Bill > HR4494

This bill amends the Internal Revenue Code to create a new tax deduction for flood insurance premiums, allowing individual taxpayers to deduct the cost of qualified flood insurance for property they own. The deduction is subject to income limitations, with taxpayers whose adjusted gross income exceeds $200,000 ($400,000 for joint returns) being ineligible. Qualified flood insurance premiums include risk premiums for both government (National Flood Insurance Program) and private flood insurance, along with associated federal policy fees and surcharges. The bill defines these premiums broadly to cover various types of flood insurance costs. The deduction will be considered an "above-the-line" deduction, meaning taxpayers can claim it in calculating their adjusted gross income, which makes it more accessible than traditional itemized deductions. The new provision will apply to taxable years beginning after the date of the bill's enactment, providing tax relief for property owners in flood-prone areas and potentially making flood insurance more affordable by reducing its net cost through tax savings.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/4494/all-info