Homeowner Catastrophe Protection Act of 2013 - Amends the Internal Revenue Code to: (1) allow insurance companies (other than life insurance companies) to make tax deductible contributions to a tax-exempt policyholder disaster protection fund established by this Act for the payment of policyholders' claims arising from certain catastrophic events, such as windstorms, earthquakes, snowstorms, fires, tsunamis or floods, volcanic eruptions, or hail; (2) establish a tax-exempt Catastrophe Savings Account to help taxpayers pay for catastrophe expenses; and (3) allow a nonrefundable tax credit for 25% of certain natural disaster mitigation property expenditures made to fortify a taxpayer's principal residence against catastrophes.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 549 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 549
To amend the Internal Revenue Code of 1986 to provide for the creation
of policyholder disaster protection funds, Catastrophe Savings
Accounts, and tax credits for natural disaster mitigation expenditures.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 6, 2013
Mr. Grimm (for himself, Mr. Pascrell, Mr. Rooney, and Mr. Deutch)
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 for the creation
of policyholder disaster protection funds, Catastrophe Savings
Accounts, and tax credits for natural disaster mitigation expenditures.
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 ``Homeowner Catastrophe Protection Act
of 2013''.
TITLE I--POLICYHOLDER DISASTER PROTECTION FUNDS
SEC. 101. FINDINGS.
The Congress makes the following findings:
(1) Rising costs resulting from natural disasters are
placing an increasing strain on the ability of property and
casualty insurance companies to assure payment of homeowners'
claims and other insurance claims arising from major natural
disasters now and in the future.
(2) Present tax laws do not provide adequate incentives to
assure that natural disaster insurance is provided or, where
such insurance is provided, that funds are available for
payment of insurance claims in the event of future catastrophic
losses from major natural disasters, as present law requires an
insurer wishing to accumulate surplus assets for this purpose
to do so entirely from its after-tax retained earnings.
(3) Revising the tax laws applicable to the property and
casualty insurance industry to permit carefully controlled
accumulation of pretax dollars in separate reserve funds
devoted solely to the payment of claims arising from future
major natural disasters will provide incentives for property
and casualty insurers to make natural disaster insurance
available, will give greater protection to the Nation's
homeowners, small businesses, and other insurance consumers,
and will help assure the future financial health of the
Nation's insurance system as a whole.
(4) Implementing these changes will reduce the possibility
that a significant portion of the private insurance system
would fail in the wake of a major natural disaster and that
governmental entities would be required to step in to provide
relief at taxpayer expense.
SEC. 3. CREATION OF POLICYHOLDER DISASTER PROTECTION FUNDS;
CONTRIBUTIONS TO AND DISTRIBUTIONS FROM FUNDS; OTHER
RULES.
(a) Contributions to Policyholder Disaster Protection Funds.--
Subsection (c) of section 832 of the Internal Revenue Code of 1986
(relating to the taxable income of insurance companies other than life
insurance companies) is amended by striking ``and'' at the end of
paragraph (12), by striking the period at the end of paragraph (13) and
inserting ``; and'', and by adding at the end the following new
paragraph:
``(14) the qualified contributions to a policyholder
disaster protection fund during the taxable year.''.
(b) Distributions From Policyholder Disaster Protection Funds.--
Paragraph (1) of section 832(b) of such Code is amended by striking
``and'' at the end of subparagraph (D), by striking the period at the
end of subparagraph (E) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(F) the amount of any distributions from a
policyholder disaster protection fund during the
taxable year, except that a distribution made to return
to the qualified insurance company any contribution
which is not a qualified contribution (as defined in
subsection (h)) for a taxable year shall not be
included in gross income if such distribution is made
prior to the filing of the tax return for such taxable
year.''.
