I 

112TH CONGRESS 

1ST SESSION H. R. 2099 

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

tax for natural disaster mitigation expenditures. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 2, 2011 

Mr. ROONEY (for himself, Mr. THOMPSON of Mississippi, Mr. WEST, and Mr. 

BONNER) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a credit against tax for natural disaster 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 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Natural Disaster Mitigation Act of 2011’’. 

6 SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR NAT7 URAL DISASTER 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. NATURAL DISASTER MITIGATION PROPERTY. 

4 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in5 dividual, there shall be allowed as a credit against the tax 

6 imposed by this chapter for the taxable year an amount 

7 equal to 25 percent of the qualified natural disaster miti8 gation property expenditures made by the taxpayer during 

9 such taxable year in connection with a qualified principal 

10 residence of the taxpayer. 

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

12 subsection (a) with respect to any principal residence of 

13 the taxpayer for any taxable year shall not exceed the ex14 cess of— 

15 ‘‘(1) $5,000 (half such amount in the case of a 

16 married individual filing a separate return), over 

17 ‘‘(2) the aggregate amounts allowed as a credit 

18 under this section to the taxpayer (or the taxpayer’s 

19 spouse) with respect to such residence for all prior 

20 taxable years. 

21 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—In 

22 the case of a taxable year to which section 26(a)(2) does 

23 not apply, the credit allowed under subsection (a) for any 

24 taxable year shall not exceed the excess of— 


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1 ‘‘(1) the sum of the regular tax liability (as de2 fined in section 26(b)) plus the tax imposed by sec3 tion 55, over 

4 ‘‘(2) the sum of the credits allowable under this 

5 subpart (other than this section and sections 23, 24, 

6 and 25B) and section 27 for the taxable year. 

7 ‘‘(d) QUALIFIED NATURAL DISASTER MITIGATION

8 PROPERTY EXPENDITURE.—For purposes of this section, 

9 the term ‘qualified natural disaster mitigation property ex10 penditure’ means an expenditure for— 

11 ‘‘(1) property to improve the strength of a roof 

12 deck attachment, 

13 ‘‘(2) property to create a secondary water bar14 rier to prevent water intrusion, 

15 ‘‘(3) property to improve the durability of a 

16 roof covering, 

17 ‘‘(4) property to brace gable-end walls, 

18 ‘‘(5) property to reinforce the connection be19 tween a roof and supporting wall, 

20 ‘‘(6) property to protect openings from penetra21 tion by windborne debris, 

22 ‘‘(7) property to protect exterior doors and ga23 rages, 

24 ‘‘(8) property to improve the natural resiliency 

25 of the property, including the restoration, establishVerDate Mar 15 2010 01:32 Jun 08, 2011 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2099.IH H2099

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1 ment, or enhancement of aquatic resources (having 

2 the meanings given such terms by part 332 of title 

3 33 of the Code of Federal Regulations), as pre4 scribed by the Secretary after consultation with the 

5 Administrator of the Environmental Protection 

6 Agency and the Assistant Secretary of the Army for 

7 Civil Works, 

8 ‘‘(9) seismic retrofitting, including property to 

9 increase resistance to seismic activity, ground mo10 tion, or soil failure due to earthquakes, or 

11 ‘‘(10) such other measures to mitigate natural 

12 disaster damage to homes, as prescribed by the Sec13 retary after consultation with the Administrator of 

14 the Federal Emergency Management Agency and, to 

15 the extent applicable, in accordance with section 

16 12(d) of the National Technology Transfer and Ad17 vancement Act of 1995 (15 U.S.C. 272 note; Public 

18 Law 104–113). 

19 ‘‘(e) QUALIFIED PRINCIPAL RESIDENCE.—For pur20 poses of this section, the term ‘qualified pricnipal resi21 dence’ means the principal residence of the taxpayer (with22 in the meaning of section 121) if such residence— 

23 ‘‘(1) is assessed by the locality in which it is lo24 cated at a value which does not exceed 300 percent 

25 of the national median home price (determined as of 


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1 the close of the taxable year for which the credit de2 termined under this section is allowed), and 

3 ‘‘(2) is not severe repetitive loss property (as 

4 defined in section 1361A of the National Flood In5 surance Act (42 U.S.C. 4102a(b))). 

6 ‘‘(f) RULES RELATED TO INSPECTIONS AND LABOR

7 COSTS.—For purposes of this section— 

8 ‘‘(1) INSPECTION REQUIREMENT.—An expendi9 ture shall be taken into account in determining the 

10 qualified natural disaster mitigation property ex11 penditures made by the taxpayer during the taxable 

12 year only if the installation of the property with re13 spect to which such expenditure is made has been 

14 completed in a manner that is deemed to be ade15 quate by an inspector that is licensed or certified by 

16 the State or other governmental authority, or its 

17 designee, having jurisdiction over inspectors in the 

18 area where the installed property is located. 

19 ‘‘(2) LABOR AND INSPECTION COSTS.—For pur20 poses of this section, expenditures for labor costs 

21 properly allocable to the onsite preparation, assem22 bly, or original installation of the property described 

23 in subsection (d) (including the cost of inspections 

24 referred to in paragraph (1)) shall be taken into ac25 count in determining the qualified natural disaster 


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1 mitigation property expenditures made by the tax2 payer during the taxable year. 

3 ‘‘(g) BASIS ADJUSTMENT.—For purposes of this sec4 tion, if a credit is allowed under this section for any ex5 penditure with respect to any property, the increase in the 

6 basis of such property which would (but for this sub7 section) result from such expenditure shall be reduced by 

8 the amount of the credit so allowed.’’. 

9 (b) CONFORMING AMENDMENT.—The table of sec10 tions for subpart A of part IV of subchapter A of chapter 

11 1 of such Code is amended by inserting after the item 

12 relating to section 25D the following new item: 

‘‘Sec. 25E. Natural disaster mitigation property.’’. 

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

14 this section shall apply to taxable years beginning after 

15 December 31, 2011. 

Æ 


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