Working Waterfront Disaster Mitigation Tax Credit Act

This bill gives a federal tax credit to help small and mid-sized waterfront businesses pay for projects that protect docks, boatyards, and similar sites from storms, floods, and erosion. The credit covers 30% of the cost of eligible equipment and construction, up to $300,000. You can only claim it once every 10 years. The cap and certain size limits rise with inflation after 2026. Projects must follow modern building codes (the 2021 International Building Code for projects in service before 2032, and a later approved code after that). The Treasury Department, working with FEMA, will set rules to carry this out .

To qualify, the property must be a “working waterfront,” like places that support commercial fishing, boatbuilding, aquaculture, dredging, and other water-dependent activities. The business must have average annual gross receipts of $47 million or less over the prior three years (adjusted for inflation after 2026). Eligible spending includes tangible, depreciable property that’s new to the business and used in a qualifying project. Examples include raising buildings, improving stormwater systems, stabilizing shorelines, floodproofing, and installing hazard warning systems like flood alarms and weather stations .

• Who is affected: Businesses on U.S. waterfronts that give access to navigable waters and support water-dependent work; must meet the $47 million gross receipts test .
• What changes: A 30% tax credit for qualifying hazard mitigation investments, up to $300,000 per taxpayer; once every 10 years; amounts adjust for inflation after 2026 .
• What counts as a project: Elevating structures; stormwater upgrades; erosion control; floodproofing; and hazard warning equipment, following current building codes .
• When: Code requirement uses the 2021 code for projects in service before 2032; later projects must meet an updated, approved code; inflation adjustments start after 2026 .