“To amend the Internal Revenue Code of 1986 to allow for a credit against tax for certain flood insurance expenses.”
No CRS summary available for this bill.
This section establishes a new nonrefundable tax credit under new IRC §25G for flood insurance premiums paid for a taxpayer's principal residence (as defined in IRC §121), equal to the sum of (1) the lesser of federal flood insurance expenses (i.e., National Flood Insurance Program (NFIP) premiums excluding contents coverage) or $1,500; (2) the lesser of 50% of private flood insurance expenses (i.e., non-NFIP premiums, including contents coverage) or $3,000; and (3) the lesser of federal contents coverage flood insurance expenses (i.e., NFIP contents premiums) or $600. (Thus, the maximum credit is $5,100 before phaseout for taxpayers with both NFIP building coverage and private contents coverage, for example.) The credit phases out (but not below zero) for higher-income taxpayers at specified rates—1.5% or 3% of adjusted gross income over $100,000 (joint return) or $50,000 (other)—applied separately to each component; denies double benefits with certain itemized deductions under IRC §280A; and provides for inflation adjustments to dollar limits after 2026 (using a 2025 base year). The credit applies to taxable years beginning after December 31, 2025.