(c) Definitions and Other Rules Relating to Policyholder Disaster
Protection Funds.--Section 832 of such Code (relating to insurance
company taxable income) is amended by adding at the end the following
new subsection:
``(h) Definitions and Other Rules Relating to Policyholder Disaster
Protection Funds.--For purposes of this section--
``(1) Policyholder disaster protection fund.--The term
`policyholder disaster protection fund' (hereafter in this
subsection referred to as the `fund') means any custodial
account, trust, or any other arrangement or account--
``(A) which is established to hold assets that are
set aside solely for the payment of qualified losses,
and
``(B) under the terms of which--
``(i) the assets in the fund are required
to be invested in a manner consistent with the
investment requirements applicable to the
qualified insurance company under the laws of
its jurisdiction of domicile,
``(ii) the net income for the taxable year
derived from the assets in the fund is required
to be distributed no less frequently than
annually,
``(iii) an excess balance drawdown amount
is required to be distributed to the qualified
insurance company no later than the close of
the taxable year following the taxable year for
which such amount is determined,
``(iv) a catastrophe drawdown amount may be
distributed to the qualified insurance company
if distributed prior to the close of the
taxable year following the year for which such
amount is determined,
``(v) a State required drawdown amount may
be distributed, and
``(vi) no distributions from the fund are
required or permitted other than the
distributions described in clauses (ii) through
(v) and the return to the qualified insurance
company of contributions that are not qualified
contributions.
``(2) Qualified insurance company.--The term `qualified
insurance company' means any insurance company subject to tax
under section 831(a).
``(3) Qualified contribution.--The term `qualified
contribution' means a contribution to a fund for a taxable year
to the extent that the amount of such contribution, when added
to the previous contributions to the fund for such taxable
year, does not exceed the excess of--
``(A) the fund cap for the taxable year, over
``(B) the fund balance determined as of the close
of the preceding taxable year.
``(4) Excess balance drawdown amounts.--The term `excess
balance drawdown amount' means the excess (if any) of--
``(A) the fund balance as of the close of the
taxable year, over
``(B) the fund cap for the following taxable year.
``(5) Catastrophe drawdown amount.--
``(A) In general.--The term `catastrophe drawdown
amount' means an amount that does not exceed the lesser
of the amount determined under subparagraph (B) or (C).
``(B) Net losses from qualifying events.--The
amount determined under this subparagraph shall be
equal to the qualified losses for the taxable year
determined without regard to clause (ii) of paragraph
(8)(A).
``(C) Gross losses in excess of threshold.--The
amount determined under this subparagraph shall be
equal to the excess (if any) of--
``(i) the qualified losses for the taxable
year, over
``(ii) the lesser of--
``(I) the fund cap for the taxable
year (determined without regard to
paragraph (9)(E)), or
``(II) 30 percent of the qualified
insurance company's surplus as regards
policyholders as shown on the company's
annual statement for the calendar year
preceding the taxable year.
``(D) Special drawdown amount following a recent
catastrophe loss year.--If for any taxable year
included in the reference period the qualified losses
exceed the amount determined under subparagraph
(C)(ii), the `catastrophe drawdown amount' shall be an
amount that does not exceed the lesser of the amount
determined under subparagraph (B) or the amount
determined under this subparagraph. The amount
determined under this subparagraph shall be an amount
equal to the excess (if any) of--
``(i) the qualified losses for the taxable
year, over
``(ii) the lesser of--
``(I) \1/3\ of the fund cap for the
taxable year (determined without regard
to paragraph (9)(E)), or
``(II) 10 percent of the qualified
insurance company's surplus as regards
policyholders as shown on the company's
annual statement for the calendar year
preceding the taxable year.
``(E) Reference period.--For purposes of
subparagraph (D), the reference period shall be
determined under the following table:
``For a taxable year The reference period
beginning in-- shall be--
2015 and later...............
The 3 preceding taxable
years.
2014.........................
The 2 preceding taxable
years.
2013.........................
The preceding taxable
year.
2012 or before...............
No reference period
applies.
``(6) State required drawdown amount.--The term `State
required drawdown amount' means any amount that the department
of insurance for the qualified insurance company's jurisdiction
of domicile requires to be distributed from the fund, to the
extent such amount is not otherwise described in paragraph (4)
or (5).
