I 
119TH CONGRESS 
1ST SESSION H. R. 4861 
To amend the Internal Revenue Code of 1986 to provide a credit for hazard 
mitigation projects in connection with certain working waterfront property. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2025 
Ms. PINGREE (for herself and Mr. MURPHY) 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 for hazard mitigation projects in connection with 
certain working waterfront property. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Working Waterfront 
Disaster Mitigation Tax Credit Act’’. 
SEC. 2. WORKING WATERFRONT DISASTER MITIGATION 
PROJECT CREDIT. 
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by inserting after section 48E the fol-
lowing new section: 
‘‘SEC. 48F. WORKING WATERFRONT DISASTER MITIGATION 
PROJECT CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
working waterfront disaster mitigation project for any tax-
able year is an amount equal to 30 percent of the qualified 
investment for such taxable year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) DOLLAR LIMITATION.— 
‘‘(A) IN
GENERAL.—The amount of the 
credit allowed under this section with respect to 
any taxpayer shall not exceed $300,000. 
‘‘(B) AGGREGATION RULES.—All taxpayers 
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 tax-
payer for purposes of subparagraph (A). 
‘‘(C) INFLATION
ADJUSTMENT.—In the 
case of any taxable year beginning after Decem-
ber 31, 2026, the $300,000 dollar amount in 
subparagraph (A) shall be increased by an 
amount equal to— 
‘‘(i) such dollar amount, multiplied by 
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‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, by substituting ‘calendar year 2025’ 
for ‘calendar year 2017’ in subparagraph 
(A)(ii) thereof. 
If any amount as increased under the preceding 
sentence is not a multiple of $10,000, such 
amount shall be rounded to the nearest multiple 
of $10,000. 
‘‘(2) TIME LIMITATION.—No credit shall be al-
lowed to a taxpayer for a taxable year if such tax-
payer has been allowed a credit under this section 
(other than qualified progress expenditures allowed 
under subsection (c)(3)) for any taxable year in the 
10-year period ending with the last day of such tax-
able year. 
‘‘(c) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the qualified investment for any taxable year is 
the basis of eligible property placed in service by the 
taxpayer during such taxable year which is part of 
a qualifying working waterfront disaster mitigation 
project. 
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‘‘(2) ELIGIBLE
PROPERTY.—For purposes of 
this subsection, the term ‘eligible property’ means 
property— 
‘‘(A) which is tangible property, 
‘‘(B) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able, and 
‘‘(C) which is— 
‘‘(i) constructed, reconstructed, or 
erected by the taxpayer, or 
‘‘(ii) acquired by the taxpayer if the 
original use of such property commences 
with the taxpayer. 
‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI-
TURES RULES MADE APPLICABLE.—Rules similar to 
the rules of subsections (c)(4) and (d) of section 46 
(as in effect on the day before the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of this section. 
‘‘(4) COORDINATION
WITH
REHABILITATION 
CREDIT.—The qualified investment with respect to 
any qualifying working waterfront disaster mitiga-
tion project for any taxable year shall not include 
that portion of the basis of any project which is at-
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tributable to qualified rehabilitation expenditures (as 
defined in section 47(c)(2)). 
‘‘(d) QUALIFYING
WORKING
WATERFRONT
DIS-
ASTER MITIGATION PROJECT.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘qualifying work-
ing waterfront disaster mitigation project’ means 
any project— 
‘‘(A) which is substantially designed in 
compliance with— 
‘‘(i) in the case of any project placed 
in service before January 1, 2033, the 
2021 International Code Council Inter-
national Building Code, and 
‘‘(ii) in the case of any project placed 
in service on or after such date, the most 
recent applicable International Code Coun-
cil model code which has been affirmed by 
the Secretary for purposes of this section 
not later than 5 years before the date such 
project is placed in service, and 
‘‘(B) which designed to prevent or mitigate 
damage to working waterfront property from 
natural hazards using one or more of the fol-
lowing: 
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‘‘(i) STRUCTURAL
ELEVATION.—The 
elevation of continuous foundation walls, 
the elevation of structures on open founda-
tions (such as piles, piers, posts or col-
umns), the elevation of structures on fill, 
the conversion of the second story, and 
other methods involving structural ele-
vation as the Secretary may prescribe. 
‘‘(ii) 
FLOOD
RISK
REDUCTION.— 
Stormwater management (including the 
construction, installation or modification of 
culverts, drainage pipes, pumping stations, 
floodgates, bioswales, detention and reten-
tion basins, and other stormwater manage-
ment facilities), flood diversion and storage 
measures, slope stabilization or grading to 
direct flood waters away from businesses, 
flood protection measures for water and 
sanitary sewer systems or other utility sys-
tems, vegetation management for shoreline 
stabilization (coastal, riverine, riparian and 
other littoral zones), flood protection and 
stabilization 
measures 
for 
roads 
and 
bridges, and such other flood risk reduc-
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tion methods as the Secretary may pre-
scribe. 
