I 
113TH CONGRESS 
1ST SESSION H. R. 1268 
To amend the Internal Revenue Code of 1986 to provide a credit for qualified 
flood mitigation expenses incurred with respect to certain residences 
for which the chargeable premium rate under the national flood insurance 
program is increasing and to provide increased funding for mitigation 
programs. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 19, 2013 
Mr. PALAZZO introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Trans-
portation and Infrastructure, Financial Services, and Energy and Com-
merce, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a credit for qualified flood mitigation expenses incurred 
with respect to certain residences for which the charge-
able premium rate under the national flood insurance 
program is increasing and to provide increased funding 
for mitigation programs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Flood Mitigation Ex-
pense Relief Act of 2013’’. 
SEC. 2. CREDIT FOR CERTAIN QUALIFIED FLOOD MITIGA-
TION EXPENSES. 
(a) IN GENERAL.—Subpart B 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. 30E. QUALIFIED FLOOD MITIGATION EXPENSES. 
‘‘(a) IN GENERAL.—In the case of a qualified tax-
payer, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to the qualified flood mitigation expenses paid or 
incurred by the taxpayer for the taxable year. 
‘‘(b) LIMITATIONS.—The amount allowed as a credit 
under subsection (a) for a taxable year shall not exceed 
$5,000. 
‘‘(c) QUALIFIED TAXPAYER.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified taxpayer’ means taxpayer 
who— 
‘‘(A) is the holder of a policy for flood in-
surance coverage under the national flood in-
surance program under the National Flood In-
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surance Act of 1968 (42 U.S.C. 4011 et seq.), 
and 
‘‘(B) owns property— 
‘‘(i) which is covered by such policy 
for flood insurance coverage under which 
the chargeable premium rate as of the date 
of the enactment of the Biggert-Waters 
Flood Insurance Reform Act of 2012 (title 
II of division F of Public Law 112–141) is 
less than the applicable estimated risk pre-
mium rate under section 1307(a)(1) of the 
National Flood Insurance Act of 1968 (42 
U.S.C. 4014(a)(1)) for the area (or sub-
division thereof) in which the property is 
located, 
‘‘(ii) for which such chargeable pre-
mium rate was increased or will increase, 
as a result of any provision of the Biggert- 
Waters Flood Insurance Reform Act of 
2012, to the applicable estimated risk pre-
mium rate under such section 1307(a)(1) 
for such area (or subdivision), and 
‘‘(iii) which— 
‘‘(I) has an elevation lower than 
the base flood elevation, as deter-
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mined by the applicable flood insur-
ance rate map, or 
‘‘(II) is located in an area that, 
after the date of the enactment of the 
Biggert-Waters Flood Insurance Re-
form Act of 2012, has been des-
ignated as having a higher flood risk 
than the flood risk designated for the 
area as of such date of enactment. 
‘‘(2) BUSINESS EMPLOYERS MUST BE SMALL.— 
‘‘(A) IN GENERAL.—In the case of a tax-
payer which is a trade or business, for purposes 
of this section the term ‘qualified taxpayer’ 
shall not include any taxpayer which employed 
an average of more than 50 employees on busi-
ness days during such taxable year. 
‘‘(B) CONTROLLED
GROUPS.—For pur-
poses of subparagraph (A), all persons 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 employer. 
‘‘(d) QUALIFIED FLOOD MITIGATION EXPENSES.— 
The term ‘qualified flood mitigation expenses’ shall have 
the meaning given such term by the Administrator of the 
Federal Emergency Management Agency. 
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‘‘(e) PARTNERSHIP, S CORPORATIONS, AND OTHER 
PASS-THRU ENTITIES.—In the case of a partnership, 
trust, S corporation, or other pass-thru entity, the credit 
and limitations contained in this section shall be deter-
mined at the entity level. 
‘‘(f) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—So much of the credit 
which would be allowed under subsection (a) for any 
taxable year (determined without regard to this sub-
section) that is determined with respect to property 
of a character subject to an allowance for deprecia-
tion shall be treated as a credit listed in section 
38(b) for such taxable year (and not allowed under 
subsection (a)). 
‘‘(2) PERSONAL CREDIT.—For purposes of this 
title, the credit allowed under subsection (a) for any 
taxable year (determined after application of para-
graph (1)) shall be treated as a credit allowable 
under subpart C for such taxable year. 
‘‘(g) TERMINATION.—Subsection (a) shall not apply 
to any amount paid or incurred after December 31, 
2022.’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 38(b) of the Internal Revenue Code 
of 1986 is amended by striking ‘‘plus’’ at the end of 
paragraph (35), by striking the period at the end of 
section (36) and inserting ‘‘, plus’’, and by inserting 
after paragraph (36) the following new paragraph: 
‘‘(37) the portion of the credit for qualified 
flood mitigation expenses to which section 30E(f)(1) 
applies.’’. 
(2) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘30E(f)(2),’’ 
after ‘‘25A,’’. 
(3) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by adding at the end 
the following new item: 
‘‘Sec. 30E. Qualified flood mitigation expenses.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2012. 
SEC. 3. INCREASED FUNDING FOR MITIGATION PROGRAMS. 
(a) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator of 
the Federal Emergency Management Agency— 
(1) 
$100,000,000 
for 
carrying 
out 
the 
predisaster hazard mitigation program authorized by 
section 203 of the Robert T. Stafford Disaster Relief 
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and Emergency Assistance Act (42 U.S.C. 5133); 
and 
(2) $100,000,000 for carrying out the flood 
mitigation assistance program authorized by section 
1366 of the National Flood Insurance Act of 1969 
(42 U.S.C. 4104c), which shall remain available 
until expended. 
(b) USE OF FUNDS.—In carrying out the programs 
specified in subsection (a) using the amounts made avail-
able to the Administrator under this section, the Adminis-
trator shall ensure that such amounts are used as follows: 
(1) ACTIVITIES.—Such amounts may be used 
only for— 
(A) mitigation activities under such pro-
grams for properties eligible pursuant to para-
graph (2); and 
(B) acquisition by States and communities 
of properties eligible pursuant to paragraph (2). 
(2) PROPERTIES.—Such amounts may be used 
only with respect to properties that— 
(A) are located in an area for which re-
vised flood insurance rate maps under the na-
tional flood insurance program take effect after 
the date of the enactment of the Biggert- 
Waters Flood Insurance Reform Act of 2012 
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(subtitle A of title II of division F of Public 
Law 112–141; 126 Stat. 916); and 
(B)(i) have an elevation that is lower than 
the base flood elevation for the area in which 
the property is located, as determined by the 
applicable such flood insurance rate map; or 
(ii) are located in an area that, after the 
date of the enactment of the Biggert-Waters 
Flood Insurance Reform Act of 2012, has been 
designated as having a higher flood risk than 
the flood risk designated for the area as of such 
date of enactment. 
SEC. 4. REPEAL OF ENERGY STAR PROGRAM. 
The Energy Star program of the United States De-
partment of Energy and the United States Environmental 
Protection Agency is hereby terminated and any appro-
priation or amount otherwise made available for such pro-
gram which is not obligated or expended as of the date 
of the enactment of this Act is hereby rescinded. 
Æ 
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