``(7) Fund balance.--The term `fund balance' means--
``(A) the sum of all qualified contributions to the
fund,
``(B) less any net investment loss of the fund for
any taxable year or years, and
``(C) less the sum of all distributions under
clauses (iii) through (v) of paragraph (1)(B).
``(8) Qualified losses.--
``(A) In general.--The term `qualified losses'
means, with respect to a taxable year--
``(i) the amount of losses and loss
adjustment expenses incurred in the qualified
lines of business specified in paragraph (9),
net of reinsurance, as reported in the
qualified insurance company's annual statement
for the taxable year, that are attributable to
one or more qualifying events (regardless of
when such qualifying events occurred),
``(ii) the amount by which such losses and
loss adjustment expenses attributable to such
qualifying events have been reduced for
reinsurance received and recoverable, plus
``(iii) any nonrecoverable assessments,
surcharges, or other liabilities that are borne
by the qualified insurance company and are
attributable to such qualifying events.
``(B) Qualifying event.--For purposes of
subparagraph (A), the term `qualifying event' means any
event that satisfies clauses (i) and (ii).
``(i) Event.--An event satisfies this
clause if the event is 1 or more of the
following:
``(I) Windstorm (hurricane,
cyclone, or tornado).
``(II) Earthquake (including any
fire following).
``(III) Winter catastrophe (snow,
ice, or freezing).
``(IV) Fire.
``(V) Tsunami.
``(VI) Flood.
``(VII) Volcanic eruption.
``(VIII) Hail.
``(ii) Catastrophe designation.--An event
satisfies this clause if the event--
``(I) is designated a catastrophe
by Property Claim Services or its
successor organization,
``(II) is declared by the President
to be an emergency or disaster, or
``(III) is declared to be an
emergency or disaster in a similar
declaration by the chief executive
official of a State, possession, or
territory of the United States, or the
District of Columbia.
``(9) Fund cap.--
``(A) In general.--The term `fund cap' for a
taxable year is the sum of the separate lines of
business caps for each of the qualified lines of
business specified in the table contained in
subparagraph (C) (as modified under subparagraphs (D)
and (E)).
``(B) Separate lines of business cap.--For purposes
of subparagraph (A), the separate lines of business
cap, with respect to a qualified line of business
specified in the table contained in subparagraph (C),
is the product of--
``(i) net written premiums reported in the
annual statement for the calendar year
preceding the taxable year in such line of
business, multiplied by
``(ii) the fund cap multiplier applicable
to such qualified line of business.
``(C) Qualified lines of business and their
respective fund cap multipliers.--For purposes of this
paragraph, the qualified lines of business and fund cap
multipliers specified in this subparagraph are those
specified in the following table:
``Line of Business on Annual Fund Cap
Statement Blank: Multiplier:
Fire......................................... 0.25
Allied....................................... 1.25
Farmowners Multiple Peril.................... 0.25
Homeowners Multiple Peril.................... 0.75
Commercial Multi Peril (non-liability 0.50
portion).
Earthquake................................... 13.00
Inland Marine................................ 0.25.
``(D) Subsequent modifications of the annual
statement blank.--If, with respect to any taxable year
beginning after the effective date of this subsection,
the annual statement blank required to be filed is
amended to replace, combine, or otherwise modify any of
the qualified lines of business specified in
subparagraph (C), then for such taxable year
subparagraph (C) shall be applied in a manner such that
the fund cap shall be the same amount as if such
reporting modification had not been made.
``(E) 20-year phase-in.--Notwithstanding
subparagraph (C), the fund cap for a taxable year shall
be the amount determined under subparagraph (C), as
adjusted pursuant to subparagraph (D) (if applicable),
multiplied by the phase-in percentage indicated in the
following table:
------------------------------------------------------------------------
Phase-in percentage to
be applied to fund cap
``Taxable year beginning in: computed under
subparagraphs (A) and
(B):
------------------------------------------------------------------------
2012........................................... 5 percent
2013........................................... 10 percent
2014........................................... 15 percent
2015........................................... 20 percent
2016........................................... 25 percent
2017........................................... 30 percent
2018........................................... 35 percent
2019........................................... 40 percent
2020........................................... 45 percent
2021........................................... 50 percent
2022........................................... 55 percent
2023........................................... 60 percent
2024........................................... 65 percent
2025........................................... 70 percent
2026........................................... 75 percent
2027........................................... 80 percent
2028........................................... 85 percent
2029........................................... 90 percent
2030........................................... 95 percent
2031 and later................................. 100 percent.
