[Congressional Record Volume 167, Number 138 (Tuesday, August 3, 2021)]
[Senate]
[Pages S5759-S5760]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2392. Mr. BENNET submitted an amendment intended to be proposed to
amendment SA 2137 proposed by Mr. Schumer (for Ms. Sinema (for herself,
Mr. Portman, Mr. Manchin, Mr. Cassidy, Mrs. Shaheen, Ms. Collins, Mr.
Tester, Ms. Murkowski, Mr. Warner, and Mr. Romney)) to the bill H.R.
3684, to authorize funds for Federal-aid highways, highway safety
programs, and transit programs, and for other purposes; which was
ordered to lie on the table; as follows:
At the end of division H, insert the following:
TITLE VII--DISASTER MITIGATION
SEC. 80701. SHORT TITLE.
This title may be cited as the ``SHELTER Act''.
SEC. 80702. NONREFUNDABLE PERSONAL CREDIT FOR DISASTER
MITIGATION EXPENDITURES.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 25D the following new section:
``SEC. 25E. DISASTER 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 disaster mitigation expenditures
made by the taxpayer during such taxable year.
``(b) Maximum Credit.--
``(1) In general.--Subject to paragraph (2), the credit
allowed under subsection (a) for any taxable year shall not
exceed $5,000.
``(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 amount (not less than zero) equal to the adjusted
gross income of the taxpayer for such taxable year minus
$84,200, bears to
``(ii) $40,800.
``(B) Joint return.--For purposes of determining the amount
of any reduction under subparagraph (A) for any taxable year,
if a joint return was filed for such taxable year, each of
the dollar amounts under such subparagraph shall be doubled.
``(C) Inflation adjustment.--In the case of any taxable
year after 2022, 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 2021'
for `calendar year 2016' in subparagraph (A)(ii) thereof.
``(D) Rounding.--If any reduction determined under
subparagraph (A) or (B) is not a multiple of $50, or any
increase under subparagraph (C) 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 disaster mitigation expenditure.--
``(A) In general.--The term `qualified disaster mitigation
expenditure' means an expenditure relating to a qualified
dwelling unit--
``(i) for property to--
``(I) improve the strength of a roof deck attachment,
``(II) create a secondary water barrier to prevent water
intrusion or mitigate against potential water intrusion from
wind-driven rain,
``(III) 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,
``(IV) brace gable-end walls,
``(V) reinforce the connection between a roof and
supporting wall,
``(VI) protect openings from penetration by wind-borne
debris,
``(VII) protect exterior doors and garages from natural
hazards,
``(VIII) complete measures contained in the publication of
the Federal Emergency Management Agency entitled `Wind
Retrofit Guide for Residential Buildings' (P-804),
``(IX) elevate the qualified dwelling unit, as well as
utilities, machinery, or equipment, above the base flood
elevation or other applicable minimum elevation requirement,
``(X) seal walls in the basement of the qualified dwelling
unit using waterproofing compounds, or
``(XI) protect propane tanks or other external fuel
sources,
``(ii) to install--
``(I) check valves to prevent flood water from backing up
into drains,
``(II) flood vents, breakaway walls or open lattice for
homes located in V zones,
``(III) a stormwater drainage system or improve an existing
system,
``(IV) natural or nature-based features for flood control,
including living shorelines,
``(V) roof coverings, sheathing, flashing, roof and attic
vents, eaves, or gutters that conform to ignition-resistant
construction standards,
``(VI) wall components for wall assemblies that conform to
ignition-resistant construction standards,
``(VII) a wall-to-foundation anchor or connector, or a
shear transfer anchor or connector,
``(VIII) wood structural panel sheathing for strengthening
cripple walls,
``(IX) anchorage of the masonry chimney to the framing,
``(X) prefabricated lateral resisting systems,
``(XI) a standby generator system consisting of a standby
generator and an automatic transfer switch,
``(XII) 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--
``(aa) the publication of the Federal Emergency Management
Agency entitled `Safe Rooms for Tornadoes and Hurricanes' (P-
361), or
``(bb) the publication of the Federal Emergency Management
Agency entitled `Taking Shelter from the Storm' (P-320),
``(XIII) a lightning protection system,
``(XIV) exterior walls, doors, windows, or other exterior
dwelling unit elements that conform to ignition-resistant
construction standards,
``(XV) exterior deck or fence components that conform to
ignition-resistant construction standards,
``(XVI) structure-specific water hydration systems,
including fire mitigation systems such as interior and
exterior sprinkler systems,
``(XVII) water capture and delivery systems to accommodate
drought events or to decrease water use, including the design
of such systems,
``(XVIII) flood openings for fully enclosed areas below the
lowest floor of the dwelling unit,
``(XIX) lateral bracing for wall elements, foundation
elements, and garage doors or other large openings to resist
seismic loads, or
``(XX) automatic shutoff valves for water and gas lines, 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 or features 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) gather and analyze water and weather data to better
understand the local climate and drought history,
``(V) replace flammable vegetation with less flammable
species, or
``(VI) determine the risk of natural disasters which may
occur in the area in which the qualified dwelling unit is
located, or
``(iv) 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.
