SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR CER-
TAIN HOMEOWNERS INSURANCE PREMIUMS. 
(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: 
‘‘SEC. 25E. CERTAIN HOMEOWNERS INSURANCE PREMIUMS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible individual, there shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an 
amount equal to 50 percent of the taxpayer’s qualified 
homeowners insurance premium for such taxable year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) MAXIMUM
CREDIT.—The credit allowed 
under subsection (a) for any taxable year shall not 
exceed $500. 
‘‘(2) LIMITATION BASED ON ADJUSTED GROSS 
INCOME.—The amount of the credit allowable under 
subsection (a) shall be reduced (but not below zero) 
by 2 percentage points for each percentage point (or 
fraction thereof) by which the taxpayer’s adjusted 
gross income exceeds the State median income for 
such a taxpayer for the preceding taxable year in the 
State in which the principal residence of such tax-
payer is located. 
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‘‘(3) LIMITATION
BASED
ON
AMOUNT
OF 
TAX.—In the case of a taxable year to which section 
26(a)(2) does not apply, the credit allowed under 
subsection (a) for any taxable year shall not exceed 
the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this subpart (other than this section and 
sections 23, 24, and 25B) and section 27 for 
the taxable year. 
‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this 
section— 
‘‘(1) IN
GENERAL.—The term ‘eligible indi-
vidual’ means any taxpayer whose principal resi-
dence is— 
‘‘(A) substantially the same dwelling unit 
during the applicable period, and 
‘‘(B) located in either— 
‘‘(i) an area determined by the Presi-
dent to warrant individual or individual 
and public assistance from the Federal 
Government under the Robert T. Stafford 
Disaster Relief and Emergency Assistance 
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Act by reason of one or more hurricanes 
during 2004 or 2005, or 
‘‘(ii) a county— 
‘‘(I) located in a State which bor-
ders the Atlantic Ocean or the Gulf of 
Mexico, and 
‘‘(II) which is determined by the 
Secretary, in consultation with the 
National Association of Insurance 
Commissioners, to have experienced a 
higher than average increase in home-
owners insurance premiums during 
2004, 2005, 2006, or 2007 due to 
hurricane risk. 
‘‘(2) APPLICABLE PERIOD.—The term ‘applica-
ble period’ means— 
‘‘(A) in the case of an area described in 
paragraph (1)(B)(i), the period beginning the 
day before the determination described in such 
paragraph and ending on the last day of the 
taxable year, and 
‘‘(B) in the case of an area described in 
paragraph (1)(B)(ii), the period beginning on 
September 1, 2005, and ending before the last 
day of the taxable year. 
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‘‘(d) QUALIFIED HOMEOWNERS INSURANCE PRE-
MIUM.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified home-
owners insurance premium’ for any taxable year 
means an amount equal to the qualifying percentage 
of the eligible individual’s homeowners insurance 
premium in effect on the first policy anniversary 
date (or, if greater, the second policy anniversary 
date) following the beginning of such individual’s ap-
plicable period. 
‘‘(2) QUALIFYING
PERCENTAGE.—The term 
‘qualifying percentage’ is equal to the excess (ex-
pressed in percentage points) of— 
‘‘(A) the eligible individual’s percentage in-
crease in homeowners insurance premium be-
tween the last policy anniversary before the be-
ginning of such individual’s applicable period 
and the policy anniversary date (as determined 
under paragraph (1)) following the beginning of 
such individual’s applicable period, over 
‘‘(B) the national average percentage in-
crease in homeowners insurance premiums be-
tween the same dates as determined by the Sec-
retary, in consultation with the National Asso-
ciation of Insurance Commissioners. 
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‘‘(e) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) PRINCIPAL RESIDENCE.—The term ‘prin-
cipal residence’ has the same meaning as when used 
in section 121. 
‘‘(2) HOMEOWNERS
INSURANCE.—The term 
‘homeowners insurance’ means any insurance cov-
ering a principal residence. 
‘‘(f) TERMINATION.—This section shall not apply to 
taxable years beginning after December 31, 2009.’’. 
(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. Certain homeowners insurance premiums.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 3. NONREFUNDABLE PERSONAL CREDIT FOR HURRI-
CANE, EARTHQUAKE, AND TORNADO MITIGA-
TION PROPERTY. 
(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 25E, as 
amended by section 2, the following new section: 
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‘‘SEC. 25F. HURRICANE, EARTHQUAKE, AND TORNADO MITI-
GATION PROPERTY. 
‘‘(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, earthquake, 
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, EARTHQUAKE, AND 
TORNADO MITIGATION EXPENDITURE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘qualified hurri-
cane, earthquake, 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, 
‘‘(E) to reinforce the connection between a 
roof and supporting wall, 
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‘‘(F) to protect openings from penetration 
by windborne debris or by wind-driven rain, 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, North Dakota, 
Ohio, Pennsylvania, Rhode Island, South Carolina, 
South Dakota, Tennessee, Texas, or Virginia. 
‘‘(d) LIMITATION.—An expenditure shall be taken 
into account in determining the qualified hurricane, earth-
quake, and tornado mitigation property expenditures 
made by the taxpayer during the taxable year only if the 
onsite preparation, assembly, or original installation of the 
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property with respect to which such expenditure is made 
has been completed in a manner that is deemed to be ade-
quate 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, earthquake, and 
tornado mitigation property expenditures made by the tax-
payer 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, 
earthquake, 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, as amended by section 2, is amended by 
inserting after the item relating to section 25E the fol-
lowing new item: 
‘‘Sec. 25F. Hurricane, earthquake, and tornado mitigation property.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
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SEC. 4. BUSINESS RELATED CREDIT FOR HURRICANE, 
EARTHQUAKE, 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 adding at the end the following new 
section: 
‘‘SEC. 45Q. HURRICANE, EARTHQUAKE, AND TORNADO MITI-
GATION CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the hurricane, earthquake, and tornado mitigation credit 
determined under this section for any taxable year is an 
amount equal to 25 percent of the qualified hurricane, 
earthquake, and tornado mitigation 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, EARTHQUAKE, AND 
TORNADO MITIGATION EXPENDITURE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘qualified hurri-
cane, earthquake, and tornado mitigation property 
expenditure’ means an expenditure for property— 
‘‘(A) to improve the strength of a roof 
deck attachment, 
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‘‘(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 wind-driven rain, 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, 
Maine, Maryland, Massachusetts, Minnesota, Mis-
sissippi, Missouri, Nebraska, New Hampshire, New 
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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, earth-
quake, and tornado mitigation property expenditures 
made by the taxpayer during the taxable year only if the 
onsite preparation, assembly, or original installation of the 
property with respect to which such expenditure is made 
has been completed in a manner that is deemed to be ade-
quate 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, earthquake, and 
tornado mitigation property expenditures made by the tax-
payer 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, 
earthquake, and tornado mitigation property expenditures 
made by the taxpayer during the taxable year.’’. 
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(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (32), by 
striking the period at the end of paragraph (33) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(34) the hurricane, earthquake, and tornado 
mitigation credit determined under section 45Q(a).’’. 
(2) 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 following new 
item: 
‘‘Sec. 45Q. Hurricane, earthquake, and tornado mitigation credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
Æ 
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