------------------------------------------------------------------------
``(10) Treatment of investment income and gain or loss.--
``(A) Contributions in kind.--A transfer of
property other than money to a fund shall be treated as
a sale or exchange of such property for an amount equal
to its fair market value as of the date of transfer,
and appropriate adjustment shall be made to the basis
of such property. Section 267 shall apply to any loss
realized upon such a transfer.
``(B) Distributions in kind.--A transfer of
property other than money by a fund to the qualified
insurance company shall not be treated as a sale or
exchange or other disposition of such property. The
basis of such property immediately after such transfer
shall be the greater of the basis of such property
immediately before such transfer or the fair market
value of such property on the date of such transfer.
``(C) Income with respect to fund assets.--Items of
income of the type described in paragraphs (1)(B),
(1)(C), and (2) of subsection (b) that are derived from
the assets held in a fund, as well as losses from the
sale or other disposition of such assets, shall be
considered items of income, gain, or loss of the
qualified insurance company. Notwithstanding paragraph
(1)(F) of subsection (b), distributions of net income
to the qualified insurance company pursuant to
paragraph (1)(B)(ii) of this subsection shall not cause
such income to be taken into account a second time.
``(11) Net income; net investment loss.--For purposes of
paragraph (1)(B)(ii), the net income derived from the assets in
the fund for the taxable year shall be the items of income and
gain for the taxable year, less the items of loss for the
taxable year, derived from such assets, as described in
paragraph (10)(C). For purposes of paragraph (7), there is a
net investment loss for the taxable year to the extent that the
items of loss described in the preceding sentence exceed the
items of income and gain described in the preceding sentence.
``(12) Annual statement.--For purposes of this subsection,
the term `annual statement' shall have the meaning set forth in
section 846(f)(3).
``(13) Exclusion of premiums and losses on certain puerto
rican risks.--Notwithstanding any other provision of this
subsection, premiums and losses with respect to risks covered
by a catastrophe reserve established under the laws or
regulations of the Commonwealth of Puerto Rico shall not be
taken into account under this subsection in determining the
amount of the fund cap or the amount of qualified losses.
``(14) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the
purposes of this subsection, including regulations--
``(A) which govern the application of this
subsection to a qualified insurance company having a
taxable year other than the calendar year or a taxable
year less than 12 months,
``(B) which govern a fund maintained by a qualified
insurance company that ceases to be subject to this
part, and
``(C) which govern the application of paragraph
(9)(D).''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
TITLE II--CATASTROPHE SAVINGS ACCOUNTS
SEC. 201. CATASTROPHE SAVINGS ACCOUNTS.
(a) In General.--Subchapter F of chapter 1 of the Internal Revenue
Code of 1986 (relating to exempt organizations) is amended by adding at
the end the following new part:
``PART IX--CATASTROPHE SAVINGS ACCOUNTS
``SEC. 530A. CATASTROPHE SAVINGS ACCOUNTS.
``(a) General Rule.--A Catastrophe Savings Account shall be exempt
from taxation under this subtitle. Notwithstanding the preceding
sentence, such account shall be subject to the taxes imposed by section
511 (relating to imposition of tax on unrelated business income of
charitable organizations).
``(b) Catastrophe Savings Account.--For purposes of this section,
the term `Catastrophe Savings Account' means a trust created or
organized in the United States for the exclusive benefit of an
individual or his beneficiaries and which is designated (in such manner
as the Secretary shall prescribe) at the time of the establishment of
the trust as a Catastrophe Savings Account, but only if the written
governing instrument creating the trust meets the following
requirements:
``(1) Except in the case of a qualified rollover
contribution--
``(A) no contribution will be accepted unless it is
in cash, and
``(B) contributions will not be accepted in excess
of the account balance limit specified in subsection
(c).
