text: SECTION 1. SHORT TITLE.
  
      (a) Short Title.--This Act may be cited as the ``Natural Disaster 
  Mitigation Act of 2011''.
  
  SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR NATURAL DISASTER 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. NATURAL DISASTER 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 
  natural disaster mitigation property expenditures made by the taxpayer 
  during such taxable year in connection with a qualified principal 
  residence of the taxpayer.
      ``(b) Maximum Credit.--The credit allowed under subsection (a) with 
  respect to any principal residence of the taxpayer for any taxable year 
  shall not exceed the excess of--
              ``(1) $5,000 (half such amount in the case of a married 
          individual filing a separate return), over
              ``(2) the aggregate amounts allowed as a credit under this 
          section to the taxpayer (or the taxpayer's spouse) with respect 
          to such residence for all prior taxable years.
      ``(c) Limitation Based on Amount of Tax.--In the case of a taxable 
  year to which section 26(a)(2) does not apply, the credit allowed under 
  subsection (a) for any taxable year shall not exceed the excess of--
              ``(1) the sum of the regular tax liability (as defined in 
          section 26(b)) plus the tax imposed by section 55, over
              ``(2) the sum of the credits allowable under this subpart 
          (other than this section and sections 23, 24, and 25B) and 
          section 27 for the taxable year.
      ``(d) Qualified Natural Disaster Mitigation Property Expenditure.--
  For purposes of this section, the term `qualified natural disaster 
  mitigation property expenditure' means an expenditure for--
              ``(1) property to improve the strength of a roof deck 
          attachment,
              ``(2) property to create a secondary water barrier to 
          prevent water intrusion,
              ``(3) property to improve the durability of a roof 
          covering,
              ``(4) property to brace gable-end walls,
              ``(5) property to reinforce the connection between a roof 
          and supporting wall,
              ``(6) property to protect openings from penetration by 
          windborne debris,
              ``(7) property to protect exterior doors and garages,
              ``(8) property to improve the natural resiliency of the 
          property, including the restoration, establishment, or 
          enhancement of aquatic resources (having the meanings given 
          such terms by part 332 of title 33 of the Code of Federal 
          Regulations), as prescribed by the Secretary after consultation 
          with the Administrator of the Environmental Protection Agency 
          and the Assistant Secretary of the Army for Civil Works,
              ``(9) seismic retrofitting, including property to increase 
          resistance to seismic activity, ground motion, or soil failure 
          due to earthquakes, or
              ``(10) such other measures to mitigate natural disaster 
          damage to homes, as prescribed by the Secretary after 
          consultation with the Administrator of the Federal Emergency 
          Management Agency and, to the extent applicable, in accordance 
          with section 12(d) of the National Technology Transfer and 
          Advancement Act of 1995 (15 U.S.C. 272 note; Public Law 104-
          113).
      ``(e) Qualified Principal Residence.--For purposes of this section, 
  the term `qualified pricnipal residence' means the principal residence 
  of the taxpayer (within the meaning of section 121) if such residence--
              ``(1) is assessed by the locality in which it is located at 
          a value which does not exceed 300 percent of the national 
          median home price (determined as of the close of the taxable 
          year for which the credit determined under this section is 
          allowed), and
              ``(2) is not severe repetitive loss property (as defined in 
          section 1361A of the National Flood Insurance Act (42 U.S.C. 
          4102a(b))).
      ``(f) Rules Related to Inspections and Labor Costs.--For purposes 
  of this section--
              ``(1) Inspection requirement.--An expenditure shall be 
          taken into account in determining the qualified natural 
          disaster mitigation property expenditures made by the taxpayer 
          during the taxable year only if the 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 an 
          inspector that is licensed or certified by the State or other 
          governmental authority, or its designee, having jurisdiction 
          over inspectors in the area where the installed property is 
          located.
              ``(2) Labor and inspection 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 (d) (including the cost of 
          inspections referred to in paragraph (1)) shall be taken into 
          account in determining the qualified natural disaster 
          mitigation property expenditures made by the taxpayer during 
          the taxable year.
      ``(g) Basis Adjustment.--For purposes of this section, if a credit 
  is allowed under this section for any expenditure with respect to any 
  property, the increase in the basis of such property which would (but 
  for this subsection) result from such expenditure shall be reduced by 
  the amount of the credit so allowed.''.
      (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. Natural disaster mitigation property.''.
      (c) Effective Date.--The amendments made by this section shall 
  apply to taxable years beginning after December 31, 2011.
target: Natural Disaster Mitigation Act of 2011 - Amends the Internal Revenue Code to allow individual taxpayers a nonrefundable tax credit for 25% of their qualified natural disaster mitigation property expenditures, as defined by this Act, made in connection with the taxpayer's principal residence.
feat_title: To amend the Internal Revenue Code of 1986 to provide a credit against tax for natural disaster mitigation expenditures.