text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Hurricane and Tornado Mitigation 
  Investment Act of 2007''.
  
  SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR HURRICANE AND TORNADO 
                MITIGATION PROPERTY.
  
      (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
  of the Internal Revenue Code of 1986 is amended by inserting after 
  section 25D the following new section:
  
  ``SEC. 25E. HURRICANE AND TORNADO MITIGATION PROPERTY.
  
      ``(a) Allowance of Credit.--In the case of an individual, there 
  shall be allowed as a credit against the tax imposed by this chapter 
  for the taxable year an amount equal to 25 percent of the qualified 
  hurricane and tornado mitigation property expenditures made by the 
  taxpayer during such taxable year.
      ``(b) Maximum Credit.--The credit allowed under subsection (a) for 
  any taxable year shall not exceed $5,000.
      ``(c) Qualified Hurricane and Tornado Mitigation Expenditure.--For 
  purposes of this section--
              ``(1) In general.--The term `qualified hurricane and 
          tornado mitigation property expenditure' means an expenditure 
          for property--
                      ``(A) to improve the strength of a roof deck 
                  attachment,
                      ``(B) to create a secondary water barrier to 
                  prevent water intrusion,
                      ``(C) to improve the durability of a roof covering,
                      ``(D) to brace gable-end walls,
                      ``(E) to reinforce the connection between a roof 
                  and supporting wall,
                      ``(F) to protect openings from penetration by 
                  windborne debris, or
                      ``(G) to protect exterior doors and garages,
          in a qualified dwelling unit located in a qualified State and 
          owned by the taxpayer.
              ``(2) Qualified dwelling unit.--The term `qualified 
          dwelling unit' means a dwelling unit that is assessed at a 
          value that is less than $1,000,000 by the locality in which 
          such dwelling unit is located and with respect to the taxable 
          year for which the credit described in subsection (a) is 
          allowed.
              ``(3) Qualified state.--The term `qualified State' means 
          Alabama, Arkansas, Colorado, Connecticut, Delaware, Florida, 
          Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, 
          Louisiana, Maine, Maryland, Massachusetts, Minnesota, 
          Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New 
          York, North Carolina, Ohio, Pennsylvania, Rhode Island, South 
          Carolina, South Dakota, Tennessee, Texas, or Virginia.
      ``(d) Limitation.--An expenditure shall be taken into account in 
  determining the qualified hurricane and tornado mitigation property 
  expenditures made by the taxpayer during the taxable year only if the 
  onsite preparation, assembly, or original installation of the property 
  with respect to which such expenditure is made has been completed in a 
  manner that is deemed to be adequate by a State-certified inspector.
      ``(e) Labor Costs.--For purposes of this section, expenditures for 
  labor costs properly allocable to the onsite preparation, assembly, or 
  original installation of the property described in subsection (c) shall 
  be taken into account in determining the qualified hurricane and 
  tornado mitigation property expenditures made by the taxpayer during 
  the taxable year.
      ``(f) Inspection Costs.--For purposes of this section, expenditures 
  for inspection costs properly allocable to the inspection of the 
  preparation, assembly, or installation of the property described in 
  subsection (c) shall be taken into account in determining the qualified 
  hurricane and tornado mitigation property expenditures made by the 
  taxpayer during the taxable year.''.
      (b) Conforming Amendment.--The table of sections for subpart A of 
  part IV of subchapter A of chapter 1 of such Code is amended by 
  inserting after the item relating to section 25D the following new 
  item:
  
  ``Sec. 25E. Hurricane and tornado mitigation property.''.
      (c) Effective Date.--The amendments made by this section shall 
  apply to taxable years beginning after December 31, 2007.
  
  SEC. 3. BUSINESS RELATED CREDIT FOR HURRICANE AND TORNADO MITIGATION.
  
      (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
  of the Internal Revenue Code of 1986 is amended by inserting after 
  section 45N the following new section:
  
  ``SEC. 45O. HURRICANE AND TORNADO MITIGATION CREDIT.
  
