 7b71 ! cr$it all[$ to a taxpay] "u p>agraph 7#a7 = any taxable ye> %all n exce$ #c1gej 7or1 9 ! case ( a jo9t return1 #g1ejj74 7#c7 ,cumulative limitation p] qualifi$ dwell+ unit ,subject to subsection 7b71 ! cr$it all[$ "u p>agraph 7#a7 ) respect to a qualifi$ dwell+ unit ( ! taxpay] = any taxable ye> %all n exce$ ! excess 7if any7 ( #ae1jjj ov] ! aggregate cr$its all[$ "u su* p>agraph ) respect to su* qualifi$ dwell+ unit = all prior taxable ye>s end+ aft] ,decemb] #ca1 #bjbe4 7b7 ,income phase\t 7#a7 ,9 g5]al ,! am\nt ( ! cr$it all[$ "u subsection 7a77#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* subsection z-- 7,a7 ! am\nt 7n less ?an z]o7 equal to ! adju/$ gross income ( ! taxpay] = su* taxable ye> m9us #ajj1jjj1 be>s to 7,b7 #ej1jjj4 7#b7 ,inflation adju/m5t ,9 ! case ( any taxable ye> aft] #bjbf1 ea* ( ! doll> am\nts "u p>agraph 7#a7 %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt1 multipli$ by 7,b7 ! 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> #bjbe = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 7#c7 ,r\nd+ ,if any r$uction det]m9$ "u p>agraph 7#a7 is n a multiple ( #ej1 or any increase "u p>agraph 7#b7 is n a multiple ( #ej1 su* am\nt %all be r\nd$ to ! ne>e/ multiple ( #ej4 7#d7 ,jo9t return ,if a jo9t return is fil$ by ! taxpay] = ! taxable ye>1 = purposes ( det]m9+ ! am\nt ( any r$uction "u p>agraph 7#a7 = su* taxable ye>1 ! doll> am\nts "u su* p>agraph 7aft] application ( p>agraphs 7#b7 & 7#c77 %all be d\bl$4 7c7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,qualifi$ disa/] mitigation exp5diture 7,a7 ,9 g5]al ,subject to subp>agraphs 7,b7 & 7,c71 ! 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 replace flammable vegetation ) less flammable species1 or 7,v7 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 or a ,wildfire ,prep>$ designation f ! ,insurance ,in/itute = ,bus9ess & ,home ,safety1 or any ?ird-p>ty v]ifi$ c]tification demon/rat+ compliance ) nationally recogniz$ & cons5sus-bas$ haz>d mitigation or resili5ce /&>ds1 provid$ t ! qualifi$ dwell+ unit receives su* designation or c]tifications 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$]al ,em]g5cy ,managem5t ,ag5cy1 = mitigation ( a natural haz>d or compliance ) o!r cons5sus-bas$ resili5cy /&>ds4 7,b7 ,haz>d-specific applicability 7i7 ,9 g5]al ,subject to clause 7ii71 ! t]m qualifi$ disa/] mitigation exp5diture %all only apply to exp5ditures relat+ to a qualifi$ dwell+ unit :i* are describ$ 9 subp>agraph 7,a7 if su* exp5ditures address a haz>d type id5tifi$ 9 ! applicable ,/ate or tribal ,/&>d ,/ate ,mitigation ,plans or ,enhanc$ ,/ate ,mitigation ,plans1 z prep>$ "u section #bja4d or #bja4e ( title #dd1 ,code ( ,f$]al ,regulations 7z 9 effect on ! date ( enactm5t ( ?is section74 7ii7 ,negative li/s ,! ,secret>y1 9 consultation ) ! ,adm9i/rator ( ! ,f$]al ,em]g5cy ,managem5t ,ag5cy1 may publi% a li/ ( inapplicable exp5ditures :i* are region-specific 9 ord] to prohibit ! application ( subsection 7a7 = exp5ditures relat+ to haz>ds :i* are n relevant to ! location ( ! qualifi$ dwell+ unit4 7,c7 ,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 means a dwell+ unit :i* is locat$-- 7,a7 9 ! ,unit$ ,/ates or 9 a t]ritory ( ! ,unit$ ,/ates1 & 7,b7 9 an area-- 7i7 :i*1 dur+ ! taxable ye> or ! p]iod ( ! #e taxable ye>s prec$+ su* taxable ye>1 has receiv$ haz>d mitigation assi/ance ?r\gh ! ,f$]al ,em]g5cy ,managem5t ,ag5cy 9 reg>d to any natural disa/] :i*1 ) respect to ! exp5diture describ$ 9 p>agraph 7#a7 :i* is made by ! taxpay]1 is applicable to su* exp5diture1 & 7ii7 7,i7 9 :i* a ,f$]al natural disa/] decl>ation has be5 made )9 ! prec$+ #e-ye> p]iod1 7,,ii7 :i* is adjac5t to an area describ$ 9 subclause 7,i71 or 7,,iii7 :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;a7774 7d7 ,limitation 7#a7 ,9 g5]al ,9 ! case ( an exp5diture describ$ 9 clause 7i7 or 7ii7 ( subsection 7c77#a77;,a71 su* exp5diture %all be tak5 into acc\nt 9 det]m9+ ! qualifi$ disa/] mitigation exp5ditures made by ! taxpay] dur+ ! taxable ye> only if ! onsite prep>ation1 assembly1 or orig9al in/allation ( ! prop]ty ) respect to :i* su* exp5diture is made has be5 complet$ 9 a mann] t is deem$ to be 9 compliance ) ! late/ publi%$ editions ( relevant cons5sus-bas$ codes1 specifications1 & /&>ds or any m re/rictive ,f$]al1 ,/ate1 or local floodpla9 managem5t /&>ds & consi/5t ) floodpla9 managem5t regulations = ! local jurisdiction 9 :i* ! qualifi$ dwell+ unit is locat$4 7#b7 ,late/ publi%$ editions ,! t]m late/ publi%$ editions means1 ) respect to relevant cons5sus-bas$ codes1 specifications1 & /&>ds1 ei!r ( ! #b mo/ rec5tly publi%$ editions4 7e7 ,labor co/s ,= purposes ( ?is section1 exp5ditures = labor co/s prop]ly allocable to ! onsite prep>ation1 assembly1 or orig9al in/allation ( ! prop]ty describ$ 9 clause 7i7 or 7ii7 ( subsection 7c77#a77;,a7 %all be tak5 into acc\nt 9 det]m9+ ! qualifi$ disa/] mitigation exp5ditures made by ! taxpay] dur+ ! taxable ye>4 7f7 ,inspection co/s ,= purposes ( ?is section1 exp5ditures = ! co/ ( any inspection requir$ "u subsection 7d7 :i* is prop]ly allocable to ! inspection ( ! prep>ation1 assembly1 or in/allation ( ! prop]ty describ$ 9 clause 7i7 or 7ii7 ( subsection 7c77#a77;,a7 %all be tak5 into acc\nt 9 det]m9+ ! qualifi$ disa/] mitigation exp5ditures made by ! taxpay] dur+ ! taxable ye>4 7g7 ,c>ry=w>d ( unus$ cr$it 7#a7 ,9 g5]al ,if ! cr$it all[able "u subsection 7a77#a7 = any taxable ye> exce$s ! applicable tax limit = su* taxable ye>1 su* excess %all be a c>ryov] to ea* ( ! #e succe$+ taxable ye>s &1 subject to ! limitations ( p>agraph 7#b71 %all be add$ to ! cr$it all[able by subsection 7a77#a7 = su* succe$+ taxable ye>4 7#b7 ,limitation ,! am\nt ( ! unus$ cr$it :i* may be tak5 into acc\nt "u p>agraph 7#a7 = any taxable ye> %all n exce$ ! am\nt 7if any7 by :i* ! applicable tax limit = su* taxable ye> exce$s ! sum (-- 7,a7 ! cr$it all[able "u subsection 7a77#a7 = su* taxable ye> det]m9$ )\t reg>d to ?is subsection1 & 7,b7 ! am\nts :i*1 by reason ( ?is subsection1 are c>ri$ to su* taxable ye> & are attributable to taxable ye>s be=e ! unus$ cr$it ye>4 7#c7 ,applicable tax limit ,= purposes ( ?is subsection1 ! t]m applicable tax limit means ! limitation impos$ by section #bf7;a7 = ! taxable ye> r$uc$ by ! sum ( ! cr$its all[able "u ?is subp>t 7o!r ?an ?is section74 7h7 ,docum5tation ,any taxpay] claim+ ! cr$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 4 7b7 ,con=m+ am5dm5t ,! table ( sections = subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #be;,f ! foll[+ new item3 ,sec4 #be;,g4 ,disa/] mitigation exp5ditures4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbe4 #c4 ,bus9ess-relat$ cr$it = disa/] mitigation 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #de;,,aa ! foll[+ new section3 #de;,,bb4 ,disa/] mitigation cr$it 7a7 ,g5]al rule ,= purposes ( section #ch1 ! disa/] mitigation cr$it det]m9$ "u ?is section = any taxable ye> is an am\nt equal to #be p]c5t ( ! qualifi$ disa/] mitigation exp5ditures made by ! taxpay] dur+ ! taxable ye>4 7b7 ,maximum cr$it 7#a7 ,9 g5]al ,subject to p>agraph 7#b71 ! am\nt ( ! cr$it det]m9$ "u subsection 7a7 = any taxable ye> %all n exce$ #e1jjj4 7#b7 ,phase\t 7,a7 ,9 g5]al ,! 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-- 7i7 ! am\nt 7n less ?an z]o7 equal to ! av]age gross receipts ( ! taxpay] ov] ! #c prec$+ taxable ye>s m9us #e1jjj1jjj1 be>s to 7ii7 #e1jjj1jjj4 7,b7 ,inflation adju/m5t ,9 ! case ( any taxable ye> aft] #bjbf1 ea* ( ! doll> am\nts "u subp>agraph 7,a7 %all be increas$ 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> #bjbe = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 7,c7 ,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 ,qualifi$ disa/] mitigation exp5diture 7#a7 ,9 g5]al ,= purposes ( ?is section1 ! t]m qualifi$ disa/] mitigation exp5diture has ! same mean+ giv5 su* t]m "u p>agraph 7#a7 ( section #be;,g7c71 except t place ( bus9ess %all be sub/itut$ = qualifi$ dwell+ unit ea* place x appe>s 9 su* p>agraph4 7#b7 ,place ( bus9ess ,= purposes ( ?is section1 an exp5diture %all n be treat$ z a qualifi$ disa/] mitigation exp5diture 7z def9$ 9 p>agraph 7#a77 unless ! taxpay]'s place ( bus9ess is locat$-- 7,a7 9 ! ,unit$ ,/ates or 9 a t]ritory ( ! ,unit$ ,/ates1 & 7,b7 9 an area-- 7i7 9 :i* a ,f$]al natural disa/] decl>ation has be5 made )9 ! prec$+ #e-ye> p]iod1 7ii7 :i* is adjac5t to an area describ$ 9 clause 7i71 7iii7 :i*1 dur+ ! taxable ye> or ! p]iod ( ! #e taxable ye>s prec$+ su* taxable ye>1 has receiv$ haz>d mitigation assi/ance ?r\gh ! ,f$]al ,em]g5cy ,managem5t ,ag5cy 9 reg>d to any natural disa/] :i*1 ) respect to ! exp5diture describ$ 9 section #be;,g7c77#a7 :i* is made by ! taxpay]1 is applicable to su* exp5diture1 or 7iv7 :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;a7774 7d7 ,special rules ,rules simil> to ! rules ( subsections 7d7 ?r\gh 7g7 ( section #be;,g %all apply = purposes ( ?is section4 7e7 ,no d\ble b5efit ,no cr$it %all be det]m9$ "u ?is section ) respect to any exp5ditures = :i* a cr$it 0 all[$ "u section #be;,g4 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 ! disa/] mitigation cr$it det]m9$ "u section #de;,,bb7a74 4 7#b7 ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #de;,,aa ! foll[+ new item3 ,sec4 #de;,,bb4 ,disa/] mitigation cr$it4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbe4