SEC. 2. CREDIT FOR ELECTRIC GENERATORS PLACED IN 
SERVICE BY CRITICAL BUSINESSES IN HIGH 
RISK DISASTER AREAS. 
(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 adding at the end the following new 
section: 
‘‘SEC. 45BB. CREDIT FOR ELECTRIC GENERATORS PLACED 
IN SERVICE BY CRITICAL BUSINESSES IN 
HIGH RISK DISASTER AREAS. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of a specified taxpayer, the qualified disaster pre-
paredness electric generator expenses credit for any tax-
able year is an amount equal to 30 percent of the qualified 
disaster preparedness electric generator expenses paid or 
incurred by the taxpayer during such taxable year. 
‘‘(b) SPECIFIED TAXPAYER.—For purposes of this 
section, the term ‘specified taxpayer’ means any person 
engaged in a trade or business that is determined by the 
Secretary, after consultation with the Administrator of the 
Federal Emergency Management Agency, as being a trade 
or business that is critical in the aftermath of a flood or 
hurricane. Such trades or businesses shall not fail to in-
clude hospitals, nursing homes, grocery stores, and gas 
stations. 
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‘‘(c) QUALIFIED DISASTER PREPAREDNESS ELEC-
TRIC GENERATOR EXPENSES.—For purposes of this sec-
tion— 
‘‘(1) IN
GENERAL.—The term ‘qualified dis-
aster preparedness electric generator expenses’ 
means, with respect to any specified taxpayer, any 
amount paid or incurred by such taxpayer for an 
electric generator (including costs of installation) 
placed in service in a high risk disaster area and 
used in a trade or business referred to in subsection 
(b). 
‘‘(2) HIGH
RISK
DISASTER
AREA.—The term 
‘high risk disaster area’ means any area determined 
by the Secretary, after consultation with the Admin-
istrator of the Federal Emergency Management 
Agency, as being an area that is at high risk of 
flooding or hurricanes. 
‘‘(d) DENIAL OF DOUBLE BENEFIT.—In the case of 
any qualified disaster preparedness electric generator ex-
penses with respect to which credit is allowed under sub-
section (a)— 
‘‘(1) no deduction or credit shall be allowed for, 
or by reason of, any such expense to the extent of 
the amount of such credit, and 
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‘‘(2) the basis of any property shall be reduced 
by the amount of such credit to the extent that such 
expenses were taken into account in determining 
such basis.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
ing ‘‘plus’’ at the end of paragraph (40), by striking the 
period at the end of paragraph (41) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(42) in the case of a specified taxpayer (as de-
fined in section 45BB(b)), the qualified disaster pre-
paredness electric generator expenses credit deter-
mined under section 45BB(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45BB. Credit for electric generators placed in service by critical busi-
nesses in high risk disaster areas.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act. 
Æ 
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