Title: Home Lead Safety Tax Credit Act of 2017
Policy area: Taxation

Summary:
Home Lead Safety Tax Credit Act of 2017
This bill allows owners of eligible dwelling units a new tax credit for up to 50% of the lead hazard reduction activity costs for each such unit in a taxable year. An "eligible dwelling unit" is any unit located in the United States that was placed in service before 1978 and the residents of which during the preceding taxable year have a cumulative adjusted gross income of less than $110,000.
The bill: (1) specifies the types of lead hazard reduction activity costs eligible for the credit, including risk assessment and abatement costs; and (2) limits the amount of the credit in any taxable year to $3,000 for specified abatement measures and $1,000 for interim lead control measures.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1575 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1575

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
                taxpayers who remove lead-based hazards.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 18, 2017

 Mr. Whitehouse (for himself, Mr. Casey, and Mrs. Shaheen) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a tax credit for 
                taxpayers who remove lead-based hazards.

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

SECTION 1. SHORT TITLE; FINDINGS; PURPOSE.

    (a) Short Title.--This Act may be cited as the ``Home Lead Safety 
Tax Credit Act of 2017''.
    (b) Findings.--Congress finds that:
            (1) Lead is a metal that can produce a wide range of health 
        effects in humans when ingested. Children are more vulnerable 
        to lead poisoning than adults.
            (2) Lead poisoning is a serious, entirely preventable 
        threat to a child's intelligence, behavior, and learning. In 
        severe cases, lead poisoning can result in death.
            (3) According to the Department of Housing and Urban 
        Development, approximately 23,000,000 housing units nationwide 
        have at least 1 lead paint hazard.
            (4) While appropriated Federal lead abatement programs, 
        such as the Lead Hazard Control and Healthy Homes grant 
        programs, have helped reduce childhood lead poisoning, funding 
        constraints have limited their impact to only about 200,000 
        homes as of 2016.
            (5) Childhood lead poisoning can be dramatically reduced by 
        the abatement or complete removal of all lead-based hazards. 
        Empirical studies also have shown substantial reductions in 
        lead poisoning when the affected properties have undergone 
        ``interim control measures'' that are less costly than 
        abatement.
    (c) Purpose.--The purpose of this section is to encourage the safe 
removal of lead hazards from homes and thereby decrease the number of 
children who suffer reduced intelligence, learning difficulties, 
behavioral problems, and other health consequences due to lead 
poisoning.

SEC. 2. HOME LEAD HAZARD REDUCTION ACTIVITY TAX CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36B the following new section:

``SEC. 36C. HOME LEAD HAZARD REDUCTION ACTIVITY.

