[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1323 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1323
To amend the Internal Revenue Code of 1986 to provide a refundable
credit against tax for disaster mitigation expenditures.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 8, 2025
Mr. Schiff (for himself and Mr. Sheehy) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a refundable
credit against tax for disaster 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 ``The Facilitating Increased
Resilience, Environmental Weatherization And Lowered Liability
(FIREWALL) Act''.
SEC. 2. REFUNDABLE PERSONAL CREDIT FOR DISASTER 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. 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 50 percent of the qualified
disaster 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) to any taxpayer for any
taxable year shall not exceed the excess of--
``(A) $25,000 (or, in the case of a married
individual filing a separate return, 50 percent of such
amount), over
``(B) the amount of credit allowed to the taxpayer
under this section for all preceding taxable years.
``(2) Phaseout.--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--
``(A) the excess (if any) of--
``(i) the taxpayer's adjusted gross income
for such taxable year, over
``(ii) $200,000, bears to
``(B) $100,000.
``(3) Limitation in the case of joint occupancy.--In the
case of any dwelling unit with respect to which qualified
disaster mitigation expenditures are made and which is jointly
occupied and used during any calendar year as a residence by
two or more individuals, the following rules shall apply:
``(A) Maximum expenditures.--The maximum amount of
such expenditures which may be taken into account under
subsection (a) by all such individuals with respect to
such dwelling unit during such calendar year shall be
$25,000.
``(B) Allocation of expenditures.--The expenditures
allocated to any individual for the taxable year in
which such calendar year ends shall be an amount equal
to the lesser of--
``(i) the amount of expenditures made by
such individual with respect to such dwelling
during such calendar year, or
``(ii) the maximum amount of such
expenditures set forth in subparagraph (A)
multiplied by a fraction--
``(I) the numerator of which is the
amount of such expenditures with
respect to such dwelling made by such
individual during such calendar year,
and
``(II) the denominator of which is
the total expenditures made by all such
individuals with respect to such
dwelling during such calendar year.
``(4) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
after 2025, the $25,000 dollar amounts under paragraphs
(1)(A) and (3), the $200,000 amount under paragraph
(2)(A)(ii), and the $100,000 amount under paragraph (2)
(B) shall each 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 2024'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) 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 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) remove flammable vegetation
within 5 feet of a structure,
``(VI) determine the risk of
natural disasters which may occur in
the area in which the qualified
dwelling unit is located, or
``(VII) prevent smoke inhalation,
such as air filters or other equipment
designed to prevent smoke from entering
the dwelling unit,
``(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, or
``(v) for any other hazard mitigation
activity which has been identified by the
Secretary, in consultation with the
Administrator of the Federal Emergency
Management Agency, for mitigation of a natural
hazard.
``(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, with respect to any taxpayer, a dwelling
unit which is--
``(A) located in any State or territory--
``(i) in which a Federal natural disaster
declaration has been made within the preceding
10-year period with respect to a wildfire,
hurricane, windstorm or flood,
``(ii) which includes an area 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, hurricane, windstorm or
flood which, with respect to the expenditure
described in paragraph (1) which is made by the
taxpayer, is applicable to such expenditure, or
``(iii) which includes an area 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, hurricane,
windstorm or flood, and
``(B) used as the principal residence (within the
meaning of section 121) of the taxpayer.
``(d) Other Rules.--
``(1) 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.
``(2) Denial of double benefit.--No deduction or other
credit shall be allowed for expenditures which have been taken
into account under this section, and the basis of any property
for which a credit is allowed under this section shall be
reduced by the amount of credit allowed.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of the Internal Revenue Code of
1986 is amended by inserting ``, 36C'' after ``36B''.
(2) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``, 36C'' after ``36B''.
(3) 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. Disaster mitigation expenditures.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
<all>