Working Waterfront Disaster Mitigation Tax Credit Act

This measure creates a federal income tax credit to help working waterfront businesses pay for projects that reduce damage from storms, floods, erosion, high winds, and other hazards. The credit covers 30% of eligible project costs, up to $300,000 per taxpayer, and can be claimed only once every 10 years; the $300,000 cap rises with inflation for tax years after 2026. Projects must follow modern building codes: the 2021 International Building Code for projects placed in service through 2032, and then the latest approved International Code Council model code for projects placed in service on or after January 1, 2033.

Qualifying work includes raising buildings, improving stormwater systems (like culverts, pumps, and floodgates), stabilizing slopes and shorelines, using flood‑resistant materials, and adding warning tools such as reverse 911, weather stations, rain gauges, and flood alarms. The property must support an active business that provides access to navigable waters for activities such as commercial fishing, recreational boating, boatbuilding, aquaculture, or dredging; the business must have average annual gross receipts of $47 million or less over the prior three years, with that threshold also adjusted for inflation after 2026. Federal rules will be issued in coordination with FEMA to implement the credit.

• Who is affected: Waterfront businesses that provide access to navigable waters for fishing, boating, boatbuilding, aquaculture, dredging, and similar water‑dependent work, with average annual gross receipts of $47 million or less.
• What changes: A new 30% tax credit (up to $300,000, inflation‑adjusted after 2026) for hazard‑mitigation projects like structure elevation, stormwater upgrades, shoreline stabilization, and hazard warning systems; you can claim it once every 10 years .
• When: Building code requirements apply now, with a switch to the latest approved code for projects placed in service on or after January 1, 2033; dollar limits adjust for inflation starting after 2026 .