    ``(a) Allowance of Credit.--
            ``(1) In general.--Subject to paragraph (2), there shall be 
        allowed as a credit against the tax imposed by this subtitle 
        for the taxable year an amount equal to 50 percent of the lead 
        hazard reduction activity cost paid or incurred by the taxpayer 
        during the taxable year for each eligible dwelling unit.
            ``(2) Election to apply costs to prior year.--For purposes 
        of this section, a taxpayer may elect to treat any lead hazard 
        reduction activity cost paid or incurred by the taxpayer during 
        the taxable year as having been paid or incurred during the 
        preceding taxable year.
    ``(b) Limitations.--
            ``(1) In general.--Subject to paragraph (3), the amount of 
        the credit allowed under subsection (a) for any eligible 
        dwelling unit for any taxable year shall not exceed--
                    ``(A) $3,000 in the case of lead hazard reduction 
                activity cost including lead abatement measures 
                described in clauses (i), (ii), (iv), and (v) of 
                subsection (c)(1)(A), or
                    ``(B) $1,000 in the case of lead hazard reduction 
                activity cost including interim lead control measures 
                described in clauses (i), (iii), (iv), and (v) of 
                subsection (c)(1)(A).
            ``(2) Other tax credits.--In the case of any credit against 
        State or local tax liabilities which is allowable under the 
        laws of any State or political subdivision thereof to a 
        taxpayer with respect to any costs paid or incurred by the 
        taxpayer which would otherwise qualify as lead hazard reduction 
        activity costs under this section (referred to in this 
        paragraph as the `State or local tax credit amount'), the 
        amount of the credit allowed under subsection (a) for any 
        eligible dwelling unit for any taxable year (determined after 
        application of paragraph (1)) shall not exceed an amount equal 
        to the difference between--
                    ``(A) the lead hazard reduction activity cost paid 
                or incurred by the taxpayer during the taxable year for 
                such unit, and
                    ``(B) the State or local tax credit amount.
            ``(3) Limitation per residence.--The cumulative amount of 
        the credit allowed under subsection (a) for an eligible 
        dwelling unit for all taxable years shall not exceed $4,000.
    ``(c) Definitions and Special Rules.--For purposes of this section:
            ``(1) Lead hazard reduction activity cost.--
                    ``(A) In general.--The term `lead hazard reduction 
                activity cost' means, with respect to any eligible 
                dwelling unit--
                            ``(i) the cost for a certified risk 
                        assessor to conduct an assessment to determine 
                        the presence of a lead-based hazard (as such 
                        terms are defined by the Secretary, in 
                        consultation with the Administrator of the 
                        Environmental Protection Agency),
                            ``(ii) the cost for performing lead 
                        abatement measures by a certified lead 
                        abatement supervisor (as such term is defined 
                        by the Secretary, in consultation with the 
                        Administrator of the Environmental Protection 
                        Agency), including the removal of paint, dust, 
                        or pipes, the permanent enclosure or 
                        encapsulation of lead-based paint or pipes, the 
                        replacement of painted surfaces, windows, or 
                        fixtures, or the removal or permanent covering 
                        of soil when lead-based hazards are present,
                            ``(iii) the cost for performing interim 
                        lead control measures to reduce exposure or 
                        likely exposure to lead-based hazards, 
                        including specialized cleaning, repairs, 
                        maintenance, painting, temporary containment, 
                        ongoing monitoring of lead-based hazards, and 
                        the establishment and operation of management 
                        and resident education programs, but only if 
                        such measures are evaluated and completed by a 
                        certified lead abatement supervisor using 
                        accepted methods, are conducted by a qualified 
                        contractor, and have an expected useful life of 
                        more than 10 years,
                            ``(iv) the cost for a certified lead 
                        abatement supervisor, those working under the 
                        supervision of such supervisor, or a qualified 
                        contractor to perform all preparation, cleanup, 
                        disposal, and clearance testing activities 
                        associated with the lead abatement measures or 
                        interim lead control measures, and
                            ``(v) costs incurred by or on behalf of any 
                        occupant of such dwelling unit for any 
                        relocation which is necessary to achieve 
                        occupant protection (as such term is defined by 
                        the Secretary, in consultation with the 
                        Administrator of the Environmental Protection 
                        Agency).
                    ``(B) Limitation.--The term `lead hazard reduction 
                activity cost' does not include any cost to the extent 
                such cost is funded by any grant, contract, or 
                otherwise by another person or any governmental agency.
            ``(2) Eligible dwelling unit.--
                    ``(A) In general.--The term `eligible dwelling 
                unit' means, with respect to any taxable year, any 
                dwelling unit--
                            ``(i) placed in service before 1978,
                            ``(ii) located in the United States, and
                            ``(iii) the residents of which during the 
                        preceding taxable year have a cumulative 
                        adjusted gross income of less than $110,000.
                    ``(B) Dwelling unit.--The term `dwelling unit' has 
                the meaning given such term by section 280A(f)(1).
            ``(3) Qualified contractor.--The term `qualified 
        contractor' means any contractor who has successfully completed 
        a training course on lead safe work practices which has been 
        approved by the Department of Housing and Urban Development and 
        the Environmental Protection Agency.
            ``(4) Documentation required for credit allowance.--No 
        credit shall be allowed under subsection (a) with respect to 
        any eligible dwelling unit for any taxable year unless, after 
        lead hazard reduction activity is complete, a certified 
        inspector (as such term is defined by the Secretary, in 
        consultation with the Administrator of the Environmental 
        Protection Agency) or certified risk assessor provides written 
        documentation to the taxpayer that includes--
                    ``(A) evidence that--
                            ``(i) the eligible dwelling unit meets the 
                        lead hazard reduction criteria defined by the 
                        Secretary, in consultation with the 
                        Administrator of the Environmental Protection 
                        Agency, or
                            ``(ii) the eligible dwelling unit meets 
                        lead hazard evaluation criteria established 
                        under an authorized State or local program, and
                    ``(B) documentation showing that the lead hazard 
                reduction activity meets the requirements of this 
                section.
            ``(5) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(6) No double benefit.--Any deduction allowable for costs 
        taken into account in computing the amount of the credit for 
        lead-based abatement shall be reduced by the amount of such 
        credit attributable to such costs.
    ``(d) Inflation Adjustment.--In the case of any taxable year 
beginning in a calendar year after 2018, each of the dollar amounts in 
subsections (b) and (c)(2)(A)(iii) shall be increased by an amount 
equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for the calendar year in which the taxable year 
        begins, determined by substituting `calendar year 2017' for 
        `calendar year 1992' in subparagraph (B) thereof. Any increase 
        determined under the preceding sentence shall be rounded to the 
        nearest multiple of $100.''.
    (b) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``, 36C'' after ``36B''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by inserting before the item relating to section 37 
        the following new item:

``Sec. 36C. Home lead hazard reduction activity.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to lead hazard reduction activity costs incurred after December 
31, 2017, in taxable years ending after that date.
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