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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3427 Introduced in Senate (IS)]

110th CONGRESS
  2d Session
                                S. 3427

  To amend the Internal Revenue Code of 1986 to provide a credit for 
  hurricane mitigation expenditures, and to provide a credit for the 
   increased insurance premiums of certain homeowners as a result of 
                           hurricane events.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2008

  Mr. Wicker (for himself, Mr. Cochran, Mr. Martinez, and Mr. Vitter) 
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 for 
  hurricane mitigation expenditures, and to provide a credit for the 
   increased insurance premiums of certain homeowners as a result of 
                           hurricane events.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Costal Homeowners Assistance Act''.

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

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
chapter an amount equal to 25 percent of the qualified hurricane 
mitigation property expenditures made by the taxpayer during the 
taxable year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed under subsection 
        (a) shall not exceed the excess (if any) of $5,000 over the 
        aggregate credits allowed under this section with respect to 
        such taxpayer for all prior taxable years.
            ``(2) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for any taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section and section 23) for 
                the taxable year.
    ``(c) Eligible Individual.--For purposes of this section, the term 
`eligible individual' means any taxpayer whose principal residence is a 
qualified dwelling unit located in--
            ``(1) an area determined by the President to warrant 
        individual or individual and public assistance from the Federal 
        Government under the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act by reason of 1 or more hurricanes 
        during 2004 or 2005, or
            ``(2) a county located in a State which borders the 
        Atlantic Ocean or the Gulf of Mexico.
    ``(d) Qualified Hurricane Mitigation Property Expenditures.--For 
purposes of this section--
            ``(1) In general.--The term `qualified hurricane mitigation 
        property expenditures' 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,
                    ``(G) to protect exterior doors and garages, or
                    ``(H) to achieve such other mitigation purposes as 
                prescribed in regulations by the Secretary after 
                consultation with the Administrator of the Federal 
                Emergency Management Agency,
        in the principal residence of the taxpayer.
            ``(2) Limitation.--An expenditure shall be taken into 
        account in determining the qualified hurricane 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.
            ``(3) Labor costs.--Expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of the property described in paragraph (1) shall 
        be taken into account in determining the qualified hurricane 
        mitigation property expenditures made by the taxpayer during 
        the taxable year.
            ``(4) Inspection costs.--Expenditures for inspection costs 
        properly allocable to the inspection of the preparation, 
        assembly, or installation of the property described in 
        paragraph (1) shall be taken into account in determining the 
        qualified hurricane mitigation property expenditures made by 
        the taxpayer during the taxable year.
    ``(e) Other Definitions.--For purposes of this section--
            ``(1) Principal residence.--The term `principal residence' 
        has the same meaning as when used in section 121.
            ``(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.''.
    (b) Conforming Amendments.--
            (1) Section 24(b)(3)(B) of the Internal Revenue Code of 
        1986 is amended by striking ``and 25B'' and inserting ``, 25B, 
        and 25E''.
            (2) Section 25(e)(1)(C)(ii) of such Code is amended by 
        inserting ``25E,'' after ``25D,''.
            (3) Section 25B(g)(2) of such Code is amended by striking 
        ``section 23'' and inserting ``sections 23 and 25E''.
            (4) Section 25D(c)(2) of such Code is amended by striking 
        ``and 25B'' and inserting ``25B, and 25E''.
            (5) Section 26(a)(1) of such Code is amended by striking 
        ``and 25B'' and inserting ``25B, and 25E''.
            (6) Section 904(i) of such Code is amended by striking 
        ``and 25B'' and inserting ``25B, and 25E''.
            (7) Section 1400C(d)(2) of such Code is amended by striking 
        ``and 25D'' and inserting ``25D, and 25E''.
    (c) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25D the 
following new item:

``Sec. 25E. Hurricane mitigation property.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 3. CREDIT FOR HOME INSURANCE PREMIUM INCREASES.

