SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeowners Insurance and Mitigation 
Assistance Act of 2008''.

SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR CERTAIN HOMEOWNERS INSURANCE 
              PREMIUMS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25D the following new section:

``SEC. 25E. CERTAIN HOMEOWNERS INSURANCE PREMIUMS.

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
chapter for the taxable year an amount equal to 50 percent of the 
taxpayer's qualified homeowners insurance premium for such taxable 
year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed under subsection 
        (a) for any taxable year shall not exceed $500.
            ``(2) Limitation based on adjusted gross income.--The 
        amount of the credit allowable under subsection (a) shall be 
        reduced (but not below zero) by 2 percentage points for each 
        percentage point (or fraction thereof) by which the taxpayer's 
        adjusted gross income exceeds the State median income for such 
        a taxpayer for the preceding taxable year in the State in which 
        the principal residence of such taxpayer is located.
            ``(3) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for any taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section and sections 23, 24, 
                and 25B) and section 27 for the taxable year.
    ``(c) Eligible Individual.--For purposes of this section--
            ``(1) In general.--The term `eligible individual' means any 
        taxpayer whose principal residence is--
                    ``(A) substantially the same dwelling unit during 
                the applicable period, and
                    ``(B) located in either--
                            ``(i) an area determined by the President 
                        to warrant individual or individual and public 
                        assistance from the Federal Government under 
                        the Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act by reason of one or 
                        more hurricanes during 2004 or 2005, or
                            ``(ii) a county--
                                    ``(I) located in a State which 
                                borders the Atlantic Ocean or the Gulf 
                                of Mexico, and
                                    ``(II) which is determined by the 
                                Secretary, in consultation with the 
                                National Association of Insurance 
                                Commissioners, to have experienced a 
                                higher than average increase in 
                                homeowners insurance premiums during 
                                2004, 2005, 2006, or 2007 due to 
                                hurricane risk.
            ``(2) Applicable period.--The term `applicable period' 
        means--
                    ``(A) in the case of an area described in paragraph 
                (1)(B)(i), the period beginning the day before the 
                determination described in such paragraph and ending on 
                the last day of the taxable year, and
                    ``(B) in the case of an area described in paragraph 
                (1)(B)(ii), the period beginning on September 1, 2005, 
                and ending before the last day of the taxable year.
    ``(d) Qualified Homeowners Insurance Premium.--For purposes of this 
section--
            ``(1) In general.--The term `qualified homeowners insurance 
        premium' for any taxable year means an amount equal to the 
        qualifying percentage of the eligible individual's homeowners 
        insurance premium in effect on the first policy anniversary 
        date (or, if greater, the second policy anniversary date) 
        following the beginning of such individual's applicable period.
            ``(2) Qualifying percentage.--The term `qualifying 
        percentage' is equal to the excess (expressed in percentage 
        points) of--
                    ``(A) the eligible individual's percentage increase 
                in homeowners insurance premium between the last policy 
                anniversary before the beginning of such individual's 
                applicable period and the policy anniversary date (as 
                determined under paragraph (1)) following the beginning 
                of such individual's applicable period, over
                    ``(B) the national average percentage increase in 
                homeowners insurance premiums between the same dates as 
                determined by the Secretary, in consultation with the 
                National Association of Insurance Commissioners.
    ``(e) Other Definitions.--For purposes of this section--
            ``(1) Principal residence.--The term `principal residence' 
        has the same meaning as when used in section 121.
            ``(2) Homeowners insurance.--The term `homeowners 
        insurance' means any insurance covering a principal residence.
    ``(f) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2009.''.
    (b) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25D the following new 
item:

``Sec. 25E. Certain homeowners insurance premiums.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 3. NONREFUNDABLE PERSONAL CREDIT FOR HURRICANE, EARTHQUAKE, AND 
              TORNADO MITIGATION PROPERTY.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25E, as amended by section 2, the following new section:

``SEC. 25F. HURRICANE, EARTHQUAKE, AND TORNADO MITIGATION PROPERTY.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 25 percent of the qualified 
hurricane, earthquake, and tornado mitigation property expenditures 
made by the taxpayer during such taxable year.
    ``(b) Maximum Credit.--The credit allowed under subsection (a) for 
any taxable year shall not exceed $5,000.
    ``(c) Qualified Hurricane, Earthquake, and Tornado Mitigation 
Expenditure.--For purposes of this section--
            ``(1) In general.--The term `qualified hurricane, 
        earthquake, and tornado mitigation property expenditure' means 
        an expenditure for property--
                    ``(A) to improve the strength of a roof deck 
                attachment,
                    ``(B) to create a secondary water barrier to 
                prevent water intrusion,
                    ``(C) to improve the durability of a roof covering,
                    ``(D) to brace gable-end walls,
                    ``(E) to reinforce the connection between a roof 
                and supporting wall,
                    ``(F) to protect openings from penetration by 
                windborne debris or by wind-driven rain, or
                    ``(G) to protect exterior doors and garages,
        in a qualified dwelling unit located in a qualified State and 
        owned by the taxpayer.
            ``(2) Qualified dwelling unit.--The term `qualified 
        dwelling unit' means a dwelling unit that is assessed at a 
        value that is less than $1,000,000 by the locality in which 
        such dwelling unit is located and with respect to the taxable 
        year for which the credit described in subsection (a) is 
        allowed.
            ``(3) Qualified state.--The term `qualified State' means 
        Alabama, Arkansas, Colorado, Connecticut, Delaware, Florida, 
        Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, 
        Louisiana, Maine, Maryland, Massachusetts, Minnesota, 
        Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New 
        York, North Carolina, North Dakota, Ohio, Pennsylvania, Rhode 
        Island, South Carolina, South Dakota, Tennessee, Texas, or 
        Virginia.
    ``(d) Limitation.--An expenditure shall be taken into account in 
determining the qualified hurricane, earthquake, and tornado mitigation 
property expenditures made by the taxpayer during the taxable year only 
if the onsite preparation, assembly, or original installation of the 
property with respect to which such expenditure is made has been 
completed in a manner that is deemed to be adequate by a State-
certified inspector.
    ``(e) Labor Costs.--For purposes of this section, expenditures for 
labor costs properly allocable to the onsite preparation, assembly, or 
original installation of the property described in subsection (c) shall 
be taken into account in determining the qualified hurricane, 
earthquake, and tornado mitigation property expenditures made by the 
taxpayer during the taxable year.
    ``(f) Inspection Costs.--For purposes of this section, expenditures 
for inspection costs properly allocable to the inspection of the 
preparation, assembly, or installation of the property described in 
subsection (c) shall be taken into account in determining the qualified 
hurricane, earthquake, and tornado mitigation property expenditures 
made by the taxpayer during the taxable year.''.
    (b) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code, as amended by 
section 2, is amended by inserting after the item relating to section 
25E the following new item:

``Sec. 25F. Hurricane, earthquake, and tornado mitigation property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 4. BUSINESS RELATED CREDIT FOR HURRICANE, EARTHQUAKE, AND TORNADO 
              MITIGATION.

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

``SEC. 45Q. HURRICANE, EARTHQUAKE, AND TORNADO MITIGATION CREDIT.

    ``(a) General Rule.--For purposes of section 38, the hurricane, 
earthquake, and tornado mitigation credit determined under this section 
for any taxable year is an amount equal to 25 percent of the qualified 
hurricane, earthquake, and tornado mitigation property expenditures 
made by the taxpayer during the taxable year.
    ``(b) Maximum Credit.--The amount of the credit determined under 
subsection (a) for any taxable year shall not exceed $5,000.
    ``(c) Qualified Hurricane, Earthquake, and Tornado Mitigation 
Expenditure.--For purposes of this section--
            ``(1) In general.--The term `qualified hurricane, 
        earthquake, and tornado mitigation property expenditure' means 
        an expenditure for property--
                    ``(A) to improve the strength of a roof deck 
                attachment,
                    ``(B) to create a secondary water barrier to 
                prevent water intrusion,
                    ``(C) to improve the durability of a roof covering,
                    ``(D) to brace gable-end walls,
                    ``(E) to reinforce the connection between a roof 
                and supporting wall,
                    ``(F) to protect openings from penetration by 
                windborne debris or wind-driven rain, or
                    ``(G) to protect exterior doors and garages,
        in a qualified place of business located in a qualified State 
        and owned by the taxpayer.
            ``(2) Qualified place of business.--The term `qualified 
        place of business' means a place of business that is assessed 
        at a value that is less than $5,000,000 by the locality in 
        which such business is located and with respect to the taxable 
        year for which the credit described in subsection (a) is 
        allowed.
            ``(3) Qualified state.--The term `qualified State' means 
        Alabama, Arkansas, Colorado, Connecticut, Delaware, Florida, 
        Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, 
        Louisiana, Maine, Maryland, Massachusetts, Minnesota, 
        Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New 
        York, North Carolina, Ohio, Pennsylvania, Rhode Island, South 
        Carolina, South Dakota, Tennessee, Texas, or Virginia.
    ``(d) Limitation.--An expenditure shall be taken into account in 
determining the qualified hurricane, earthquake, and tornado mitigation 
property expenditures made by the taxpayer during the taxable year only 
if the onsite preparation, assembly, or original installation of the 
property with respect to which such expenditure is made has been 
completed in a manner that is deemed to be adequate by a State-
certified inspector.
    ``(e) Labor Costs.--For purposes of this section, expenditures for 
labor costs properly allocable to the onsite preparation, assembly, or 
original installation of the property described in subsection (c) shall 
be taken into account in determining the qualified hurricane, 
earthquake, and tornado mitigation property expenditures made by the 
taxpayer during the taxable year.
    ``(f) Inspection Costs.--For purposes of this section, expenditures 
for inspection costs properly allocable to the inspection of the 
preparation, assembly, or installation of the property described in 
subsection (c) shall be taken into account in determining the qualified 
hurricane, earthquake, and tornado mitigation property expenditures 
made by the taxpayer during the taxable year.''.
    (b) Conforming Amendments.--
            (1) 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 ``, and'', and by 
        adding at the end the following new paragraph:
            ``(34) the hurricane, earthquake, and tornado mitigation 
        credit determined under section 45Q(a).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 45Q. Hurricane, earthquake, and tornado mitigation credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.
Output: Homeowners Insurance and Mitigation Assistance Act of 2008 - Amends the Internal Revenue Code to allow tax credits for: (1) 50% of the increases in homeowners insurance premiums for taxpayers whose principal residences are located in certain federally declared hurricane disaster areas or in states which border the Atlantic Ocean or the Gulf of Mexico, up to $500 annually; and (2) 25% of the qualified hurricane, earthquake, and tornado mitigation property expenditures of homeowners and businesses, up to $5,000 annually. Includes within the definition of "qualified hurricane, earthquake, and tornado mitigation expenditures" expenditures for property to improve the strength of a roof deck attachment, create a secondary water barrier, improve the durability of a roof covering, reinforce the connection between a roof and a supporting wall, and protect exterior doors and garages.