SHELTER Act

To amend the Internal Revenue Code of 1986 to provide a credit against tax for hurricane and tornado mitigation expenditures. 1. Short title This Act may be cited as the Strengthening Homes and Eliminating Liabilities Through Encouraging Readiness Act SHELTER Act 2. Nonrefundable personal credit for hurricane and tornado mitigation property (a) In general Subpart A of part IV of subchapter A of chapter 1 25E. Hurricane and tornado mitigation property (a) Allowance of credit In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 25 percent of the qualified hurricane and tornado mitigation property expenditures made by the taxpayer during such taxable year. (b) Maximum credit The credit allowed under subsection (a) for any taxable year shall not exceed $5,000. (c) Qualified hurricane and tornado mitigation expenditure For purposes of this section— (1) In general The term qualified hurricane and tornado mitigation property expenditure (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, or (G) to protect exterior doors and garages, in a qualified dwelling unit located in the United States and owned by the taxpayer. (2) Qualified dwelling unit The term qualified dwelling unit (d) Limitation An expenditure shall be taken into account in determining the qualified hurricane and tornado 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. (e) Labor costs For purposes of this section, expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property described in subsection (c) shall be taken into account in determining the qualified hurricane and tornado mitigation property expenditures made by the taxpayer during the taxable year. (f) Inspection costs For purposes of this section, expenditures for inspection costs properly allocable to the inspection of the preparation, assembly, or installation of the property described in subsection (c) shall be taken into account in determining the qualified hurricane and tornado mitigation property expenditures made by the taxpayer during the taxable year. . (b) Conforming amendment The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item: Sec. 25E. Hurricane and tornado mitigation property. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016. 3. Business-related credit for hurricane and tornado mitigation (a) In general Subpart D of part IV of subchapter A of chapter 1 45S. Hurricane and tornado mitigation credit (a) General rule For purposes of section 38, the hurricane and tornado mitigation credit determined under this section for any taxable year is an amount equal to 25 percent of the qualified hurricane and tornado mitigation property expenditures made by the taxpayer during the taxable year. (b) Maximum credit The amount of the credit determined under subsection (a) for any taxable year shall not exceed $5,000. (c) Qualified hurricane and tornado mitigation expenditure For purposes of this section— (1) In general The term qualified hurricane and tornado mitigation property expenditure (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, or (G) to protect exterior doors and garages, in a qualified place of business located in the United States and owned by the taxpayer. (2) Qualified place of business The term qualified place of business (d) Limitation An expenditure shall be taken into account in determining the qualified hurricane and tornado 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. (e) Labor costs For purposes of this section, expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property described in subsection (c) shall be taken into account in determining the qualified hurricane and tornado mitigation property expenditures made by the taxpayer during the taxable year. (f) Inspection costs For purposes of this section, expenditures for inspection costs properly allocable to the inspection of the preparation, assembly, or installation of the property described in subsection (c) shall be taken into account in determining the qualified hurricane and tornado mitigation property expenditures made by the taxpayer during the taxable year. . (b) Conforming amendments (1) Section 38(b) of such Code is amended by striking plus , plus (37) the hurricane and tornado mitigation credit determined under section 45S(a). . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 45R the following new item: Sec. 45S. Hurricane and tornado mitigation credit. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016.

Summary: Strengthening Homes and Eliminating Liabilities Through Encouraging Readiness Act or the SHELTER Act This bill amends the Internal Revenue Code to allow individual and business taxpayers a tax credit for 25% of their qualified hurricane and tornado mitigation property expenditures up to $5,000 for any taxable year. The bill defines such expenditures as expenditures in a dwelling unit or place of business for property to improve the strength of a roof deck attachment, create a secondary water barrier, improve the durability of a roof covering, brace gable-end walls, reinforce the connections between a roof and supporting wall, protect against windborne debris, or protect exterior doors and garages.