H.R. 6473

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6473 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 6473

To amend the Internal Revenue Code of 1986 to provide a refundable 
credit against tax for disaster mitigation expenditures.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

December 4, 2025

Mr. Mullin (for himself and Ms. Salazar) 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 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 ``The Facilitating Increased 
Resilience, Environmental Weatherization And Lowered Liability 
(FIREWALL) Act''.

SEC. 2. REFUNDABLE PERSONAL CREDIT FOR DISASTER 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. DISASTER 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 50 percent of the qualified 
disaster 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) to any taxpayer for any 
taxable year shall not exceed the excess of--
``(A) $25,000 (or, in the case of a married 
individual filing a separate return, 50 percent of such 
amount), over
``(B) the amount of credit allowed to the taxpayer 
under this section for all preceding taxable years.
``(2) Phaseout.--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--
``(A) the excess (if any) of--
``(i) the taxpayer's adjusted gross income 
for such taxable year, over
``(ii) $200,000, bears to
``(B) $100,000.
``(3) Limitation in the case of joint occupancy.--In the 
case of any dwelling unit with respect to which qualified 
disaster mitigation expenditures are made and which is jointly 
occupied and used during any calendar year as a residence by 
two or more individuals, the following rules shall apply:
``(A) Maximum expenditures.--The maximum amount of 
such expenditures which may be taken into account under 
subsection (a) by all such individuals with respect to 
such dwelling unit during such calendar year shall be 
$25,000.
``(B) Allocation of expenditures.--The expenditures 
allocated to any individual for the taxable year in 
which such calendar year ends shall be an amount equal 
to the lesser of--
``(i) the amount of expenditures made by 
such individual with respect to such dwelling 
during such calendar year, or
``(ii) the maximum amount of such 
expenditures set forth in subparagraph (A) 
multiplied by a fraction--
``(I) the numerator of which is the 
amount of such expenditures with 
respect to such dwelling made by such 
individual during such calendar year, 
and
``(II) the denominator of which is 
the total expenditures made by all such 
individuals with respect to such 
dwelling during such calendar year.
``(4) Inflation adjustment.--
``(A) In general.--In the case of any taxable year 
after 2025, the $25,000 dollar amounts under paragraphs 
(1)(A) and (3), the $200,000 amount under paragraph 
(2)(A)(ii), and the $100,000 amount under paragraph (2) 
(B) shall each 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 2024' 
for `calendar year 2016' in subparagraph 
(A)(ii) thereof.
``(B) 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 disaster mitigation expenditure.--
``(A) In general.--The term `qualified disaster 
mitigation expenditure' means an expenditure relating 
to a qualified dwelling unit--
``(i) for property to--
``(I) improve the strength of a 
roof deck attachment,
``(II) create a secondary water 
barrier to prevent water intrusion or 
mitigate against potential water 
intrusion from wind-driven rain,
``(III) improve the durability, 
impact resistance (not less than class 
3 or 4 rating), or fire resistance (not 
less than class A rating) of a roof 
covering,
``(IV) brace gable-end walls,
``(V) reinforce the connection 
between a roof and supporting wall,
``(VI) protect openings from 
penetration by wind-borne debris,
``(VII) protect exterior doors and 
garages from natural hazards,
``(VIII) complete measures 
contained in the publication of the 
Federal Emergency Management Agency 
entitled `Wind Retrofit Guide for 
Residential Buildings' (P-804),
``(IX) elevate the qualified 
dwelling unit, as well as utilities, 
machinery, or equipment, above the base 
flood elevation or other applicable 
minimum elevation requirement,
``(X) seal walls in the basement of 
the qualified dwelling unit using 
waterproofing compounds, or
``(XI) protect propane tanks or 
other external fuel sources,
``(ii) to install--
``(I) check valves to prevent flood 
water from backing up into drains,
``(II) flood vents, breakaway walls 
or open lattice for homes located in V 
zones,
``(III) a stormwater drainage 
system or improve an existing system,
``(IV) natural or nature-based 
features for flood control, including 
living shorelines,
``(V) roof coverings, sheathing, 
flashing, roof and attic vents, eaves, 
or gutters that conform to ignition-
resistant construction standards,
``(VI) wall components for wall 
assemblies that conform to ignition-
resistant construction standards,
``(VII) a wall-to-foundation anchor 
or connector, or a shear transfer 
