[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7979 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 7979
To amend the Internal Revenue Code of 1986 to provide a credit for
owning certain disaster resilient property.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 7, 2020
Mr. Pascrell (for himself, Mr. Reed, Mr. DeFazio, and Mr. Diaz-Balart)
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 credit for
owning certain disaster resilient property.
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 Savings and Resilient
Construction Act of 2020''.
SEC. 2. DISASTER RESILIENT PROPERTY TAX CREDIT.
(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 30D the following new section:
``SEC. 30E. DISASTER RESILIENT PROPERTY.
``(a) General Rule.--There shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount equal to the
applicable amount for each qualified building placed in service during
the taxable year.
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Commercial property.--ln the case of a qualified
commercial property, the applicable amount is the lesser of--
``(A) 1 percent of the cost of the building, or
``(B) $25,000 per building.
``(2) Residential property.--ln the case of a qualified
residential property, the applicable amount is the lesser of--
``(A) 1 percent of the cost of the property, or
``(B) $3,000 per property.
``(c) Qualified Building.--For purposes of subsection (a)--
``(1) In general.--The term `qualified building' means a
building--
``(A) owned by the taxpayer in a disaster area
determined as a result of a federally declared major
disaster,
``(B) the construction of which began after the
date of such disaster in that area,
``(C) which--
``(i) is qualified commercial property
placed in service for commercial purposes, or
``(ii) is qualified residential property
placed in service for residential purposes, and
``(D) for which a certificate of occupancy is
issued before the end of the 3-year period beginning on
the date of such disaster declaration in that area.
``(2) Qualified commercial property.--The term `qualified
commercial property' means a building that is--
``(A) located in the United States,
``(B) defined in the scope of the most recent
International Building Code published by the
International Code Council, and
``(C) designed and constructed to meet resilient
construction requirements.
``(3) Qualified residential property.--The term `qualified
residential property' means a building that is--
``(A) located in the United States,
``(B) defined in the scope of the most recent
International Residential Code published by the
International Code Council, and
``(C) designed and constructed to meet resilient
construction requirements.
``(d) Resilient Construction Requirements.--For purposes of this
section--
``(1) In general.--The resilient construction requirements
with respect to a property are that the property is designed
and constructed to--
``(A) resist hazards brought on by a major disaster
and continues to provide its primary functions after a
major disaster,
``(B) reduce the magnitude or duration of a
disruptive event, and
``(C) have the absorptive capacity, adaptive
capacity, and recoverability to withstand a potentially
disruptive event.
``(2) Treated as meeting resiliency requirements.--For
purposes of paragraph (1)--
``(A) in the case of a qualified commercial
property, the property shall be treated as meeting the
requirements specified in paragraph (1) if the property
is a building which--
``(i) was designed to meet the requirements
of the most recent International Building Code
published by the International Code Council and
meets the FORTIFIED Commercial Wind Standard
published by the Insurance Institute for
Business and Home Safety, or the most recent
International Wildland Urban Interface Code
published by the International Code Council,
``(ii) in the case of a substantial
renovation, such renovation meets the
requirements of--
``(I) the most recent International
Building Code published by the
International Code Council and the
FORTIFIED Commercial Wind Standard
published by the Insurance Institute
for Business and Home Safety, or
``(II) the most recent
International Wildland Urban Interface
Code published by the International
Code Council, or
``(iii) in the case of a qualified
commercial property in a high seismic hazard
zone, was designed and built to achieve a
reduction in the earthquake risks relative to
code-designed buildings by minimizing building
damage and promoting contingency planning for
utility disruption and other threats to
functional recovery that are described in the
U.S. Resiliency Council Rating System with
specific design criteria achieving the Platinum
or Gold rating, and
``(B) in the case of a qualified residential
property, the property shall be treated as meeting the
requirements specified in paragraph (1) if--
``(i) the property is a building which--
``(I) was designed to meet the
requirements of the most recent
International Residential Code
published by the International Code
Council, and received a FORTIFIED Roof,
FORTIFIED Silver, or FORTIFIED Gold
designation from the Insurance
Institute for Business and Home Safety,
or
``(II) was designed to meet or
exceed the requirements of the most
recent Standard for Residential
Construction in High-Wind Regions or
International Wildland Urban Interface
Code published by the International
Code Council, or
``(ii) in the case of a substantial
renovation, such renovation meets--
``(I) the requirements of the most
recent International Residential Code
published by the International Code
Council and the requirements of the
FORTIFIED Roof Standards published by
the Insurance Institute for Business
and Home Safety, or
``(II) the requirements of the most
recent Standard for Residential
Construction in High-Wind Regions or
International Wildland Urban Interface
Code published by the International
Code Council.
``(3) Absorptive capacity.--The term `absorptive capacity'
means the ability of the construction to endure a disruption
without significant deviation from normal operating
performance.
``(4) Adaptive capacity.--The term `adaptive capacity'
means the ability of the construction to adapt to a drastic
change in normal operating conditions.
``(5) Recoverability.--.The term `recoverability' means the
ability of the construction to recover quickly, and at low
cost, from potentially disruptive events.
``(e) Other Definitions.--For purposes of this section:
``(1) Construction.--The term `construction' includes new
construction and reconstruction and rehabilitation that meets
resilient construction requirements.
``(2) Federally declared major disaster.--The term
`federally declared major disaster' means a disaster
subsequently determined by the President to be a `major
disaster' that warrants assistance by the Federal Government
under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act.
``(3) Disaster area.--The term `disaster area' means the
area so determined to warrant such assistance.
``(4) Most recent editions.--The term `most recent' means,
with respect to relevant national consensus-based codes, and
specifications and standards referenced therein, either of the
two most recent published editions, including, if any,
amendments made by State, local, tribal, or territorial
governments during the adoption process, that incorporate the
latest natural hazard-resistant designs and establish criteria
for the design, construction, and maintenance of structures and
facilities that may be eligible for assistance under this
section for the purposes of protecting the health, safety, and
general welfare of a building's users against disasters.
``(f) 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 property of a
character subject to an allowance for depreciation shall be
treated as a credit listed in section 38(b) for such 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.
``(g) Basis Reduction.--For purposes of this subtitle, the basis of
any property for which a credit is allowable under subsection (a) shall
be reduced by the amount of such credit so allowed.
``(h) Termination.--This section shall not apply to any property
for which a certificate for occupancy is issued after December 31,
2022.''.
(b) Credit Made Part of General Business Credit.--Section 38(b) of
such Code is amended by striking ``plus'' at the end of paragraph (31),
by striking the period at the end of paragraph (32) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(33) the portion of the disaster resilient property
credit described in section 30E(f)(1).''.
(c) Basis Adjustment.--Section 1016(a) of such Code is amended by
striking ``and'' at the end of paragraph (37), by striking the period
at the end of paragraph (38) and inserting ``, and'', and by adding at
the end the following new paragraph:
``(39) to the extent provided in section 30E(g), in the
case of amounts with respect to which a credit has been allowed
under section 30E.''.
(d) Clerical Amendment.--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
item:
``Sec. 30E. Disaster resilient property.''.
(e) Effective Date.--The amendments made by this section shall
apply to property for which a certificate of occupancy is issued after
the date of the enactment of this Act.
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