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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.
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.