      ``(a) General Rule.--For purposes of section 38, the hurricane and 
  tornado mitigation credit determined under this section for any taxable 
  year is an amount equal to 25 percent of the qualified hurricane and 
  tornado mitigation property expenditures made by the taxpayer during 
  the taxable year.
      ``(b) Maximum Credit.--The amount of the credit determined under 
  subsection (a) for any taxable year shall not exceed $5,000.
      ``(c) Qualified Hurricane and Tornado Mitigation Expenditure.--For 
  purposes of this section--
              ``(1) In general.--The term `qualified hurricane and 
          tornado mitigation property expenditure' means an expenditure 
          for property--
                      ``(A) to improve the strength of a roof deck 
                  attachment,
                      ``(B) to create a secondary water barrier to 
                  prevent water intrusion,
                      ``(C) to improve the durability of a roof covering,
                      ``(D) to brace gable-end walls,
                      ``(E) to reinforce the connection between a roof 
                  and supporting wall,
                      ``(F) to protect openings from penetration by 
                  windborne debris, or
                      ``(G) to protect exterior doors and garages,
          in a qualified place of business located in a qualified State 
          and owned by the taxpayer.
              ``(2) Qualified place of business.--The term `qualified 
          place of business' means a place of business that is assessed 
          at a value that is less than $5,000,000 by the locality in 
          which such business is located and with respect to the taxable 
          year for which the credit described in subsection (a) is 
          allowed.
              ``(3) Qualified state.--The term `qualified State' means 
          Alabama, Arkansas, Colorado, Connecticut, Delaware, Florida, 
          Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, 
          Louisiana, Maine, Maryland, Massachusetts, Minnesota, 
          Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New 
          York, North Carolina, Ohio, Pennsylvania, Rhode Island, South 
          Carolina, South Dakota, Tennessee, Texas, or Virginia.
      ``(d) Limitation.--An expenditure shall be taken into account in 
  determining the qualified hurricane and tornado mitigation property 
  expenditures made by the taxpayer during the taxable year only if the 
  onsite preparation, assembly, or original installation of the property 
  with respect to which such expenditure is made has been completed in a 
  manner that is deemed to be adequate by a State-certified inspector.
      ``(e) Labor Costs.--For purposes of this section, expenditures for 
  labor costs properly allocable to the onsite preparation, assembly, or 
  original installation of the property described in subsection (c) shall 
  be taken into account in determining the qualified hurricane and 
  tornado mitigation property expenditures made by the taxpayer during 
  the taxable year.
      ``(f) Inspection Costs.--For purposes of this section, expenditures 
  for inspection costs properly allocable to the inspection of the 
  preparation, assembly, or installation of the property described in 
  subsection (c) shall be taken into account in determining the qualified 
  hurricane and tornado mitigation property expenditures made by the 
  taxpayer during the taxable year.''.
      (b) Conforming Amendments.--
              (1) Section 38(b) of such Code is amended by striking 
          ``plus'' at the end of paragraph (30), by striking the period 
          at the end of paragraph (31) and inserting ``, and'', and by 
          adding at the end the following new paragraph:
              ``(32) the hurricane and tornado mitigation credit 
          determined under section 45O(a).''.
              (2) The table of sections for subpart D of part IV of 
          subchapter A of chapter 1 of such Code is amended by inserting 
          after the item relating to section 45N the following new item:
  
  ``Sec. 45O. Hurricane and tornado mitigation credit.''.
      (c) Effective Date.--The amendments made by this section shall 
  apply to taxable years beginning after December 31, 2007.
target: Hurricane and Tornado Mitigation Investment Act of 2007 - Amends the Internal Revenue Code to allow individual and business taxpayers in certain states a tax credit for 25% of their qualified hurricane and tornado mitigation property expenditures up to $5,000 for any taxable year. Defines such expenditures as expenditures in a dwelling unit to improve the strength of a roof deck attachment, create a secondary water barrier, improve the durability of a roof covering, brace gable-end walls, reinforce the connections between a roof and supporting wall, protect against windborne debris, or protect exterior doors and garages.
feat_title: To amend the Internal Revenue Code of 1986 to provide a credit against tax for hurricane and tornado mitigation expenditures.