I 

114TH CONGRESS 

1ST SESSION H. R. 2746 

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

tax for hurricane and tornado mitigation expenditures. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 12, 2015 

Mr. BILIRAKIS (for himself, Mr. COLE, Ms. BROWN of Florida, and Mr. DIAZBALART) 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 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 ‘‘Strengthening Homes 

5 and Eliminating Liabilities Through Encouraging Readi6 ness Act’’ or the ‘‘SHELTER Act’’. 


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1 SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR HURRI2 CANE AND TORNADO MITIGATION PROPERTY. 

3 (a) IN GENERAL.—Subpart A of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 is amended by inserting after section 25D the fol6 lowing new section: 

7 ‘‘SEC. 25E. HURRICANE AND TORNADO MITIGATION PROP8 ERTY. 

9 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in10 dividual, there shall be allowed as a credit against the tax 

11 imposed by this chapter for the taxable year an amount 

12 equal to 25 percent of the qualified hurricane and tornado 

13 mitigation property expenditures made by the taxpayer 

14 during such taxable year. 

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

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

17 $5,000. 

18 ‘‘(c) QUALIFIED HURRICANE AND TORNADO MITIGA19 TION EXPENDITURE.—For purposes of this section— 

20 ‘‘(1) IN GENERAL.—The term ‘qualified hurri21 cane and tornado mitigation property expenditure’ 

22 means an expenditure for property— 

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

24 deck attachment, 

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

26 prevent water intrusion, 


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

2 covering, 

3 ‘‘(D) to brace gable-end walls, 

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

5 roof and supporting wall, 

6 ‘‘(F) to protect openings from penetration 

7 by windborne debris, or 

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

9 in a qualified dwelling unit located in the United 

10 States and owned by the taxpayer. 

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

12 ‘qualified dwelling unit’ means a dwelling unit that 

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

14 by the locality in which such dwelling unit is located 

15 and with respect to the taxable year for which the 

16 credit described in subsection (a) is allowed. 

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

18 into account in determining the qualified hurricane and 

19 tornado mitigation property expenditures made by the tax20 payer during the taxable year only if the onsite prepara21 tion, assembly, or original installation of the property with 

22 respect to which such expenditure is made has been com23 pleted in a manner that is deemed to be adequate by a 

24 State-certified inspector. 


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

2 expenditures for labor costs properly allocable to the onsite 

3 preparation, assembly, or original installation of the prop4 erty described in subsection (c) shall be taken into account 

5 in determining the qualified hurricane and tornado mitiga6 tion property expenditures made by the taxpayer during 

7 the taxable year. 

8 ‘‘(f) INSPECTION COSTS.—For purposes of this sec9 tion, expenditures for inspection costs properly allocable 

10 to the inspection of the preparation, assembly, or installa11 tion of the property described in subsection (c) shall be 

12 taken into account in determining the qualified hurricane 

13 and tornado mitigation property expenditures made by the 

14 taxpayer during the taxable year.’’. 

15 (b) CONFORMING AMENDMENT.—The table of sec16 tions for subpart A of part IV of subchapter A of chapter 

17 1 of such Code is amended by inserting after the item 

18 relating to section 25D the following new item: 

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

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

20 this section shall apply to taxable years beginning after 

21 December 31, 2014. 

22 SEC. 3. BUSINESS-RELATED CREDIT FOR HURRICANE AND 

23 TORNADO MITIGATION. 

24 (a) IN GENERAL.—Subpart D of part IV of sub25 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by inserting after section 45R the fol2 lowing new section: 

3 ‘‘SEC. 45S. HURRICANE AND TORNADO MITIGATION CRED4 IT. 

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

6 the hurricane and tornado mitigation credit determined 

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

8 to 25 percent of the qualified hurricane and tornado miti9 gation property expenditures made by the taxpayer during 

10 the taxable year. 

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

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

13 not exceed $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 place of business located in the United 

7 States and owned by the taxpayer. 

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

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

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

11 $5,000,000 by the locality in which such business is 

12 located and with respect to the taxable year for 

13 which the credit described in subsection (a) is al14 lowed. 

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

16 into account in determining the qualified hurricane and 

17 tornado mitigation property expenditures made by the tax18 payer during the taxable year only if the onsite prepara19 tion, assembly, or original installation of the property with 

20 respect to which such expenditure is made has been com21 pleted in a manner that is deemed to be adequate by a 

22 State-certified inspector. 

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

24 expenditures for labor costs properly allocable to the onsite 

25 preparation, assembly, or original installation of the propVerDate Sep 11 2014 01:09 Jun 17, 2015 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2746.IH H2746

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1 erty described in subsection (c) shall be taken into account 

2 in determining the qualified hurricane and tornado mitiga3 tion property expenditures made by the taxpayer during 

4 the taxable year. 

5 ‘‘(f) INSPECTION COSTS.—For purposes of this sec6 tion, expenditures for inspection costs properly allocable 

7 to the inspection of the preparation, assembly, or installa8 tion of the property described in subsection (c) shall be 

9 taken into account in determining the qualified hurricane 

10 and tornado mitigation property expenditures made by the 

11 taxpayer during the taxable year.’’. 

12 (b) CONFORMING AMENDMENTS.— 

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

14 striking ‘‘plus’’ at the end of paragraph (35), by 

15 striking the period at the end of paragraph (36) and 

16 inserting ‘‘, plus’’, and by adding at the end the fol17 lowing new paragraph: 

18 ‘‘(37) the hurricane and tornado mitigation 

19 credit determined under section 45S(a).’’. 

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

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

22 amended by inserting after the item relating to sec23 tion 45R the following new item: 

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


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2014. 

Æ 


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