(a) In general

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 36B the following new section:

36C. Wildfire mitigation expenditures

(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 wildfire mitigation expenditures made by the taxpayer during such taxable year.

(b) Maximum credit

(1) In general

Subject to paragraphs (2) and (3), the credit allowed under subsection (a) for any taxable year shall not exceed $25,000.

(2) Phaseout

(A) In general

The amount under paragraph (1) for the taxable year shall be reduced (but not below zero) by an amount which bears the same ratio to the amount under such paragraph as—

(i)

the excess (if any) of—

(I)

the taxpayer’s adjusted gross income for such taxable year, over

(II)

$200,000, bears to

(ii)

$100,000.

(B) Inflation adjustment

In the case of any taxable year after 2024, each of the dollar amounts under subparagraph (A) shall be increased by an amount equal to—

(i)

such dollar amount, multiplied by

(ii)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2023 for calendar year 2016 in subparagraph (A)(ii) thereof.

(C) Rounding

If any reduction determined under subparagraph (A) is not a multiple of $50, or any increase under subparagraph (B) is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50.

(c) Definitions

For purposes of this section—

(1) Qualified wildfire mitigation expenditure

(A) In general

The term qualified wildfire mitigation expenditure means an expenditure relating to a qualified dwelling unit—

(i)

for property to improve fire resistance (not less than a class A rating) of a roof covering,

(ii)

to install—

(I)

roof coverings, sheathing, flashing, roof and attic vents, eaves, or gutters that conform to ignition-resistant construction standards,

(II)

wall components for wall assemblies that conform to ignition-resistant construction standards,

(III)

exterior walls, doors, windows, or other exterior dwelling unit elements that conform to ignition-resistant construction standards,

(IV)

exterior deck or fence components that conform to ignition-resistant construction standards, or

(V)

structure-specific water hydration systems, including fire mitigation systems such as interior and exterior sprinkler systems, or

(iii)

for services or equipment to—

(I)

create buffers around the qualified dwelling unit through the removal or reduction of flammable vegetation, including vertical clearance of tree branches,

(II)

create buffers around the dwelling unit through—

(aa)

the removal of exterior deck or fence components or ignition-prone landscape features, or

(bb)

replacement of the components or features described in item (aa) with components that conform to ignition-resistant construction standards,

(III)

perform fire maintenance procedures identified by the Federal Emergency Management Agency or the United States Forest Service, including fuel management techniques such as creating fuel and fire breaks,

(IV)

replace flammable vegetation with less flammable species, or

(V)

prevent smoke inhalation, such as air filters or other equipment designed to prevent smoke from entering the dwelling unit.

(B) Exception

The term qualified wildfire mitigation expenditure shall not include any expenditure or portion thereof which is paid, funded, or reimbursed by a Federal, State, or local government entity, or any political subdivision, agency, or instrumentality thereof.

(2) Qualified dwelling unit

The term qualified dwelling unit means a dwelling unit which is—

(A)

located—

(i)

in the United States or in a territory of the United States, and

(ii)

in an area—

(I)

in which a Federal natural disaster declaration has been made within the preceding 10-year period with respect to a wildfire,

(II)

which is adjacent to an area described in subclause (I),

(III)

which, during the taxable year or the period of the 10 taxable years preceding such taxable year, has received hazard mitigation assistance through the Federal Emergency Management Agency in regard to any wildfire which, with respect to the expenditure described in paragraph (1) which is made by the taxpayer, is applicable to such expenditure, or

(IV)

which, with respect to any taxable year, has been designated as a community disaster resilience zone (as defined in section 206(a) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5136(a))) as the result of a wildfire, and

(B)

used as a primary residence by the taxpayer.

(d) Documentation

Any taxpayer claiming the credit under this section shall provide the Secretary with adequate documentation regarding the specific qualified wildfire mitigation expenditures made by the taxpayer during the taxable year, as well as such other information or documentation as the Secretary may require.

(e) Termination of credit

The credit allowed under this section shall not apply to wildfire mitigation expenditures made after December 31, 2032.

(b) Conforming amendment

The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36B the following new item:

(c) Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2024.