[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6861 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 6861

  To amend the Internal Revenue Code of 1986 to provide a refundable 
        credit against tax for wildfire mitigation expenditures.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 19, 2023

  Mr. Kiley introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide a refundable 
        credit against tax for wildfire mitigation expenditures.

    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 ``Supporting Affordable Fire Emergency 
Hardening through Optimized Mitigation Efforts Act'' or the ``SAFE HOME 
Act''.

SEC. 2. REFUNDABLE PERSONAL CREDIT FOR WILDFIRE MITIGATION 
              EXPENDITURES.

    (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 36B the following new section:

``SEC. 36C. WILDFIRE MITIGATION EXPENDITURES.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 25 percent of the qualified 
wildfire mitigation expenditures made by the taxpayer during such 
taxable year.
    ``(b) Maximum Credit.--
            ``(1) In general.--Subject to paragraphs (2) and (3), the 
        credit allowed under subsection (a) for any taxable year shall 
        not exceed $25,000.
            ``(2) Phaseout.--
                    ``(A) In general.--The amount under paragraph (1) 
                for the taxable year shall be reduced (but not below 
                zero) by an amount which bears the same ratio to the 
                amount under such paragraph as--
                            ``(i) the excess (if any) of--
                                    ``(I) the taxpayer's adjusted gross 
                                income for such taxable year, over
                                    ``(II) $200,000, bears to
                            ``(ii) $100,000.
                    ``(B) Inflation adjustment.--In the case of any 
                taxable year after 2024, each of the dollar amounts 
                under subparagraph (A) shall be increased by an amount 
                equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2023' 
                        for `calendar year 2016' in subparagraph 
                        (A)(ii) thereof.
                    ``(C) Rounding.--If any reduction determined under 
                subparagraph (A) is not a multiple of $50, or any 
                increase under subparagraph (B) is not a multiple of 
                $50, such amount shall be rounded to the nearest 
                multiple of $50.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified wildfire mitigation expenditure.--
                    ``(A) In general.--The term `qualified wildfire 
                mitigation expenditure' means an expenditure relating 
                to a qualified dwelling unit--
                            ``(i) for property to improve fire 
                        resistance (not less than a class A rating) of 
                        a roof covering,
                            ``(ii) to install--
                                    ``(I) roof coverings, sheathing, 
                                flashing, roof and attic vents, eaves, 
                                or gutters that conform to ignition-
                                resistant construction standards,
                                    ``(II) wall components for wall 
                                assemblies that conform to ignition-
                                resistant construction standards,
                                    ``(III) exterior walls, doors, 
                                windows, or other exterior dwelling 
                                unit elements that conform to ignition-
                                resistant construction standards,
                                    ``(IV) exterior deck or fence 
                                components that conform to ignition-
                                resistant construction standards, or
                                    ``(V) structure-specific water 
                                hydration systems, including fire 
                                mitigation systems such as interior and 
                                exterior sprinkler systems, or
                            ``(iii) for services or equipment to--
                                    ``(I) create buffers around the 
                                qualified dwelling unit through the 
                                removal or reduction of flammable 
                                vegetation, including vertical 
                                clearance of tree branches,
                                    ``(II) create buffers around the 
                                dwelling unit through--
                                            ``(aa) the removal of 
                                        exterior deck or fence 
                                        components or ignition-prone 
                                        landscape features, or
                                            ``(bb) replacement of the 
                                        components or features 
                                        described in item (aa) with 
                                        components that conform to 
                                        ignition-resistant construction 
                                        standards,
                                    ``(III) perform fire maintenance 
                                procedures identified by the Federal 
                                Emergency Management Agency or the 
                                United States Forest Service, including 
                                fuel management techniques such as 
                                creating fuel and fire breaks,
                                    ``(IV) replace flammable vegetation 
                                with less flammable species, or
                                    ``(V) prevent smoke inhalation, 
                                such as air filters or other equipment 
                                designed to prevent smoke from entering 
                                the dwelling unit.
                    ``(B) Exception.--The term `qualified wildfire 
                mitigation expenditure' shall not include any 
                expenditure or portion thereof which is paid, funded, 
                or reimbursed by a Federal, State, or local government 
                entity, or any political subdivision, agency, or 
                instrumentality thereof.
            ``(2) Qualified dwelling unit.--The term `qualified 
        dwelling unit' means a dwelling unit which is--
                    ``(A) located--
                            ``(i) in the United States or in a 
                        territory of the United States, and
                            ``(ii) in an area--
                                    ``(I) in which a Federal natural 
                                disaster declaration has been made 
                                within the preceding 10-year period 
                                with respect to a wildfire,
                                    ``(II) which is adjacent to an area 
                                described in subclause (I),
                                    ``(III) which, during the taxable 
                                year or the period of the 10 taxable 
                                years preceding such taxable year, has 
                                received hazard mitigation assistance 
                                through the Federal Emergency 
                                Management Agency in regard to any 
                                wildfire which, with respect to the 
                                expenditure described in paragraph (1) 
                                which is made by the taxpayer, is 
                                applicable to such expenditure, or
                                    ``(IV) which, with respect to any 
                                taxable year, has been designated as a 
                                community disaster resilience zone (as 
                                defined in section 206(a) of the Robert 
                                T. Stafford Disaster Relief and 
                                Emergency Assistance Act (42 U.S.C. 
                                5136(a))) as the result of a wildfire, 
                                and
                    ``(B) used as a primary residence by the taxpayer.
    ``(d) Documentation.--Any taxpayer claiming the credit under this 
section shall provide the Secretary with adequate documentation 
regarding the specific qualified wildfire mitigation expenditures made 
by the taxpayer during the taxable year, as well as such other 
information or documentation as the Secretary may require.
    ``(e) Termination of Credit.--The credit allowed under this section 
shall not apply to wildfire mitigation expenditures made after December 
31, 2032.''.
    (b) Conforming Amendment.--The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 36B the following new 
item:

``Sec. 36C. Wildfire mitigation expenditures.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.
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