anchor or connector,
``(VIII) wood structural panel 
sheathing for strengthening cripple 
walls,
``(IX) anchorage of the masonry 
chimney to the framing,
``(X) prefabricated lateral 
resisting systems,
``(XI) a standby generator power 
system consisting of a battery energy 
storage system or standby generator and 
an automatic transfer switch,
``(XII) a storm shelter that meets 
the design and construction standards 
established by the International Code 
Council and the National Storm Shelter 
Association (ICC-500), or a safe room 
that satisfies the criteria contained 
in--
``(aa) the publication of 
the Federal Emergency 
Management Agency entitled 
`Safe Rooms for Tornadoes and 
Hurricanes' (P-361), or
``(bb) the publication of 
the Federal Emergency 
Management Agency entitled 
`Taking Shelter from the Storm' 
(P-320),
``(XIII) a lightning protection 
system and surge-protective devices,
``(XIV) exterior walls, doors, 
windows, or other exterior dwelling 
unit elements that conform to ignition-
resistant construction standards,
``(XV) exterior deck or fence 
components that conform to ignition-
resistant construction standards,
``(XVI) structure-specific water 
hydration systems, including fire 
mitigation systems such as interior and 
exterior sprinkler systems,
``(XVII) water capture and delivery 
systems to accommodate drought events 
or to decrease water use, including the 
design of such systems,
``(XVIII) flood openings for fully 
enclosed areas below the lowest floor 
of the dwelling unit,
``(XIX) lateral bracing for wall 
elements, foundation elements, and 
garage doors or other large openings to 
resist seismic loads,
``(XX) automatic shutoff valves for 
water and gas lines, or
``(XXI) smoke alarms or detectors, 
carbon monoxide alarms or detectors, 
and fuel gas alarms or detectors, where 
applicable,
``(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 or features 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) gather and analyze water and 
weather data to better understand the 
local climate and drought history,
``(V) remove flammable vegetation 
within 5 feet of a structure,
``(VI) determine the risk of 
natural disasters which may occur in 
the area in which the qualified 
dwelling unit is located, or
``(VII) prevent smoke inhalation, 
such as air filters or other equipment 
designed to prevent smoke from entering 
the dwelling unit,
``(iv) for property relating to satisfying 
the standards required for receipt of a 
FORTIFIED designation from the Insurance 
Institute for Business and Home Safety, 
provided that the qualified dwelling unit 
receives such designation following 
installation of such property, or
``(v) for any other hazard mitigation 
activity which has been identified by the 
Secretary, in consultation with the 
Administrator of the Federal Emergency 
Management Agency, for mitigation of a natural 
hazard.
``(B) Exception.--The term `qualified disaster 
mitigation expenditure' shall not include any 
expenditure or portion thereof which is paid, funded, 
or reimbursed by insurance or 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, with respect to any taxpayer, a dwelling 
unit which is--
``(A) located in any State or territory--
``(i) in which a Federal natural disaster 
declaration has been made within the preceding 
10-year period with respect to a wildfire, 
hurricane, windstorm or flood,
``(ii) which includes an area 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, hurricane, windstorm or 
flood which, with respect to the expenditure 
described in paragraph (1) which is made by the 
taxpayer, is applicable to such expenditure, or
``(iii) which includes an area 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, hurricane, 
windstorm or flood, and
``(B) used as the principal residence (within the 
meaning of section 121) of the taxpayer.
``(d) Other Rules.--
``(1) Documentation.--Any taxpayer claiming the credit 
under this section shall provide the Secretary with adequate 
documentation regarding the specific qualified disaster 
mitigation expenditures made by the taxpayer during the taxable 
year, as well as such other information or documentation as the 
Secretary may require.
``(2) Denial of double benefit.--No deduction or other 
credit shall be allowed for expenditures which have been taken 
into account under this section, and the basis of any property 
for which a credit is allowed under this section shall be 
reduced by the amount of credit allowed.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of the Internal Revenue Code of 
1986 is amended by inserting ``, 36C'' after ``36B''.
(2) Section 1324(b)(2) of title 31, United States Code, is 
amended by inserting ``, 36C'' after ``36B''.
(3) 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. Disaster mitigation expenditures.''.
(c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
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