Shelter Act

Key Points

• Creates a new tax break starting in 2026: you can claim 25% of what you spend to make your home safer from disasters, up to $3,750 a year ($7,500 for couples filing together).
• There’s a lifetime cap per home: you can’t claim more than $15,000 total for the same home over the years (starting with costs after 2025).
• It’s aimed at places hit by disasters recently: your home or business has to be in an area with a federal disaster declaration in the last 5 years (or nearby), or a similar high-risk zone.
• It covers a long list of upgrades like hurricane straps, impact-resistant or fire-resistant roofs, flood vents, elevating a home, wildfire defensible space work, safe rooms, standby generators, and some inspections and labor.
• Higher-income households and bigger businesses get less: the home credit shrinks after $100,000 income and fades out by about $150,000 (double those amounts for couples); businesses start losing the credit above $5 million in average yearly sales.