I 111th CONGRESS 1st Session H. R. 777 IN THE HOUSE OF REPRESENTATIVES January 28, 2009 Mr. Pallone introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To prohibit the Administrator of the Federal Emergency Management Agency from updating flood maps until the Administrator submits to Congress a community outreach plan, and for other purposes.

1.

Moratorium on flood map updates

The Administrator of the Federal Emergency Management Agency may not revise and update a floodplain area or flood-risk zone under section 1360(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 4101(f)) until the date on which the Administrator submits to Congress a community outreach plan for the updating of floodplain areas and flood-risk zones.

2.

Refundable credit for residential property located in expanded flood zone

(a)

In General

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 36 the following new section:

36A.

New flood zone premium credit

(a)

Allowance of credit

In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the premium paid by the taxpayer for flood insurance under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) covering any residential property of the taxpayer which is a qualified flood risk property. (b)

Limitations

(1)

Limitation based on income

(A)

In general

The amount which would (but for this subsection) be allowable as a credit under this section shall be reduced (but not below zero) by the amount determined under subparagraph (B). (B)

Amount of reduction

The amount determined under this subparagraph is the amount which bears the same ratio to the amount which would be so taken into account as— (i)the excess of— (I)the taxpayer’s modified adjusted gross income for such taxable year, over (II)$50,000 ($100,000 in the case of a joint return), bears to (ii)$100,000 ($200,000 in the case of a joint return). (C)

Modified adjusted gross income

For purposes of subparagraph (B), the term modified adjusted gross income means adjusted gross income determined— (i)without regard to this section and sections 199, 222, 911, 931, and 933, and (ii)after application of sections 86, 135, 137, 219, 221, and 469. (2)

Limitation based on period

No amount shall be allowed as a credit under subsection (a) with respect to any residential property after the end of the 4th calendar beginning after the calendar year in which the map referred to in subsection (c)(1) first became effective. (c)

Qualified Flood Risk Property

For purposes of this section, the term qualified flood risk property means a residential property (within the meaning of the National Flood Insurance Act of 1968) which— (1)is located in a floodplain area or flood-risk zone, as depicted on a flood insurance rate map revised and updated pursuant to section 1360(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 4101), (2)was outside of any floodplain area or flood-risk zone prior to such revision and updating, and (3)with respect to which— (A)the taxpayer owned such property on the date such revised and updated map first became effective, or (B)the purchase or construction of which by the taxpayer was subject to a binding written contract on such date.

. (b)

Conforming Amendments

(1)Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting , 36A after 36. (2)The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36 the following new item: Sec. 36A. New flood zone premium credit. . (c)

Effective Date; Waiver of Limitations

(1)

In general

The amendments made by this section shall apply with respect to any flood insurance rate map which becomes effective pursuant to section 1360(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 4101). (2)

Waiver of limitations

If refund or credit of any overpayment of tax resulting from the amendments made by this section is prevented at any time before the close of the 1-year period beginning on the date of the enactment of this Act by the operation of any law or rule of law (including res judicata), such refund or credit may nevertheless be made or allowed if claim therefor is filed before the close of such period.

3.

Grant program to improve community rating

Section 1315(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4022(b)) is amended— (1)by redesignating paragraph (4) as paragraph (5); and (2)by inserting after paragraph (3) the following new paragraph: (5)

Grants

The program shall provide grants to communities for projects to improve the community rating of the communities under the program. .