Disaster Savings and Resilient Construction Act of 2021
Bill: H.R.1984 | Sponsor: Rep. Pascrell, Bill, Jr. (D-NJ)
Policy area: Taxation

Summary:
Disaster Savings and Resilient Construction Act of 2021
This bill allows a tax credit through 2023 for certain residential or commercial buildings owned by a taxpayer in a disaster area that are designed and constructed to meet resilient construction requirements. The bill defines resilient construction requirements as requirements with respect to buildings in a disaster area that make such buildings resistant to hazards brought on by a major disaster, reduce the magnitude or duration of a disruptive event, and have the capacity to withstand a potentially disruptive event.

To amend the Internal Revenue Code of 1986 to provide a credit for 
              owning certain disaster resilient property.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster Savings and Resilient 
Construction Act of 2021''.

SEC. 2. DISASTER RESILIENT PROPERTY TAX CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 30D the following new section:

``SEC. 30E. DISASTER RESILIENT PROPERTY.

    ``(a) General Rule.--There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to the 
applicable amount for each qualified building placed in service during 
the taxable year.
    ``(b) Applicable Amount.--For purposes of subsection (a)--
            ``(1) Commercial property.--ln the case of a qualified 
        commercial property, the applicable amount is the lesser of--
                    ``(A) 1 percent of the cost of the building, or
                    ``(B) $25,000 per building.
            ``(2) Residential property.--ln the case of a qualified 
        residential property, the applicable amount is the lesser of--
                    ``(A) 1 percent of the cost of the property, or
                    ``(B) $3,000 per property.
    ``(c) Qualified Building.--For purposes of subsection (a)--
            ``(1) In general.--The term `qualified building' means a 
        building--
                    ``(A) owned by the taxpayer in a disaster area 
                determined as a result of a federally declared major 
                disaster,
                    ``(B) the construction of which began after the 
                date of such disaster in that area,
                    ``(C) which--
                            ``(i) is qualified commercial property 
                        placed in service for commercial purposes, or
                            ``(ii) is qualified residential property 
                        placed in service for residential purposes, and
                    ``(D) for which a certificate of occupancy is 
                issued before the end of the 3-year period beginning on 
                the date of such disaster declaration in that area.
            ``(2) 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 most recent 
                International Building Code published by the 
                International Code Council, and
                    ``(C) designed and constructed to meet resilient 
                construction requirements.
            ``(3) 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 most recent 
                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, and 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 most recent International Building Code 
                        published by the International Code Council and 
                        meets the FORTIFIED Commercial Wind Standard 
                        published by the Insurance Institute for 
                        Business and Home Safety, or the most recent 
                        International Wildland Urban Interface Code 
                        published by the International Code Council,
                            ``(ii) in the case of a substantial 
                        renovation, such renovation meets the 
                        requirements of--
                                    ``(I) the most recent International 
                                Building Code published by the 
                                International Code Council and the 
                                FORTIFIED Commercial Wind Standard 
                                published by the Insurance Institute 
                                for Business and Home Safety, or
                                    ``(II) the most recent 
                                International Wildland Urban Interface 
                                Code published by the International 
                                Code Council, or
                            ``(iii) in the case of a qualified 
                        commercial property in a high seismic hazard 
                        zone, was designed and built to achieve a 
                        reduction in the earthquake risks relative to 
                        code-designed buildings by minimizing building 
                        damage and promoting contingency planning for 
                        utility disruption and other threats to 
                        functional recovery that are described in the 
                        U.S. Resiliency Council Rating System with 
                        specific design criteria achieving the Platinum 
                        or Gold rating, and
                    ``(B) in the case of a qualified residential 
                property, the property shall be treated as meeting the 
                requirements specified in paragraph (1) if--
                            ``(i) the property is a building which--
                                    ``(I) was designed to meet the 
                                requirements of the most recent 
                                International Residential Code 
                                published by the International Code 
                                Council, and received a FORTIFIED Roof, 
                                FORTIFIED Silver, or FORTIFIED Gold 
                                designation from the Insurance 
                                Institute for Business and Home Safety, 
                                or
                                    ``(II) was designed to meet or 
                                exceed the requirements of the most 
                                recent Standard for Residential 
                                Construction in High-Wind Regions or 
                                International Wildland Urban Interface 
                                Code published by the International 
                                Code Council, or
                            ``(ii) in the case of a substantial 
                        renovation, such renovation meets--
                                    ``(I) the requirements of the most 
                                recent International Residential Code 
                                published by the International Code 
                                Council and the requirements of the 
                                FORTIFIED Roof Standards published by 
                                the Insurance Institute for Business 
                                and Home Safety, or
                                    ``(II) the requirements of the most 
                                recent Standard for Residential 
                                Construction in High-Wind Regions or 
                                International Wildland Urban Interface 
                                Code published by the International 
                                Code Council.
            ``(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) Construction.--The term `construction' includes new 
        construction and reconstruction and rehabilitation that meets 
        resilient construction requirements.
            ``(2) Federally declared major disaster.--The term 
        `federally declared major disaster' means a disaster 
        subsequently determined by the President to be a `major 
        disaster' that warrants assistance by the Federal Government 
        under the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act.
            ``(3) Disaster area.--The term `disaster area' means the 
        area so determined to warrant such assistance.
            ``(4) Most recent editions.--The term `most recent' means, 
        with respect to relevant national consensus-based codes, and 
        specifications and standards referenced therein, either of the 
        two most recent published editions, including, if any, 
        amendments made by State, local, tribal, or territorial 
        governments during the adoption process, that incorporate the 
        latest natural hazard-resistant designs and establish criteria 
        for the design, construction, and maintenance of structures and 
        facilities that may be eligible for assistance under this 
        section for the purposes of protecting the health, safety, and 
        general welfare of a building's users against disasters.
    ``(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 subsection) that is attributable to property of a 
        character subject to an allowance for depreciation 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 paragraph (1)) shall be 
        treated as a credit allowable under subpart A for such taxable 
        year.
    ``(g) 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.
    ``(h) Termination.--This section shall not apply to any property 
for which a certificate for occupancy is issued after December 31, 
2023.''.
    (b) Credit Made Part of General Business Credit.--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 ``, 
plus'', and by adding at the end the following new paragraph:
            ``(34) the portion of the disaster resilient property 
        credit described in section 30E(f)(1).''.
    (c) Basis Adjustment.--Section 1016(a) of such Code is amended by 
striking ``and'' at the end of paragraph (37), by striking the period 
at the end of paragraph (38) and inserting ``, and'', and by adding at 
the end the following new paragraph:
            ``(39) to the extent provided in section 30E(g), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 30E.''.
    (d) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 30D the following new 
item:

``Sec. 30E. Disaster resilient property.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property for which a certificate of occupancy is issued after 
the date of the enactment of this Act.
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