Critical Businesses Preparedness Act

Subpart D 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 section:

For purposes of section 38, in the case of a specified taxpayer, the qualified disaster preparedness electric generator expenses credit for any taxable year is an amount equal to 30 percent of the qualified disaster preparedness electric generator expenses paid or incurred by the taxpayer during such taxable year.

For purposes of this section, the term specified taxpayer means any person engaged in a trade or business that is determined by the Secretary, after consultation with the Administrator of the Federal Emergency Management Agency, as being a trade or business that is critical in the aftermath of a flood or hurricane. Such trades or businesses shall not fail to include hospitals, nursing homes, grocery stores, and gas stations.

For purposes of this section—

The term qualified disaster preparedness electric generator expenses means, with respect to any specified taxpayer, any amount paid or incurred by such taxpayer for an electric generator (including costs of installation) placed in service in a high risk disaster area and used in a trade or business referred to in subsection (b).

The term high risk disaster area means any area determined by the Secretary, after consultation with the Administrator of the Federal Emergency Management Agency, as being an area that is at high risk of flooding or hurricanes.

In the case of any qualified disaster preparedness electric generator expenses with respect to which credit is allowed under subsection (a)—

(1) no deduction or credit shall be allowed for, or by reason of, any such expense to the extent of the amount of such credit, and

(2) the basis of any property shall be reduced by the amount of such credit to the extent that such expenses were taken into account in determining such basis.

Section 38(b) of such Code is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting, plus, and by adding at the end the following new paragraph:

(42) in the case of a specified taxpayer (as defined in section 45BB(b)), the qualified disaster preparedness electric generator expenses credit determined under section 45BB(a).

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.