[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7849 Introduced in House (IH)]

<DOC>






118th CONGRESS
  2d Session
                                H. R. 7849

     To amend the Robert T. Stafford Disaster Relief and Emergency 
  Assistance Act to require the President to establish an individual 
     household disaster mitigation program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2024

Mr. Thompson of California (for himself and Mr. LaMalfa) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Transportation and Infrastructure, 
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 amend the Robert T. Stafford Disaster Relief and Emergency 
  Assistance Act to require the President to establish an individual 
     household disaster mitigation program, and for other purposes.

    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 ``Disaster Resiliency and Coverage Act 
of 2024''.

SEC. 2. INDIVIDUAL HOUSEHOLD DISASTER MITIGATION PROGRAM.

    Title II of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5131 et seq.) is amended by adding at the end 
the following:

``SEC. 206. INDIVIDUAL HOUSEHOLD DISASTER MITIGATION PROGRAM.

    ``(a) Establishment.--The President shall establish a program to 
provide grants to States and Indian tribal governments for qualifying 
pre-disaster mitigation activities on individual residential households 
that are at risk of being damaged by a major disaster.
    ``(b) Establishment of Eligible Disaster Areas.--In carrying out 
the program under this section, the President shall--
            ``(1) establish eligible disaster areas, in consultation 
        with States, that the President determines to be at risk of a 
        natural hazard, including--
                    ``(A) a description of the type, likelihood, and 
                severity of each potential natural hazard affecting 
                each such risk area; and
                    ``(B) by taking into account previously declared 
                major disasters impacting such areas; and
            ``(2) provide technical assistance to the States or Indian 
        tribal governments in developing the plan described in 
        subsection (c) and administering grants provided for individual 
        households under the program.
    ``(c) Plan for Eligible Activities.--To be eligible for a grant 
under this section, a State or Indian tribal government shall submit to 
the President a plan that includes--
            ``(1) each disaster risk area established by the President 
        under subsection (b) in which the State or Indian tribal 
        government proposes to provide funds under the program;
            ``(2) an assessment of the status of the availability and 
        affordability of homeowner insurance coverage in each such risk 
        area;
            ``(3) a list of each qualifying mitigation activity that is 
        eligible for funds in each such risk area;
            ``(4) the criteria by which a State or Indian tribal 
        government will evaluate applicants, which shall include 
        consideration of the household income of the applicant and 
        whether the residence is located in a Community Disaster 
        Resilience Zone; and
            ``(5) a financial plan that includes maximum amounts 
        available to a household for each qualifying mitigation 
        activity.
    ``(d) Consultation.--In establishing the program under this 
section, the President shall consult with the Director of the Federal 
Insurance Office to determine what qualifying mitigation activities are 
likely to incentivize homeowner insurance companies to offer, or 
increase coverage of, homeowners insurance to households located in 
eligible disaster areas.
    ``(e) Limitations.--
            ``(1) High-risk areas.--Funds provided under this section 
        may only be used in eligible disaster areas that the State or 
        Indian tribal government determines are at a high risk of 
        experiencing a major disaster for the major disaster that 
        presents such a risk.
            ``(2) Limitation based on adjusted gross income.--An 
        individual shall not be eligible to receive a grant under this 
        section if the adjusted gross income of such individual exceeds 
        $250,000 ($500,000 in the case of a joint tax return) for the 
        taxable year ending in the calendar year immediately preceding 
        the calendar year with respect to which a grant application is 
        filed.
            ``(3) Definition of adjusted gross income.--In this 
        section, the term `adjusted gross income' has the meaning given 
        such term in section 62(a) of the Internal Revenue Code of 
        1986.
    ``(f) Multi-Tiered Mitigation Standards.--
            ``(1) In general.--The President, acting through the 
        Administrator of the Federal Emergency Management Agency, shall 
        establish mitigation standards for individual households that 
        carry out each type of qualifying mitigation activity eligible 
        for funds under the program, which may include a multi-tiered 
        standard.
            ``(2) Consideration.--In establishing the mitigation 
        standards under paragraph (1), the President, acting through 
        the Administrator--
                    ``(A) may consider any standards established by--
                            ``(i) Insurance Institute for Business and 
                        Home Safety; and
                            ``(ii) any other standard-issuing entity 
                        determined appropriate; and
                    ``(B) may--
                            ``(i) adopt a standard considered under 
                        subparagraph (A); or
                            ``(ii) establish alternative standards.
    ``(g) Guidance to Insurance Providers.--To be eligible for a grant 
under the program under this section, a State or Indian tribal 
government shall establish, and make available to the public, guidance 
to insurance providers that includes suggested incentives for 
households that carry out disaster mitigation activities under the 
program, including--
            ``(1) the mitigation standards established under subsection 
        (f);
            ``(2) increased eligibility for insurance coverage; and
            ``(3) discounts for households that carry out such 
        mitigation activities.
    ``(h) Maximum Amounts.--A State or Indian tribal government may not 
provide more than an amount of $10,000, not to exceed the actual cost 
