Shelter Act

The Shelter Act creates tax credits for homeowners and businesses to offset costs of installing disaster mitigation features. Homeowners can claim a 25% credit (up to $2,500) for qualifying improvements like reinforced roofs, flood barriers, fire-resistant materials, or storm shelters. Businesses receive a similar 25% credit (up to $5,000) for similar hazard mitigation at their locations. To qualify, properties must be in areas with recent federal disaster declarations or designated resilience zones, and expenses cannot be covered by government funding. The credit reduces income tax liability for eligible expenses incurred after 2023.