Flood Mitigation Expense Relief Act of 2013

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. Short title This Act may be cited as the Flood Mitigation Expense Relief Act of 2013 2. Credit for certain qualified flood mitigation expenses (a) In general Subpart B of part IV of subchapter A of chapter 1 30E. Qualified flood mitigation expenses (a) In general In the case of a qualified taxpayer, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the qualified flood mitigation expenses paid or incurred by the taxpayer for the taxable year. (b) Limitations The amount allowed as a credit under subsection (a) for a taxable year shall not exceed $5,000. (c) Qualified taxpayer (1) In general For purposes of this section, the term qualified taxpayer (A) is the holder of a policy for flood insurance coverage under the national flood insurance program under the National Flood Insurance Act of 1968 ( 42 U.S.C. 4011 et seq. (B) owns property— (i) which is covered by such policy for flood insurance coverage under which the chargeable premium rate as of the date of the enactment of the Biggert-Waters Flood Insurance Reform Act of 2012 (title II of division F of Public Law 112–141 42 U.S.C. 4014(a)(1) (ii) for which such chargeable premium rate was increased or will increase, as a result of any provision of the Biggert-Waters Flood Insurance Reform Act of 2012, to the applicable estimated risk premium rate under such section 1307(a)(1) for such area (or subdivision), and (iii) which— (I) has an elevation lower than the base flood elevation, as determined by the applicable flood insurance rate map, or (II) is located in an area that, after the date of the enactment of the Biggert-Waters Flood Insurance Reform Act of 2012, has been designated as having a higher flood risk than the flood risk designated for the area as of such date of enactment. (2) Business employers must be small (A) In general In the case of a taxpayer which is a trade or business, for purposes of this section the term qualified taxpayer (B) Controlled groups For purposes of subparagraph (A), all persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single employer. (d) Qualified flood mitigation expenses The term qualified flood mitigation expenses (e) Partnership, S corporations, and other pass-Thru entities In the case of a partnership, trust, S corporation, or other pass-thru entity, the credit and limitations contained in this section shall be determined at the entity level. (f) Application with other credits (1) Business credit treated as part of general business credit So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is determined with respect to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)). (2) Personal credit For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart C for such taxable year. (g) Termination Subsection (a) shall not apply to any amount paid or incurred after December 31, 2022. . (b) Conforming amendments (1) Section 38(b) of the Internal Revenue Code of 1986 is amended by striking plus , plus (37) the portion of the credit for qualified flood mitigation expenses to which section 30E(f)(1) applies. . (2) Section 1324(b)(2) of title 31, United States Code, is amended by inserting 30E(f)(2), 25A, (3) The table of sections for subpart B of part IV of subchapter A of chapter 1 Sec. 30E. Qualified flood mitigation expenses. . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred after December 31, 2012. 3. Increased funding for mitigation programs (a) Authorization of appropriations There are authorized to be appropriated to the Administrator of the Federal Emergency Management Agency— (1) $100,000,000 for carrying out the predisaster hazard mitigation program authorized by section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133); and (2) $100,000,000 for carrying out the flood mitigation assistance program authorized by section 1366 of the National Flood Insurance Act of 1969 ( 42 U.S.C. 4104c (b) Use of funds In carrying out the programs specified in subsection (a) using the amounts made available to the Administrator under this section, the Administrator shall ensure that such amounts are used as follows: (1) Activities Such amounts may be used only for— (A) mitigation activities under such programs for properties eligible pursuant to paragraph (2); and (B) acquisition by States and communities of properties eligible pursuant to paragraph (2). (2) Properties Such amounts may be used only with respect to properties that— (A) are located in an area for which revised flood insurance rate maps under the national flood insurance program take effect after the date of the enactment of the Biggert-Waters Flood Insurance Reform Act of 2012 (subtitle A of title II of division F of Public Law 112–141 (B) (i) have an elevation that is lower than the base flood elevation for the area in which the property is located, as determined by the applicable such flood insurance rate map; or (ii) are located in an area that, after the date of the enactment of the Biggert-Waters Flood Insurance Reform Act of 2012, has been designated as having a higher flood risk than the flood risk designated for the area as of such date of enactment. 4. Repeal of Energy Star Program The Energy Star program of the United States Department of Energy and the United States Environmental Protection Agency is hereby terminated and any appropriation or amount otherwise made available for such program which is not obligated or expended as of the date of the enactment of this Act is hereby rescinded.

Summary: Flood Mitigation Expense Relief Act of 2013 - Amends the Internal Revenue Code to allow qualified taxpayers a tax credit, up to $5,000 in a taxable year, for flood mitigation expenses. Defines "qualified taxpayer" as: (1) a taxpayer who is the holder of a flood insurance policy under the National Flood Insurance Act of 1968 and who owns insured property for which the chargeable premium rate under such policy was increased or will increase and which has an elevation lower than the base flood elevation or is located in an area designated as having a higher flood risk, and (2) a small business with 50 or fewer employees. Terminates such credit after 2022. Authorizes appropriations to the Administrator of the Federal Emergency Management Agency (FEMA) to carry out: (1) the predisaster hazard mitigation program authorized by the Robert T. Stafford Disaster Relief and Emergency Assistance Act, and (2) the flood mitigation assistance program authorized by the National Flood Insurance Act of 1969. Specifies that such funds may be used only for mitigation activities and acquisition by states and communities of properties located in higher flood risk areas. Terminates the Energy Star program of the Department of Energy (DOE) and the Environmental Protection Agency (EPA) and rescinds any amounts not obligated or expended for such program.