“(a) General rule.—There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable amount for each qualified building placed in service during the taxable year.

“(b) Applicable amount.—For purposes of subsection (a)—

“(1) COMMERCIAL PROPERTY.—In the case of a qualified commercial property, the applicable amount is the lesser of—

“(A) 1 percent of the cost of the building, or

“(B) $25,000 per building.

“(2) RESIDENTIAL PROPERTY.—In the case of a qualified residential property, the applicable amount is the lesser of—

“(A) 1 percent of the cost of the property (or construction cost for rehabilitation of the property), or

“(B) $3,000 per property.

“(c) Qualified building.—For purposes of subsection (a)—

“(1) IN GENERAL.—The term ‘qualified building’ means a building—

“(A) owned by the taxpayer in a disaster area determined as a result of a federally declared major disaster,

“(B) the construction of which began after the date of such disaster in that area,

“(C) which—

“(i) is qualified commercial property placed in service for commercial purposes, or

“(ii) is qualified residential property is placed in service for residential purposes, and

“(D) for which a certificate of occupancy is issued before the end of the 3-year period beginning on the date of such disaster declaration in that area.

“(2) QUALIFIED COMMERCIAL PROPERTY.—The term ‘qualified commercial property’ means a building that is—

“(A) located in the United States,

“(B) defined in the scope of the 2009 or later International Building Code published by the International Code Council, and

“(C) designed and constructed to meet resilient construction requirements.

“(3) QUALIFIED RESIDENTIAL PROPERTY.—The term ‘qualified residential property’ means a building that is—

“(A) located in the United States,

“(B) defined in the scope of the 2009 or later International Residential Code published by the International Code Council, and

“(C) designed and constructed to meet resilient construction requirements.

“(d) Resilient construction requirements.—For purposes of this section—

“(1) IN GENERAL.—The resilient construction requirements with respect to a property are that the property is designed and constructed to—

“(A) resist hazards brought on by a major disaster and continues to provide its primary functions after a major disaster,

“(B) reduce the magnitude or duration of a disruptive event, and

“(C) have the absorptive capacity, adaptive capacity, and recoverability to withstand a potentially disruptive event.

“(2) TREATED AS MEETING RESILIENCY REQUIREMENTS.—For purposes of paragraph (1)—

“(A) in the case of a qualified commercial property, the property shall be treated as meeting the requirements specified in paragraph (1) if the property is a building which—

“(i) was designed to meet the requirements of the 2009 or later International Building Code published by the International Code Council and received the Insurance Institute for Business and Home Safety FORTIFIED for Safer Business designation, or

“(ii) was designed and built in a jurisdiction that requires commercial buildings to meet the requirements of the 2009 or later International Building Code published by the International Code Council with amendments that are equivalent or more restrictive than the requirements described in FORTIFIED for Safer Business Standards published by the Insurance Institute for Business and Home Safety and received a certificate of occupancy (or other documentation stating that it has met the requirements of the building code) from the jurisdiction, and

“(B) in the case of a qualified residential property, the property shall be treated as meeting the requirements specified in paragraph (1) if the property is a building which was designed to meet the requirements of the 2009 or later International Residential Code published by the International Code Council, and meets one of the following requirements:

“(i) The building received the Insurance Institute for Business and Home Safety as FORTIFIED for Safer Living designation.

“(ii) The building received the Insurance Institute for Business and Home Safety as FORTIFIED for Existing Homes designation, silver level.

“(iii) It was designed and built in a jurisdiction that requires residential buildings to meet the requirements of the 2009 or later International Building Code published by the International Code Council with amendments that are equivalent or more restrictive than the requirements described in FORTIFIED for Safer Living Builders Guide published by the Insurance Institute for Business and Home Safety and received a certificate of occupancy (or other documentation stating that it has met the requirements of the building code) from the jurisdiction.

“(3) ABSORPTIVE CAPACITY.—The term ‘absorptive capacity’ means the ability of the construction to endure a disruption without significant deviation from normal operating performance.

“(4) ADAPTIVE CAPACITY.—The term ‘adaptive capacity’ means the ability of the construction to adapt to a drastic change in normal operating conditions.

“(5) RECOVERABILITY.—The term ‘re­cov­er­a­bil­i­ty’ means the ability of the construction to recover quickly, and at low cost, from potentially disruptive events.

“(e) Other definitions.—For purposes of this section—

“(1) CONSTRUCTION.—The term ‘construction’ includes new construction and reconstruction and rehabilitation that meets resilient construction requirements.

“(2) FEDERALLY DECLARED MAJOR DISASTER.—The term ‘federally declared major disaster’ means a disaster subsequently determined by the President of the United States to be a ‘major disaster’ that warrants assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

“(3) DISASTER AREA.—The term ‘disaster area’ means the area so determined to warrant such assistance.

“(f) Application with other credits.—

“(1) BUSINESS CREDIT TREATED AS PART OF GENERAL BUSINESS CREDIT.—So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).

“(2) PERSONAL CREDIT.—For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.

“(g) Basis reduction.—For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed.

“(h) Termination.—This section shall not apply to any property for which a certificate for occupancy is issued after December 31, 2022.”.