[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5251 Introduced in House (IH)]
<DOC>
114th CONGRESS
2d Session
H. R. 5251
To amend the Internal Revenue Code of 1986 to provide a tax credit for
property owners who remove hazards relating to lead, asbestos, and
radon.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 16, 2016
Ms. Esty (for herself and Ms. DeLauro) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a tax credit for
property owners who remove hazards relating to lead, asbestos, and
radon.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Healthy Homes Tax Credit Act''.
SEC. 2. TAX CREDITS FOR REDUCTION OF LEAD, RADON, AND ASBESTOS HAZARDS
IN HOMES.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new sections:
``SEC. 30E. HOME LEAD HAZARD REDUCTION ACTIVITY.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to 50 percent of the lead hazard reduction activity cost paid or
incurred by the taxpayer during the taxable year for each eligible
dwelling unit.
``(b) Limitation.--The amount of the credit allowed under
subsection (a) for any eligible dwelling unit for any taxable year
shall not exceed--
``(1) $5,000, reduced by
``(2) the aggregate lead hazard reduction activity cost
taken into account under subsection (a) with respect to such
unit for all preceding taxable years.
``(c) Definitions.--For purposes of this section:
``(1) Certified lead abatement supervisor.--The term
`certified lead abatement supervisor' means an individual
certified by the Environmental Protection Agency pursuant to
section 745.226 of title 40, Code of Federal Regulations, or an
appropriate State agency pursuant to section 745.325 of title
40, Code of Federal Regulations.
``(2) Certified inspector.--The term `certified inspector'
means an inspector certified by the Environmental Protection
Agency pursuant to section 745.226 of title 40, Code of Federal
Regulations, or an appropriate State agency pursuant to section
745.325 of title 40, Code of Federal Regulations.
``(3) Certified risk assessor.--The term `certified risk
assessor' means a risk assessor certified by the Environmental
Protection Agency pursuant to section 745.226 of title 40, Code
of Federal Regulations, or an appropriate State agency pursuant
to section 745.325 of title 40, Code of Federal Regulations.
``(4) Eligible dwelling unit.--
``(A) In general.--The term `eligible dwelling
unit' means, with respect to any taxable year, any
dwelling unit which is placed in service before 1950
and located in the United States.
``(B) Dwelling unit.--The term `dwelling unit' has
the meaning given such term by section 280A(f)(1).
``(5) Lead hazard reduction activity cost.--
``(A) In general.--The term `lead hazard reduction
activity cost' means, with respect to any eligible
dwelling unit--
``(i) the cost for a certified risk
assessor to conduct an assessment to determine
the presence of lead pipes or a lead-based
paint hazard,
``(ii) the cost for performing lead
abatement measures by a certified lead
abatement supervisor, including the removal of
lead pipes, the removal of paint and dust, the
permanent enclosure or encapsulation of lead-
based paint, the replacement of painted
surfaces, windows, or fixtures, or the removal
or permanent covering of soil when lead-based
paint hazards are present in such paint, dust,
or soil,
``(iii) the cost for a certified lead
abatement supervisor, those working under the
supervision of such supervisor, or a qualified
contractor to perform all preparation, cleanup,
disposal, and clearance testing activities
associated with the lead abatement measures,
and
``(iv) costs incurred by or on behalf of
any occupant of such dwelling unit for any
relocation which is necessary to achieve
occupant protection (as defined under section
35.1345 of title 24, Code of Federal
Regulations).
``(B) Limitation.--The term `lead hazard reduction
activity cost' does not include any cost to the extent
such cost is funded by any grant, contract, or
otherwise by another person or any governmental agency.
``(6) Lead-based paint hazard.--The term `lead-based paint
hazard' has the meaning given such term by section 745.63 of
title 40, Code of Federal Regulations.
``(7) Qualified contractor.--The term `qualified
contractor' means a Lead-Safe Certified Firm or certified
renovator under the Lead Renovation, Repair and Painting
Program of the Environmental Protection Agency.
``(d) Special Rules.--
``(1) Documentation required for credit allowance.--No
credit shall be allowed under subsection (a) with respect to
any eligible dwelling unit for any taxable year unless--
``(A) after lead hazard reduction activity is
complete, a certified inspector or certified risk
assessor provides written documentation to the taxpayer
that includes--
``(i) evidence that the eligible dwelling
unit meets lead hazard evaluation criteria
established by the Environmental Protection
Agency or under an authorized State or local
program, and
``(ii) documentation showing that the lead
hazard reduction activity meets the
requirements of this section, and
``(B) the taxpayer files with the appropriate State
agency and attaches to the tax return for the taxable
year--
``(i) the documentation described in
subparagraph (A),
``(ii) documentation of the lead hazard
reduction activity costs paid or incurred
during the taxable year with respect to the
eligible dwelling unit, and
``(iii) a statement certifying that the
dwelling unit qualifies as an eligible dwelling
unit for such taxable year.
``(2) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced by
the amount of such credit (determined without regard to
subsection (e)).
``(3) No double benefit.--Any deduction allowable for costs
taken into account in computing the amount of the credit for
lead-based paint abatement shall be reduced by the amount of
such credit attributable to such costs.
``(e) Limitation Based on Amount of Tax.--The credit allowed under
subsection (a) for the 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 subpart A and
sections 27, 29, 30, 30A, 30B, 30C, and 30D for the taxable
year.
``(f) Carryforward Allowed.--
``(1) In general.--If the credit amount allowable under
subsection (a) for a taxable year exceeds the amount of the
limitation under subsection (e) for such taxable year (referred
to as the `unused credit year' in this subsection), such excess
shall be allowed as a credit carryforward for each of the 20
taxable years following the unused credit year.
``(2) Rules.--Rules similar to the rules of section 39
shall apply with respect to the credit carryforward under
paragraph (1).
``SEC. 30F. HOME RADON HAZARD REDUCTION ACTIVITY.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to 50 percent of the radon hazard reduction activity cost paid or
incurred by the taxpayer during the taxable year for each eligible
dwelling unit.
``(b) Limitation.--The amount of the credit allowed under
subsection (a) for any eligible dwelling unit for any taxable year
shall not exceed--
``(1) $5,000, reduced by
``(2) the aggregate radon hazard reduction activity cost
taken into account under subsection (a) with respect to such
unit for all preceding taxable years.
``(c) Definitions.--For purposes of this section:
``(1) Eligible dwelling unit.--
``(A) In general.--The term `eligible dwelling
unit' means, with respect to any taxable year, any
dwelling unit located in the United States.
``(B) Dwelling unit.--The term `dwelling unit' has
the meaning given such term by section 280A(f)(1).
``(2) Qualified radon measurement professional.--The term
`qualified radon measurement professional' means an individual
who has demonstrated the minimum degree of appropriate
technical knowledge and skills specific to radon measurement in
conformance with the requirements of--
``(A) a certification standard promulgated by the
American National Standards Institute or International
Organization for Standardization,
``(B) a State, local or other governmental
licensing (or equivalent) program, or
``(C) any other recognized or accredited
certification process as determined by the Secretary.
``(3) Qualified radon mitigation professional.--The term
`qualified radon mitigation professional' means an individual
who has demonstrated the minimum degree of appropriate
technical knowledge and skills specific to radon mitigation in
conformance with the requirements of--
``(A) a certification standard promulgated by the
American National Standards Institute or International
Organization for Standardization,
``(B) a State, local or other governmental
licensing (or equivalent) program, or
``(C) any other recognized or accredited
certification process as determined by the Secretary.
``(4) Radon.--The term `radon' has the meaning given the
term in section 302 of the Toxic Substances Control Act (15
U.S.C. 2662).
``(5) Radon hazard reduction activity cost.--
``(A) In general.--The term `radon hazard reduction
activity cost' means, with respect to any eligible
dwelling unit--
``(i) the cost for a qualified radon
measurement professional to conduct an
assessment to determine the indoor radon level
of the dwelling unit, and
``(ii) if the indoor radon level of the
dwelling unit is not less than 2 picocuries per
liter of air, as determined by a qualified
radon measurement professional, the cost for
performing radon abatement measures by a
qualified radon mitigation professional.
``(B) Limitation.--The term `radon hazard reduction
activity cost' does not include any cost to the extent
such cost is funded by any grant, contract, or
otherwise by another person or any governmental agency.
