[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 586 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 586
To amend the Internal Revenue Code of 1986 to provide an advance
refundable credit to offset certain flood insurance premiums, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 13, 2025
Mr. Cassidy (for himself and Mr. Booker) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide an advance
refundable credit to offset certain flood insurance premiums, and for
other purposes.
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 Affordability Tax
Credit Act''.
SEC. 2. REFUNDABLE CREDIT FOR CERTAIN FLOOD INSURANCE COVERAGE.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 36B the following new section:
``SEC. 36C. REFUNDABLE CREDIT FOR CERTAIN FLOOD INSURANCE COVERAGE.
``(a) In General.--There shall be allowed as a credit against the
tax imposed by this subtitle for any taxable year an amount equal to 33
percent of the applicable flood insurance premiums paid or incurred by
the taxpayer during the taxable year.
``(b) Limitation Based on Household Income.--
``(1) In general.--The amount of the credit allowed under
subsection (a) (determined without regard to this subsection)
shall be reduced (but not below zero) by the amount which bears
the same ratio to such credit as--
``(A) the excess (if any) of--
``(i) the taxpayer's household income for
such taxable year, over
``(ii) an amount equal to 350 percent of
the poverty line for a family of the size
involved, bears to
``(B) the phaseout amount.
``(2) Phaseout amount.--For purposes of this subsection,
the phaseout amount with respect to any taxpayer for any
taxable year is the excess of--
``(A) an amount equal to 435 percent of the poverty
line for a family of the size involved, over
``(B) an amount equal to 350 percent of the poverty
line for a family of the size involved.
``(3) Terms related to income and families.--Rules similar
to the rules of section 36B(d) shall apply for purposes of
determining family size, household income, and the poverty
line.
``(c) Applicable Flood Insurance Premiums.--For purposes of this
section, the term `applicable flood insurance premiums' means premiums
paid or incurred to insure the principal residence (within the meaning
of section 121) of the taxpayer under the program established under the
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.).
``(d) Other Rules.--
``(1) No credit for married individuals filing separate
returns.--If the taxpayer is a married individual (within the
meaning of section 7703), this section shall apply only if the
taxpayer and the taxpayer's spouse file a joint return for the
taxable year.
``(2) Denial of credit to dependents.--No credit shall be
allowed under this section to any individual with respect to
whom a deduction under section 151 is allowable to another
taxpayer for a taxable year beginning in the calendar year in
which such individual's taxable year begins.
``(e) Reconciliation of Credit and Advance Credit.--The amount of
the credit allowed under this section for any taxable year shall be
reduced (but not below zero) by the amount of any advance payment of
such credit under section 7527B.
``(f) Regulations.--The Secretary shall prescribe such regulations
as may be necessary to carry out the provisions of this section,
including regulations which provide for the coordination of the credit
allowed under this section with the program for advance payment of the
credit under section 7527B.''.
(b) Disallowance of Deduction.--Section 280C of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subsection:
``(i) Credit for Certain Flood Insurance Coverage.--No deduction
shall be allowed for the portion of the applicable flood insurance
premiums (as defined in section 36C) which is equal to the amount of
the credit determined for the taxable year under section 36C(a) with
respect to such premiums.''.
(c) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of the Internal Revenue Code of
1986 is amended by inserting ``, 36C'' after ``36B''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``, 36C'' after ``36B''.
(d) Clerical Amendment.--The table of sections for subpart C 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 36B the
following new item:
``Sec. 36C. Refundable credit for certain flood insurance coverage.''.
(e) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning after the
date of the enactment of this Act.
SEC. 3. ADVANCE PAYMENTS.
(a) In General.--Chapter 77 of the Internal Revenue Code of 1986 is
amended by inserting after section 7527A the following new section:
``SEC. 7527B. ADVANCE PAYMENT OF CREDIT FOR CERTAIN FLOOD INSURANCE
COVERAGE.
``(a) In General.--The Secretary shall establish a program for
making payments of applicable flood insurance premiums (as defined in
section 36C(c)) on behalf of applicable individuals to the
Administrator of the Federal Emergency Management Agency for such
individuals.
``(b) Limitation on Advance Payments During Any Taxable Year.--
``(1) In general.--The Secretary may make payments under
subsection (a) only to the extent that the total amount of such
payments made on behalf of any applicable individual during the
taxable year does not exceed 33 percent of the applicable flood
insurance premiums (as defined in section 36C) paid or incurred
by the applicable individual during such taxable year (reduced
as provided under section 36C(b) based on applicable
information).
``(2) Applicable information.--For purposes of paragraph
(1), the term `applicable information' means--
``(A) tax return information for the most recent
taxable year for which the Secretary determines
information is available, or
``(B) such other information as the Secretary
determines is reliable to determine the amount (if any)
of any reduction under section 36C(b).
``(c) Applicable Individual.--For purposes of this section, the
term `applicable individual' means any individual who elects the
application of this section (in such form and manner as provided by the
Secretary).''.
(b) Clerical Amendment.--The table of sections for chapter 77 of
such Code is amended by inserting after the item relating to section
7527A the following new item:
``Sec. 7527B. Advance payment of credit for certain flood insurance
coverage.''.
<all>