The Shelter Act would create tax credits for individuals and businesses that pay for eligible improvements to reduce natural disaster risks. The credits would cover 25% of qualifying costs, subject to limits and eligibility rules. The changes would apply to tax years beginning after December 31, 2025.
Individuals could claim a nonrefundable credit of up to $3,750 per year, or $7,500 on a joint return, with a $15,000 lifetime limit for each eligible home. The credit phases down as income rises and can be carried forward for up to five years if it exceeds the taxpayer’s available tax limit. Eligible work includes measures such as stronger roofs, flood protections, fire-resistant features, storm shelters, and safe rooms. The home must meet location requirements tied to disaster declarations, disaster assistance, or designated resilience zones.
Businesses could claim a credit of up to $5,000 per year for qualifying work at eligible business locations. The credit phases down based on average gross receipts. Taxpayers would need to provide documentation, and covered work must meet applicable building and safety standards. Costs paid or reimbursed by a government entity would not qualify, and the same costs could not be used for both credits.
Taxpayers would pay for qualifying improvements and related labor and inspection costs. The bill does not state how much these projects would cost. It would allow a tax credit for eligible costs, within the stated limits.
No publicly available information.
No publicly available information.