taxable year. (2) Limitation The amount of the unused credit which may be taken into account under paragraph (1) for any taxable year shall not exceed the amount (if any) by which the applicable tax limit for such taxable year exceeds the sum of— (A) the credit allowable under subsection (a) for such taxable year determined without regard to this subsection, and (B) the amounts which, by reason of this subsection, are carried to such taxable year and are attributable to taxable years before the unused credit year. (3) Applicable tax limit For purposes of this subsection, the term applicable tax limit means the limitation imposed by section 26(a) for the taxable year reduced by the sum of the credits allowable under this subpart (other than this section). (h) Documentation Any taxpayer claiming the credit under this section shall provide the Secretary with adequate documentation regarding the specific qualified disaster mitigation expenditures made by the taxpayer during the taxable year, as well as such other information or documentation as the Secretary may require. . (b) Conforming amendment The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25E the following new item: Sec. 25F. Disaster mitigation expenditures. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2023. 3. Business-related credit for disaster mitigation (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 45AA the following new section: 45BB. Disaster mitigation credit (a) General rule For purposes of section 38, the disaster mitigation credit determined under this section for any taxable year is an amount equal to 25 percent of the qualified disaster mitigation expenditures made by the taxpayer during the taxable year. (b) Maximum credit (1) In general Subject to paragraph (2), the amount of the