PRIA Logo™
119-hr-5504119th CongressWALLET

Flood Insurance Tax Credit Act of 2025

Sponsored By: Representative Velázquez, Nydia M. [D-NY-7]

Introduced

Summary

Flood insurance tax credit. This bill would create a new nonrefundable personal tax credit to help homeowners pay flood insurance premiums for their principal residence.

Show full summary
  • Homeowners: Owners of a principal residence could claim up to $1,500 for federal flood insurance premiums and up to $600 for contents coverage under the National Flood Insurance Act of 1968.
  • Private-policy holders: The credit would cover 50 percent of private flood insurance premiums, capped at $3,000.
  • Higher-income filers: Credit amounts are phased down starting at $100,000 of income for joint filers and $50,000 for other filers.
  • Tax rules and timing: The credit applies only to a taxpayer's principal residence, is disallowed for amounts already deducted under sections 280A(c) or 280A(e), and would apply to taxable years beginning after December 31, 2025.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Flood insurance tax credit with income limits

This bill would create a new nonrefundable tax credit for flood insurance on your main home. For tax years starting after December 31, 2025, your credit would equal: the smaller of your federal flood insurance premiums or $1,500; plus half of your private flood premiums (including contents), up to $3,000; plus your federal contents coverage premiums, up to $600. It would only count coverage for your principal residence. No credit would apply to amounts you also deduct under home office or rental-use rules (section 280A). If your income is over $100,000 (married filing jointly) or over $50,000 (others), each part would be reduced. The federal flood part would drop by 1.5% (joint) or 3% (others) of income over the limit. The private part would drop by 3% (joint) or 6% (others). The contents part would drop by 0.6% (joint) or 1.2% (others). No part could go below $0. Starting with tax years that begin after 2026, the caps and income thresholds would rise with inflation and be rounded down to the next $50. Nonrefundable means the credit could cut your tax bill, but would not create a refund.

Sponsors & CoSponsors

Sponsor

Velázquez, Nydia M. [D-NY-7]

NY • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation