[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2575 Introduced in Senate (IS)]

<DOC>






114th CONGRESS
  2d Session
                                S. 2575

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
  property owners who remove hazards relating to lead, asbestos, and 
                                 radon.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 24, 2016

  Mr. Murphy introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a tax credit for 
  property owners who remove hazards relating to lead, asbestos, and 
                                 radon.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Healthy Homes Tax Credit Act''.

SEC. 2. TAX CREDITS FOR REDUCTION OF LEAD, RADON, AND ASBESTOS HAZARDS 
              IN HOMES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new sections:

``SEC. 30E. HOME LEAD HAZARD REDUCTION ACTIVITY.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 50 percent of the lead hazard reduction activity cost paid or 
incurred by the taxpayer during the taxable year for each eligible 
dwelling unit.
    ``(b) Limitation.--The amount of the credit allowed under 
subsection (a) for any eligible dwelling unit for any taxable year 
shall not exceed--
            ``(1) $5,000, reduced by
            ``(2) the aggregate lead hazard reduction activity cost 
        taken into account under subsection (a) with respect to such 
        unit for all preceding taxable years.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Certified lead abatement supervisor.--The term 
        `certified lead abatement supervisor' means an individual 
        certified by the Environmental Protection Agency pursuant to 
        section 745.226 of title 40, Code of Federal Regulations, or an 
        appropriate State agency pursuant to section 745.325 of title 
        40, Code of Federal Regulations.
            ``(2) Certified inspector.--The term `certified inspector' 
        means an inspector certified by the Environmental Protection 
        Agency pursuant to section 745.226 of title 40, Code of Federal 
        Regulations, or an appropriate State agency pursuant to section 
        745.325 of title 40, Code of Federal Regulations.
            ``(3) Certified risk assessor.--The term `certified risk 
        assessor' means a risk assessor certified by the Environmental 
        Protection Agency pursuant to section 745.226 of title 40, Code 
        of Federal Regulations, or an appropriate State agency pursuant 
        to section 745.325 of title 40, Code of Federal Regulations.
            ``(4) Eligible dwelling unit.--
                    ``(A) In general.--The term `eligible dwelling 
                unit' means, with respect to any taxable year, any 
                dwelling unit which is placed in service before 1950 
                and located in the United States.
                    ``(B) Dwelling unit.--The term `dwelling unit' has 
                the meaning given such term by section 280A(f)(1).
            ``(5) Lead hazard reduction activity cost.--
                    ``(A) In general.--The term `lead hazard reduction 
                activity cost' means, with respect to any eligible 
                dwelling unit--
                            ``(i) the cost for a certified risk 
                        assessor to conduct an assessment to determine 
                        the presence of lead pipes or a lead-based 
                        paint hazard,
                            ``(ii) the cost for performing lead 
                        abatement measures by a certified lead 
                        abatement supervisor, including the removal of 
                        lead pipes, the removal of paint and dust, the 
                        permanent enclosure or encapsulation of lead-
                        based paint, the replacement of painted 
                        surfaces, windows, or fixtures, or the removal 
                        or permanent covering of soil when lead-based 
                        paint hazards are present in such paint, dust, 
                        or soil,
                            ``(iii) the cost for a certified lead 
                        abatement supervisor, those working under the 
                        supervision of such supervisor, or a qualified 
                        contractor to perform all preparation, cleanup, 
                        disposal, and clearance testing activities 
                        associated with the lead abatement measures, 
                        and
                            ``(iv) costs incurred by or on behalf of 
                        any occupant of such dwelling unit for any 
                        relocation which is necessary to achieve 
                        occupant protection (as defined under section 
                        35.1345 of title 24, Code of Federal 
                        Regulations).
                    ``(B) Limitation.--The term `lead hazard reduction 
                activity cost' does not include any cost to the extent 
                such cost is funded by any grant, contract, or 
                otherwise by another person or any governmental agency.
            ``(6) Lead-based paint hazard.--The term `lead-based paint 
        hazard' has the meaning given such term by section 745.63 of 
        title 40, Code of Federal Regulations.
            ``(7) Qualified contractor.--The term `qualified 
        contractor' means a Lead-Safe Certified Firm or certified 
        renovator under the Lead Renovation, Repair and Painting 
        Program of the Environmental Protection Agency.
    ``(d) Special Rules.--
            ``(1) Documentation required for credit allowance.--No 
        credit shall be allowed under subsection (a) with respect to 
        any eligible dwelling unit for any taxable year unless--
                    ``(A) after lead hazard reduction activity is 
                complete, a certified inspector or certified risk 
                assessor provides written documentation to the taxpayer 
                that includes--
                            ``(i) evidence that the eligible dwelling 
                        unit meets lead hazard evaluation criteria 
                        established by the Environmental Protection 
                        Agency or under an authorized State or local 
                        program, and
                            ``(ii) documentation showing that the lead 
                        hazard reduction activity meets the 
                        requirements of this section, and
                    ``(B) the taxpayer files with the appropriate State 
                agency and attaches to the tax return for the taxable 
                year--
                            ``(i) the documentation described in 
                        subparagraph (A),
                            ``(ii) documentation of the lead hazard 
                        reduction activity costs paid or incurred 
                        during the taxable year with respect to the 
                        eligible dwelling unit, and
                            ``(iii) a statement certifying that the 
                        dwelling unit qualifies as an eligible dwelling 
                        unit for such taxable year.
            ``(2) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit (determined without regard to 
        subsection (e)).
            ``(3) No double benefit.--Any deduction allowable for costs 
        taken into account in computing the amount of the credit for 
        lead-based paint abatement shall be reduced by the amount of 
        such credit attributable to such costs.
    ``(e) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for the taxable year shall not exceed the excess of--
            ``(1) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under subpart A and 
        sections 27, 29, 30, 30A, 30B, 30C, and 30D for the taxable 
        year.
    ``(f) Carryforward Allowed.--
            ``(1) In general.--If the credit amount allowable under 
        subsection (a) for a taxable year exceeds the amount of the 
        limitation under subsection (e) for such taxable year (referred 
        to as the `unused credit year' in this subsection), such excess 
        shall be allowed as a credit carryforward for each of the 20 
        taxable years following the unused credit year.
            ``(2) Rules.--Rules similar to the rules of section 39 
        shall apply with respect to the credit carryforward under 
        paragraph (1).

