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 credit determined under subsection (a) for any taxable year shall not exceed $5,000. (2) Phaseout (A) In general The amount under paragraph (1) for the taxable year shall be reduced (but not below zero) by an amount which bears the same ratio to the amount under such paragraph as— (i) the amount (not less than zero) equal to the average gross receipts of the taxpayer over the 3 preceding taxable years minus $5,000,000, bears to (ii) $5,000,000. (B) Inflation adjustment In the case of any taxable year after 2024, each of the dollar amounts under subparagraph (A) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2023 for calendar year 2016 in subparagraph (A)(ii) thereof. (C) Rounding If any reduction determined under subparagraph (A) is not a multiple of $50, or any increase under subparagraph (B) is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50. (c) Qualified disaster mitigation expenditure (1) In general For purposes of this section, the term qualified disaster mitigation expenditure has the same meaning given such term under paragraph (1) of section 25F(c), except that place of business shall be substituted for qualified dwelling unit each place it appears in such paragraph. (2) Place of business For purposes of this section, an expenditure shall not be treated as a qualified disaster mitigation expenditure (as defined in paragraph (1)) unless the taxpayer's place of business is located— (A) in the United States or in a territory of the United States, and (B) in an area— (i) in which a Federal natural disaster declaration has been made