H.R. 5504

119 HR 5504 IH: Flood Insurance Tax Credit Act of 2025
 U.S. House of Representatives
 2025-09-18
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I  119th CONGRESS  1st Session  H. R. 5504  IN THE HOUSE OF REPRESENTATIVES   September 18, 2025   Ms. Velázquez  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.
1.
Short title
This Act may be cited as the   Flood Insurance Tax Credit Act of 2025  .
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:
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.