of mitigation activities, to any individual household under the 
program. Such amount shall be increased yearly to reflect any increase 
in the Consumer Price Index.
    ``(i) Gross Income.--For purposes of the Internal Revenue Code of 
1986, gross income shall not include amounts provided under this 
section.
    ``(j) Definition of Qualifying Mitigation Activity.--In this 
section, the term `qualifying mitigation activity' means an activity 
relating to a housing unit--
            ``(1) for property to--
                    ``(A) improve the strength of a roof deck 
                attachment;
                    ``(B) create a secondary water barrier to prevent 
                water intrusion or mitigate against potential water 
                intrusion from wind-driven rain;
                    ``(C) improve the durability, impact resistance 
                (not less than class 3 or 4 rating), or fire resistance 
                (not less than class A rating) of a roof covering;
                    ``(D) brace gable-end walls;
                    ``(E) reinforce the connection between a roof and 
                supporting wall;
                    ``(F) protect openings from penetration by wind-
                borne debris;
                    ``(G) protect exterior doors and garages from 
                natural hazards;
                    ``(H) complete measures contained in the 
                publication of the Federal Emergency Management Agency 
                entitled `Wind Retrofit Guide for Residential 
                Buildings' (P-804);
                    ``(I) elevate the qualified dwelling unit, as well 
                as utilities, machinery, or equipment, above the base 
                flood elevation or other applicable minimum elevation 
                requirement;
                    ``(J) seal walls in the basement of the qualified 
                dwelling unit using waterproofing compounds; or
                    ``(K) protect propane tanks or other external fuel 
                sources;
            ``(2) to install--
                    ``(A) check valves to prevent flood water from 
                backing up into drains;
                    ``(B) flood vents, breakaway walls or open lattice 
                for homes located in V zones;
                    ``(C) a stormwater drainage system or improve an 
                existing system;
                    ``(D) natural or nature-based features for flood 
                control, including living shorelines;
                    ``(E) roof coverings, sheathing, flashing, roof and 
                attic vents, eaves, or gutters that conform to 
                ignition-resistant construction standards;
                    ``(F) wall components for wall assemblies that 
                conform to ignition-resistant construction standards;
                    ``(G) a wall-to-foundation anchor or connector, or 
                a shear transfer anchor or connector;
                    ``(H) wood structural panel sheathing for 
                strengthening cripple walls;
                    ``(I) anchorage of the masonry chimney to the 
                framing;
                    ``(J) prefabricated lateral resisting systems;
                    ``(K) a standby generator system consisting of a 
                standby generator and an automatic transfer switch;
                    ``(L) a storm shelter that meets the design and 
                construction standards established by the International 
                Code Council and the National Storm Shelter Association 
                (ICC-500), or a safe room that satisfies the criteria 
                contained in--
                            ``(i) the publication of the Federal 
                        Emergency Management Agency entitled `Safe 
                        Rooms for Tornadoes and Hurricanes' (P-361); or
                            ``(ii) the publication of the Federal 
                        Emergency Management Agency entitled `Taking 
                        Shelter from the Storm' (P-320);
                    ``(M) a lightning protection system;
                    ``(N) exterior walls, doors, windows, or other 
                exterior dwelling unit elements that conform to 
                ignition-resistant construction standards;
                    ``(O) exterior deck or fence components that 
                conform to ignition-resistant construction standards;
                    ``(P) structure-specific water hydration systems, 
                including fire mitigation systems such as interior and 
                exterior sprinkler systems;
                    ``(Q) flood openings for fully enclosed areas below 
                the lowest floor of the dwelling unit;
                    ``(R) lateral bracing for wall elements, foundation 
                elements, and garage doors or other large openings to 
                resist seismic loads; or
                    ``(S) automatic shutoff valves for water and gas 
                lines; or
            ``(3) for services or equipment to--
                    ``(A) create buffers around the qualified dwelling 
                unit through the removal or reduction of flammable 
                vegetation, including vertical clearance of tree 
                branches;
                    ``(B) create buffers around the dwelling unit 
                through--
                            ``(i) the removal of exterior deck or fence 
                        components or ignition-prone landscape 
                        features; or
                            ``(ii) replacement of the components or 
                        features described in clause (i) with 
                        components or features that conform to 
                        ignition-resistant construction standards;
                    ``(C) 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; or
                    ``(D) replace flammable vegetation with less 
                flammable species;
            ``(4) for property relating to satisfying the standards 
        required for receipt of a FORTIFIED designation from the 
        Insurance Institute for Business and Home Safety, provided that 
        the qualified dwelling unit receives such designation following 
        installation of such property; or
            ``(5) for any other hazard mitigation activity which has 
        been identified by the President, in consultation with the 
        Administrator of the Federal Emergency Management Agency, for 
        mitigation of a natural hazard.''.

