Bill > S586

This bill establishes a refundable tax credit to help offset flood insurance premiums for homeowners, specifically allowing taxpayers to claim a credit equal to 33 percent of their flood insurance premiums paid during the tax year. The credit is subject to income-based limitations, with the amount reduced for households whose income exceeds 350 percent of the federal poverty line, and completely phased out at 435 percent of the poverty line. The credit applies only to flood insurance premiums for a taxpayer's principal residence under the National Flood Insurance Program, and can only be claimed if married individuals file a joint tax return. The bill also creates a mechanism for advance payments of this credit through the Internal Revenue Service, which will make direct payments to the Federal Emergency Management Agency (FEMA) on behalf of eligible individuals. Importantly, taxpayers cannot also deduct the portion of flood insurance premiums that are offset by this tax credit, and the provisions will apply to amounts paid in taxable years following the bill's enactment. The goal of the legislation appears to be making flood insurance more affordable for homeowners, particularly those in flood-prone areas who may face significant insurance costs.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/586/all-info