Working Waterfront Disaster Mitigation Tax Credit Act

Tax Credit for Mitigation Projects: Taxpayers can receive a credit equal to 30 percent of their qualified investment for disaster mitigation projects (Section 2(a)).

Financial Support for Waterfront Infrastructure: The bill provides for various ways to protect property from natural hazards, such as through structural elevation, flood risk reduction, shoreline stabilization, floodproofing, retrofitting, or warning systems (Section 2(d)(1)).

Support for Water-Dependent Businesses: The credit is available for property used by businesses that provide access to navigable waters for activities like commercial fishing, recreational fishing, boating, and aquaculture (Section 2(d)(2)(B)(i)).

Inflation Adjustments: The $300,000 dollar limitation and the gross receipts test are subject to inflation adjustments to account for rising costs over time (Section 2(b)(1)(C) and Section 2(d)(3)(D)).

Protection for U.S. Possessions: The bill includes provisions to pay U.S. possessions to offset losses or provide estimated benefits resulting from these amendments (Section 2(d)).

Dollar Limitations on Credit: The amount of the credit a taxpayer can receive is capped at $300,000 (Section 2(b)(1)(A)).

Time Restrictions on Credit: A taxpayer cannot claim this credit if they have already been allowed a credit under this section within the previous 10-year period (Section 2(b)(2)).

Business Size Restrictions: To qualify, a trade or business must meet a gross receipts test, meaning average annual gross receipts cannot exceed $47,000,000 (Section 2(d)(3)(A)).

Exclusion of Certain Costs: The qualified investment cannot include the portion of a project's basis that is attributable to qualified rehabilitation expenditures (Section 2(c)(4)).