A Democratic bill with 1 Republican cosponsor · See the cosponsor
Last activity — Read twice and referred to the Committee on Finance.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill, known as the Shelter Act, amends the Internal Revenue Code of 1986 to provide a tax credit for disaster mitigation expenditures. The legislation offers a nonrefundable personal credit for individuals making qualified disaster mitigation expenditures for a qualified dwelling unit. It also establishes a business-related credit for disaster mitigation expenditures made for a place of business. The personal credit allows individuals to claim 25 percent of qualified expenditures, up to specified annual and cumulative limitations. The bill outlines specific types of property, services, and equipment that qualify for the credit, ranging from roof improvements and flood protection to wildfire defense and seismic bracing. Additionally, the legislation includes income phaseout rules for individuals and gross receipts phaseout rules for businesses.
Yes· 3 of 25
- Scored +6
Does this improve help for people hit by a disaster?
Directly complements FEMA hazard mitigation programs by providing financial tax incentives for resilience investments.
- Scored +5
Would middle-income households be better off under this?
Directly benefits middle-class households with tax credits for home safety upgrades up to specified income thresholds.
- Scored +5
Does this cut taxes for middle-income families?
The bill provides a personal tax credit for disaster mitigation expenditures, reducing tax burdens for middle-class individuals making home safety improvements.
The opposite· 3 of 4
- Scored -3
Would the very wealthiest people be better off under this?
Income limits restrict high-net-worth individuals from utilizing the personal disaster mitigation credit.
- Scored -3
Would billionaires be better off under this?
Strict income and gross receipts phaseouts exclude billionaires and large corporations from claiming the credits.
- Scored -2
Would high-income households be better off under this?
Income phaseouts restrict eligibility for individuals with higher adjusted gross incomes.
Who it would affect, and how
Potential Positive Impacts for People
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Financial Assistance for Home Safety Improvements: Under Section 2, individuals can receive a tax credit equal to 25 percent of qualified disaster mitigation expenditures made to improve their homes against natural hazards. This helps everyday folks afford upgrades like stronger roofs, flood defenses, and fire-resistant materials.
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Support for Businesses Facing Disasters: Under Section 3, businesses can claim a disaster mitigation credit equal to 25 percent of qualified expenditures for their place of business, up to $5,000. This provision helps local businesses protect their properties from natural disasters and stay operational.
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Help for Communities Prone to Disasters: The tax credits apply to homes and businesses located in areas that have received FEMA hazard mitigation assistance, have experienced a federal natural disaster declaration within the preceding 5-year period, are adjacent to such an area, or are designated as a community disaster resilience zone, as outlined in Section 2 and Section 3. This targets relief precisely to the communities that need protection the most.
Potential Negative Impacts for People
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Income Phaseouts Limit Relief: Under Section 2, the personal tax credit is reduced for individuals with an adjusted gross income over $100,000, and under Section 3, the business credit is phased out for businesses with average gross receipts over $5,000,000. This means higher-earning individuals and larger businesses will receive less or no financial assistance for their disaster safety projects.
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Strict Rules on What Qualifies: According to Section 2, expenditures only qualify if they address a hazard type specifically identified in applicable State or tribal Standard State Mitigation Plans or Enhanced State Mitigation Plans. If a hazard is not formally listed in these specific plans for a person's location, they cannot claim the credit for fixing it.
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Exclusion of Government-Funded Work: Section 2 explicitly states that the term qualified disaster mitigation expenditure shall not include any expenditure that is paid, funded, or reimbursed by a Federal, State, or local government entity. People who receive other government assistance for their disaster repairs cannot double-dip to claim this tax credit.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would middle-income households be better off under this? — Directly benefits middle-class households with tax credits for home safety upgrades up to specified income thresholds. Would business owners be better off under this? — Provides eligible businesses with a tax credit for disaster mitigation at their place of business. Would people in rural areas be better off under this? — Particularly beneficial for rural residents prone to wildfires, floods, and natural disasters. Would farmers be better off under this? — Assists rural properties and agricultural businesses located in hazard-prone areas with mitigation expenses. Would people in middle age be better off under this? — Provides tax credits for homeowners making property safety improvements. Would retired people be better off under this? — Supports retirees living in hazard-prone areas in securing their homes. Would people over 65 be better off under this? — Supports fixed-income seniors in hardening their homes against severe weather and natural hazards. Would children be better off under this? — Safer homes protect families and children from natural disasters. Would households on low incomes be better off under this? — Assists lower-income homeowners with disaster mitigation, though limited by tax liability requirements and income phaseouts. Would Native Americans be better off under this? — Explicitly incorporates tribal Standard State Mitigation Plans into eligibility definitions. Would union members be better off under this? — Increases demand for skilled labor and contractors performing home and business retrofits. Would people in cities be better off under this? — Applies to urban and suburban properties located within qualifying disaster zones. Would people in their twenties and thirties be better off under this? — Helps young homeowners afford necessary disaster mitigation retrofits. Would Black Americans be better off under this? — Benefits residents living in qualifying disaster-prone communities regardless of demographic background. Would Asian Americans be better off under this? — Benefits residents living in qualifying disaster-prone communities regardless of demographic background. Would Hispanic Americans be better off under this? — Benefits residents living in qualifying disaster-prone communities regardless of demographic background. Would white Americans be better off under this? — Benefits residents living in qualifying disaster-prone communities regardless of demographic background. Would billionaires be better off under this? — Strict income and gross receipts phaseouts exclude billionaires and large corporations from claiming the credits. Would the very wealthiest people be better off under this? — Income limits restrict high-net-worth individuals from utilizing the personal disaster mitigation credit. Would high-income households be better off under this? — Income phaseouts restrict eligibility for individuals with higher adjusted gross incomes. Would people with substantial wealth be better off under this? — High-income phaseouts limit tax credit availability for wealthy individuals.
- Economy And Finance
- Does this cut taxes for middle-income families? — The bill provides a personal tax credit for disaster mitigation expenditures, reducing tax burdens for middle-class individuals making home safety improvements. Does this make it easier to run a small business? — Provides targeted tax credits for small businesses to protect their places of business from natural hazards. Does this cut taxes for small businesses? — The legislation establishes a business-related tax credit for disaster mitigation expenditures at places of business. Is this likely to create jobs? — Incentivizes construction, retrofitting, and safety upgrades which can boost demand for local contractors and labor. Is this likely to grow the economy? — Encourages capital investment in property resilience and disaster preparedness.
- Environment Energy And Infrastructure
- Does this improve help for people hit by a disaster? — Directly complements FEMA hazard mitigation programs by providing financial tax incentives for resilience investments. Does this better protect air, water and wildlife? — Promotes wildfire defense, flood protection, and nature-based features for hazard mitigation. Does this invest in rural communities? — Assists rural and disaster-prone communities with upgrading structural resilience against natural hazards.
- 12/16/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Bill CassidyRepublican · Louisiana