``SEC. 30F. HOME RADON HAZARD REDUCTION ACTIVITY.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 50 percent of the radon hazard reduction activity cost paid or 
incurred by the taxpayer during the taxable year for each eligible 
dwelling unit.
    ``(b) Limitation.--The amount of the credit allowed under 
subsection (a) for any eligible dwelling unit for any taxable year 
shall not exceed--
            ``(1) $5,000, reduced by
            ``(2) the aggregate radon hazard reduction activity cost 
        taken into account under subsection (a) with respect to such 
        unit for all preceding taxable years.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Eligible dwelling unit.--
                    ``(A) In general.--The term `eligible dwelling 
                unit' means, with respect to any taxable year, any 
                dwelling unit located in the United States.
                    ``(B) Dwelling unit.--The term `dwelling unit' has 
                the meaning given such term by section 280A(f)(1).
            ``(2) Qualified radon measurement professional.--The term 
        `qualified radon measurement professional' means an individual 
        who has demonstrated the minimum degree of appropriate 
        technical knowledge and skills specific to radon measurement in 
        conformance with the requirements of--
                    ``(A) a certification standard promulgated by the 
                American National Standards Institute or International 
                Organization for Standardization,
                    ``(B) a State, local or other governmental 
                licensing (or equivalent) program, or
                    ``(C) any other recognized or accredited 
                certification process as determined by the Secretary.
            ``(3) Qualified radon mitigation professional.--The term 
        `qualified radon mitigation professional' means an individual 
        who has demonstrated the minimum degree of appropriate 
        technical knowledge and skills specific to radon mitigation in 
        conformance with the requirements of--
                    ``(A) a certification standard promulgated by the 
                American National Standards Institute or International 
                Organization for Standardization,
                    ``(B) a State, local or other governmental 
                licensing (or equivalent) program, or
                    ``(C) any other recognized or accredited 
                certification process as determined by the Secretary.
            ``(4) Radon.--The term `radon' has the meaning given the 
        term in section 302 of the Toxic Substances Control Act (15 
        U.S.C. 2662).
            ``(5) Radon hazard reduction activity cost.--
                    ``(A) In general.--The term `radon hazard reduction 
                activity cost' means, with respect to any eligible 
                dwelling unit--
                            ``(i) the cost for a qualified radon 
                        measurement professional to conduct an 
                        assessment to determine the indoor radon level 
                        of the dwelling unit, and
                            ``(ii) if the indoor radon level of the 
                        dwelling unit is not less than 2 picocuries per 
                        liter of air, as determined by a qualified 
                        radon measurement professional, the cost for 
                        performing radon abatement measures by a 
                        qualified radon mitigation professional.
                    ``(B) Limitation.--The term `radon hazard reduction 
                activity cost' does not include any cost to the extent 
                such cost is funded by any grant, contract, or 
                otherwise by another person or any governmental agency.
    ``(d) Special Rules.--
            ``(1) Documentation required for credit allowance.--No 
        credit shall be allowed under subsection (a) with respect to 
        any eligible dwelling unit for any taxable year unless--
                    ``(A) after radon hazard reduction activity is 
                complete, a qualified radon measurement professional 
                provides written documentation to the taxpayer that 
                includes--
                            ``(i) evidence that the eligible dwelling 
                        unit meets radon hazard evaluation criteria 
                        established under an authorized State or local 
                        program, and
                            ``(ii) documentation showing that the radon 
                        hazard reduction activity meets the 
                        requirements of this section, and
                    ``(B) the taxpayer files with the appropriate State 
                agency and attaches to the tax return for the taxable 
                year--
                            ``(i) the documentation described in 
                        subparagraph (A),
                            ``(ii) documentation of the radon hazard 
                        reduction activity costs paid or incurred 
                        during the taxable year with respect to the 
                        eligible dwelling unit, and
                            ``(iii) a statement certifying that the 
                        dwelling unit qualifies as an eligible dwelling 
                        unit for such taxable year.
            ``(2) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit (determined without regard to 
        subsection (e)).
            ``(3) No double benefit.--Any deduction allowable for costs 
        taken into account in computing the amount of the credit for 
        radon abatement shall be reduced by the amount of such credit 
        attributable to such costs.
    ``(e) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for the taxable year shall not exceed the excess of--
            ``(1) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under subpart A and 
        sections 27, 29, 30, 30A, 30B, 30C, and 30D for the taxable 
        year.
    ``(f) Carryforward Allowed.--
            ``(1) In general.--If the credit amount allowable under 
        subsection (a) for a taxable year exceeds the amount of the 
        limitation under subsection (e) for such taxable year (referred 
        to as the `unused credit year' in this subsection), such excess 
        shall be allowed as a credit carryforward for each of the 20 
        taxable years following the unused credit year.
            ``(2) Rules.--Rules similar to the rules of section 39 
        shall apply with respect to the credit carryforward under 
        paragraph (1).

``SEC. 30G. HOME ASBESTOS HAZARD REDUCTION ACTIVITY.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 50 percent of the asbestos hazard reduction activity cost paid 
or incurred by the taxpayer during the taxable year for each eligible 
dwelling unit.
    ``(b) Limitation.--The amount of the credit allowed under 
subsection (a) for any eligible dwelling unit for any taxable year 
shall not exceed--
            ``(1) either--
                    ``(A) $5,000 in the case of asbestos hazard 
                reduction activity cost including asbestos abatement 
                measures described in clauses (i), (ii), (iv), and (v) 
                of subsection (c)(3)(A), or
                    ``(B) $1,000 in the case of asbestos hazard 
                reduction activity cost including interim asbestos 
                control measures described in clauses (i), (iii), (iv), 
                and (v) of subsection (c)(3)(A), reduced by
            ``(2) the aggregate asbestos hazard reduction activity cost 
        taken into account under subsection (a) with respect to such 
        unit for all preceding taxable years.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Accredited asbestos abatement contractor or 
        supervisor.--The term `accredited asbestos abatement contractor 
        or supervisor' means any person accredited as a contractor or 
        supervisor under the Asbestos Model Accreditation Plan of the 
        Environmental Protection Agency.
            ``(2) Accredited asbestos inspector.--The term `accredited 
        asbestos inspector' means any person accredited as an inspector 
        under the Asbestos Model Accreditation Plan of the 
        Environmental Protection Agency.
            ``(3) Asbestos.--The term `asbestos' has the meaning given 
        the term in section 202 of the Toxic Substances Control Act (15 
        U.S.C. 2642).
            ``(4) Asbestos hazard.--The term `asbestos hazard' has the 
        meaning given the term `imminent hazard to the health and 
        safety' in section 11 of the Asbestos School Hazard Detection 
        and Control Act of 1980 (20 U.S.C. 3610).
            ``(5) Asbestos hazard reduction activity cost.--
                    ``(A) In general.--The term `asbestos hazard 
                reduction activity cost' means, with respect to any 
                eligible dwelling unit--
                            ``(i) the cost for an accredited asbestos 
                        inspector to conduct an assessment to determine 
                        the presence of a asbestos hazard,
                            ``(ii) the cost for performing asbestos 
                        abatement measures by an accredited asbestos 
                        abatement contractor or supervisor,
                            ``(iii) the cost for performing interim 
                        asbestos control measures to reduce exposure or 
                        likely exposure to asbestos hazards, but only 
                        if such measures are evaluated and completed by 
                        an accredited asbestos abatement contractor or 
                        supervisor using accepted methods, are 
                        conducted by an accredited asbestos abatement 
                        contractor or supervisor, and have an expected 
                        useful life of more than 10 years,
                            ``(iv) the cost for an accredited asbestos 
                        abatement supervisor, those working under the 
                        supervision of such supervisor, or an 
                        accredited asbestos abatement contractor or 
                        supervisor to perform all preparation, cleanup, 
                        disposal, and clearance testing activities 
                        associated with the asbestos abatement measures 
                        or interim asbestos control measures, and
                            ``(v) costs incurred by or on behalf of any 
                        occupant of such dwelling unit for any 
                        relocation which is necessary to achieve 
                        occupant protection (as determined by the 
                        Administrator of the Environmental Protection 
                        Agency).
                    ``(B) Limitation.--The term `asbestos hazard 
                reduction activity cost' does not include any cost to 
                the extent such cost is funded by any grant, contract, 
                or otherwise by another person or any governmental 
                agency.
            ``(6) Eligible dwelling unit.--
                    ``(A) In general.--The term `eligible dwelling 
                unit' means, with respect to any taxable year, any 
                dwelling unit located in the United States.
                    ``(B) Dwelling unit.--The term `dwelling unit' has 
                the meaning given such term by section 280A(f)(1).
    ``(d) Special Rules.--
            ``(1) Documentation required for credit allowance.--No 
        credit shall be allowed under subsection (a) with respect to 
        any eligible dwelling unit for any taxable year unless--
                    ``(A) after asbestos hazard reduction activity is 
                complete, an accredited asbestos inspector provides 
                written documentation to the taxpayer that includes--
                            ``(i) evidence that the eligible dwelling 
                        unit meets asbestos hazard evaluation criteria 
                        established under an authorized State or local 
                        program, and
                            ``(ii) documentation showing that the 
                        asbestos hazard reduction activity meets the 
                        requirements of this section, and
                    ``(B) the taxpayer files with the appropriate State 
                agency and attaches to the tax return for the taxable 
                year--
                            ``(i) the documentation described in 
                        subparagraph (A),
                            ``(ii) documentation of the asbestos hazard 
                        reduction activity costs paid or incurred 
                        during the taxable year with respect to the 
                        eligible dwelling unit, and
                            ``(iii) a statement certifying that the 
                        dwelling unit qualifies as an eligible dwelling 
                        unit for such taxable year.
            ``(2) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit (determined without regard to 
        subsection (e)).
            ``(3) No double benefit.--Any deduction allowable for costs 
        taken into account in computing the amount of the credit for 
        asbestos abatement shall be reduced by the amount of such 
        credit attributable to such costs.
    ``(e) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for the taxable year shall not exceed the excess of--
            ``(1) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under subpart A and 
        sections 27, 29, 30, 30A, 30B, 30C, and 30D for the taxable 
        year.
    ``(f) Carryforward Allowed.--
            ``(1) In general.--If the credit amount allowable under 
        subsection (a) for a taxable year exceeds the amount of the 
        limitation under subsection (e) for such taxable year (referred 
        to as the `unused credit year' in this subsection), such excess 
        shall be allowed as a credit carryforward for each of the 20 
        taxable years following the unused credit year.
            ``(2) Rules.--Rules similar to the rules of section 39 
        shall apply with respect to the credit carryforward under 
        paragraph (1).''.
    (b) Technical Amendments.--
            (1) Section 1016(a) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) in paragraph (36), by striking ``and'' at the 
                end,
                    (B) in paragraph (37), by striking the period at 
                the end and inserting a comma, and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(38) in the case of an eligible dwelling unit with 
        respect to which a credit for any lead hazard reduction 
        activity cost was allowed under section 30E, to the extent 
        provided in section 30E(d)(2),
            ``(39) in the case of an eligible dwelling unit with 
        respect to which a credit for any radon hazard reduction 
        activity cost was allowed under section 30F, to the extent 
        provided in section 30F(d)(2), and
            ``(40) in the case of an eligible dwelling unit with 
        respect to which a credit for any asbestos hazard reduction 
        activity cost was allowed under section 30G, to the extent 
        provided in section 30G(d)(2)''.
            (2) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 30D the following new items:

``Sec. 30E. Home lead hazard reduction activity.
``Sec. 30F. Home radon hazard reduction activity.
``Sec. 30G. Home asbestos hazard reduction activity.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to costs incurred after December 31, 2015, in taxable years 
ending after that date.
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