Working Waterfront Disaster Mitigation Tax Credit Act
Summary
The "Working Waterfront Disaster Mitigation Tax Credit Act" introduces a tax credit for hazard mitigation projects on working waterfront properties. This credit aims to encourage investments in infrastructure that protects these properties from natural disasters. The bill amends the Internal Revenue Code of 1986 to include this new credit, offering a 30% credit on qualified investments, capped at $300,000 per taxpayer, with inflation adjustments after 2026.
Expected Effects
The primary effect will be to incentivize businesses operating on working waterfronts to invest in disaster mitigation measures. This could lead to increased resilience of these properties against natural hazards. It may also spur economic activity in construction and related industries involved in mitigation projects.
Potential Benefits
- Encourages investment in disaster mitigation for working waterfronts.
- Provides financial relief through a tax credit, making mitigation projects more affordable.
- Potentially reduces the economic impact of natural disasters on waterfront businesses.
- May lead to the development of more resilient and sustainable waterfront infrastructure.
- Could create jobs in construction and related industries.
Potential Disadvantages
- The $300,000 cap may not be sufficient for larger projects, limiting the credit's effectiveness for some businesses.
- The 10-year time limitation on claiming the credit could discourage ongoing mitigation efforts.
- The complexity of the eligibility criteria may create administrative burdens for businesses.
- The credit may disproportionately benefit larger businesses that can afford to undertake mitigation projects.
- Potential for increased government debt if the tax credit is widely utilized.
Constitutional Alignment
This bill appears to align with the Constitution's general welfare clause (Preamble). By incentivizing disaster mitigation, it aims to protect businesses and communities from the economic impacts of natural disasters. The bill's provisions for taxation fall under the powers granted to Congress in Article I, Section 8, which allows Congress to lay and collect taxes, duties, imposts, and excises.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).