SHELTER Act

Summary:  Strengthening Homes and Eliminating Liabilities Through Encouraging Readiness Act or the SHELTER Act Amends the Internal Revenue Code to allow individual and business taxpayers a tax credit for 25% of their qualified hurricane and tornado mitigation property expenditures up to $5,000 for any taxable year. Defines such expenditures as expenditures in a dwelling unit or place of business for property to improve the strength of a roof deck attachment, create a secondary water barrier, improve the durability of a roof covering, brace gable-end walls, reinforce the connections between a roof and supporting wall, protect against windborne debris, or protect exterior doors and garages.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strengthening Homes and Eliminating 
Liabilities Through Encouraging Readiness Act'' or the ``SHELTER Act''.

SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR HURRICANE AND TORNADO 
              MITIGATION PROPERTY.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25D the following new section:

``SEC. 25E. HURRICANE AND TORNADO MITIGATION PROPERTY.

    ``(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 25 percent of the qualified 
hurricane and tornado mitigation property expenditures made by the 
taxpayer during such taxable year.
    ``(b) Maximum Credit.--The credit allowed under subsection (a) for 
any taxable year shall not exceed $5,000.
    ``(c) Qualified Hurricane and Tornado Mitigation Expenditure.--For 
purposes of this section--
            ``(1) In general.--The term `qualified hurricane and 
        tornado mitigation property expenditure' means an expenditure 
        for property--
                    ``(A) to improve the strength of a roof deck 
                attachment,
                    ``(B) to create a secondary water barrier to 
                prevent water intrusion,
                    ``(C) to improve the durability of a roof covering,
                    ``(D) to brace gable-end walls,
                    ``(E) to reinforce the connection between a roof 
                and supporting wall,
                    ``(F) to protect openings from penetration by 
                windborne debris, or
                    ``(G) to protect exterior doors and garages,
        in a qualified dwelling unit located in the United States and 
        owned by the taxpayer.
            ``(2) Qualified dwelling unit.--The term `qualified 
        dwelling unit' means a dwelling unit that is assessed at a 
        value that is less than $1,000,000 by the locality in which 
        such dwelling unit is located and with respect to the taxable 
        year for which the credit described in subsection (a) is 
        allowed.
    ``(d) Limitation.--An expenditure shall be taken into account in 
determining the qualified hurricane and tornado mitigation property 
expenditures made by the taxpayer during the taxable year only if the 
onsite preparation, assembly, or original installation of the property 
with respect to which such expenditure is made has been completed in a 
manner that is deemed to be adequate by a State-certified inspector.
    ``(e) Labor Costs.--For purposes of this section, expenditures for 
labor costs properly allocable to the onsite preparation, assembly, or 
original installation of the property described in subsection (c) shall 
be taken into account in determining the qualified hurricane and 
tornado mitigation property expenditures made by the taxpayer during 
the taxable year.
    ``(f) Inspection Costs.--For purposes of this section, expenditures 
for inspection costs properly allocable to the inspection of the 
preparation, assembly, or installation of the property described in 
subsection (c) shall be taken into account in determining the qualified 
hurricane and tornado mitigation property expenditures made by the 
taxpayer during the taxable year.''.
    (b) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25D the following new 
item:

``Sec. 25E. Hurricane and tornado mitigation property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

SEC. 3. BUSINESS-RELATED CREDIT FOR HURRICANE AND TORNADO MITIGATION.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 45R the following new section:

``SEC. 45S. HURRICANE AND TORNADO MITIGATION CREDIT.

    ``(a) General Rule.--For purposes of section 38, the hurricane and 
tornado mitigation credit determined under this section for any taxable 
year is an amount equal to 25 percent of the qualified hurricane and 
tornado mitigation property expenditures made by the taxpayer during 
the taxable year.
    ``(b) Maximum Credit.--The amount of the credit determined under 
subsection (a) for any taxable year shall not exceed $5,000.
    ``(c) Qualified Hurricane and Tornado Mitigation Expenditure.--For 
purposes of this section--
            ``(1) In general.--The term `qualified hurricane and 
        tornado mitigation property expenditure' means an expenditure 
        for property--
                    ``(A) to improve the strength of a roof deck 
                attachment,
                    ``(B) to create a secondary water barrier to 
                prevent water intrusion,
                    ``(C) to improve the durability of a roof covering,
                    ``(D) to brace gable-end walls,
                    ``(E) to reinforce the connection between a roof 
                and supporting wall,
                    ``(F) to protect openings from penetration by 
                windborne debris, or
                    ``(G) to protect exterior doors and garages,
        in a qualified place of business located in the United States 
        and owned by the taxpayer.
            ``(2) Qualified place of business.--The term `qualified 
        place of business' means a place of business that is assessed 
        at a value that is less than $5,000,000 by the locality in 
        which such business is located and with respect to the taxable 
        year for which the credit described in subsection (a) is 
        allowed.
    ``(d) Limitation.--An expenditure shall be taken into account in 
determining the qualified hurricane and tornado mitigation property 
expenditures made by the taxpayer during the taxable year only if the 
onsite preparation, assembly, or original installation of the property 
with respect to which such expenditure is made has been completed in a 
manner that is deemed to be adequate by a State-certified inspector.
    ``(e) Labor Costs.--For purposes of this section, expenditures for 
labor costs properly allocable to the onsite preparation, assembly, or 
original installation of the property described in subsection (c) shall 
be taken into account in determining the qualified hurricane and 
tornado mitigation property expenditures made by the taxpayer during 
the taxable year.
    ``(f) Inspection Costs.--For purposes of this section, expenditures 
for inspection costs properly allocable to the inspection of the 
preparation, assembly, or installation of the property described in 
subsection (c) shall be taken into account in determining the qualified 
hurricane and tornado mitigation property expenditures made by the 
taxpayer during the taxable year.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended by striking 
        ``plus'' at the end of paragraph (35), by striking the period 
        at the end of paragraph (36) and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(37) the hurricane and tornado mitigation credit 
        determined under section 45S(a).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 45R the following new item:

``Sec. 45S. Hurricane and tornado mitigation credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.