I 

113TH CONGRESS 

2D SESSION H. R. 3924 

To delay increases in premium rates for flood insurance coverage under 

the National Flood Insurance Program, establish a refundable tax credit 

for flood mitigation expenses, and authorize increased funding for flood 

damage mitigation programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 17, 2014 

Mr. GARCIA introduced the following bill; which was referred to the Committee 

on Financial Services, and in addition to the Committees on Ways and 

Means and Transportation and Infrastructure, 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 delay increases in premium rates for flood insurance 

coverage under the National Flood Insurance Program, 

establish a refundable tax credit for flood mitigation 

expenses, and authorize increased funding for flood damage mitigation programs, and for other purposes. 

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 ‘‘Helping Owners Miti5 gate Effectively Act of 2014’’ or the ‘‘HOME Act of 

6 2014’’. 


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1 SEC. 2. DELAY IN FLOOD INSURANCE RATE CHANGES. 

2 (a) DELAY.—Notwithstanding any other provision of 

3 law, any change in risk premium rates for flood insurance 

4 under the National Flood Insurance Program resulting 

5 from the amendments made by sections 100205 and 

6 100207 of the Biggert-Waters Flood Insurance Reform 

7 Act of 2012 (Public Law 112–141; 126 Stat. 917) to sec8 tions 1307 and 1308 of the National Flood Insurance Act 

9 of 1968 (42 U.S.C. 4014 and 4015) shall not take effect 

10 until the expiration of the 5-year period that begins upon 

11 the date of the enactment of the Biggert-Waters Flood 

12 Insurance Reform Act of 2012. 

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

14 subsection (a) shall take effect as if enacted as part of 

15 the Biggert-Waters Flood Insurance Reform Act of 2012 

16 (Public Law 112–141; 126 Stat. 916). 

17 SEC. 3. CAP ON ANNUAL COST OF FLOOD INSURANCE. 

18 Section 1308 of the National Flood Insurance Act of 

19 1968 (42 U.S.C. 4015) is amended— 

20 (1) by redesignating subsection (i) as subsection 

21 (j); and 

22 (2) by inserting after subsection (h) the fol23 lowing new subsection:. 

24 ‘‘(i) MAXIMUM ANNUAL PREMIUM.—Notwith25 standing any other provision of this title, the maximum 

26 annual chargeable premium rate for a property shall be 


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1 the appraised value of the property at the time of the pur2 chase of the property by the current owner of the property 

3 divided by 30.’’. 

4 SEC. 4. 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 $7,500. 

19 ‘‘(c) QUALIFIED TAXPAYER.— 

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

22 who is the holder of a policy for flood insurance cov23 erage under the national flood insurance program 

24 under the National Flood Insurance Act of 1968 (42 

25 U.S.C. 4011 et seq.). 


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

2 ‘‘(A) IN GENERAL.—In the case of a tax3 payer which is a trade or business, for purposes 

4 of this section the term ‘qualified taxpayer’ 

5 shall not include any taxpayer which employed 

6 an average of more than 50 employees on busi7 ness days during such taxable year. 

8 ‘‘(B) CONTROLLED GROUPS.—For pur9 poses of subparagraph (A), all persons treated 

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

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

12 414 shall be treated as a single employer. 

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

14 The term ‘qualified flood mitigation expenses’ shall have 

15 the meaning given such term by the Administrator of the 

16 Federal Emergency Management Agency. 

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

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

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

20 and limitations contained in this section shall be deter21 mined at the entity level. 

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

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

24 GENERAL BUSINESS CREDIT.—So much of the credit 

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


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1 taxable year (determined without regard to this sub2 section) that is determined with respect to property 

3 of a character subject to an allowance for deprecia4 tion shall be treated as a credit listed in section 

5 38(b) for such taxable year (and not allowed under 

6 subsection (a)). 

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

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

9 taxable year (determined after application of para10 graph (1)) shall be treated as a credit allowable 

11 under subpart C for such taxable year. 

