Flood Insurance Tax Credit: Lower Costs for Homeowners.
This act introduces a new tax credit to help citizens cover the costs of flood insurance. Individuals with federal or private flood insurance, as well as contents coverage, can recover a portion of their expenses, reducing their annual tax burden. The goal is to ease the financial strain of flood protection, especially for low- and middle-income individuals.
Key points
Tax credit for federal flood insurance expenses up to $1,500.
Tax credit for 50% of private flood insurance expenses, up to $3,000.
Tax credit for federal contents coverage flood insurance expenses up to $600.
Credits apply only to insurance for the taxpayer's principal residence.
The credit amount will be gradually reduced for higher-income individuals (above $50,000 for single filers and $100,000 for joint filers).
Credit amounts will be adjusted annually for inflation, starting in 2026.
Changes apply to taxable years beginning after December 31, 2025.
Status:
Introduced
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