``(B) Exception.--The term `qualified disaster 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 disaster declaration has been made
within the preceding 10-year period, or
``(II) which is adjacent to an area described in subclause
(I), and
``(B) used as a residence by the taxpayer.
``(d) Limitation.--
``(1) In general.--In the case of an expenditure described
in clause (i) or (ii) of subsection (c)(1)(A), such
expenditure shall be taken into account in determining the
qualified disaster mitigation expenditures made by the
taxpayer during the taxable year only if the onsite
preparation, assembly, or original installation of the
property with respect to which such expenditure is made has
been completed in a manner that is deemed to be in compliance
with the latest published editions of relevant consensus-
based codes, specifications, and standards or any more
restrictive Federal, State, or local floodplain management
standards and consistent with floodplain management
regulations for the local jurisdiction in which the qualified
dwelling unit is located.
[[Page S5760]]
``(2) Latest published editions.--The term `latest
published editions' means, with respect to relevant
consensus-based codes, specifications, and standards, either
of the 2 most recently published editions.
``(e) Labor Costs.--For purposes of this section,
expenditures for labor costs properly allocable to the onsite
preparation, assembly, or original installation of the
property described in clause (i) or (ii) of subsection
(c)(1)(A) shall be taken into account in determining the
qualified disaster mitigation expenditures made by the
taxpayer during the taxable year.
``(f) Inspection Costs.--For purposes of this section,
expenditures for the cost of any inspection required under
subsection (d) which is properly allocable to the inspection
of the preparation, assembly, or installation of the property
described in clause (i) or (ii) of subsection (c)(1)(A) shall
be taken into account in determining the qualified disaster
mitigation expenditures made by the taxpayer during the
taxable year.
``(g) Documentation.--Any taxpayer claiming the credit
under this section shall provide the Secretary with adequate
documentation regarding the specific qualified disaster
mitigation expenditures made by the taxpayer during the
taxable year, as well as such other information or
documentation as the Secretary may require.''.
(b) Conforming Amendment.--The table of sections for
subpart A of part IV of subchapter A of chapter 1 of such
Code is amended by inserting after the item relating to
section 25D the following new item:
``Sec. 25E. Disaster mitigation expenditures.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2021.
SEC. 80703. BUSINESS-RELATED CREDIT FOR DISASTER MITIGATION.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 45T the following new section:
``SEC. 45U. DISASTER MITIGATION CREDIT.
``(a) General Rule.--For purposes of section 38, the
disaster mitigation credit determined under this section for
any taxable year is an amount equal to 25 percent of the
qualified disaster mitigation expenditures made by the
taxpayer during the taxable year.
``(b) Maximum Credit.--
``(1) In general.--Subject to paragraph (2), the amount of
the credit determined under subsection (a) for any taxable
year shall not exceed $5,000.
``(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 amount (not less than zero) equal to the average
gross receipts of the taxpayer over the 3 preceding taxable
years minus $5,000,000, bears to
``(ii) $5,000,000.
``(B) Inflation adjustment.--In the case of any taxable
year after 2022, 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 2021'
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) Qualified Disaster Mitigation Expenditure.--For
purposes of this section, the term `qualified disaster
mitigation expenditure' has the same meaning given such term
under paragraph (1) of section 25E(c), except that `place of
business' shall be substituted for `qualified dwelling unit'
each place it appears in such paragraph.
``(d) Special Rules.--Rules similar to the rules of
subsections (d) through (g) of section 25E shall apply for
purposes of this section.''.
(b) Conforming Amendments.--
(1) Section 38(b) of such Code is amended by striking
``plus'' at the end of paragraph (32), by striking the period
at the end of paragraph (33) and inserting ``, plus'', and by
adding at the end the following new paragraph:
``(34) the disaster mitigation credit determined under
section 45U(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 45T the
following new item:
``Sec. 45U. Disaster mitigation credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2021.
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