Shelter Act
Shelter Act proposes 25% tax credit for home and small business disaster-proofing, up to $3,750 a year
Legislative Progress
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.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articles
Bennet, Cassidy, Pettersen, Salazar Reintroduce Tax Credit to Help Families and Small Businesses Prepare for Natural Disasters
Announces the Shelter Act’s reintroduction and outlines the proposed 25% disaster-mitigation tax credit, eligibility tied to recent disaster areas, and examples of qualifying upgrades.
Cassidy Introduces Tax Credit to Help Families and Small Businesses Prepare for Natural Disasters
Describes the Shelter Act proposal, emphasizing a 25% tax credit for qualifying mitigation expenses (with stated annual cap details) aimed at disaster-prone areas and supported by multiple groups.
New "Shelter Act" helps protect homes from disaster
Trade/publication write-up describing the Shelter Act concept and examples like storm shelters and roof strengthening; useful background but predates the 2025-12-16 bill.
Source Information
Document Type
Congressional Bill
Official Title
Shelter Act
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.