Sec. 2. Credit for certain qualified flood mitigation expenses
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Subpart B 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: In the case of a qualified taxpayer, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the qualified flood mitigation expenses paid or incurred by the taxpayer for the taxable year. The amount allowed as a credit under subsection
(a)for a taxable year shall not exceed $5,000. For purposes of this section, the term qualified taxpayer means taxpayer who— is the holder of a policy for flood insurance coverage under the national flood insurance program under the National Flood Insurance Act of 1968 ( 42 U.S.C. 4011 et seq. ), and owns property— which is covered by such policy for flood insurance coverage under which the chargeable premium rate as of the date of the enactment of the Biggert-Waters Flood Insurance Reform Act of 2012 (title II of division F of Public Law 112–141 ) is less than the applicable estimated risk premium rate under section 1307(a)(1) of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4014(a)(1) ) for the area (or subdivision thereof) in which the property is located, for which such chargeable premium rate was increased or will increase, as a result of any provision of the Biggert-Waters Flood Insurance Reform Act of 2012, to the applicable estimated risk premium rate under such section 1307(a)(1) for such area (or subdivision), and which— has an elevation lower than the base flood elevation, as determined by the applicable flood insurance rate map, or is located in an area that, after the date of the enactment of the Biggert-Waters Flood Insurance Reform Act of 2012, has been designated as having a higher flood risk than the flood risk designated for the area as of such date of enactment. In the case of a taxpayer which is a trade or business, for purposes of this section the term qualified taxpayer shall not include any taxpayer which employed an average of more than 50 employees on business days during such taxable year. For purposes of subparagraph (A), all persons treated as a single employer under subsection
(a)or
(b)of section 52 or subsection
(m)or
(o)of section 414 shall be treated as a single employer. The term qualified flood mitigation expenses shall have the meaning given such term by the Administrator of the Federal Emergency Management Agency. In the case of a partnership, trust, S corporation, or other pass-thru entity, the credit and limitations contained in this section shall be determined at the entity level. So much of the credit which would be allowed under subsection
(a)for any taxable year (determined without regard to this subsection) that is determined with respect 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)). 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 C for such taxable year. Subsection
(a)shall not apply to any amount paid or incurred after December 31, 2022. . Section 38(b) of the Internal Revenue Code of 1986 is amended by striking plus at the end of paragraph (35), by striking the period at the end of section
(36)and inserting , plus , and by inserting after paragraph
(36)the following new paragraph: the portion of the credit for qualified flood mitigation expenses to which section 30E(f)(1) applies. . Section 1324(b)(2) of title 31, United States Code, is amended by inserting 30E(f)(2), after 25A, . The table of sections for subpart B 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 item: Sec. 30E. Qualified flood mitigation expenses. . The amendments made by this section shall apply to amounts paid or incurred after December 31, 2012.
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- Pub. L. 112-141
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Sec. 2
Credit for certain qualified flood mitigation expenses
Pub. L.Pub. L. 112-141
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