II 

111TH CONGRESS 

1ST SESSION S. 1364 

To amend the Internal Revenue Code of 1986 to provide a credit against 

tax for hurricane and tornado mitigation expenditures. 

IN THE SENATE OF THE UNITED STATES 

JUNE 25, 2009 

Mr. MARTINEZ (for himself and Mr. NELSON of Florida) 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 credit against tax for hurricane and tornado mitigation 

expenditures. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Hurricane and Tor5 nado Mitigation Investment Act of 2009’’. 

6 SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR HURRI7 CANE AND TORNADO MITIGATION PROPERTY. 

8 (a) IN GENERAL.—Subpart A of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by inserting after section 25D the fol2 lowing new section: 

3 ‘‘SEC. 25E. HURRICANE AND TORNADO MITIGATION PROP4 ERTY. 

5 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in6 dividual, there shall be allowed as a credit against the tax 

7 imposed by this chapter for the taxable year an amount 

8 equal to 25 percent of the qualified hurricane and tornado 

9 mitigation property expenditures made by the taxpayer 

10 during such taxable year. 

11 ‘‘(b) MAXIMUM CREDIT.—The credit allowed under 

12 subsection (a) for any taxable year shall not exceed 

13 $5,000. 

14 ‘‘(c) QUALIFIED HURRICANE AND TORNADO MITIGA15 TION EXPENDITURE.—For purposes of this section— 

16 ‘‘(1) IN GENERAL.—The term ‘qualified hurri17 cane and tornado mitigation property expenditure’ 

18 means an expenditure for property— 

19 ‘‘(A) to improve the strength of a roof 

20 deck attachment, 

21 ‘‘(B) to create a secondary water barrier to 

22 prevent water intrusion, 

23 ‘‘(C) to improve the durability of a roof 

24 covering, 

25 ‘‘(D) to brace gable-end walls, 


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1 ‘‘(E) to reinforce the connection between a 

2 roof and supporting wall, 

3 ‘‘(F) to protect openings from penetration 

4 by windborne debris, or 

5 ‘‘(G) to protect exterior doors and garages, 

6 in a qualified dwelling unit owned by the taxpayer. 

7 ‘‘(2) QUALIFIED DWELLING UNIT.—The term 

8 ‘qualified dwelling unit’ means a dwelling unit that 

9 is assessed at a value that is less than $1,000,000 

10 by the locality in which such dwelling unit is located 

11 and with respect to the taxable year for which the 

12 credit described in subsection (a) is allowed. 

13 ‘‘(d) LIMITATION.—An expenditure shall be taken 

14 into account in determining the qualified hurricane and 

15 tornado mitigation property expenditures made by the tax16 payer during the taxable year only if the onsite prepara17 tion, assembly, or original installation of the property with 

18 respect to which such expenditure is made has been com19 pleted in a manner that is deemed to be adequate by a 

20 State-certified inspector. 

21 ‘‘(e) LABOR COSTS.—For purposes of this section, 

22 expenditures for labor costs properly allocable to the onsite 

23 preparation, assembly, or original installation of the prop24 erty described in subsection (c) shall be taken into account 

25 in determining the qualified hurricane and tornado mitigaVerDate Nov 24 2008 04:19 Jun 26, 2009 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1364.IS S1364

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1 tion property expenditures made by the taxpayer during 

2 the taxable year. 

3 ‘‘(f) INSPECTION COSTS.—For purposes of this sec4 tion, expenditures for inspection costs properly allocable 

5 to the inspection of the preparation, assembly, or installa6 tion of the property described in subsection (c) shall be 

7 taken into account in determining the qualified hurricane 

8 and tornado mitigation property expenditures made by the 

9 taxpayer during the taxable year.’’. 

10 (b) CONFORMING AMENDMENT.—The table of sec11 tions for subpart A of part IV of subchapter A of chapter 

12 1 of such Code is amended by inserting after the item 

13 relating to section 25D the following new item: 

‘‘Sec. 25E. Hurricane and tornado mitigation property.’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 December 31, 2009. 

