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S. 1583 (112th): Storm Shelter Tax Relief Act

The text of the bill below is as of Sep 20, 2011 (Introduced).


II

112th CONGRESS

1st Session

S. 1583

IN THE SENATE OF THE UNITED STATES

September 20, 2011

(for himself, Mr. Blunt, and Mr. Chambliss) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide a tax deduction for the purchase, construction, and installation of a safe room or storm shelter, and for other purposes.

1.

Short title

This Act may be cited as the Storm Shelter Tax Relief Act.

2.

Deduction for purchase, construction, and installation of a safe room or storm shelter

(a)

In general

Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended—

(1)

by redesignating section 224 as section 225, and

(2)

by inserting after section 223 the following new section:

224.

Safe room or storm shelter purchase, construction, and installation expenses

(a)

Allowance of deduction

(1)

In general

In the case of an individual, there shall be allowed as a deduction for the taxable year an amount equal to the qualified storm shelter expenses paid by the taxpayer during the taxable year.

(2)

Maximum dollar amount per shelter

The deduction allowed by paragraph (1) with respect to each qualified storm shelter shall not exceed $2,500.

(b)

Definitions

For purposes of this section—

(1)

Qualified storm shelter expenses

The term qualified storm shelter expenses means expenses (including labor) for the purchase, construction, and installation of a qualified storm shelter.

(2)

Qualified storm shelter

The term qualified storm shelter means a storm shelter or safe room—

(A)

the design of which is capable of withstanding an EF5 tornado, and

(B)

which is first placed in service by the taxpayer as an attachment to a dwelling—

(i)

which was placed in service prior to the placed in service date of such storm shelter or safe room,

(ii)

which serves as the principal residence (within the meaning of section 121) of the taxpayer, and

(iii)

with respect to which no other qualified storm shelter is attached.

(c)

Special rules

(1)

Denial of double benefit

No deduction shall be allowed under subsection (a) for any expense for which a deduction or credit is allowed to the taxpayer under any other provision of this chapter.

(2)

Basis reduction

For purposes of this title, the basis of any property shall be reduced by the portion of the cost of such property taken into account under subsection (a).

(d)

Termination

This section shall not apply to taxable years beginning after December 31, 2012.

.

(b)

Conforming amendment

Section 1016(a) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting , and, and by adding at the end the following new paragraph:

(38)

to the extent provided in section 224(c)(2).

.

(c)

Clerical amendment

The table of sections for part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by striking the item relating to section 224 and inserting the following new items:

“224. Safe room or storm shelter purchase, construction, and installation expenses.

225. Cross reference..

(d)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.

3.

Community Development Fund

Of amounts made available under the heading community development fund under the heading Community Planning and Development under the heading Department of Housing and Urban Development under title II of the Department of Housing and Urban Development Appropriations Act, 2010 (Public Law 111–117; 123 Stat. 3083) and under section 2240 of the Department of Defense and Full-Year Continuing Appropriations Act, 2011 (Public Law 112–10; 125 Stat. 195) and not otherwise obligated, $60,000,000 are rescinded.