‘‘(3) QUALIFIED
RESIDENTIAL
PROPERTY.— 
The term ‘qualified residential property’ means a 
building that is— 
‘‘(A) located in the United States, 
‘‘(B) defined in the scope of the 2009 or 
later International Residential Code published 
by the International Code Council, and 
‘‘(C) designed and constructed to meet re-
silient construction requirements. 
‘‘(d) RESILIENT CONSTRUCTION REQUIREMENTS.— 
For purposes of this section— 
‘‘(1) IN GENERAL.—The resilient construction 
requirements with respect to a property are that the 
property is designed and constructed to— 
‘‘(A) resist hazards brought on by a major 
disaster and continues to provide its primary 
functions after a major disaster, 
‘‘(B) reduce the magnitude or duration of 
a disruptive event, and 
‘‘(C) have the absorptive capacity, adaptive 
capacity, and recoverability to withstand a po-
tentially disruptive event. 
‘‘(2) TREATED
AS
MEETING
RESILIENCY
RE-
QUIREMENTS.—For purposes of paragraph (1)— 
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‘‘(A) in the case of a qualified commercial 
property, the property shall be treated as meet-
ing the requirements specified in paragraph (1) 
if the property is a building which— 
‘‘(i) was designed to meet the require-
ments of the 2009 or later International 
Building Code published by the Inter-
national Code Council and received the In-
surance Institute for Business and Home 
Safety FORTIFIED for Safer Business 
designation, or 
‘‘(ii) was designed and built in a juris-
diction that requires commercial buildings 
to meet the requirements of the 2009 or 
later International Building Code pub-
lished by the International Code Council 
with amendments that are equivalent or 
more restrictive than the requirements de-
scribed in FORTIFIED for Safer Business 
Standards published by the Insurance In-
stitute for Business and Home Safety and 
received a certificate of occupancy (or 
other documentation stating that it has 
met the requirements of the building code) 
from the jurisdiction, and 
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‘‘(B) in the case of a qualified residential 
property, the property shall be treated as meet-
ing the requirements specified in paragraph (1) 
if the property is a building which was designed 
to meet the requirements of the 2009 or later 
International Residential Code published by the 
International Code Council, and meets one of 
the following requirements: 
‘‘(i) The building received the Insur-
ance Institute for Business and Home 
Safety as FORTIFIED for Safer Living 
designation. 
‘‘(ii) The building received the Insur-
ance Institute for Business and Home 
Safety 
as 
FORTIFIED 
for 
Existing 
Homes designation, silver level. 
‘‘(iii) It was designed and built in a 
jurisdiction that requires residential build-
ings to meet the requirements of the 2009 
or later International Building Code pub-
lished by the International Code Council 
with amendments that are equivalent or 
more restrictive than the requirements de-
scribed in FORTIFIED for Safer Living 
Builders Guide published by the Insurance 
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Institute for Business and Home Safety 
and received a certificate of occupancy (or 
other documentation stating that it has 
met the requirements of the building code) 
from the jurisdiction. 
‘‘(3) ABSORPTIVE
CAPACITY.—The term ‘ab-
sorptive capacity’ means the ability of the construc-
tion to endure a disruption without significant devi-
ation from normal operating performance. 
‘‘(4) ADAPTIVE CAPACITY.—The term ‘adaptive 
capacity’ means the ability of the construction to 
adapt to a drastic change in normal operating condi-
tions. 
‘‘(5) RECOVERABILITY.—The term ‘recoverabili-
ty’ means the ability of the construction to recover 
quickly, and at low cost, from potentially disruptive 
events. 
‘‘(e) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) CONSTRUCTION.—The term ‘construction’ 
includes new construction and reconstruction and re-
habilitation that meets resilient construction require-
ments. 
‘‘(2) 
FEDERALLY
DECLARED
MAJOR
DIS-
ASTER.—The term ‘federally declared major dis-
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aster’ means a disaster subsequently determined by 
the President of the United States to be a ‘major 
disaster’ that warrants assistance by the Federal 
Government under the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act. 
‘‘(3) DISASTER AREA.—The term ‘disaster area’ 
means the area so determined to warrant such as-
sistance. 
‘‘(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 sub-
section) that is attributable to property of a char-
acter 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 para-
graph (1)) shall be treated as a credit allowable 
under subpart A for such taxable year. 
‘‘(g) BASIS REDUCTION.—For purposes of this sub-
title, the basis of any property for which a credit is allow-
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able under subsection (a) shall be reduced by the amount 
of such credit so allowed. 
‘‘(h) TERMINATION.—This section shall not apply to 
any property for which a certificate for occupancy is issued 
after December 31, 2022.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
ing ‘‘plus’’ at the end of paragraph (35), by striking the 
period at the end of paragraph (36) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(37) the portion of the disaster resilient prop-
erty credit to which section 30E(f)(1) applies.’’. 
(c) BASIS ADJUSTMENT.—Section 1016(a) of such 
Code is amended by striking ‘‘and’’ at the end of para-
graph (30), by striking the period at the end of paragraph 
(31) and inserting a comma, by striking ‘‘and’’ at the end 
of paragraph (36), by striking the period at the end of 
paragraph (37) and inserting ‘‘, and’’, and by adding at 
the end the following new paragraph: 
‘‘(38) to the extent provided in section 30E(g), 
in the case of amounts with respect to which a credit 
has been allowed under section 30E.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
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