I 
113TH CONGRESS 
2D SESSION 
H. R. 3924 
To delay increases in premium rates for flood insurance coverage under 
the National Flood Insurance Program, establish a refundable tax credit 
for flood mitigation expenses, and authorize increased funding for flood 
damage mitigation programs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 17, 2014 
Mr. GARCIA introduced the following bill; which was referred to the Committee 
on Financial Services, and in addition to the Committees on Ways and 
Means and Transportation and Infrastructure, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To delay increases in premium rates for flood insurance 
coverage under the National Flood Insurance Program, 
establish a refundable tax credit for flood mitigation 
expenses, and authorize increased funding for flood dam-
age mitigation programs, and for other purposes. 
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 ‘‘Helping Owners Miti-
gate Effectively Act of 2014’’ or the ‘‘HOME Act of 
2014’’. 
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SEC. 2. DELAY IN FLOOD INSURANCE RATE CHANGES. 
(a) DELAY.—Notwithstanding any other provision of 
law, any change in risk premium rates for flood insurance 
under the National Flood Insurance Program resulting 
from the amendments made by sections 100205 and 
100207 of the Biggert-Waters Flood Insurance Reform 
Act of 2012 (Public Law 112–141; 126 Stat. 917) to sec-
tions 1307 and 1308 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4014 and 4015) shall not take effect 
until the expiration of the 5-year period that begins upon 
the date of the enactment of the Biggert-Waters Flood 
Insurance Reform Act of 2012. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect as if enacted as part of 
the Biggert-Waters Flood Insurance Reform Act of 2012 
(Public Law 112–141; 126 Stat. 916). 
SEC. 3. CAP ON ANNUAL COST OF FLOOD INSURANCE. 
Section 1308 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4015) is amended— 
(1) by redesignating subsection (i) as subsection 
(j); and 
(2) by inserting after subsection (h) the fol-
lowing new subsection:. 
‘‘(i) 
MAXIMUM
ANNUAL
PREMIUM.—Notwith-
standing any other provision of this title, the maximum 
annual chargeable premium rate for a property shall be 
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the appraised value of the property at the time of the pur-
chase of the property by the current owner of the property 
divided by 30.’’. 
SEC. 4. 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 
$7,500. 
‘‘(c) QUALIFIED TAXPAYER.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified taxpayer’ means a taxpayer 
who is the holder of a policy for flood insurance cov-
erage under the national flood insurance program 
under the National Flood Insurance Act of 1968 (42 
U.S.C. 4011 et seq.). 
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‘‘(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. 
‘‘(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 
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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.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (35), by 
striking the period at the end of section (36) and in-
serting ‘‘, 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.’’. 
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(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. 5. AFFORDABILITY STUDY. 
Section 100236 of the Biggert-Waters Flood Insur-
ance Reform Act of 2012 (Public Law 112–141; 126 Stat. 
957) is amended— 
(1) in subsection (c), by striking ‘‘Not’’ and in-
serting the following: ‘‘Subject to subsection (e), 
not’’; 
(2) in subsection (d)— 
(A) by striking ‘‘(d) FUNDING.—Notwith-
standing’’ and inserting the following: 
‘‘(d) FUNDING.— 
‘‘(1) NATIONAL
FLOOD
INSURANCE
FUND.— 
Notwithstanding’’; and 
(B) by adding at the end the following new 
paragraph: 
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‘‘(2) OTHER FUNDING SOURCES.—To carry out 
this section, in addition to the amount made avail-
able under paragraph (1), the Administrator may 
use any other amounts that are available to the Ad-
ministrator.’’; and 
(3) by adding at the end the following new sub-
section 
‘‘(e) ALTERNATIVE.—If the Administrator deter-
mines that the report required under subsection (c) cannot 
be submitted by the date specified under subsection (c)— 
‘‘(1) the Administrator shall notify, not later 
than 60 days after the date of enactment of this 
subsection, the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representa-
tives of an alternative method of gathering the infor-
mation required under this section; 
‘‘(2) the Administrator shall submit, not later 
than 180 days after the Administrator submits the 
notification required under paragraph (1), to the 
Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Serv-
ices of the House of Representatives the information 
gathered using the alternative method described in 
paragraph (1); and 
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‘‘(3) upon the submission of information re-
quired under paragraph (2), the requirement under 
subsection (c) shall be deemed satisfied.’’. 
SEC. 6. INCREASED FUNDING FOR MITIGATION PROGRAMS. 
(a) PREDISASTER HAZARD MITIGATION.—Section 
203(m) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5133(m)) is amend-
ed— 
(1) by striking ‘‘and’’ at the end of paragraph 
(2); 
(2) by striking the period at the end of para-
graph (3) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(4) $300,000,000 for each of fiscal years 2014 
through 2018.’’. 
(b) FLOOD HAZARD MITIGATION ASSISTANCE.— 
There is authorized to be appropriated for financial assist-
ance under section 1366 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4104c) $210,000,000 for each of 
fiscal years 2014 through 2018. Any amounts appro-
priated pursuant to this subsection shall be in addition 
to amounts made available from the National Flood Miti-
gation Fund under section 1367 of such Act (42 U.S.C. 
4104d) for such assistance during such fiscal years. 
Æ 
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