Flood Mitigation Expense Relief Act of 2013

Summary: Flood Mitigation Expense Relief Act of 2013 - Amends the Internal Revenue Code to allow qualified taxpayers a tax credit, up to $5,000 in a taxable year, for flood mitigation expenses. Defines &quot;qualified taxpayer&quot; as: (1) a taxpayer who is the holder of a flood insurance policy under the National Flood Insurance Act of 1968 and who owns insured property for which the chargeable premium rate under such policy was increased or will increase and which has an elevation lower than the base flood elevation or is located in an area designated as having a higher flood risk, and (2) a small business with 50 or fewer employees. Terminates such credit after 2022.  Authorizes appropriations to the Administrator of the Federal Emergency Management Agency (FEMA) to carry out: (1) the predisaster hazard mitigation program authorized by the Robert T. Stafford Disaster Relief and Emergency Assistance Act, and (2) the flood mitigation assistance program authorized by the National Flood Insurance Act of 1969. Specifies that such funds may be used only for mitigation activities and acquisition by states and communities of properties located in higher flood risk areas.  Terminates the Energy Star program of the Department of Energy (DOE) and the Environmental Protection Agency (EPA) and rescinds any amounts not obligated or expended for such program. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flood Mitigation Expense Relief Act 
of 2013''.

SEC. 2. CREDIT FOR CERTAIN QUALIFIED FLOOD MITIGATION EXPENSES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30E. QUALIFIED FLOOD MITIGATION EXPENSES.

    ``(a) In General.--In the case of a qualified taxpayer, there shall 
be allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to the qualified flood mitigation expenses 
paid or incurred by the taxpayer for the taxable year.
    ``(b) Limitations.--The amount allowed as a credit under subsection 
(a) for a taxable year shall not exceed $5,000.
    ``(c) Qualified Taxpayer.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified taxpayer' means taxpayer who--
                    ``(A) is the holder of a policy for flood insurance 
                coverage under the national flood insurance program 
                under the National Flood Insurance Act of 1968 (42 
                U.S.C. 4011 et seq.), and
                    ``(B) owns property--
                            ``(i) which is covered by such policy for 
                        flood insurance coverage under which the 
                        chargeable premium rate as of the date of the 
                        enactment of the Biggert-Waters Flood Insurance 
                        Reform Act of 2012 (title II of division F of 
                        Public Law 112-141) is less than the applicable 
                        estimated risk premium rate under section 
                        1307(a)(1) of the National Flood Insurance Act 
                        of 1968 (42 U.S.C. 4014(a)(1)) for the area (or 
                        subdivision thereof) in which the property is 
                        located,
                            ``(ii) for which such chargeable premium 
                        rate was increased or will increase, as a 
                        result of any provision of the Biggert-Waters 
                        Flood Insurance Reform Act of 2012, to the 
                        applicable estimated risk premium rate under 
                        such section 1307(a)(1) for such area (or 
                        subdivision), and
                            ``(iii) which--
                                    ``(I) has an elevation lower than 
                                the base flood elevation, as determined 
                                by the applicable flood insurance rate 
                                map, or
                                    ``(II) is located in an area that, 
                                after the date of the enactment of the 
                                Biggert-Waters Flood Insurance Reform 
                                Act of 2012, has been designated as 
                                having a higher flood risk than the 
                                flood risk designated for the area as 
                                of such date of enactment.
            ``(2) Business employers must be small.--
                    ``(A) In general.--In the case of a taxpayer which 
                is a trade or business, for purposes of this section 
                the term `qualified taxpayer' shall not include any 
                taxpayer which employed an average of more than 50 
                employees on business days during such taxable year.
                    ``(B) Controlled groups.--For purposes of 
                subparagraph (A), all persons treated as a single 
                employer under subsection (a) or (b) of section 52 or 
                subsection (m) or (o) of section 414 shall be treated 
                as a single employer.
    ``(d) Qualified Flood Mitigation Expenses.--The term `qualified 
flood mitigation expenses' shall have the meaning given such term by 
the Administrator of the Federal Emergency Management Agency.
    ``(e) Partnership, S Corporations, and Other Pass-Thru Entities.--
In the case of a partnership, trust, S corporation, or other pass-thru 
entity, the credit and limitations contained in this section shall be 
determined at the entity level.
    ``(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 determined with respect 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 C for such taxable 
        year.
    ``(g) Termination.--Subsection (a) shall not apply to any amount 
paid or incurred after December 31, 2022.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986 is 
        amended by striking ``plus'' at the end of paragraph (35), by 
        striking the period at the end of section (36) and inserting 
        ``, plus'', and by inserting after paragraph (36) the following 
        new paragraph:
            ``(37) the portion of the credit for qualified flood 
        mitigation expenses to which section 30E(f)(1) applies.''.
            (2) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``30E(f)(2),'' after ``25A,''.
            (3) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by adding at the end the following new item:

``Sec. 30E. Qualified flood mitigation expenses.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2012.

SEC. 3. INCREASED FUNDING FOR MITIGATION PROGRAMS.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator of the Federal Emergency Management 
Agency--
            (1) $100,000,000 for carrying out the predisaster hazard 
        mitigation program authorized by section 203 of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act (42 
        U.S.C. 5133); and
            (2) $100,000,000 for carrying out the flood mitigation 
        assistance program authorized by section 1366 of the National 
        Flood Insurance Act of 1969 (42 U.S.C. 4104c), which shall 
        remain available until expended.
    (b) Use of Funds.--In carrying out the programs specified in 
subsection (a) using the amounts made available to the Administrator 
under this section, the Administrator shall ensure that such amounts 
are used as follows:
            (1) Activities.--Such amounts may be used only for--
                    (A) mitigation activities under such programs for 
                properties eligible pursuant to paragraph (2); and
                    (B) acquisition by States and communities of 
                properties eligible pursuant to paragraph (2).
            (2) Properties.--Such amounts may be used only with respect 
        to properties that--
                    (A) are located in an area for which revised flood 
                insurance rate maps under the national flood insurance 
                program take effect after the date of the enactment of 
                the Biggert-Waters Flood Insurance Reform Act of 2012 
                (subtitle A of title II of division F of Public Law 
                112-141; 126 Stat. 916); and
                    (B)(i) have an elevation that is lower than the 
                base flood elevation for the area in which the property 
                is located, as determined by the applicable such flood 
                insurance rate map; or
                    (ii) are located in an area that, after the date of 
                the enactment of the Biggert-Waters Flood Insurance 
                Reform Act of 2012, has been designated as having a 
                higher flood risk than the flood risk designated for 
                the area as of such date of enactment.

SEC. 4. REPEAL OF ENERGY STAR PROGRAM.

    The Energy Star program of the United States Department of Energy 
and the United States Environmental Protection Agency is hereby 
terminated and any appropriation or amount otherwise made available for 
such program which is not obligated or expended as of the date of the 
enactment of this Act is hereby rescinded.