SEC. 3. EXCLUSION OF AMOUNTS RECEIVED FROM STATE-BASED CATASTROPHE LOSS 
              MITIGATION PROGRAMS.

    (a) In General.--Section 139 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (h) as subsection (i) and by 
inserting after subsection (g) the following new subsection:
    ``(h) State-Based Catastrophe Loss Mitigation Programs.--
            ``(1) In general.--Gross income shall not include any 
        amount received by an individual as a qualified catastrophe 
        loss mitigation payment under a program established or 
        administered by a State, or a political subdivision or 
        instrumentality thereof, for the purpose of making such 
        payments.
            ``(2) Qualified catastrophe loss mitigation payment.--For 
        purposes of this section, the term `qualified catastrophe loss 
        mitigation payment' means any amount which is received by an 
        individual to make improvements to such individual's residence 
        for the sole purpose of hazard mitigation with respect to such 
        residence.
            ``(3) No increase in basis.--Rules similar to the rules of 
        subsection (g)(3) shall apply in the case of this 
        subsection.''.
    (b) Conforming Amendments.--
            (1) Section 139(d) is amended by striking ``and qualified'' 
        and inserting ``, qualified catastrophe mitigation payments, 
        and qualified''.
            (2) Section 139(i) (as redesignated by subsection (a)) is 
        amended by striking ``or qualified'' and inserting ``, 
        qualified catastrophe mitigation payment, or qualified''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.

SEC. 4. EXCLUSION FROM GROSS INCOME OF CERTAIN EMERGENCY AGRICULTURAL 
              ASSISTANCE.

    (a) In General.--Section 139 of the Internal Revenue Code of 1986, 
as amended by the preceding provisions of this Act, is amended by 
redesignating subsection (i) as subsection (j) and by inserting after 
subsection (h) the following new subsection:
    ``(i) Certain Agricultural Assistance.--For purposes of this 
section, the term `qualified disaster relief payment' shall include any 
assistance received under any of the following:
            ``(1) Assistance received under the Wildfires and 
        Hurricanes Indemnity Program Plus under subpart O of part 760 
        of title 7, Code of Federal Regulations.
            ``(2) Assistance received under section 1501 of the 
        Agricultural Act of 2014 (7 U.S.C. 9081).
            ``(3) Noninsured crop assistance under section 196 of the 
        Federal Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7333).
            ``(4) Assistance under a food assistance program under part 
        9 of title 7, Code of Federal Regulations.
            ``(5) Assistance under title IV of the Agricultural Credit 
        Act of 1978 (16 U.S.C. 2201 et seq.).
            ``(6) Assistance under the Quality Loss Assistance 
        Program.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.

