Bill · S. 3497· Senate(119-S-3497)
Shelter Act
- Introduced
- 12/16/2025
- Last activity
- 12/16/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Michael Bennet
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
This bill, known as the Shelter Act, amends the Internal Revenue Code of 1986 to provide a tax credit for disaster mitigation expenditures. The legislation offers a nonrefundable personal credit for individuals making qualified disaster mitigation expenditures for a qualified dwelling unit. It also establishes a business-related credit for disaster mitigation expenditures made for a place of business. The personal credit allows individuals to claim 25 percent of qualified expenditures, up to specified annual and cumulative limitations. The bill outlines specific types of property, services, and equipment that qualify for the credit, ranging from roof improvements and flood protection to wildfire defense and seismic bracing. Additionally, the legislation includes income phaseout rules for individuals and gross receipts phaseout rules for businesses.
Yes· 3 of 25
Does this improve help for people hit by a disaster?+6
Directly complements FEMA hazard mitigation programs by providing financial tax incentives for resilience investments.
Would middle-income households be better off under this?+5
Directly benefits middle-class households with tax credits for home safety upgrades up to specified income thresholds.
Does this cut taxes for middle-income families?+5
The bill provides a personal tax credit for disaster mitigation expenditures, reducing tax burdens for middle-class individuals making home safety improvements.
The opposite· 3 of 4
Would the very wealthiest people be better off under this?-3
Income limits restrict high-net-worth individuals from utilizing the personal disaster mitigation credit.
Would billionaires be better off under this?-3
Strict income and gross receipts phaseouts exclude billionaires and large corporations from claiming the credits.
Would high-income households be better off under this?-2
Income phaseouts restrict eligibility for individuals with higher adjusted gross incomes.
Who it would affect, and how
Potential Positive Impacts for People
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Financial Assistance for Home Safety Improvements: Under Section 2, individuals can receive a tax credit equal to 25 percent of qualified disaster mitigation expenditures made to improve their homes against natural hazards. This helps everyday folks afford upgrades like stronger roofs, flood defenses, and fire-resistant materials.
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Support for Businesses Facing Disasters: Under Section 3, businesses can claim a disaster mitigation credit equal to 25 percent of qualified expenditures for their place of business, up to $5,000. This provision helps local businesses protect their properties from natural disasters and stay operational.
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Help for Communities Prone to Disasters: The tax credits apply to homes and businesses located in areas that have received FEMA hazard mitigation assistance, have experienced a federal natural disaster declaration within the preceding 5-year period, are adjacent to such an area, or are designated as a community disaster resilience zone, as outlined in Section 2 and Section 3. This targets relief precisely to the communities that need protection the most.
Potential Negative Impacts for People
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Income Phaseouts Limit Relief: Under Section 2, the personal tax credit is reduced for individuals with an adjusted gross income over $100,000, and under Section 3, the business credit is phased out for businesses with average gross receipts over $5,000,000. This means higher-earning individuals and larger businesses will receive less or no financial assistance for their disaster safety projects.
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Strict Rules on What Qualifies: According to Section 2, expenditures only qualify if they address a hazard type specifically identified in applicable State or tribal Standard State Mitigation Plans or Enhanced State Mitigation Plans. If a hazard is not formally listed in these specific plans for a person's location, they cannot claim the credit for fixing it.
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Exclusion of Government-Funded Work: Section 2 explicitly states that the term qualified disaster mitigation expenditure shall not include any expenditure that is paid, funded, or reimbursed by a Federal, State, or local government entity. People who receive other government assistance for their disaster repairs cannot double-dip to claim this tax 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 Middle Class Households+5Good For Business Owners+4Good For Rural Residents+4Good For Farmers+3Good For Middle Aged+3Good For Retirees+3Good For Seniors+3Good For Children+2Good For Low Income Households+2Good For Native Americans+2Good For Union Workers+2Good For Urban Residents+2Good For Young Adults+2Good For African Americans+1Good For Asian Americans+1Good For Hispanic Americans+1Good For White Americans+1Good For Billionaires-3Good For Ultra High Net Worth Individuals-3Good For High Income Households-2Good For High Net Worth Individuals-2
- Economy And Finance
- Reduces Middle Class Taxes+5Improves Small Business Support+4Reduces Small Business Taxes+3Increases Job Creation+2Improves Economic Growth+1
- Environment Energy And Infrastructure
- Improves Disaster Relief And F E M A+6Improves Environmental Protections+3Improves Rural Development+3
- 12/16/2025
- 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