``(d) Special Rules.--
``(1) Documentation required for credit allowance.--No
credit shall be allowed under subsection (a) with respect to
any eligible dwelling unit for any taxable year unless--
``(A) after radon hazard reduction activity is
complete, a qualified radon measurement professional
provides written documentation to the taxpayer that
includes--
``(i) evidence that the eligible dwelling
unit meets radon hazard evaluation criteria
established under an authorized State or local
program, and
``(ii) documentation showing that the radon
hazard reduction activity meets the
requirements of this section, and
``(B) the taxpayer files with the appropriate State
agency and attaches to the tax return for the taxable
year--
``(i) the documentation described in
subparagraph (A),
``(ii) documentation of the radon hazard
reduction activity costs paid or incurred
during the taxable year with respect to the
eligible dwelling unit, and
``(iii) a statement certifying that the
dwelling unit qualifies as an eligible dwelling
unit for such taxable year.
``(2) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced by
the amount of such credit (determined without regard to
subsection (e)).
``(3) No double benefit.--Any deduction allowable for costs
taken into account in computing the amount of the credit for
radon abatement shall be reduced by the amount of such credit
attributable to such costs.
``(e) Limitation Based on Amount of Tax.--The credit allowed under
subsection (a) for the 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 subpart A and
sections 27, 29, 30, 30A, 30B, 30C, and 30D for the taxable
year.
``(f) Carryforward Allowed.--
``(1) In general.--If the credit amount allowable under
subsection (a) for a taxable year exceeds the amount of the
limitation under subsection (e) for such taxable year (referred
to as the `unused credit year' in this subsection), such excess
shall be allowed as a credit carryforward for each of the 20
taxable years following the unused credit year.
``(2) Rules.--Rules similar to the rules of section 39
shall apply with respect to the credit carryforward under
paragraph (1).
``SEC. 30G. HOME ASBESTOS HAZARD REDUCTION ACTIVITY.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to 50 percent of the asbestos hazard reduction activity cost paid
or incurred by the taxpayer during the taxable year for each eligible
dwelling unit.
``(b) Limitation.--The amount of the credit allowed under
subsection (a) for any eligible dwelling unit for any taxable year
shall not exceed--
``(1) either--
``(A) $5,000 in the case of asbestos hazard
reduction activity cost including asbestos abatement
measures described in clauses (i), (ii), (iv), and (v)
of subsection (c)(3)(A), or
``(B) $1,000 in the case of asbestos hazard
reduction activity cost including interim asbestos
control measures described in clauses (i), (iii), (iv),
and (v) of subsection (c)(3)(A), reduced by
``(2) the aggregate asbestos hazard reduction activity cost
taken into account under subsection (a) with respect to such
unit for all preceding taxable years.
``(c) Definitions.--For purposes of this section:
``(1) Accredited asbestos abatement contractor or
supervisor.--The term `accredited asbestos abatement contractor
or supervisor' means any person accredited as a contractor or
supervisor under the Asbestos Model Accreditation Plan of the
Environmental Protection Agency.
``(2) Accredited asbestos inspector.--The term `accredited
asbestos inspector' means any person accredited as an inspector
under the Asbestos Model Accreditation Plan of the
Environmental Protection Agency.
``(3) Asbestos.--The term `asbestos' has the meaning given
the term in section 202 of the Toxic Substances Control Act (15
U.S.C. 2642).
``(4) Asbestos hazard.--The term `asbestos hazard' has the
meaning given the term `imminent hazard to the health and
safety' in section 11 of the Asbestos School Hazard Detection
and Control Act of 1980 (20 U.S.C. 3610).
