Shelter Act

HR 6763, the Shelter Act, creates a 25% tax credit for both individuals and businesses to offset qualified disaster mitigation expenditures on their primary residences or places of business. For individuals, the credit is capped at $3,750 annually (or $7,500 for joint returns) with a cumulative $15,000 limit per dwelling, while businesses receive a $5,000 annual limit. Qualified expenditures include roof reinforcement, flood barriers, fire-resistant materials, and other measures to protect against natural disasters like hurricanes, floods, and wildfires. The credit phases out for higher-income taxpayers and cannot be claimed for government-funded improvements, applying to expenses incurred after December 31, 2025.