``(2) The trustee is a bank (as defined in section 408(n))
or another person who demonstrates to the satisfaction of the
Secretary that the manner in which that person will administer
the trust will be consistent with the requirements of this
section.
``(3) The interest of an individual in the balance of his
account is nonforfeitable.
``(4) The assets of the trust shall not be commingled with
other property except in a common trust fund or common
investment fund.
``(c) Account Balance Limit.--The aggregate account balance for all
Catastrophe Savings Accounts maintained for the benefit of an
individual (including qualified rollover contributions) shall not
exceed--
``(1) in the case of an individual whose qualified
deductible is not more than $1,000, $2,000, and
``(2) in the case of an individual whose qualified
deductible is more than $1,000, the amount equal to the lesser
of--
``(A) $15,000, or
``(B) twice the amount of the individual's
qualified deductible.
``(d) Definitions.--For purposes of this section--
``(1) Qualified catastrophe expenses.--The term `qualified
catastrophe expenses' means expenses paid or incurred by reason
of a major disaster that has been declared by the President
under section 401 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act.
``(2) Qualified deductible.--With respect to an individual,
the term `qualified deductible' means the annual deductible for
the individual's homeowners' insurance policy.
``(3) Qualified rollover contribution.--The term `qualified
rollover contribution' means a contribution to a Catastrophe
Savings Account--
``(A) from another such account of the same
beneficiary, but only if such amount is contributed not
later than the 60th day after the distribution from
such other account, and
``(B) from a Catastrophe Savings Account of a
spouse of the beneficiary of the account to which the
contribution is made, but only if such amount is
contributed not later than the 60th day after the
distribution from such other account.
``(e) Tax Treatment of Distributions.--
``(1) In general.--Any distribution from a Catastrophe
Savings Account shall be includible in the gross income of the
distributee in the manner as provided in section 72.
``(2) Distributions for qualified catastrophe expenses.--
``(A) In general.--No amount shall be includible in
gross income under paragraph (1) if the qualified
catastrophe expenses of the distributee during the
taxable year are not less than the aggregate
distributions during the taxable year.
``(B) Distributions in excess of expenses.--If such
aggregate distributions exceed such expenses during the
taxable year, the amount otherwise includible in gross
income under paragraph (1) shall be reduced by the
amount which bears the same ratio to the amount which
would be includible in gross income under paragraph (1)
(without regard to this subparagraph) as the qualified
catastrophe expenses bear to such aggregate
distributions.
``(3) Additional tax for distributions not used for
qualified catastrophe expenses.--The tax imposed by this
chapter for any taxable year on any taxpayer who receives a
payment or distribution from a Catastrophe Savings Account
which is includible in gross income shall be increased by 10
percent of the amount which is so includible.
``(4) Retirement distributions.--No amount shall be
includible in gross income under paragraph (1) (or subject to
an additional tax under paragraph (3)) if the payment or
distribution is made on or after the date on which the
distributee attains age 62.
``(f) Tax Treatment of Accounts.--Rules similar to the rules of
paragraphs (2) and (4) of section 408(e) shall apply to any Catastrophe
Savings Account.''.
(b) Tax on Excess Contributions.--
(1) In general.--Subsection (a) of section 4973 of the
Internal Revenue Code of 1986 (relating to tax on excess
contributions to certain tax-favored accounts and annuities) is
amended by striking ``or'' at the end of paragraph (4), by
inserting ``or'' at the end of paragraph (5), and by inserting
after paragraph (5) the following new paragraph:
``(6) a Catastrophe Savings Account (as defined in section
530A),''.
(2) Excess contribution.--Section 4973 of such Code is
amended by adding at the end the following new subsection:
``(h) Excess Contributions to Catastrophe Savings Accounts.--For
purposes of this section, in the case of Catastrophe Savings Accounts
(within the meaning of section 530A), the term `excess contributions'
means the amount by which the aggregate account balance for all
Catastrophe Savings Accounts maintained for the benefit of an
individual exceeds the account balance limit defined in section
530A(c)(1).''.
