Supporting Affordable Fire Emergency Hardening through Optimized Mitigation Efforts Act or the SAFE HOME Act
This bill establishes a new refundable tax credit (through 2032) for costs incurred by an individual to improve the fire resistance of a primary residence. (Certain requirements and limitations apply.)
The amount of the tax credit is 25% of unreimbursed qualified wildfire mitigation expenses up to $25,000. The tax credit begins to phase out for individuals with an adjusted gross income exceeding $200,000, such that the tax credit is completely phased out for individuals with an adjusted gross income of $300,000 or more.
Wildfire mitigation expenses that qualify for the tax credit include
Further, such expenses must be incurred with respect to a primary residence located (1) in the United States; and (2) in an area that, due to a wildfire, received a federal disaster declaration within the prior 10 years or that is adjacent to such area, that received certain hazard mitigation assistance in the tax year or the prior 10 years, or that is a community disaster resilience zone (or received such designation for any tax year).
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 948 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 948
To amend the Internal Revenue Code of 1986 to provide a refundable
credit against tax for wildfire mitigation expenditures.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 4, 2025
Mr. Kiley of California 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 refundable
credit against tax for wildfire 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 ``Supporting Affordable Fire Emergency
Hardening through Optimized Mitigation Efforts Act'' or the ``SAFE HOME
Act''.
SEC. 2. REFUNDABLE PERSONAL CREDIT FOR WILDFIRE MITIGATION
EXPENDITURES.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by inserting after section 36B the following new section:
``SEC. 36C. WILDFIRE MITIGATION EXPENDITURES.
``(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
wildfire mitigation expenditures made by the taxpayer during such
taxable year.
``(b) Maximum Credit.--
``(1) In general.--Subject to paragraphs (2) and (3), the
credit allowed under subsection (a) for any taxable year shall
not exceed $25,000.
``(2) Phaseout.--
``(A) In general.--The amount under paragraph (1)
for the taxable year shall be reduced (but not below
zero) by an amount which bears the same ratio to the
amount under such paragraph as--
``(i) the excess (if any) of--
``(I) the taxpayer's adjusted gross
income for such taxable year, over
``(II) $200,000, bears to
``(ii) $100,000.
``(B) Inflation adjustment.--In the case of any
taxable year after 2024, each of the dollar amounts
under subparagraph (A) shall be increased by an amount
equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2023'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(C) Rounding.--If any reduction determined under
subparagraph (A) is not a multiple of $50, or any
increase under subparagraph (B) is not a multiple of
$50, such amount shall be rounded to the nearest
multiple of $50.
``(c) Definitions.--For purposes of this section--
``(1) Qualified wildfire mitigation expenditure.--
``(A) In general.--The term `qualified wildfire
mitigation expenditure' means an expenditure relating
to a qualified dwelling unit--
``(i) for property to improve fire
resistance (not less than a class A rating) of
a roof covering,
``(ii) to install--
``(I) roof coverings, sheathing,
flashing, roof and attic vents, eaves,
or gutters that conform to ignition-
resistant construction standards,
``(II) wall components for wall
assemblies that conform to ignition-
resistant construction standards,
``(III) exterior walls, doors,
windows, or other exterior dwelling
unit elements that conform to ignition-
resistant construction standards,
``(IV) exterior deck or fence
components that conform to ignition-
resistant construction standards, or
``(V) structure-specific water
hydration systems, including fire
mitigation systems such as interior and
exterior sprinkler systems, or
``(iii) for services or equipment to--
``(I) create buffers around the
qualified dwelling unit through the
removal or reduction of flammable
vegetation, including vertical
clearance of tree branches,
``(II) create buffers around the
dwelling unit through--
``(aa) the removal of
exterior deck or fence
components or ignition-prone
landscape features, or
``(bb) replacement of the
components or features
described in item (aa) with
components that conform to
ignition-resistant construction
standards,
``(III) perform fire maintenance
procedures identified by the Federal
Emergency Management Agency or the
United States Forest Service, including
fuel management techniques such as
creating fuel and fire breaks,
``(IV) replace flammable vegetation
with less flammable species, or
``(V) prevent smoke inhalation,
such as air filters or other equipment
designed to prevent smoke from entering
the dwelling unit.
``(B) Exception.--The term `qualified wildfire
mitigation expenditure' shall not include any
expenditure or portion thereof which is paid, funded,
or reimbursed by a Federal, State, or local government
entity, or any political subdivision, agency, or
instrumentality thereof.
``(2) Qualified dwelling unit.--The term `qualified
dwelling unit' means a dwelling unit which is--
``(A) located--
``(i) in the United States or in a
territory of the United States, and
``(ii) in an area--
``(I) in which a Federal natural
disaster declaration has been made
within the preceding 10-year period
with respect to a wildfire,
``(II) which is adjacent to an area
described in subclause (I),
``(III) which, during the taxable
year or the period of the 10 taxable
years preceding such taxable year, has
received hazard mitigation assistance
through the Federal Emergency
Management Agency in regard to any
wildfire which, with respect to the
expenditure described in paragraph (1)
which is made by the taxpayer, is
applicable to such expenditure, or
``(IV) which, with respect to any
taxable year, has been designated as a
community disaster resilience zone (as
defined in section 206(a) of the Robert
T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C.
5136(a))) as the result of a wildfire,
and
``(B) used as a primary residence by the taxpayer.
``(d) Documentation.--Any taxpayer claiming the credit under this
section shall provide the Secretary with adequate documentation
regarding the specific qualified wildfire mitigation expenditures made
by the taxpayer during the taxable year, as well as such other
information or documentation as the Secretary may require.
``(e) Termination of Credit.--The credit allowed under this section
shall not apply to wildfire mitigation expenditures made after December
31, 2032.''.
(b) Conforming Amendment.--The table of sections for subpart C of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 36B the following new
item:
``Sec. 36C. Wildfire mitigation expenditures.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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