To amend the Internal Revenue Code of 1986 to provide a business tax credit for resilient construction.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster Savings and Resilient 
Construction Act of 2012''.

SEC. 2. RESILIENT CONSTRUCTION TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 45R the following new section:

``SEC. 45S. RESILIENT CONSTRUCTION.

    ``(a) General Rule.--For purposes of section 38, in the case of an 
eligible contractor, the resilient construction credit for the taxable 
year is the applicable amount for each building--
            ``(1) constructed by the eligible contractor in a disaster 
        area determined as a result of a federally declared major 
        disaster,
            ``(2) the construction of which began after the date of 
        such disaster in that area,
            ``(3) which--
                    ``(A) in the case of qualified commercial property, 
                is placed in service for commercial purposes, and
                    ``(B) in the case of qualified residential 
                property, is placed in service for residential 
                purposes, and
            ``(4) for which a certificate of occupancy is issued before 
        the end of the 2-year period beginning on the date of such 
        disaster declaration in that area.
    ``(b) Applicable Amount.--For purposes of subsection (a), the 
applicable amount is:
            ``(1) Commercial property.--In the case of a qualified 
        commercial property, the applicable amount is the lesser of--
                    ``(A) 1 percent of the cost of construction, or
                    ``(B) $25,000.
            ``(2) Residential property.--In the case of a qualified 
        residential property, the applicable amount is the lesser of--
                    ``(A) 1 percent of the cost of construction, or
                    ``(B) $3,000.
    ``(c) Qualified Property.--For purposes of this section:
            ``(1) Qualified commercial property.--The term `qualified 
        commercial property' means a building that is--
                    ``(A) located in the United States,
                    ``(B) defined in the scope of the 2009 or later 
                International Building Code published by the 
                International Code Council, and
                    ``(C) designed and constructed to meet resilient 
                construction requirements.
            ``(2) Qualified residential property.--The term `qualified 
        residential property' means a building that is--
                    ``(A) located in the United States,
                    ``(B) defined in the scope of the 2009 or later 
                International Residential Code published by the 
                International Code Council, and
                    ``(C) designed and constructed to meet resilient 
                construction requirements.
    ``(d) Resilient Construction Requirements.--For purposes of this 
section:
            ``(1) In general.--The resilient construction requirements 
        with respect to a property are that the property is designed 
        and constructed to--
                    ``(A) resist hazards brought on by a major disaster 
                and continues to provide its primary functions after a 
                major disaster,
                    ``(B) reduce the magnitude or duration of a 
                disruptive event, and
                    ``(C) have the absorptive capacity, adaptive 
                capacity, recoverability to withstand a potentially 
                disruptive event.
            ``(2) Treated as meeting resiliency requirements.--For 
        purposes of paragraph (1)--
                    ``(A) in the case of a qualified commercial 
                property, the property shall be treated as meeting the 
                requirements specified in paragraph (1) if the property 
                is a building which--
                            ``(i) was designed to meet the requirements 
                        of the 2009 or later International Building 
                        Code published by the International Code 
                        Council and received the Insurance Institute 
                        for Business and Home Safety FORTIFIED for 
                        Safer Business designation, or
                            ``(ii) was designed and built in a 
                        jurisdiction that requires commercial buildings 
                        to meet the requirements of the 2009 or later 
                        International Building Code published by the 
                        International Code Council with amendments 
                        that are equivalent or more restrictive than 
                        the requirements described in FORTIFIED for 
                        Safer Business Standards published by the 
                        Insurance Institute for Business and Home 
                        Safety and received a certificate of occupancy 
                        (or other documentation stating that it has met 
                        the requirements of the building code) from the 
                        jurisdiction, and
                    ``(B) in the case of a qualified residential 
                property, the property shall be treated as meeting the 
                requirements specified in paragraph (1) if the property 
                is a building which was designed to meet the 
                requirements of the 2009 or later International 
                Residential Code published by the International Code 
                Council, and meets one of the following requirements:
                            ``(i) The building received the Insurance 
                        Institute for Business and Home Safety as 
                        FORTIFIED for Safer Living designation.
                            ``(ii) The building received the Insurance 
                        Institute for Business and Home Safety as 
                        FORTIFIED for Existing Homes designation.
                            ``(iii) It was designed and built in a 
                        jurisdiction that requires residential 
                        buildings to meet the requirements of the 2009 
                        or later International Building Code published 
                        by the International Code Council with 
                        amendments that are equivalent or more 
                        restrictive than the requirements described in 
                        FORTIFIED for Safer Living Builders Guide 
                        published by the Insurance Institute for 
                        Business and Home Safety and received a 
                        certificate of occupancy (or other 
                        documentation stating that it has met the 
                        requirements of the building code) from the 
                        jurisdiction.
            ``(3) Absorptive capacity.--The term `absorptive capacity' 
        means the ability of the construction to endure a disruption 
        without significant deviation from normal operating 
        performance.
            ``(4) Adaptive capacity.--The term `adaptive capacity' 
        means the ability of the construction to adapt to a drastic 
        change in normal operating conditions.
            ``(5) Recoverability.--The term `recoverability' means the 
        ability of the construction to recover quickly, and at low 
        cost, from potentially disruptive events.
    ``(e) Other Definitions.--For purposes of this section:
            ``(1) Eligible contractor.--The term `eligible contractor' 
        means the person who constructed the qualified building.
            ``(2) Construction.--The term `construction' includes new 
        construction and reconstruction and rehabilitation that meets 
        resilient construction requirements.
            ``(3) Disaster area.--The term `disaster area' has the 
        meanings given such terms by section 165(h)(3).
            ``(4) Federally declared major disaster.--The term 
        `federally declared major disaster' means a disaster 
        subsequently determined by the President of the United States 
        to be a `major disaster' that warrants assistance by the 
        Federal Government under the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act.
    ``(f) Basis Reduction.--For purposes of this subtitle, the basis of 
any property for which a credit is allowable under subsection (a) shall 
be reduced by the amount of such credit so allowed.
    ``(g) Termination.--This section shall not apply to any property 
for which a certificate for occupancy is issued after December 31, 
2015.''.
    (b) Credit Made Part of General Business Credit.--Section 38(b) of 
such Code, as amended by this Act, is amended by striking ``plus'' at 
the end of paragraph (35), by striking the period at the end of 
paragraph (36) and inserting ``, plus'', and by adding at the end the 
following new paragraph:
            ``(37) the resilient construction credit determined under 
        section 45S(a).''.
    (c) Basis Adjustment.--Subsection (a) of section 1016 is amended by 
striking ``and'' at the end of paragraph (31), by striking the period 
at the end of paragraph (32) and inserting ``, and'', and by adding at 
the end the following new paragraph:
            ``(38) to the extent provided in section 45S(f), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 45S.''.
    (d) Deduction for Certain Unused Business Credits.--Section 196(c) 
(defining qualified business credits) is amended by striking ``and'' at 
the end of paragraph (13), by striking the period at the end of 
paragraph (14) and inserting ``, and'', and by adding after paragraph 
(14) the following new paragraph:
            ``(15) the resilient construction credit determined under 
        section 45S(a).''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after section 45R the following new item:

``Sec. 45S. Resilient construction.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to property for which a certificate for occupancy is issued after 
the date of the enactment of this Act.

Summary: Disaster Savings and Resilient Construction Act of 2012 - Amends the Internal Revenue Code to allow a business-related tax credit for the cost of constructing commercial and residential buildings that comply with resilient construction requirements in a federally-declared major disaster area. Defines "resilient construction requirements" as requirements that ensure that such buildings: (1) can resist hazards brought on by a major disaster and can continue to provide their primary functions after a major disaster, (2) can reduce the magnitude or duration of a disruptive event, and (3) have the absorptive capacity, adaptive capacity, and recoverability to withstand a potentially disruptive event.

Terminates such credit for any any property for which a certificate of occupancy is issued after December 31, 2015.