# Working Waterfront Disaster Mitigation Tax Credit Act

This bill creates a new tax credit to help businesses that operate on waterfronts pay for improvements that protect their property from flooding, erosion, and other natural disasters. Think of it as the government offering to help cover some of the costs when waterfront businesses invest in safety upgrades.

Here's how it works: If you own a waterfront business—like a fishing operation, boat repair shop, or aquaculture farm—and you spend money on disaster-prevention projects, you can get back 30 percent of what you spent as a tax credit. For example, if you spend $100,000 elevating your building above flood level or installing better drainage systems, you'd get a $30,000 credit on your taxes. However, there's a cap: no single business can claim more than $300,000 in credits per year, and that limit increases slightly each year for inflation. Also, you can only claim this credit once every ten years.

The bill covers a wide range of protective measures, including raising buildings on stilts or pilings, installing stormwater management systems, stabilizing shorelines, floodproofing structures, retrofitting existing buildings, and setting up warning systems. The projects must meet current building codes designed to withstand natural hazards. To qualify, your business needs to be relatively small—averaging less than $47 million in annual revenue over the previous three years—and your property must actually support water-dependent activities like commercial fishing, boating, or dredging. The tax credit starts in 2026 and applies to improvements put into service after that date.