Shelter Act

HR 4305, the Shelter Act, creates a 25% nonrefundable tax credit for individuals and businesses to offset costs of qualifying disaster mitigation improvements. Individuals can claim up to $2,500 annually for home upgrades like reinforced roofs, flood barriers, fire-resistant materials, or storm shelters, provided the property is in a federally designated disaster area and meets specific safety standards. Businesses may claim up to $5,000 for similar safety upgrades at their locations in disaster-prone zones. The credit phases out for higher-income taxpayers (individuals over $100,000 AGI, businesses over $5 million average gross receipts) and requires documentation proving compliance with building codes. The provisions apply to taxable years beginning after December 31, 2023.