17 SEC. 3. BUSINESS RELATED CREDIT FOR HURRICANE AND 

18 TORNADO MITIGATION. 

19 (a) IN GENERAL.—Subpart D of part IV of sub20 chapter A of chapter 1 of the Internal Revenue Code of 

21 1986 is amended by inserting after section 45Q the fol22 lowing new section: 


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1 ‘‘SEC. 45R. HURRICANE AND TORNADO MITIGATION CRED2 IT. 

3 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

4 the hurricane and tornado mitigation credit determined 

5 under this section for any taxable year is an amount equal 

6 to 25 percent of the qualified hurricane and tornado miti7 gation property expenditures made by the taxpayer during 

8 the taxable year. 

9 ‘‘(b) MAXIMUM CREDIT.—The amount of the credit 

10 determined under subsection (a) for any taxable year shall 

11 not exceed $5,000. 

12 ‘‘(c) QUALIFIED HURRICANE AND TORNADO MITIGA13 TION EXPENDITURE.—For purposes of this section— 

14 ‘‘(1) IN GENERAL.—The term ‘qualified hurri15 cane and tornado mitigation property expenditure’ 

16 means an expenditure for property— 

17 ‘‘(A) to improve the strength of a roof 

18 deck attachment, 

19 ‘‘(B) to create a secondary water barrier to 

20 prevent water intrusion, 

21 ‘‘(C) to improve the durability of a roof 

22 covering, 

23 ‘‘(D) to brace gable-end walls, 

24 ‘‘(E) to reinforce the connection between a 

25 roof and supporting wall, 


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1 ‘‘(F) to protect openings from penetration 

2 by windborne debris, or 

3 ‘‘(G) to protect exterior doors and garages, 

4 in a qualified place of business owned by the tax5 payer. 

6 ‘‘(2) QUALIFIED PLACE OF BUSINESS.—The 

7 term ‘qualified place of business’ means a place of 

8 business that is assessed at a value that is less than 

9 $5,000,000 by the locality in which such business is 

10 located and with respect to the taxable year for 

11 which the credit described in subsection (a) is al12 lowed. 

13 ‘‘(d) LIMITATION.—An expenditure shall be taken 

14 into account in determining the qualified hurricane and 

15 tornado mitigation property expenditures made by the tax16 payer during the taxable year only if the onsite prepara17 tion, assembly, or original installation of the property with 

18 respect to which such expenditure is made has been com19 pleted in a manner that is deemed to be adequate by a 

20 State-certified inspector. 

21 ‘‘(e) LABOR COSTS.—For purposes of this section, 

22 expenditures for labor costs properly allocable to the onsite 

23 preparation, assembly, or original installation of the prop24 erty described in subsection (c) shall be taken into account 

25 in determining the qualified hurricane and tornado mitigaVerDate Nov 24 2008 04:19 Jun 26, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1364.IS S1364

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1 tion property expenditures made by the taxpayer during 

2 the taxable year. 

3 ‘‘(f) INSPECTION COSTS.—For purposes of this sec4 tion, expenditures for inspection costs properly allocable 

5 to the inspection of the preparation, assembly, or installa6 tion of the property described in subsection (c) shall be 

7 taken into account in determining the qualified hurricane 

8 and tornado mitigation property expenditures made by the 

9 taxpayer during the taxable year.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 38(b) of such Code is amended by 

12 striking ‘‘plus’’ at the end of paragraph (34), by 

13 striking the period at the end of paragraph (35) and 

14 inserting ‘‘, plus’’, and by adding at the end the fol15 lowing new paragraph: 

16 ‘‘(36) the hurricane and tornado mitigation 

17 credit determined under section 45R(a).’’. 

18 (2) The table of sections for subpart D of part 

19 IV of subchapter A of chapter 1 of such Code is 

20 amended by inserting after the item relating to sec21 tion 45Q the following new item: 

‘‘Sec. 45R. Hurricane and tornado mitigation credit.’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years beginning after 

24 December 31, 2009. 

Æ 


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