This legislative proposal, titled the Shelter Act, introduces significant amendments to the Internal Revenue Code of 1986 by establishing two distinct tax credits aimed at encouraging disaster mitigation efforts. These credits are designed to help both homeowners and businesses invest in improvements that enhance resilience against natural hazards, thereby reducing potential damages and losses. For individuals, the bill creates a new nonrefundable personal credit, allowing taxpayers to claim 25 percent of qualified disaster mitigation expenditures . This credit is subject to an annual limitation of $3,750, or $7,500 for joint filers, and a cumulative cap of $15,000 per qualified dwelling unit for expenditures made after December 31, 2025. The credit amount is also subject to an income phaseout, beginning for taxpayers with an adjusted gross income exceeding $100,000, or $200,000 for joint returns. A "qualified dwelling unit" must be located in the United States or its territories and in an area that has either received FEMA hazard mitigation assistance, experienced a federal natural disaster declaration within the preceding five years, is adjacent to such an area, or is designated as a community disaster resilience zone. Qualified expenditures encompass a wide range of improvements, including strengthening roofs, installing secondary water barriers, protecting openings from debris, elevating structures, and implementing fire-resistant construction standards. However, expenditures funded by federal, state, or local government entities are explicitly excluded from the credit. The bill also establishes a business-related credit for disaster mitigation, allowing businesses to claim 25 percent of their qualified expenditures . This credit is capped at $5,000 per taxable year and is subject to a phaseout for businesses with average gross receipts exceeding $5,000,000 over the three preceding taxable years. Similar to the individual credit, the business's place of business must be located in a federally designated disaster-prone or resilience-focused area to qualify. Both credits apply to taxable years beginning after December 31, 2025. They require that mitigation installations comply with the latest published editions of relevant consensus-based codes or more restrictive local standards. Furthermore, eligible expenditures include associated labor and inspection costs, and any unused individual credit can be carried forward for up to five succeeding taxable years, providing sustained financial relief for these crucial investments.