“A bill to amend the Internal Revenue Code of 1986 to provide an above-the-line deduction for flood insurance premiums.”
No CRS summary available for this bill.
This section establishes an above-the-line deduction under new IRC §224 for qualified flood insurance premiums paid or incurred by individuals during the taxable year with respect to property they own, for taxable years beginning after enactment. The deduction is unavailable to taxpayers with adjusted gross income exceeding $200,000 ($400,000 for joint returns), determined after specified exclusions and without regard to the deduction itself; qualified premiums include (1) risk premium rates under the National Flood Insurance Program (NFIP) or private flood insurance (as defined in 42 U.S.C. 4012a(b)), (2) the Federal Policy Fee, (3) the NFIP cost-of-compliance surcharge under 42 U.S.C. 4011(b), and (4) the NFIP premium surcharge under 42 U.S.C. 4015a. (Thus, the deduction reduces taxable income for eligible homeowners and businesses in flood-prone areas participating in the NFIP, which provides federally backed flood insurance coverage.)