[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2573 Introduced in Senate (IS)]
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114th CONGRESS
2d Session
S. 2573
To amend the Internal Revenue Code of 1986 to provide a tax credit for
taxpayers who remove lead-based hazards.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 24, 2016
Mr. Whitehouse (for himself, Mr. Schumer, and Mr. Casey) 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 credit for
taxpayers who remove lead-based hazards.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; FINDINGS; PURPOSE.
(a) Short Title.--This Act may be cited as the ``Home Lead Safety
Tax Credit Act of 2016''.
(b) Findings.--Congress finds that:
(1) Lead is a metal that can produce a wide range of health
effects in humans when ingested. Children are more vulnerable
to lead poisoning than adults.
(2) Lead poisoning is a serious, entirely preventable
threat to a child's intelligence, behavior, and learning. In
severe cases, lead poisoning can result in death.
(3) According to the Department of Housing and Urban
Development, approximately 23 million housing units nationwide
have at least one lead paint hazard.
(4) In fiscal year 2015, funding for Federal lead abatement
programs, such as the Lead Hazard Control Grant Program, only
provided for lead abatement or ``interim control measures'' for
18,600 homes.
(5) Childhood lead poisoning can be dramatically reduced by
the abatement or complete removal of all lead-based hazards.
Empirical studies also have shown substantial reductions in
lead poisoning when the affected properties have undergone
``interim control measures'' that are less costly than
abatement.
(c) Purpose.--The purpose of this section is to encourage the safe
removal of lead hazards from homes and thereby decrease the number of
children who suffer reduced intelligence, learning difficulties,
behavioral problems, and other health consequences due to lead
poisoning.
SEC. 2. HOME LEAD HAZARD REDUCTION ACTIVITY TAX CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 36B the following new section:
``SEC. 36C. HOME LEAD HAZARD REDUCTION ACTIVITY.
``(a) Allowance of Credit.--
``(1) In general.--Subject to paragraph (2), there shall be
allowed as a credit against the tax imposed by this subtitle
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.
``(2) Election to apply costs to prior year.--For purposes
of this section, a taxpayer may elect to treat any lead hazard
reduction activity cost paid or incurred by the taxpayer during
the taxable year as having been paid or incurred during the
preceding taxable year.
``(b) Limitations.--
``(1) In general.--Subject to paragraph (3), the amount of
the credit allowed under subsection (a) for any eligible
dwelling unit for any taxable year shall not exceed--
``(A) $3,000 in the case of lead hazard reduction
activity cost including lead abatement measures
described in clauses (i), (ii), (iv), and (v) of
subsection (c)(1)(A), or
``(B) $1,000 in the case of lead hazard reduction
activity cost including interim lead control measures
described in clauses (i), (iii), (iv), and (v) of
subsection (c)(1)(A).
``(2) Other tax credits.--In the case of any credit against
State or local tax liabilities which is allowable under the
laws of any State or political subdivision thereof to a
taxpayer with respect to any costs paid or incurred by the
taxpayer which would otherwise qualify as lead hazard reduction
activity costs under this section (referred to in this
paragraph as the `State or local tax credit amount'), the
amount of the credit allowed under subsection (a) for any
eligible dwelling unit for any taxable year (determined after
application of paragraph (1)) shall not exceed an amount equal
to the difference between--
``(A) the lead hazard reduction activity cost paid
or incurred by the taxpayer during the taxable year for
such unit, and
``(B) the State or local tax credit amount.
``(3) Limitation per residence.--The cumulative amount of
the credit allowed under subsection (a) for an eligible
dwelling unit for all taxable years shall not exceed $4,000.
``(c) Definitions and Special Rules.--For purposes of this section:
``(1) 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 a lead-based hazard (as such
terms are defined by the Secretary, in
consultation with the Administrator of the
Environmental Protection Agency),
``(ii) the cost for performing lead
abatement measures by a certified lead
abatement supervisor (as such term is defined
by the Secretary, in consultation with the
Administrator of the Environmental Protection
Agency), including the removal of paint, dust,
or pipes, the permanent enclosure or
encapsulation of lead-based paint or pipes, the
replacement of painted surfaces, windows, or
fixtures, or the removal or permanent covering
of soil when lead-based hazards are present,
``(iii) the cost for performing interim
lead control measures to reduce exposure or
likely exposure to lead-based hazards,
including specialized cleaning, repairs,
maintenance, painting, temporary containment,
ongoing monitoring of lead-based hazards, and
the establishment and operation of management
and resident education programs, but only if
such measures are evaluated and completed by a
certified lead abatement supervisor using
accepted methods, are conducted by a qualified
contractor, and have an expected useful life of
more than 10 years,
``(iv) 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 or
interim lead 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 such term is defined by
the Secretary, in consultation with the
Administrator of the Environmental Protection
Agency).
``(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.
``(2) Eligible dwelling unit.--
``(A) In general.--The term `eligible dwelling
unit' means, with respect to any taxable year, any
dwelling unit--
``(i) placed in service before 1978,
``(ii) located in the United States, and
``(iii) the residents of which during the
preceding taxable year have a cumulative
adjusted gross income of less than $110,000.
``(B) Dwelling unit.--The term `dwelling unit' has
the meaning given such term by section 280A(f)(1).
``(3) Qualified contractor.--The term `qualified
contractor' means any contractor who has successfully completed
a training course on lead safe work practices which has been
approved by the Department of Housing and Urban Development and
the Environmental Protection Agency.
``(4) 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, after
lead hazard reduction activity is complete, a certified
inspector (as such term is defined by the Secretary, in
consultation with the Administrator of the Environmental
Protection Agency) or certified risk assessor provides written
documentation to the taxpayer that includes--
``(A) evidence that--
``(i) the eligible dwelling unit meets the
lead hazard reduction criteria defined by the
Secretary, in consultation with the
Administrator of the Environmental Protection
Agency, or
``(ii) the eligible dwelling unit meets
lead hazard evaluation criteria established
under an authorized State or local program, and
``(B) documentation showing that the lead hazard
reduction activity meets the requirements of this
section.
``(5) 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.
``(6) No double benefit.--Any deduction allowable for costs
taken into account in computing the amount of the credit for
lead-based abatement shall be reduced by the amount of such
credit attributable to such costs.
``(d) Inflation Adjustment.--In the case of any taxable year
beginning in a calendar year after 2016, each of the dollar amounts in
subsections (b) and (c)(2)(A)(iii) shall be increased by an amount
equal to--
``(1) such dollar amount, multiplied by
``(2) 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 2015' for
`calendar year 1992' in subparagraph (B) thereof. Any increase
determined under the preceding sentence shall be rounded to the
nearest multiple of $100.''.
(b) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``, 36C'' after ``36B''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by inserting before the item relating to section 37
the following new item:
``Sec. 36C. Home lead hazard reduction activity.''.
(c) Effective Date.--The amendments made by this section shall
apply to lead hazard reduction activity costs incurred after December
31, 2015, in taxable years ending after that date.
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