SEC. 5. CREDIT FOR DISASTER MITIGATION EXPENDITURES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 27 the following new section:

``SEC. 28. DISASTER MITIGATION EXPENDITURES.

    ``(a) In General.--There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to 30 
percent of the expenditures paid for qualifying mitigation activities 
paid or incurred by the taxpayer during such taxable year with respect 
to real property owned or leased by the taxpayer.
    ``(b) Qualified Disaster Mitigation Activities.--For purposes of 
this section--
            ``(1) Qualifying mitigation activity.--The term `qualifying 
        mitigation activity' has the meaning given such term in section 
        206(j) of the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act.
            ``(2) Treatment of reimbursements.--Any amount originally 
        paid or incurred by the taxpayer which is reimbursed by a State 
        under a qualified State disaster mitigation program shall be 
        treated as paid by such State (and not by such taxpayer).
    ``(c) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to expenditures made 
        in the ordinary course of the taxpayer's trade or business (or, 
        in the case of expenditures made by a State, would have been 
        expenditures made in the ordinary course of the taxpayer's 
        trade or business if made by the taxpayer) shall be treated as 
        a credit listed in section 38(b) for taxable year (and not 
        allowed under subsection (a)).
            ``(2) Personal credit.--For purposes of this title, the 
        credit allowed under subsection (a) for any taxable year 
        (determined after application of paragraph (1)) shall be 
        treated as a credit allowable under subpart A for such taxable 
        year.
    ``(d) Reduction of Credit Percentage Where Taxpayer Expenditures 
Less Than 30 Percent.--
            ``(1) In general.--If the expenditure percentage with 
        respect to any item of expenditure described under subsection 
        (a) is less than 30 percent, subsection (a) shall be applied by 
        substituting `the expenditure percentage' for `30 percent' with 
        respect to such item of expenditure.
            ``(2) Expenditure percentage.--For purposes of this 
        section, the term `expenditure percentage' means, with respect 
        to any item of expenditure described under subsection (a) any 
        portion of which is paid or incurred by a State, the ratio 
        (expressed as a percentage) of--
                    ``(A) the taxpayer's expenditure for such item, 
                divided by
                    ``(B) the sum of the taxpayer's and such State's 
                expenditures for such item.
    ``(e) Special Rules.--
            ``(1) Treatment of expenditures related to marketable 
        timber.--An expenditure shall not be taken into account for 
        purposes of this section (whether made by the taxpayer or a 
        State) if such expenditure is properly allocable to timber 
        which is sold or exchanged by the taxpayer. The preceding 
        sentence shall not apply to the extent that such amount exceeds 
        the gain on such sale or exchange.
            ``(2) Basis reduction.--For purposes of this subtitle, if 
        the basis of any property would (but for this paragraph) be 
        determined by taking into account any expenditure described 
        under subsection (a), the basis of such property shall be 
        reduced by the amount of the credit allowed under subsection 
        (a) with respect to such expenditure (determined without regard 
        to subsection (c)).
            ``(3) Denial of double benefit.--The amount of any 
        deduction or other credit allowable under this chapter for any 
        expenditure for which a credit is allowable under subsection 
        (a) shall be reduced by the amount of credit allowed under such 
        subsection for such expenditure (determined without regard to 
        subsection (c)).''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended by striking 
        ``plus'' at the end of paragraph (40), by striking the period 
        at the end of paragraph (41) and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(42) the portion of the disaster mitigation expenditures 
        credit to which section 28(c)(1) applies.''.
            (2) Section 1016(a) of such Code is amended by 
        redesignating paragraphs (35) through (38) as paragraphs (36) 
        through (39), respectively, and by inserting after paragraph 
        (34) the following new paragraph:
            ``(35) to the extent provided in section 28(e)(2),''.
            (3) 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 27 the following new item:

``Sec. 28. Qualified disaster mitigation expenditures.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred after the date of the enactment 
of this Act, in taxable years ending after such date.
                                 <all>