    (a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by chapter 1 
of the Internal Revenue Code of 1986 for the first taxable year after 
the date of the enactment of this section an amount equal to 50 percent 
of the qualified homeowners insurance premium increases.
    (b) Maximum Credit.--The credit allowed under subsection (a) shall 
not exceed $5,000.
    (c) Eligible Individual.--For purposes of this section, the term 
``eligible individual'' means any taxpayer--
            (1) whose principal residence, as of the last day of the 
        taxable year, is a qualified dwelling unit located in--
                    (A) an area determined by the President to warrant 
                individual or individual and public assistance from the 
                Federal Government under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act by reason 
                of 1 or more hurricanes during 2004 or 2005, or
                    (B) a county--
                            (i) located in a State which borders the 
                        Atlantic Ocean or the Gulf of Mexico, and
                            (ii) which is determined by the Secretary 
                        to have experienced a higher than average 
                        increase in premiums for homeowners insurance 
                        during 2004, 2005, or 2006 due to hurricane 
                        risk, and
            (2) whose principal residence, as of the applicable date, 
        was located--
                    (A) in an area or county described in paragraph 
                (1), and
                    (B) within 100 miles of such taxpayer's principal 
                residence as of the last day of the taxable year.
    (d) Qualified Homeowners Insurance Premium Increase.--For purposes 
of this section--
            (1) In general.--The term ``qualified homeowners insurance 
        premium increase'' means, with respect to any eligible 
        individual, the amount equal to the qualifying percentage of 
        the premium for homeowners insurance in effect on the third 
        policy anniversary date following the applicable date.
            (2) Qualifying percentage.--The term ``qualifying 
        percentage'' means the amount equal to the excess (expressed in 
        percentage points) of--
                    (A) the increase in the premium for homeowners 
                insurance of the eligible individual between the date 
                of the last policy anniversary before the applicable 
                date and the third policy anniversary date following 
                the applicable date, over
                    (B) a 100 percent increase in the premium for such 
                homeowners insurance between the same dates.
    (e) Other Definitions.--For purposes of this section--
            (1) Applicable date.--The term ``applicable date'' means--
                    (A) with respect to any individual whose principal 
                residence is located in an area described in subsection 
                (c)(1)(A), the day before the determination described 
                in such subsection, and
                    (B) with respect to any individual whose principal 
                residence is located in a county described in 
                subsection (c)(1)(B), September 1, 2005.
            (2) Homeowners insurance.--The term ``homeowners 
        insurance'' means any insurance covering a principal residence. 
        Such term includes coverage of a principal residence with 
        respect to wind damage through a State-run wind pool.
            (3) Principal residence.--The term ``principal residence'' 
        has the same meaning as when used in section 121 of the 
        Internal Revenue Code of 1986.
            (4) 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.
    (f) Credit Treated as Personal Nonrefundable Credit.--
            (1) In general.--The credit allowed under this section 
        shall be treated as a credit allowed under subpart A of part IV 
        of subchapter A of chapter 1 of the Internal Revenue Code of 
        1986.
            (2) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) of such Code does not 
        apply, the credit allowed under this section for any taxable 
        year shall not exceed the excess of--
                    (A) the sum of the regular tax liability (as 
                defined in section 26(b) of such Code) plus the tax 
                imposed by section 55 of such Code, over
                    (B) the sum of the credits allowable under such 
                subpart A (other than this section and section 23 of 
                such Code) for the taxable year.
            (3) Carryforward of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed under 
        section 26(a) of the Internal Revenue Code of 1986 for the 
        taxable year reduced by the sum of the credits allowable under 
        subpart A of part IV of subchapter A of chapter 1 of such Code, 
        or, if applicable, the limitation under paragraph (2), such 
        excess shall be carried to the succeeding taxable year and 
        allowable as a credit under such subpart for such succeeding 
        taxable year.
                                 <all>
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