WASHINGTON — U.S. Sen. Bill Cassidy introduced legislation to create a federal tax credit aimed at helping families and small businesses protect homes and commercial properties from natural disasters.
The bill, known as the Shelter Act, would establish what Cassidy’s office described as the first federal disaster-mitigation tax credit. The proposal would allow taxpayers to write off 25 percent of eligible mitigation expenses, up to $3,750 per taxpayer. Qualifying improvements include measures to reduce damage from flooding, wildfire, hail and wind.
“Everybody in my state has lost someone or something they love because of flooding. This is another tool for families to minimize that loss,” Cassidy said.
Cassidy’s office said the measure is intended to encourage pre-disaster investments that could reduce the hundreds of billions in federal spending on recovery efforts each year. Supporters of the legislation include the National Institute of Building Sciences, National Association of Realtors, National Association of Home Builders, Insurance Institute for Business and Home Safety, Federal Alliance for Safe Homes, the American Property Casualty Insurance Association, the Reinsurance Association of America and Satellite Condominiums LLC.
Cassidy introduced the bill with Sen. Michael Bennet and U.S. Reps. Maria Salazar and Brittany Pettersen.