Bill · S. 586· Senate(119-S-586)
Flood Insurance Affordability Tax Credit Act
- Introduced
- 2/13/2025
- Last activity
- 2/13/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Bill Cassidy
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The Flood Insurance Affordability Tax Credit Act aims to amend the Internal Revenue Code of 1986. It introduces a new refundable tax credit to help offset costs for certain flood insurance premiums. The credit is set at 33 percent of the applicable premiums paid for a taxpayer's principal residence. This credit includes a phaseout based on household income levels. Additionally, the bill establishes a system for advance payments of this credit.
Yes· 3 of 6
Would households on low incomes be better off under this?+6
The bill offers a substantial tax credit that is phased out as income increases, prioritizing lower-income earners.
Does this cut taxes for middle-income families?+5
The bill provides a 33 percent refundable tax credit for flood insurance premiums for many middle-income families.
Would middle-income households be better off under this?+4
The bill provides a tax credit for flood insurance premiums for many middle-income households.
The opposite
Would high-income households be better off under this?-2
The credit is subject to a phaseout that excludes households with incomes significantly above the poverty line.
Does this reduce what the federal government spends?-2
The bill creates new government expenditures through refundable tax credits and advance payments.
Who it would affect, and how
Potential Positive Impacts for People
-
Financial relief for flood insurance costs: Taxpayers can receive a credit equal to 33 percent of the premiums paid for flood insurance on their principal residence under the National Flood Insurance Act of 1968 (Section 2(a)).
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Access to funds through advance payments: The Secretary is tasked with establishing a program to make payments for flood insurance premiums on behalf of applicable individuals directly to the Administrator of FEMA (Section 3(a)).
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Income-based support: The credit is designed with a structure that accounts for household income, utilizing the poverty line to determine the amount of the credit (Section 2(a)(b)).
Potential Negative Impacts for People
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Income limitations on benefits: The credit amount is reduced for taxpayers whose household income exceeds 350 percent of the poverty line for their family size (Section 2(a)(b)(1)).
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Restrictions for married individuals: Married individuals cannot claim the credit if they file separate tax returns; they must file a joint return to be eligible (Section 2(a)(d)(1)).
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Exclusion of dependents: Individuals who are claimed as dependents by another taxpayer are not allowed to receive the credit (Section 2(a)(d)(2)).
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Disallowance of certain deductions: Taxpayers are not allowed to take a deduction for the portion of their flood insurance premiums that is covered by this credit (Section 2(b)).
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+6Good For Middle Class Households+4Good For Urban Residents+2Good For High Income Households-2
- Environment Energy And Infrastructure
- Improves Disaster Relief And F E M A+4
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Government Spending-2
- Social Issues And Justice
- Improves Poverty Reduction+3
- 2/13/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
Cory BookerDemocrat · New Jersey