[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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