Bill · S. 2538· Senate(119-S-2538)
Working Waterfront Disaster Mitigation Tax Credit Act
- Introduced
- 7/30/2025
- Last activity
- 7/30/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Angus King
- Cosponsors
- - 0 - 0
- Introduced
- In Committee
What this bill would do
This bill, titled the "Working Waterfront Disaster Mitigation Tax Credit Act," proposes an amendment to the Internal Revenue Code of 1986. It seeks to establish a new tax credit for disaster mitigation projects related to certain working waterfront properties. The credit is set at 30 percent of the qualified investment, subject to a specific dollar limit. This credit is intended for property used in an active trade or business that provides access to navigable waters for specific water-dependent activities. The legislation also includes provisions for inflation adjustments and rules regarding eligible property and project types.
Yes· 3 of 9
Would business owners be better off under this?+7
Small business owners in the water-dependent sector receive a significant 30 percent credit for disaster mitigation investments.
Does this cut taxes for small businesses?+6
The bill provides a 30 percent tax credit for disaster mitigation investments made by qualifying small-scale water-dependent businesses.
Would farmers be better off under this?+5
The bill specifically includes support for aquaculture, which is a form of water-based farming.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Financial Assistance for Disaster Prevention: The bill provides a tax credit equal to 30 percent of a qualified investment (Section 2(a)). This could help business owners fund projects designed to prevent or mitigate damage from natural hazards.
-
Support for Water-Dependent Businesses: The credit targets "working waterfront property" used for activities such as commercial fishing, recreational fishing, boating, and aquaculture (Section 2(d)(2)). This offers direct support to those whose livelihoods depend on access to navigable waters.
-
Protection Against Natural Hazards: The bill defines qualifying projects that address various risks, including structural elevation, flood risk reduction, shoreline stabilization, floodproofing, retrofitting, and warning systems (Section 2(d)(1)). These projects can help protect property and infrastructure from damage caused by flooding, erosion, and extreme weather.
-
Inflation Protection: For taxable years beginning after December 31, 2026, the $300,000 dollar limitation is subject to an inflation adjustment based on cost-of-living (Section 2(b)(1)(C)). This helps ensure the value of the credit keeps pace with economic changes.
-
Benefits for U.S. Possessions: The bill includes provisions to pay U.S. possessions to offset losses or provide estimated aggregate benefits resulting from these amendments (Section 2(d)).
Potential Negative Impacts for People
-
Limits on Total Credit Amount: There is a dollar limitation where the credit cannot exceed $300,000 for a taxpayer (Section 2(b)(1)(A)). This may limit the amount of assistance available for very large or expensive mitigation projects.
-
Restrictions on Frequency of Use: A taxpayer is not allowed to claim the credit if they have already been allowed a credit under this section within the preceding 10-year period (Section 2(b)(2)). This prevents businesses from claiming the credit frequently for recurring projects.
-
Strict Eligibility Requirements: To qualify, the business must meet a gross receipts test, where average annual gross receipts cannot exceed $47,000,000 (Section 2(d)(3)). This means the largest waterfront businesses would not be eligible for this specific credit.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+7Good For Farmers+5
- Economy And Finance
- Reduces Small Business Taxes+6Increases Job Creation+3Improves Economic Growth+2
- Environment Energy And Infrastructure
- Improves Environmental Protections+5Improves Rural Development+4
- Governance And Ideology
- Improves Government Transparency+1
- Social Issues And Justice
- Improves Affordable Housing+1
- 7/30/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Bill CassidyRepublican · Louisiana