(c) Conforming Amendment.--The table of parts for subchapter F of
chapter 1 of the Internal Revenue Code of 1986 is amended by adding at
the end the following new item:
``Part IX. Catastrophe Savings Accounts''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
TITLE III--TAX CREDIT FOR NATURAL DISASTER MITIGATION PROPERTY
SEC. 301. NONREFUNDABLE PERSONAL CREDIT FOR NATURAL DISASTER 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 25D the following new section:
``SEC. 25E. NATURAL DISASTER 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
natural disaster mitigation property expenditures made by the taxpayer
during such taxable year in connection with a qualified principal
residence of the taxpayer.
``(b) Maximum Credit.--The credit allowed under subsection (a) with
respect to any principal residence of the taxpayer for any taxable year
shall not exceed the excess of--
``(1) $5,000 (half such amount in the case of a married
individual filing a separate return), over
``(2) the aggregate amounts allowed as a credit under this
section to the taxpayer (or the taxpayer's spouse) with respect
to such residence for all prior taxable years.
``(c) 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--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) 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.
``(d) Qualified Natural Disaster Mitigation Property Expenditure.--
For purposes of this section, the term `qualified natural disaster
mitigation property expenditure' means an expenditure for--
``(1) property to improve the strength of a roof deck
attachment,
``(2) property to create a secondary water barrier to
prevent water intrusion,
``(3) property to improve the durability of a roof
covering,
``(4) property to brace gable-end walls,
``(5) property to reinforce the connection between a roof
and supporting wall,
``(6) property to protect openings from penetration by
windborne debris,
``(7) property to protect exterior doors and garages,
``(8) property to improve the natural resiliency of the
property, including the restoration, establishment, or
enhancement of aquatic resources (having the meanings given
such terms by part 332 of title 33 of the Code of Federal
Regulations), as prescribed by the Secretary after consultation
with the Administrator of the Environmental Protection Agency
and the Assistant Secretary of the Army for Civil Works,
``(9) seismic retrofitting, including property to increase
resistance to seismic activity, ground motion, or soil failure
due to earthquakes, or
``(10) such other measures to mitigate natural disaster
damage to homes, as prescribed by the Secretary after
consultation with the Administrator of the Federal Emergency
Management Agency and, to the extent applicable, in accordance
with section 12(d) of the National Technology Transfer and
Advancement Act of 1995 (15 U.S.C. 272 note; Public Law 104-
113).
``(e) Qualified Principal Residence.--For purposes of this section,
the term `qualified principal residence' means the principal residence
of the taxpayer (within the meaning of section 121) if such residence--
``(1) is assessed by the locality in which it is located at
a value which does not exceed 300 percent of the national
median home price (determined as of the close of the taxable
year for which the credit determined under this section is
allowed), and
``(2) is not severe repetitive loss property (as defined in
section 1361A of the National Flood Insurance Act (42 U.S.C.
4102a(b))).
``(f) Rules Related to Inspections and Labor Costs.--For purposes
of this section--
``(1) Inspection requirement.--An expenditure shall be
taken into account in determining the qualified natural
disaster mitigation property expenditures made by the taxpayer
during the taxable year only if the 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 an
inspector that is licensed or certified by the State or other
governmental authority, or its designee, having jurisdiction
over inspectors in the area where the installed property is
located.
``(2) Labor and inspection 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 (d) (including the cost of
inspections referred to in paragraph (1)) shall be taken into
account in determining the qualified natural disaster
mitigation property expenditures made by the taxpayer during
the taxable year.
``(g) Basis Adjustment.--For purposes of this section, if a credit
is allowed under this section for any expenditure with respect to any
property, the increase in the basis of such property which would (but
for this subsection) result from such expenditure shall be reduced by
the amount of the credit so allowed.''.
(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. Natural disaster mitigation property.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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