``(5) Asbestos hazard reduction activity cost.--
``(A) In general.--The term `asbestos hazard
reduction activity cost' means, with respect to any
eligible dwelling unit--
``(i) the cost for an accredited asbestos
inspector to conduct an assessment to determine
the presence of an asbestos hazard,
``(ii) the cost for performing asbestos
abatement measures by an accredited asbestos
abatement contractor or supervisor,
``(iii) the cost for performing interim
asbestos control measures to reduce exposure or
likely exposure to asbestos hazards, but only
if such measures are evaluated and completed by
an accredited asbestos abatement contractor or
supervisor using accepted methods, are
conducted by an accredited asbestos abatement
contractor or supervisor, and have an expected
useful life of more than 10 years,
``(iv) the cost for an accredited asbestos
abatement supervisor, those working under the
supervision of such supervisor, or an
accredited asbestos abatement contractor or
supervisor to perform all preparation, cleanup,
disposal, and clearance testing activities
associated with the asbestos abatement measures
or interim asbestos control measures, and
``(v) costs incurred by or on behalf of any
occupant of such dwelling unit for any
relocation which is necessary to achieve
occupant protection (as determined by the
Administrator of the Environmental Protection
Agency).
``(B) Limitation.--The term `asbestos hazard
reduction activity cost' does not include any cost to
the extent such cost is funded by any grant, contract,
or otherwise by another person or any governmental
agency.
``(6) Eligible dwelling unit.--
``(A) In general.--The term `eligible dwelling
unit' means, with respect to any taxable year, any
dwelling unit located in the United States.
``(B) Dwelling unit.--The term `dwelling unit' has
the meaning given such term by section 280A(f)(1).
``(d) Special Rules.--
``(1) Documentation required for credit allowance.--No
credit shall be allowed under subsection (a) with respect to
any eligible dwelling unit for any taxable year unless--
``(A) after asbestos hazard reduction activity is
complete, an accredited asbestos inspector provides
written documentation to the taxpayer that includes--
``(i) evidence that the eligible dwelling
unit meets asbestos hazard evaluation criteria
established under an authorized State or local
program, and
``(ii) documentation showing that the
asbestos hazard reduction activity meets the
requirements of this section, and
``(B) the taxpayer files with the appropriate State
agency and attaches to the tax return for the taxable
year--
``(i) the documentation described in
subparagraph (A),
``(ii) documentation of the asbestos hazard
reduction activity costs paid or incurred
during the taxable year with respect to the
eligible dwelling unit, and
``(iii) a statement certifying that the
dwelling unit qualifies as an eligible dwelling
unit for such taxable year.
``(2) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced by
the amount of such credit (determined without regard to
subsection (e)).
``(3) No double benefit.--Any deduction allowable for costs
taken into account in computing the amount of the credit for
asbestos abatement shall be reduced by the amount of such
credit attributable to such costs.
``(e) Limitation Based on Amount of Tax.--The credit allowed under
subsection (a) for the 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 subpart A and
sections 27, 29, 30, 30A, 30B, 30C, and 30D for the taxable
year.
``(f) Carryforward Allowed.--
``(1) In general.--If the credit amount allowable under
subsection (a) for a taxable year exceeds the amount of the
limitation under subsection (e) for such taxable year (referred
to as the `unused credit year' in this subsection), such excess
shall be allowed as a credit carryforward for each of the 20
taxable years following the unused credit year.
``(2) Rules.--Rules similar to the rules of section 39
shall apply with respect to the credit carryforward under
paragraph (1).''.
(b) Technical Amendments.--
(1) Section 1016(a) of the Internal Revenue Code of 1986 is
amended--
(A) in paragraph (36), by striking ``and'' at the
end,
(B) in paragraph (37), by striking the period at
the end and inserting a comma, and
(C) by adding at the end the following new
paragraphs:
``(38) in the case of an eligible dwelling unit with
respect to which a credit for any lead hazard reduction
activity cost was allowed under section 30E, to the extent
provided in section 30E(d)(2),
``(39) in the case of an eligible dwelling unit with
respect to which a credit for any radon hazard reduction
activity cost was allowed under section 30F, to the extent
provided in section 30F(d)(2), and
``(40) in the case of an eligible dwelling unit with
respect to which a credit for any asbestos hazard reduction
activity cost was allowed under section 30G, to the extent
provided in section 30G(d)(2)''.
(2) The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 30D the following new items:
``Sec. 30E. Home lead hazard reduction activity.
``Sec. 30F. Home radon hazard reduction activity.
``Sec. 30G. Home asbestos hazard reduction activity.''.
(c) Effective Date.--The amendments made by this section shall
apply to costs incurred after December 31, 2015, in taxable years
ending after that date.
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