I 

111TH CONGRESS 

1ST SESSION H. R. 308 

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 

JANUARY 8, 2009 

Mr. BILIRAKIS (for himself and Ms. ROS-LEHTINEN) 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 ‘‘Hurricane and Tor5 nado Mitigation Investment Act of 2009’’. 

6 SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR HURRI7 CANE AND TORNADO 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. HURRICANE AND TORNADO MITIGATION PROP4 ERTY. 

5 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in6 dividual, there shall be allowed as a credit against the tax 

7 imposed by this chapter for the taxable year an amount 

8 equal to 25 percent of the qualified hurricane and tornado 

9 mitigation property expenditures made by the taxpayer 

10 during such taxable year. 

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

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

13 $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 dwelling unit located in a qualified 

7 State and owned by the taxpayer. 

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

9 ‘qualified dwelling unit’ means a dwelling unit that 

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

11 by the locality in which such dwelling unit is located 

12 and with respect to the taxable year for which the 

13 credit described in subsection (a) is allowed. 

14 ‘‘(3) QUALIFIED STATE.—The term ‘qualified 

15 State’ means Alabama, Arkansas, Colorado, Con16 necticut, Delaware, Florida, Georgia, Hawaii, Illi17 nois, Indiana, Iowa, Kansas, Kentucky, Louisiana, 

18 Maine, Maryland, Massachusetts, Minnesota, Mis19 sissippi, Missouri, Nebraska, New Hampshire, New 

20 Jersey, New York, North Carolina, Ohio, Pennsyl21 vania, Rhode Island, South Carolina, South Dakota, 

22 Tennessee, Texas, or Virginia. 

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

24 into account in determining the qualified hurricane and 

25 tornado mitigation property expenditures made by the taxVerDate Nov 24 2008 00:27 Jan 12, 2009 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H308.IH H308

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1 payer during the taxable year only if the onsite prepara2 tion, assembly, or original installation of the property with 

3 respect to which such expenditure is made has been com4 pleted in a manner that is deemed to be adequate by a 

5 State-certified inspector. 

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

7 expenditures for labor costs properly allocable to the onsite 

8 preparation, assembly, or original installation of the prop9 erty described in subsection (c) shall be taken into account 

10 in determining the qualified hurricane and tornado mitiga11 tion property expenditures made by the taxpayer during 

12 the taxable year. 

13 ‘‘(f) INSPECTION COSTS.—For purposes of this sec14 tion, expenditures for inspection costs properly allocable 

15 to the inspection of the preparation, assembly, or installa16 tion of the property described in subsection (c) shall be 

17 taken into account in determining the qualified hurricane 

18 and tornado mitigation property expenditures made by the 

19 taxpayer during the taxable year.’’. 

20 (b) CONFORMING AMENDMENT.—The table of sec21 tions for subpart A of part IV of subchapter A of chapter 

22 1 of such Code is amended by inserting after the item 

23 relating to section 25D the following new item: 

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


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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, 2008. 

4 SEC. 3. BUSINESS RELATED CREDIT FOR HURRICANE AND 

5 TORNADO MITIGATION. 

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

8 1986 is amended by inserting after section 45N the fol9 lowing new section: 

10 ‘‘SEC. 45R. HURRICANE AND TORNADO MITIGATION CRED11 IT. 

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

13 the hurricane and tornado mitigation credit determined 

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

15 to 25 percent of the qualified hurricane and tornado miti16 gation property expenditures made by the taxpayer during 

17 the taxable year. 

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

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

20 not exceed $5,000. 

21 ‘‘(c) QUALIFIED HURRICANE AND TORNADO MITIGA22 TION EXPENDITURE.—For purposes of this section— 

23 ‘‘(1) IN GENERAL.—The term ‘qualified hurri24 cane and tornado mitigation property expenditure’ 

25 means an expenditure for property— 


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

2 deck attachment, 

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

4 prevent water intrusion, 

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

6 covering, 

7 ‘‘(D) to brace gable-end walls, 

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

9 roof and supporting wall, 

10 ‘‘(F) to protect openings from penetration 

11 by windborne debris, or 

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

13 in a qualified place of business located in a qualified 

14 State and owned by the taxpayer. 

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

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

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

18 $5,000,000 by the locality in which such business is 

19 located and with respect to the taxable year for 

20 which the credit described in subsection (a) is al21 lowed. 

22 ‘‘(3) QUALIFIED STATE.—The term ‘qualified 

23 State’ means Alabama, Arkansas, Colorado, Con24 necticut, Delaware, Florida, Georgia, Hawaii, Illi25 nois, Indiana, Iowa, Kansas, Kentucky, Louisiana, 


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1 Maine, Maryland, Massachusetts, Minnesota, Mis2 sissippi, Missouri, Nebraska, New Hampshire, New 

3 Jersey, New York, North Carolina, Ohio, Pennsyl4 vania, Rhode Island, South Carolina, South Dakota, 

5 Tennessee, Texas, or Virginia. 

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

7 into account in determining the qualified hurricane and 

8 tornado mitigation property expenditures made by the tax9 payer during the taxable year only if the onsite prepara10 tion, assembly, or original installation of the property with 

11 respect to which such expenditure is made has been com12 pleted in a manner that is deemed to be adequate by a 

13 State-certified inspector. 

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

15 expenditures for labor costs properly allocable to the onsite 

16 preparation, assembly, or original installation of the prop17 erty described in subsection (c) shall be taken into account 

18 in determining the qualified hurricane and tornado mitiga19 tion property expenditures made by the taxpayer during 

20 the taxable year. 

21 ‘‘(f) INSPECTION COSTS.—For purposes of this sec22 tion, expenditures for inspection costs properly allocable 

23 to the inspection of the preparation, assembly, or installa24 tion of the property described in subsection (c) shall be 

25 taken into account in determining the qualified hurricane 


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1 and tornado mitigation property expenditures made by the 

2 taxpayer during the taxable year.’’. 

3 (b) CONFORMING AMENDMENTS.— 

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

5 striking ‘‘plus’’ at the end of paragraph (34), by 

6 striking the period at the end of paragraph (35) and 

7 inserting ‘‘, plus’’, and by adding at the end the fol8 lowing new paragraph: 

9 ‘‘(36) the hurricane and tornado mitigation 

10 credit determined under section 45R(a).’’. 

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

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

13 amended by inserting after the item relating to sec14 tion 45N the following new item: 

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

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2008. 

Æ 


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