[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5504 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 5504
To amend the Internal Revenue Code of 1986 to allow for a credit
against tax for certain flood insurance expenses.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 18, 2025
Ms. Velazquez introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow for a credit
against tax for certain flood insurance expenses.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Flood Insurance Tax Credit Act of
2025''.
SEC. 2. CREDIT FOR FLOOD INSURANCE EXPENSES.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 25F the following new section:
``SEC. 25G. FLOOD INSURANCE EXPENSES.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this subtitle for a taxpayer for a taxable
year an amount equal to the sum of--
``(1) the lesser of--
``(A) the Federal flood insurance expenses of the
taxpayer for the taxable year, and
``(B) $1,500, plus
``(2) the lesser of--
``(A) 50 percent of the private flood insurance
expenses of the taxpayer for the taxable year, and
``(B) $3,000, plus
``(3) the lesser of--
``(A) Federal contents coverage flood insurance
expenses of the taxpayer for the taxable year, and
``(B) $600.
``(b) Phaseout.--
``(1) Federal flood insurance expense.--The amount
determined under subsection (a)(1) for a taxpayer for a taxable
year shall be reduced (but not below zero) by--
``(A) in the case of a joint return, 1.5 percent of
so much of the taxpayer's income for such taxable year
as exceeds $100,000, and
``(B) in any other case, 3 percent of so much of
the taxpayer's income for such taxable year as exceeds
$50,000.
``(2) Private flood insurance expense.--The amount
determined under subsection (a)(2) for a taxpayer for a taxable
year shall be reduced (but not below zero) by--
``(A) in the case of a joint return, 3 percent of
so much of the taxpayer's income for such taxable year
as exceeds $100,000, and
``(B) in any other case, 6 percent of so much of
the taxpayer's income for such taxable year as exceeds
$50,000.
``(3) Federal contents coverage flood insurance expense.--
The amount determined under subsection (a)(3) for a taxpayer
for a taxable year shall be reduced (but not below zero) by--
``(A) in the case of a joint return, 0.6 percent of
so much of the taxpayer's income for such taxable year
as exceeds $100,000, and
``(B) in any other case, 1.2 percent of so much of
the taxpayer's income for such taxable year as exceeds
$50,000.
``(c) Definition.--For purposes of this section:
``(1) Federal flood insurance expense.--The term `Federal
flood insurance expense' means the excess of--
``(A) amounts paid or incurred as premiums for
flood insurance coverage made available under the
National Flood Insurance Act of 1968, over
``(B) Federal contents coverage flood insurance
expense.
``(2) Private flood insurance expense.--The term `private
flood insurance expense' means amounts paid or incurred as
premiums for flood insurance coverage other than flood
insurance coverage made available under the National Flood
Insurance Act of 1968, including such coverage for the contents
of a structure.
``(3) Federal contents coverage flood insurance expense.--
The term `Federal contents coverage flood insurance expense'
means amounts paid or incurred as premiums for flood insurance
coverage made available under the National Flood Insurance Act
of 1968 for contents of a structure.
``(d) Primary Residence.--Federal flood insurance expenses, private
flood insurance expenses, and Federal contents coverage flood insurance
expenses shall only be taken into account to the extent that such
expenses are paid or incurred for coverage related to the taxpayer's
principal residence (as such term is used in section 121).
``(e) Denial of Double Benefit.--No credit shall be allowed under
subsection (a) for any amount with respect to which a deduction is
allowed due to subsection (c) or (e) of section 280A.
``(f) Inflation Adjustment.--In the case of any taxable year
beginning in calendar years after 2026, each of the dollar amounts in
subsections (a) and (b) shall be increased by an amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable year
begins, determined by substituting `2025' for `2016' in
subparagraph (A)(ii) thereof.
If any amount after adjustment under the preceding sentence is not a
multiple of $50, such amount shall be rounded to the next lowest
multiple of $50.''.
(b) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 25F the
following new item:
``Sec. 25G. Flood insurance expenses.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
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