Disaster Savings and Resilient Construction Act of 2012 - Amends the Internal Revenue Code to allow a business-related tax credit for the cost of constructing commercial and residential buildings that comply with resilient construction requirements in a federally-declared major disaster area. Defines "resilient construction requirements" as requirements that ensure that such buildings: (1) can resist hazards brought on by a major disaster and can continue to provide their primary functions after a major disaster, (2) can reduce the magnitude or duration of a disruptive event, and (3) have the absorptive capacity, adaptive capacity, and recoverability to withstand a potentially disruptive event.
Terminates such credit for any any property for which a certificate of occupancy is issued after December 31, 2015.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5839 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 5839
To amend the Internal Revenue Code of 1986 to provide a business tax
credit for resilient construction.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 18, 2012
Mr. Davis of Kentucky (for himself and Mr. Diaz-Balart) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a business tax
credit for resilient construction.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Disaster Savings and Resilient
Construction Act of 2012''.
SEC. 2. RESILIENT CONSTRUCTION TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 45R the following new section:
``SEC. 45S. RESILIENT CONSTRUCTION.
``(a) General Rule.--For purposes of section 38, in the case of an
eligible contractor, the resilient construction credit for the taxable
year is the applicable amount for each building--
``(1) constructed by the eligible contractor in a disaster
area determined as a result of a federally declared major
disaster,
``(2) the construction of which began after the date of
such disaster in that area,
``(3) which--
``(A) in the case of qualified commercial property,
is placed in service for commercial purposes, and
``(B) in the case of qualified residential
property, is placed in service for residential
purposes, and
``(4) for which a certificate of occupancy is issued before
the end of the 2-year period beginning on the date of such
disaster declaration in that area.
``(b) Applicable Amount.--For purposes of subsection (a), the
applicable amount is:
``(1) Commercial property.--In the case of a qualified
commercial property, the applicable amount is the lesser of--
``(A) 1 percent of the cost of construction, or
``(B) $25,000.
``(2) Residential property.--In the case of a qualified
residential property, the applicable amount is the lesser of--
``(A) 1 percent of the cost of construction, or
``(B) $3,000.
``(c) Qualified Property.--For purposes of this section:
``(1) Qualified commercial property.--The term `qualified
commercial property' means a building that is--
``(A) located in the United States,
``(B) defined in the scope of the 2009 or later
International Building Code published by the
International Code Council, and
``(C) designed and constructed to meet resilient
construction requirements.
``(2) Qualified residential property.--The term `qualified
residential property' means a building that is--
``(A) located in the United States,
``(B) defined in the scope of the 2009 or later
International Residential Code published by the
International Code Council, and
``(C) designed and constructed to meet resilient
construction requirements.
``(d) Resilient Construction Requirements.--For purposes of this
section:
``(1) In general.--The resilient construction requirements
with respect to a property are that the property is designed
and constructed to--
``(A) resist hazards brought on by a major disaster
and continues to provide its primary functions after a
major disaster,
``(B) reduce the magnitude or duration of a
disruptive event, and
``(C) have the absorptive capacity, adaptive
capacity, recoverability to withstand a potentially
disruptive event.
``(2) Treated as meeting resiliency requirements.--For
purposes of paragraph (1)--
``(A) in the case of a qualified commercial
property, the property shall be treated as meeting the
requirements specified in paragraph (1) if the property
is a building which--
``(i) was designed to meet the requirements
of the 2009 or later International Building
Code published by the International Code
Council and received the Insurance Institute
for Business and Home Safety FORTIFIED for
Safer Business designation, or
``(ii) was designed and built in a
jurisdiction that requires commercial buildings
to meet the requirements of the 2009 or later
International Building Code published by the
International Code Council with amendments
that are equivalent or more restrictive than
the requirements described in FORTIFIED for
Safer Business Standards published by the
Insurance Institute for Business and Home
Safety and received a certificate of occupancy
(or other documentation stating that it has met
the requirements of the building code) from the
jurisdiction, and
``(B) in the case of a qualified residential
property, the property shall be treated as meeting the
requirements specified in paragraph (1) if the property
is a building which was designed to meet the
requirements of the 2009 or later International
Residential Code published by the International Code
Council, and meets one of the following requirements:
``(i) The building received the Insurance
Institute for Business and Home Safety as
FORTIFIED for Safer Living designation.
``(ii) The building received the Insurance
Institute for Business and Home Safety as
FORTIFIED for Existing Homes designation.
``(iii) It was designed and built in a
jurisdiction that requires residential
buildings to meet the requirements of the 2009
or later International Building Code published
by the International Code Council with
amendments that are equivalent or more
restrictive than the requirements described in
FORTIFIED for Safer Living Builders Guide
published by the Insurance Institute for
Business and Home Safety and received a
certificate of occupancy (or other
documentation stating that it has met the
requirements of the building code) from the
jurisdiction.
``(3) Absorptive capacity.--The term `absorptive capacity'
means the ability of the construction to endure a disruption
without significant deviation from normal operating
performance.
``(4) Adaptive capacity.--The term `adaptive capacity'
means the ability of the construction to adapt to a drastic
change in normal operating conditions.
``(5) Recoverability.--The term `recoverability' means the
ability of the construction to recover quickly, and at low
cost, from potentially disruptive events.
``(e) Other Definitions.--For purposes of this section:
``(1) Eligible contractor.--The term `eligible contractor'
means the person who constructed the qualified building.
``(2) Construction.--The term `construction' includes new
construction and reconstruction and rehabilitation that meets
resilient construction requirements.
``(3) Disaster area.--The term `disaster area' has the
meanings given such terms by section 165(h)(3).
``(4) Federally declared major disaster.--The term
`federally declared major disaster' means a disaster
subsequently determined by the President of the United States
to be a `major disaster' that warrants assistance by the
Federal Government under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act.
``(f) Basis Reduction.--For purposes of this subtitle, the basis of
any property for which a credit is allowable under subsection (a) shall
be reduced by the amount of such credit so allowed.
``(g) Termination.--This section shall not apply to any property
for which a certificate for occupancy is issued after December 31,
2015.''.
(b) Credit Made Part of General Business Credit.--Section 38(b) of
such Code, as amended by this Act, is amended by striking ``plus'' at
the end of paragraph (35), by striking the period at the end of
paragraph (36) and inserting ``, plus'', and by adding at the end the
following new paragraph:
``(37) the resilient construction credit determined under
section 45S(a).''.
(c) Basis Adjustment.--Subsection (a) of section 1016 is amended by
striking ``and'' at the end of paragraph (31), by striking the period
at the end of paragraph (32) and inserting ``, and'', and by adding at
the end the following new paragraph:
``(38) to the extent provided in section 45S(f), in the
case of amounts with respect to which a credit has been allowed
under section 45S.''.
(d) Deduction for Certain Unused Business Credits.--Section 196(c)
(defining qualified business credits) is amended by striking ``and'' at
the end of paragraph (13), by striking the period at the end of
paragraph (14) and inserting ``, and'', and by adding after paragraph
(14) the following new paragraph:
``(15) the resilient construction credit determined under
section 45S(a).''.
(e) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after section 45R the following new item:
``Sec. 45S. Resilient construction.''.
(f) Effective Date.--The amendments made by this section shall
apply to property for which a certificate for occupancy is issued after
the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
CHANGE OF FIRST SPONSOR - Mr. Diaz-Balart asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 5839, originally introduced by Representative Geoff Davis (KY), for the purposes of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
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