Bill · H.R. 5504· House(119-HR-5504)
Flood Insurance Tax Credit Act of 2025
- Introduced
- 9/18/2025
- Last activity
- 9/18/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Nydia Velázquez
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill is called the "Flood Insurance Tax Credit Act of 2025." It amends the Internal Revenue Code of 1986 to provide taxpayers with a tax credit for flood insurance expenses. The credit applies to Federal flood insurance, private flood insurance, and Federal contents coverage. These expenses must be related to the taxpayer's principal residence. The credit includes specific dollar limits and phaseouts based on the taxpayer's income.
Yes· 3 of 18
Would households on low incomes be better off under this?+7
Provides direct financial relief for an essential cost of home ownership.
Would middle-income households be better off under this?+6
Offers meaningful tax savings before the phaseout thresholds.
Would people in middle age be better off under this?+5
Primary homeowners in this age group are most likely to benefit from the credit.
The opposite
Does this reduce what the federal government owes?-2
Creating a new tax credit slightly reduces federal tax revenue.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Relief for Flood Insurance: Taxpayers can receive a credit against their taxes for Federal flood insurance expenses up to $1,500, private flood insurance expenses up to $3,000 (at 50 percent of the expense), and Federal contents coverage expenses up to $600. This is found in SEC. 2 (a).
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Cost of Living Adjustments: The dollar amounts used to calculate the credit will be increased after 2026 based on cost-of-living adjustments, ensuring the credit remains relevant. This is found in SEC. 2 (f).
Potential Negative Impacts for People
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Income Phaseouts: The credit is reduced for taxpayers whose income exceeds certain levels. For those not filing a joint return, the credit is reduced if income exceeds $50,000, and for joint returns if income exceeds $100,000. This is found in SEC. 2 (b).
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Principal Residence Limitation: The credit is only available for insurance expenses paid for a taxpayer's principal residence, meaning other properties do not qualify. This is found in SEC. 2 (d).
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No Double Benefit: Taxpayers cannot claim this credit if they already have a deduction for the same amount under specific sections of section 280A. This is found in SEC. 2 (e).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+7Good For Middle Class Households+6Good For Middle Aged+5Good For Retirees+5Good For Seniors+5Good For Rural Residents+3Good For Urban Residents+3Good For African Americans+2Good For Asian Americans+2Good For Hispanic Americans+2Good For Native Americans+2Good For White Americans+2Good For Young Adults+2
- Social Issues And Justice
- Improves Affordable Housing+3Improves Poverty Reduction+2
- Environment Energy And Infrastructure
- Improves Disaster Relief And F E M A+4
- Economy And Finance
- Reduces Middle Class Taxes+4Improves Economic Growth+1Reduces National Debt-2
- 9/18/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House