Bill > S3497

This bill, known as the "Shelter Act," amends the Internal Revenue Code of 1986 to provide tax credits for individuals and businesses that make expenditures to mitigate disaster risks. For individuals, it establishes a nonrefundable personal credit of 25% of qualified disaster mitigation expenditures, with an annual limit of $3,750 ($7,500 for joint filers) and a lifetime limit of $15,000 per dwelling unit, subject to an income phaseout for those with adjusted gross income over $100,000. Qualified expenditures include a wide range of improvements to homes and properties to enhance resistance to hazards like wind, fire, and flooding, as well as measures to prevent smoke intrusion. For businesses, it creates a similar 25% credit for qualified disaster mitigation expenditures made at a place of business, with an annual limit of $5,000, phased out for businesses with average gross receipts over $5 million. Both credits apply to expenditures made in areas that have experienced federal disaster declarations or received hazard mitigation assistance from the Federal Emergency Management Agency (FEMA), and the provisions are effective for taxable years beginning after December 31, 2025.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3497/all-info