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

13 to any amount paid or incurred after December 31, 

14 2022.’’. 

15 (b) CONFORMING AMENDMENTS.— 

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

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

18 striking the period at the end of section (36) and in19 serting ‘‘, plus’’, and by inserting after paragraph 

20 (36) the following new paragraph: 

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

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

23 applies.’’. 


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

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

3 after ‘‘25A,’’. 

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

5 IV of subchapter A of chapter 1 of the Internal Rev6 enue Code of 1986 is amended by adding at the end 

7 the following new item: 

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

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

9 this section shall apply to amounts paid or incurred after 

10 December 31, 2012. 

11 SEC. 5. AFFORDABILITY STUDY. 

12 Section 100236 of the Biggert-Waters Flood Insur13 ance Reform Act of 2012 (Public Law 112–141; 126 Stat. 

14 957) is amended— 

15 (1) in subsection (c), by striking ‘‘Not’’ and in16 serting the following: ‘‘Subject to subsection (e), 

17 not’’; 

18 (2) in subsection (d)— 

19 (A) by striking ‘‘(d) FUNDING.—Notwith20 standing’’ and inserting the following: 

21 ‘‘(d) FUNDING.— 

22 ‘‘(1) NATIONAL FLOOD INSURANCE FUND.— 

23 Notwithstanding’’; and 

24 (B) by adding at the end the following new 

25 paragraph: 


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1 ‘‘(2) OTHER FUNDING SOURCES.—To carry out 

2 this section, in addition to the amount made avail3 able under paragraph (1), the Administrator may 

4 use any other amounts that are available to the Ad5 ministrator.’’; and 

6 (3) by adding at the end the following new sub7 section 

8 ‘‘(e) ALTERNATIVE.—If the Administrator deter9 mines that the report required under subsection (c) cannot 

10 be submitted by the date specified under subsection (c)— 

11 ‘‘(1) the Administrator shall notify, not later 

12 than 60 days after the date of enactment of this 

13 subsection, the Committee on Banking, Housing, 

14 and Urban Affairs of the Senate and the Committee 

15 on Financial Services of the House of Representa16 tives of an alternative method of gathering the infor17 mation required under this section; 

18 ‘‘(2) the Administrator shall submit, not later 

19 than 180 days after the Administrator submits the 

20 notification required under paragraph (1), to the 

21 Committee on Banking, Housing, and Urban Affairs 

22 of the Senate and the Committee on Financial Serv23 ices of the House of Representatives the information 

24 gathered using the alternative method described in 

25 paragraph (1); and 


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1 ‘‘(3) upon the submission of information re2 quired under paragraph (2), the requirement under 

3 subsection (c) shall be deemed satisfied.’’. 

4 SEC. 6. INCREASED FUNDING FOR MITIGATION PROGRAMS. 

5 (a) PREDISASTER HAZARD MITIGATION.—Section 

6 203(m) of the Robert T. Stafford Disaster Relief and 

7 Emergency Assistance Act (42 U.S.C. 5133(m)) is amend8 ed— 

9 (1) by striking ‘‘and’’ at the end of paragraph 

10 (2); 

11 (2) by striking the period at the end of para12 graph (3) and inserting ‘‘; and’’; and 

13 (3) by adding at the end the following: 

14 ‘‘(4) $300,000,000 for each of fiscal years 2014 

15 through 2018.’’. 

16 (b) FLOOD HAZARD MITIGATION ASSISTANCE.— 

17 There is authorized to be appropriated for financial assist18 ance under section 1366 of the National Flood Insurance 

19 Act of 1968 (42 U.S.C. 4104c) $210,000,000 for each of 

20 fiscal years 2014 through 2018. Any amounts appro21 priated pursuant to this subsection shall be in addition 

22 to amounts made available from the National Flood Miti23 gation Fund under section 1367 of such Act (42 U.S.C. 

24 4104d) for such assistance during such fiscal years. 

Æ 


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