‘‘(iii) SHORELINE
STABILIZATION.— 
Reducing the risk to structures or infra-
structure from erosion and landslides (in-
cluding 
through 
the 
installation 
of 
geosynthetics, 
surface 
and 
subsurface 
drainage, stabilizing sod, and vegetative 
buffer strips), preserving mature vegeta-
tion, decreasing slope angles, stabilizing 
with riprap and other means of slope an-
choring, and other shoreline stabilization 
methods as the Secretary may prescribe. 
‘‘(iv) FLOODPROOFING.—Creating a 
space that is protected by walls that are 
substantially impermeable and resistant to 
flood loads, the use of flood-damage-resist-
ant materials and construction techniques 
to minimize flood damage to areas below 
the flood protection level of a structure. 
‘‘(v) RETROFITTING.—Changes made 
to an existing structure to reduce or elimi-
nate the possibility of damage to that 
structure from flooding, erosion, extreme 
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temperatures, high winds, or other haz-
ards. 
‘‘(vi) 
WARNING
SYSTEMS.—Equip-
ment and systems to warn residents of im-
pending hazards (including enhanced or re-
versed 911 systems), weather stations, rain 
gauges, flood alarms, and such other warn-
ing systems as the Secretary may pre-
scribe. 
‘‘(2) WORKING WATERFRONT PROPERTY.—The 
term ‘working waterfront property’ means real prop-
erty— 
‘‘(A) which is located within the United 
States or a possession of the United States, and 
‘‘(B) which is used by the taxpayer to 
carry on an active trade or business— 
‘‘(i) which meets the gross receipts 
test of paragraph (3), and 
‘‘(ii) which— 
‘‘(I) provides access to navigable 
waters to persons engaged in commer-
cial fishing, recreational fishing and 
boating, 
boatbuilding, 
aquaculture, 
dredging, or other water-dependent 
activities, and 
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‘‘(II) is used for or supports ac-
tivities described in subclause (I). 
‘‘(3) GROSS RECEIPTS TEST.— 
‘‘(A) IN GENERAL.—A trade or business 
meets the gross receipts test of this paragraph 
if the average annual gross receipts of such 
trade or business for the 3-taxable-year period 
preceding such taxable year does not exceed 
$47,000,000. 
‘‘(B) AGGREGATION RULES.—All trades or 
business of a taxpayer that are treated as a sin-
gle employer under subsection (a) or (b) of sec-
tion 52 or subsection (m) or (o) of section 414 
shall be treated as one trade or business for 
purposes of subparagraph (A). 
‘‘(C) OTHER RULES.—Rules similar to the 
rules of section 448(c)(3) shall apply for pur-
poses of this paragraph. 
‘‘(D) INFLATION
ADJUSTMENT.—In the 
case of any taxable year beginning after Decem-
ber 31, 2026, the dollar amount in subpara-
graph (A) shall be increased by an amount 
equal to— 
‘‘(i) such dollar amount, multiplied by 
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‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, by substituting ‘calendar year 2025’ 
for ‘calendar year 2017’ in subparagraph 
(A)(ii) thereof. 
If any amount as increased under the preceding 
sentence is not a multiple of $1,000,000, such 
amount shall be rounded to the nearest multiple 
of $1,000,000. 
‘‘(e) REGULATIONS.—The Secretary, in consultation 
with the Administrator of the Federal Emergency Man-
agement Agency, shall issue such regulations or other 
guidance as may be necessary or appropriate to carry out 
the purposes of this section.’’. 
(b) INCLUSION IN INVESTMENT CREDIT.—Section 46 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘and’’ at the end of paragraph (5), by striking the 
period at the end of paragraph (6) and inserting ‘‘, and’’, 
and by adding at the end the following new paragraph: 
‘‘(7) the working waterfront disaster mitigation 
project credit.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘and’’ at the 
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end of clause (v), by striking the period at the end 
of clause (vi) and inserting ‘‘, and’’, and by adding 
at the end the following: 
‘‘(vii) the basis of any property which 
is part of a qualifying working waterfront 
disaster mitigation project (as defined in 
section 48F(d)(2)).’’. 
(2) Section 50(a)(2)(E) of such Code is amend-
ed by striking ‘‘or 48E(e)’’ and inserting ‘‘48E(e), 
or 48F(c)(2)’’. 
(3) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 48E the following new item: 
‘‘Sec. 48F. Working waterfront disaster mitigation project credit.’’. 
(d) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treas-
ury shall pay to each possession of the United States 
which has a mirror code tax system amounts equal 
to the loss (if any) to that possession by reason of 
the amendments made by this section. Such 
amounts shall be determined by the Secretary of the 
Treasury based on information provided by the gov-
ernment of the respective possession. 
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(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary of the Treasury shall pay to each posses-
sion of the United States which does not have a mir-
ror code tax system amounts estimated by the Sec-
retary of the Treasury as being equal to the aggre-
gate benefits (if any) that would have been provided 
to residents of such possession by reason of the 
amendments made by this section if a mirror code 
tax system had been in effect in such possession. 
The preceding sentence shall not apply unless the re-
spective possession has a plan, which has been ap-
proved by the Secretary of the Treasury, under 
which such possession will promptly distribute such 
payments to its residents. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after December 31, 
2025, in taxable years ending after such date, under rules 
similar to the rules of section 48(m) of the Internal Rev-
enue Code of 1986 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 
1990). 
Æ 
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