I 
116TH CONGRESS 
1ST SESSION H. R. 3462 
To amend the Internal Revenue Code of 1986 to provide a credit against 
tax for disaster mitigation expenditures. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 25, 2019 
Mr. BILIRAKIS (for himself and Mr. CRIST) 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 disaster mitigation expenditures. 
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 ‘‘SHELTER Act’’. 
SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR DIS-
ASTER MITIGATION EXPENDITURES. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 25D the fol-
lowing new section: 
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‘‘SEC. 25E. DISASTER MITIGATION EXPENDITURES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, 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 disaster mitigation ex-
penditures made by the taxpayer during such taxable year. 
‘‘(b) MAXIMUM CREDIT.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the credit allowed under subsection (a) for any tax-
able year shall not exceed $5,000. 
‘‘(2) PHASEOUT.— 
‘‘(A) IN
GENERAL.—The amount under 
paragraph (1) for the taxable year shall be re-
duced (but not below zero) by an amount which 
bears the same ratio to the amount under such 
paragraph as— 
‘‘(i) the amount (not less than zero) 
equal to the adjusted gross income of the 
taxpayer for such taxable year minus 
$84,200, bears to 
‘‘(ii) $40,800. 
‘‘(B) JOINT RETURN.—For purposes of de-
termining the amount of any reduction under 
subparagraph (A) for any taxable year, if a 
joint return was filed for such taxable year, 
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each of the dollar amounts under such subpara-
graph shall be doubled. 
‘‘(C) INFLATION
ADJUSTMENT.—In the 
case of any taxable year after 2020, each of the 
dollar amounts under subparagraph (A) shall 
be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(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, determined by substituting ‘calendar 
year 2019’ for ‘calendar year 2016’ in sub-
paragraph (A)(ii) thereof. 
‘‘(D) ROUNDING.—If any reduction deter-
mined under subparagraph (A) or (B) is not a 
multiple of $50, or any increase under subpara-
graph (C) is not a multiple of $50, such 
amount shall be rounded to the nearest multiple 
of $50. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED
DISASTER
MITIGATION
EX-
PENDITURE.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
disaster mitigation expenditure’ means an ex-
penditure relating to a qualified dwelling unit— 
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‘‘(i) for property to— 
‘‘(I) improve the strength of a 
roof deck attachment, 
‘‘(II) create a secondary water 
barrier to prevent water intrusion or 
mitigate against potential water intru-
sion from wind-driven rain, 
‘‘(III) improve the durability, im-
pact resistance (not less than class 3 
or 4 rating), or fire resistance (not 
less than class A rating) of a roof cov-
ering, 
‘‘(IV) brace gable-end walls, 
‘‘(V) reinforce the connection be-
tween a roof and supporting wall, 
‘‘(VI) protect openings from pen-
etration by wind-borne debris, 
‘‘(VII) protect exterior doors and 
garages from natural hazards, 
‘‘(VIII) complete measures con-
tained in the publication of the Fed-
eral Emergency Management Agency 
entitled ‘Wind Retrofit Guide for Res-
idential Buildings’ (P–804), 
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‘‘(IX) elevate the qualified dwell-
ing unit, as well as utilities, machin-
ery, or equipment, above the base 
flood elevation or other applicable 
minimum elevation requirement, 
‘‘(X) seal walls in the basement 
of the qualified dwelling unit using 
waterproofing compounds, or 
‘‘(XI) protect propane tanks or 
other external fuel sources, 
‘‘(ii) to install— 
‘‘(I) check valves to prevent flood 
water from backing up into drains, 
‘‘(II) 
flood 
vents, 
breakaway 
walls or open lattice for homes located 
in V zones, 
‘‘(III) a stormwater drainage sys-
tem or improve an existing system, 
‘‘(IV) natural or nature-based 
features for flood control, including 
living shorelines, 
‘‘(V) roof coverings, sheathing, 
flashing, roof and attic vents, eaves, 
or gutters that conform to ignition-re-
sistant construction standards, 
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‘‘(VI) wall components for wall 
assemblies that conform to ignition-re-
sistant construction standards, 
‘‘(VII) a wall-to-foundation an-
chor or connector, or a shear transfer 
anchor or connector, 
‘‘(VIII) wood structural panel 
sheathing for strengthening cripple 
walls, 
‘‘(IX) anchorage of the masonry 
chimney to the framing, 
‘‘(X) prefabricated lateral resist-
ing systems, 
‘‘(XI) a standby generator sys-
tem consisting of a standby generator 
and an automatic transfer switch, 
‘‘(XII) a storm shelter that meets 
the design and construction standards 
established by the International Code 
Council and the National Storm Shel-
ter Association (ICC–500), or a safe 
room that satisfies the criteria con-
tained in— 
‘‘(aa) the publication of the 
Federal Emergency Management 
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Agency entitled ‘Safe Rooms for 
Tornadoes and Hurricanes’ (P– 
361), or 
‘‘(bb) the publication of the 
Federal Emergency Management 
Agency entitled ‘Taking Shelter 
from the Storm’ (P–320), 
‘‘(XIII) a lightning protection 
system, 
‘‘(XIV) exterior walls, doors, win-
dows, or other exterior dwelling unit 
elements that conform to ignition-re-
sistant construction standards, 
‘‘(XV) exterior deck or fence 
components that conform to ignition- 
resistant construction standards, 
‘‘(XVI) structure-specific water 
hydration systems, including fire miti-
gation systems such as interior and 
exterior sprinkler systems, 
‘‘(XVII) water capture and deliv-
ery systems to accommodate drought 
events or to decrease water use, in-
cluding the design of such systems, 
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‘‘(XVIII) flood openings for fully 
enclosed areas below the lowest floor 
of the dwelling unit, 
‘‘(XIX) lateral bracing for wall 
elements, foundation elements, and 
garage doors or other large openings 
to resist seismic loads, or 
‘‘(XX) automatic shutoff valves 
for water and gas lines, or 
‘‘(iii) for services or equipment to— 
‘‘(I) create buffers around the 
qualified dwelling unit through the re-
moval or reduction of flammable vege-
tation, including vertical clearance of 
tree branches, 
‘‘(II) create buffers around the 
dwelling unit through— 
‘‘(aa) the removal of exterior 
deck or fence components or igni-
tion-prone landscape features, or 
‘‘(bb) replacement of the 
components or features described 
in item (aa) with components or 
features that conform to ignition- 
resistant construction standards, 
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‘‘(III) perform fire maintenance 
procedures identified by the Federal 
Emergency Management Agency or 
the United States Forest Service, in-
cluding fuel management techniques 
such as creating fuel and fire breaks, 
‘‘(IV) gather and analyze water 
and weather data to better under-
stand the local climate and drought 
history, 
‘‘(V) replace flammable vegeta-
tion with less flammable species, or 
‘‘(VI) determine the risk of nat-
ural disasters which may occur in the 
area in which the qualified dwelling 
unit is located, or 
‘‘(iv) for property relating to satis-
fying the standards required for receipt of 
a FORTIFIED designation from the In-
surance Institute for Business and Home 
Safety, provided that the qualified dwelling 
unit receives such designation following in-
stallation of such property. 
‘‘(B) EXCEPTION.—The term ‘qualified 
disaster mitigation expenditure’ shall not in-
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