Critical Businesses Preparedness Act

The Critical Businesses Preparedness Act would create a new tax credit to help certain essential businesses invest in electric generators in areas at high risk of flooding or hurricanes. The credit is 30% of qualified disaster preparedness electric generator expenses (including installation) paid or incurred in a year, for "specified taxpayers" that are deemed critical in the aftermath of floods or hurricanes (examples given: hospitals, nursing homes, grocery stores, and gas stations). The credit would be part of the general business credit and would be subject to the usual rules limiting double benefit (no deduction or other credit for the same expense, and any credit would reduce the basis of the generator). The designation of who qualifies as a specified taxpayer and which areas are considered high risk would be determined by the Secretary after consulting with FEMA. The law would apply to expenses incurred after enactment.