1986 is amended by inserting after section 25D the fol-
lowing new section: 
‘‘SEC. 25E. HURRICANE AND TORNADO MITIGATION PROP-
ERTY. 
‘‘(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 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 MITIGA-
TION EXPENDITURE.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified hurri-
cane and tornado mitigation property expenditure’ 
means an expenditure for property— 
‘‘(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, 
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‘‘(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 a qualified 
State and owned by the taxpayer. 
‘‘(2) QUALIFIED DWELLING UNIT.—The term 
‘qualified dwelling unit’ means a dwelling unit that 
is assessed at a value that is less than $1,000,000 
by the locality in which such dwelling unit is located 
and with respect to the taxable year for which the 
credit described in subsection (a) is allowed. 
‘‘(3) QUALIFIED STATE.—The term ‘qualified 
State’ means Alabama, Arkansas, Colorado, Con-
necticut, Delaware, Florida, Georgia, Hawaii, Illi-
nois, Indiana, Iowa, Kansas, Kentucky, Louisiana, 
Maine, Maryland, Massachusetts, Minnesota, Mis-
sissippi, Missouri, Nebraska, New Hampshire, New 
Jersey, New York, North Carolina, Ohio, Pennsyl-
vania, Rhode Island, South Carolina, South Dakota, 
Tennessee, Texas, or Virginia. 
‘‘(d) LIMITATION.—An expenditure shall be taken 
into account in determining the qualified hurricane and 
tornado mitigation property expenditures made by the tax-
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payer during the taxable year only if the onsite prepara-
tion, assembly, or original installation of the property with 
respect to which such expenditure is made has been com-
pleted 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 prop-
erty described in subsection (c) shall be taken into account 
in determining the qualified hurricane and tornado mitiga-
tion property expenditures made by the taxpayer during 
the taxable year. 
‘‘(f) INSPECTION COSTS.—For purposes of this sec-
tion, expenditures for inspection costs properly allocable 
to the inspection of the preparation, assembly, or installa-
tion 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 sec-
tions 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.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 3. BUSINESS RELATED CREDIT FOR HURRICANE AND 
TORNADO MITIGATION. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 45N the fol-
lowing new section: 
‘‘SEC. 45R. HURRICANE AND TORNADO MITIGATION CRED-
IT. 
‘‘(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 miti-
gation 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 MITIGA-
TION EXPENDITURE.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified hurri-
cane and tornado mitigation property expenditure’ 
means an expenditure for property— 
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‘‘(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 a qualified 
State and owned by the taxpayer. 
‘‘(2) QUALIFIED
PLACE
OF
BUSINESS.—The 
term ‘qualified place of business’ means a place of 
business that is assessed at a value that is less than 
$5,000,000 by the locality in which such business is 
located and with respect to the taxable year for 
which the credit described in subsection (a) is al-
lowed. 
‘‘(3) QUALIFIED STATE.—The term ‘qualified 
State’ means Alabama, Arkansas, Colorado, Con-
necticut, Delaware, Florida, Georgia, Hawaii, Illi-
nois, Indiana, Iowa, Kansas, Kentucky, Louisiana, 
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Maine, Maryland, Massachusetts, Minnesota, Mis-
sissippi, Missouri, Nebraska, New Hampshire, New 
Jersey, New York, North Carolina, Ohio, Pennsyl-
vania, Rhode Island, South Carolina, South Dakota, 
Tennessee, Texas, or Virginia. 
‘‘(d) LIMITATION.—An expenditure shall be taken 
into account in determining the qualified hurricane and 
tornado mitigation property expenditures made by the tax-
payer during the taxable year only if the onsite prepara-
tion, assembly, or original installation of the property with 
respect to which such expenditure is made has been com-
pleted 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 prop-
erty described in subsection (c) shall be taken into account 
in determining the qualified hurricane and tornado mitiga-
tion property expenditures made by the taxpayer during 
the taxable year. 
‘‘(f) INSPECTION COSTS.—For purposes of this sec-
tion, expenditures for inspection costs properly allocable 
to the inspection of the preparation, assembly, or installa-
tion of the property described in subsection (c) shall be 
taken into account in determining the qualified hurricane 
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