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119-s-586119th CongressWALLET

Flood Insurance Affordability Tax Credit Act

Sponsored By: Senator Cassidy, Bill [R-LA]

Introduced

Summary

A refundable tax credit for flood insurance premiums. This bill would create a refundable credit equal to up to 33% of premiums paid for National Flood Insurance Program coverage on a taxpayer's principal residence. It would also let the IRS pay that credit in advance to FEMA on behalf of eligible taxpayers.

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  • Homeowners with NFIP coverage: Would receive a credit worth up to 33% of flood insurance premiums for their primary home. The bill also disallows a deduction for the portion of premiums that equals the credit to avoid double tax benefits.
  • Households by income: The credit phases out starting at 350% of the federal poverty line and is fully phased out at 435% of the poverty line for the family's size. This limits support to low and middle income households under those thresholds.
  • Filing rules and advance payments: Married taxpayers filing separate returns and individuals who can be claimed as dependents are ineligible. Taxpayers could elect an advance payment based on their most recent tax return and any advance would be reconciled against the final credit on the tax return.

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Bill Overview

Analyzed Economic Effects

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

Refundable flood insurance tax credit

If enacted, this bill would create a refundable tax credit equal to 33% of flood insurance premiums for your main home under the National Flood Insurance Program. The credit would be reduced when household income is above 350% of the poverty guideline and would phase out by 435%. Married couples could qualify only if they file jointly, and people claimed as a dependent could not get the credit. The Treasury would also run an advance-payment program so you could elect an upfront payment to FEMA of up to 33% of your premium. Any advance payment would reduce the final credit you claim for the year. You could not deduct the portion of your premium equal to the credit. The changes would apply to premiums paid in tax years beginning after the date of enactment.

Sponsors & CoSponsors

Sponsor

Cassidy, Bill [R-LA]

LA • R

Cosponsors

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 2/13/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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