I 

113TH CONGRESS 

1ST SESSION H. R. 1268 

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

flood mitigation expenses incurred with respect to certain residences 

for which the chargeable premium rate under the national flood insurance 

program is increasing and to provide increased funding for mitigation 

programs. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 19, 2013 

Mr. PALAZZO introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure, Financial Services, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a credit for qualified flood mitigation expenses incurred 

with respect to certain residences for which the chargeable premium rate under the national flood insurance 

program is increasing and to provide increased funding 

for mitigation programs. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Flood Mitigation Ex3 pense Relief Act of 2013’’. 

4 SEC. 2. CREDIT FOR CERTAIN QUALIFIED FLOOD MITIGA5 TION EXPENSES. 

6 (a) IN GENERAL.—Subpart B of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 

8 1986 is amended by adding at the end the following new 

9 section: 

10 ‘‘SEC. 30E. QUALIFIED FLOOD MITIGATION EXPENSES. 

11 ‘‘(a) IN GENERAL.—In the case of a qualified tax12 payer, there shall be allowed as a credit against the tax 

13 imposed by this chapter for the taxable year an amount 

14 equal to the qualified flood mitigation expenses paid or 

15 incurred by the taxpayer for the taxable year. 

16 ‘‘(b) LIMITATIONS.—The amount allowed as a credit 

17 under subsection (a) for a taxable year shall not exceed 

18 $5,000. 

19 ‘‘(c) QUALIFIED TAXPAYER.— 

20 ‘‘(1) IN GENERAL.—For purposes of this sec21 tion, the term ‘qualified taxpayer’ means taxpayer 

22 who— 

23 ‘‘(A) is the holder of a policy for flood in24 surance coverage under the national flood in25 surance program under the National Flood InVerDate Mar 15 2010 00:31 Mar 23, 2013 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1268.IH H1268

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1 surance Act of 1968 (42 U.S.C. 4011 et seq.), 

2 and 

3 ‘‘(B) owns property— 

4 ‘‘(i) which is covered by such policy 

5 for flood insurance coverage under which 

6 the chargeable premium rate as of the date 

7 of the enactment of the Biggert-Waters 

8 Flood Insurance Reform Act of 2012 (title 

9 II of division F of Public Law 112–141) is 

10 less than the applicable estimated risk pre11 mium rate under section 1307(a)(1) of the 

12 National Flood Insurance Act of 1968 (42 

13 U.S.C. 4014(a)(1)) for the area (or sub14 division thereof) in which the property is 

15 located, 

16 ‘‘(ii) for which such chargeable pre17 mium rate was increased or will increase, 

18 as a result of any provision of the Biggert19 Waters Flood Insurance Reform Act of 

20 2012, to the applicable estimated risk pre21 mium rate under such section 1307(a)(1) 

22 for such area (or subdivision), and 

23 ‘‘(iii) which— 

24 ‘‘(I) has an elevation lower than 

25 the base flood elevation, as deterVerDate Mar 15 2010 00:31 Mar 23, 2013 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1268.IH H1268

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1 mined by the applicable flood insur2 ance rate map, or 

3 ‘‘(II) is located in an area that, 

4 after the date of the enactment of the 

5 Biggert-Waters Flood Insurance Re6 form Act of 2012, has been des7 ignated as having a higher flood risk 

8 than the flood risk designated for the 

9 area as of such date of enactment. 

10 ‘‘(2) BUSINESS EMPLOYERS MUST BE SMALL.— 

11 ‘‘(A) IN GENERAL.—In the case of a tax12 payer which is a trade or business, for purposes 

13 of this section the term ‘qualified taxpayer’ 

14 shall not include any taxpayer which employed 

15 an average of more than 50 employees on busi16 ness days during such taxable year. 

17 ‘‘(B) CONTROLLED GROUPS.—For pur18 poses of subparagraph (A), all persons treated 

19 as a single employer under subsection (a) or (b) 

20 of section 52 or subsection (m) or (o) of section 

21 414 shall be treated as a single employer. 

22 ‘‘(d) QUALIFIED FLOOD MITIGATION EXPENSES.— 

23 The term ‘qualified flood mitigation expenses’ shall have 

24 the meaning given such term by the Administrator of the 

25 Federal Emergency Management Agency. 


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1 ‘‘(e) PARTNERSHIP, S CORPORATIONS, AND OTHER

2 PASS-THRU ENTITIES.—In the case of a partnership, 

3 trust, S corporation, or other pass-thru entity, the credit 

4 and limitations contained in this section shall be deter5 mined at the entity level. 

6 ‘‘(f) APPLICATION WITH OTHER CREDITS.— 

7 ‘‘(1) BUSINESS CREDIT TREATED AS PART OF

8 GENERAL BUSINESS CREDIT.—So much of the credit 

9 which would be allowed under subsection (a) for any 

10 taxable year (determined without regard to this sub11 section) that is determined with respect to property 

12 of a character subject to an allowance for deprecia13 tion shall be treated as a credit listed in section 

14 38(b) for such taxable year (and not allowed under 

15 subsection (a)). 

16 ‘‘(2) PERSONAL CREDIT.—For purposes of this 

17 title, the credit allowed under subsection (a) for any 

18 taxable year (determined after application of para19 graph (1)) shall be treated as a credit allowable 

20 under subpart C for such taxable year. 

21 ‘‘(g) TERMINATION.—Subsection (a) shall not apply 

22 to any amount paid or incurred after December 31, 

23 2022.’’. 

24 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 38(b) of the Internal Revenue Code 

2 of 1986 is amended by striking ‘‘plus’’ at the end of 

3 paragraph (35), by striking the period at the end of 

4 section (36) and inserting ‘‘, plus’’, and by inserting 

5 after paragraph (36) the following new paragraph: 

6 ‘‘(37) the portion of the credit for qualified 

7 flood mitigation expenses to which section 30E(f)(1) 

8 applies.’’. 

9 (2) Section 1324(b)(2) of title 31, United 

10 States Code, is amended by inserting ‘‘30E(f)(2),’’ 

11 after ‘‘25A,’’. 

12 (3) The table of sections for subpart B of part 

13 IV of subchapter A of chapter 1 of the Internal Rev14 enue Code of 1986 is amended by adding at the end 

15 the following new item: 

‘‘Sec. 30E. Qualified flood mitigation expenses.’’. 

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

17 this section shall apply to amounts paid or incurred after 

18 December 31, 2012. 

19 SEC. 3. INCREASED FUNDING FOR MITIGATION PROGRAMS. 

20 (a) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated to the Administrator of 

22 the Federal Emergency Management Agency— 

23 (1) $100,000,000 for carrying out the 

24 predisaster hazard mitigation program authorized by 

25 section 203 of the Robert T. Stafford Disaster Relief 


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1 and Emergency Assistance Act (42 U.S.C. 5133); 

2 and 

3 (2) $100,000,000 for carrying out the flood 

4 mitigation assistance program authorized by section 

5 1366 of the National Flood Insurance Act of 1969 

6 (42 U.S.C. 4104c), which shall remain available 

7 until expended. 

8 (b) USE OF FUNDS.—In carrying out the programs 

9 specified in subsection (a) using the amounts made avail10 able to the Administrator under this section, the Adminis11 trator shall ensure that such amounts are used as follows: 

12 (1) ACTIVITIES.—Such amounts may be used 

13 only for— 

14 (A) mitigation activities under such pro15 grams for properties eligible pursuant to para16 graph (2); and 

17 (B) acquisition by States and communities 

18 of properties eligible pursuant to paragraph (2). 

19 (2) PROPERTIES.—Such amounts may be used 

20 only with respect to properties that— 

21 (A) are located in an area for which re22 vised flood insurance rate maps under the na23 tional flood insurance program take effect after 

24 the date of the enactment of the Biggert25 Waters Flood Insurance Reform Act of 2012 


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1 (subtitle A of title II of division F of Public 

2 Law 112–141; 126 Stat. 916); and 

3 (B)(i) have an elevation that is lower than 

4 the base flood elevation for the area in which 

5 the property is located, as determined by the 

6 applicable such flood insurance rate map; or 

7 (ii) are located in an area that, after the 

8 date of the enactment of the Biggert-Waters 

9 Flood Insurance Reform Act of 2012, has been 

10 designated as having a higher flood risk than 

11 the flood risk designated for the area as of such 

12 date of enactment. 

13 SEC. 4. REPEAL OF ENERGY STAR PROGRAM. 

14 The Energy Star program of the United States De15 partment of Energy and the United States Environmental 

16 Protection Agency is hereby terminated and any appro17 priation or amount otherwise made available for such pro18 gram which is not obligated or expended as of the date 

19 of the enactment of this Act is hereby rescinded. 

Æ 


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