Bill > HR6763

This bill, known as the "Shelter Act," aims to provide tax credits for individuals and businesses that undertake expenditures to mitigate disaster risks. For individuals, it introduces a nonrefundable personal credit, allowing a tax credit of 25% of qualified disaster mitigation expenditures, with annual limits of $3,750 for individuals and $7,500 for joint filers, and a cumulative limit of $15,000 per dwelling unit over time. These expenditures can include a wide range of improvements to homes, such as strengthening roofs, creating secondary water barriers, improving roof durability, bracing walls, reinforcing connections, protecting openings from debris, elevating structures, sealing basements, and protecting fuel sources, among others, as detailed in FEMA publications and other recognized standards. The credit is subject to an income phaseout, meaning higher earners will receive a reduced credit, and it applies to homes in areas that have received federal disaster declarations or hazard mitigation assistance from the Federal Emergency Management Agency (FEMA). For businesses, a similar credit is available, offering 25% of qualified disaster mitigation expenditures for a place of business, with an annual limit of $5,000, also subject to a phaseout based on average gross receipts. The definition of qualified disaster mitigation expenditures for businesses mirrors that for individuals, but applies to a "place of business" instead of a "dwelling unit," and the business credit cannot be claimed for expenditures already claimed under the individual credit. Both credits are effective for taxable years beginning after December 31, 2025, and allow for unused credit amounts to be carried forward for five years.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/6763/all-info