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Tax Credit for Disaster Preparedness: Home and Business Protection.

This new law introduces a tax credit for individuals and businesses that spend money on protecting their properties from natural disasters. This allows citizens to recover some of the costs associated with improving the safety of their homes and workplaces, encouraging investment in flood, hurricane, and fire protection. The credit aims to reduce the risk of losses and improve building resilience to extreme weather conditions.
Key points
You can get a 25% tax credit for home disaster mitigation expenses, up to a maximum of $5,000 per year.
The credit applies to homes located in areas declared federal disaster zones within the last 10 years or adjacent to such areas.
Eligible expenses include roof strengthening, flood prevention systems, wind and fire protection, and standby generator systems.
Businesses can also claim a similar tax credit for disaster mitigation expenditures at their places of business.
The credit amount may be reduced for higher-income individuals, and these amounts will be adjusted for inflation after 2022.
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Additional Information
Print number: 117_S_1805
Sponsor: Sen. Bennet, Michael F. [D-CO]
Process start date: 2021-05-25
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

SHELTER Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_1805.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-05-25.

What are the main provisions?

Key points include:

  • You can get a 25% tax credit for home disaster mitigation expenses, up to a maximum of $5,000 per year.
  • The credit applies to homes located in areas declared federal disaster zones within the last 10 years or adjacent to such areas.
  • Eligible expenses include roof strengthening, flood prevention systems, wind and fire protection, and standby generator systems.
  • Businesses can also claim a similar tax credit for disaster mitigation expenditures at their places of business.
  • The credit amount may be reduced for higher-income individuals, and these amounts will be adjusted for inflation after 2022.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Bennet, Michael F. [D-CO].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Real Estate Environment