HR 5839 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 5839CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide a business tax credit for resilient construction.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

May 18, 2012CommentsClose CommentsPermalink

Mr. DAVIS of Kentucky (for himself and Mr. DIAZ-BALART) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide a business tax credit for resilient construction.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Disaster Savings and Resilient Construction Act of 2012’.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

‘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--CommentsClose CommentsPermalink





‘(1) constructed by the eligible contractor in a disaster area determined as a result of a federally declared major disaster,CommentsClose CommentsPermalink





‘(2) the construction of which began after the date of such disaster in that area,CommentsClose CommentsPermalink





‘(3) which--CommentsClose CommentsPermalink





‘(A) in the case of qualified commercial property, is placed in service for commercial purposes, andCommentsClose CommentsPermalink





‘(B) in the case of qualified residential property, is placed in service for residential purposes, andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(b) Applicable Amount- For purposes of subsection (a), the applicable amount is:CommentsClose CommentsPermalink





‘(1) COMMERCIAL PROPERTY- In the case of a qualified commercial property, the applicable amount is the lesser of--CommentsClose CommentsPermalink





‘(A) 1 percent of the cost of construction, orCommentsClose CommentsPermalink





‘(B) $25,000.CommentsClose CommentsPermalink





‘(2) RESIDENTIAL PROPERTY- In the case of a qualified residential property, the applicable amount is the lesser of--CommentsClose CommentsPermalink





‘(A) 1 percent of the cost of construction, orCommentsClose CommentsPermalink





‘(B) $3,000.CommentsClose CommentsPermalink





‘(c) Qualified Property- For purposes of this section:CommentsClose CommentsPermalink





‘(1) QUALIFIED COMMERCIAL PROPERTY- The term ‘qualified commercial property’ means a building that is--CommentsClose CommentsPermalink





‘(A) located in the United States,CommentsClose CommentsPermalink





‘(B) defined in the scope of the 2009 or later International Building Code published by the International Code Council, andCommentsClose CommentsPermalink





‘(C) designed and constructed to meet resilient construction requirements.CommentsClose CommentsPermalink





‘(2) QUALIFIED RESIDENTIAL PROPERTY- The term ‘qualified residential property’ means a building that is--CommentsClose CommentsPermalink





‘(A) located in the United States,CommentsClose CommentsPermalink





‘(B) defined in the scope of the 2009 or later International Residential Code published by the International Code Council, andCommentsClose CommentsPermalink





‘(C) designed and constructed to meet resilient construction requirements.CommentsClose CommentsPermalink





‘(d) Resilient Construction Requirements- For purposes of this section:CommentsClose CommentsPermalink





‘(1) IN GENERAL- The resilient construction requirements with respect to a property are that the property is designed and constructed to--CommentsClose CommentsPermalink





‘(A) resist hazards brought on by a major disaster and continues to provide its primary functions after a major disaster,CommentsClose CommentsPermalink





‘(B) reduce the magnitude or duration of a disruptive event, andCommentsClose CommentsPermalink





‘(C) have the absorptive capacity, adaptive capacity, recoverability to withstand a potentially disruptive event.CommentsClose CommentsPermalink





‘(2) TREATED AS MEETING RESILIENCY REQUIREMENTS- For purposes of paragraph (1)--CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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, orCommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(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:CommentsClose CommentsPermalink





‘(i) The building received the Insurance Institute for Business and Home Safety as FORTIFIED for Safer Living designation.CommentsClose CommentsPermalink





‘(ii) The building received the Insurance Institute for Business and Home Safety as FORTIFIED for Existing Homes designation.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(3) ABSORPTIVE CAPACITY- The term ‘absorptive capacity’ means the ability of the construction to endure a disruption without significant deviation from normal operating performance.CommentsClose CommentsPermalink





‘(4) ADAPTIVE CAPACITY- The term ‘adaptive capacity’ means the ability of the construction to adapt to a drastic change in normal operating conditions.CommentsClose CommentsPermalink





‘(5) RECOVERABILITY- The term ‘recoverability’ means the ability of the construction to recover quickly, and at low cost, from potentially disruptive events.CommentsClose CommentsPermalink





‘(e) Other Definitions- For purposes of this section:CommentsClose CommentsPermalink





‘(1) ELIGIBLE CONTRACTOR- The term ‘eligible contractor’ means the person who constructed the qualified building.CommentsClose CommentsPermalink





‘(2) CONSTRUCTION- The term ‘construction’ includes new construction and reconstruction and rehabilitation that meets resilient construction requirements.CommentsClose CommentsPermalink





‘(3) DISASTER AREA- The term ‘disaster area’ has the meanings given such terms by section 165(h)(3).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(g) Termination- This section shall not apply to any property for which a certificate for occupancy is issued after December 31, 2015.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(37) the resilient construction credit determined under section 45S(a).’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(15) the resilient construction credit determined under section 45S(a).’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘Sec. 45S. Resilient construction.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink