H.R. 1070 — Restoring Competitive Property Insurance Availability Act

This section establishes the short title as the “Restoring Competitive Property Insurance Availability Act.”

This section establishes a 5-taxable-year exclusion from gross income for qualified real property insurance income earned by a specified insurance company with respect to a federally declared disaster area. As background, the new Internal Revenue Code section 836 applies to an insurance company other than a life insurance company that, immediately before the incident date, provided real property insurance for property located in the disaster area; the excluded income equals premiums received for that insurance minus deductions properly allocable to those premiums. The provision defines real property insurance to include coverage of personal property risks when those risks are covered under the same policy as real property and the personal property is located on that real property, and it defines the recovery period as the first 5 taxable years ending after the incident date. The exclusion applies only to disaster areas as defined in 26 U.S.C. § 7508A(d)(3), and the incident date is the earliest incident date specified in the disaster declaration. The amendment applies to disaster areas with an incident date after December 31, 2024.