Working Waterfront Disaster Mitigation Tax Credit Act
Summary
The Working Waterfront Disaster Mitigation Tax Credit Act aims to amend the Internal Revenue Code of 1986 by introducing a tax credit for hazard mitigation projects related to working waterfront properties. This credit is intended to encourage investments in infrastructure and measures that protect these properties from natural disasters. The bill outlines specific criteria for eligible projects and properties, including compliance with building codes and the types of mitigation activities covered.
Expected Effects
The act would incentivize property owners to invest in disaster mitigation measures. This would reduce the financial impact of natural disasters on working waterfronts. It also provides financial assistance to possessions of the United States impacted by the tax credit.
Potential Benefits
- Encourages investment in resilient infrastructure on working waterfronts.
- Reduces financial risks associated with natural disasters for businesses.
- Supports economic activity in coastal and waterfront communities.
- Promotes adoption of modern building codes and disaster mitigation techniques.
- Provides financial assistance to US possessions.
Potential Disadvantages
- Potential complexity in defining and verifying qualified projects.
- Possible administrative burden for the IRS and FEMA.
- The tax credit may disproportionately benefit larger waterfront businesses.
- Could lead to increased development in sensitive coastal areas if not carefully managed.
- Limited impact if the credit is not widely utilized or if mitigation efforts are insufficient.
Constitutional Alignment
The bill aligns with the Constitution's general welfare clause (Preamble). It promotes economic stability and resilience in waterfront communities. The bill's provisions for payments to possessions of the United States are consistent with Congress's power to govern territories (Article IV, Section 3, Clause 2).
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).