H.R. 4494: Flood Insurance Relief Act
The Flood Insurance Relief Act (H.R. 4494) proposes changes to the Internal Revenue Code to allow individuals to deduct flood insurance premiums from their taxable income. This legislation aims to assist homeowners and property owners who pay for flood insurance by providing a financial incentive through tax deductions. Below are the main points of the bill:
1. Deduction for Flood Insurance Premiums
The bill introduces a new section to the Internal Revenue Code that describes the following:
- Deduction Availability: Individuals can deduct qualified flood insurance premiums they pay or incur during the tax year for properties they own.
- Income Limitations: The deduction is not available to individuals whose adjusted gross income exceeds $200,000 (or $400,000 for joint filers).
- Qualified Flood Insurance Premiums: This term includes:
- Premiums for flood insurance coverage under the National Flood Insurance Act of 1968 or private flood insurance.
- Federal Policy Fees and surcharges related to flood insurance.
2. Changes to Adjusted Gross Income
The bill allows the deduction of flood insurance premiums to be included in calculating adjusted gross income, which may help lower the taxable income for individuals eligible for this deduction.
3. Effective Date
The provisions of this bill, if enacted, would apply to taxable years beginning after its enactment.
4. Clerical and Conforming Amendments
Additionally, the bill includes several amendments to update reference sections within the tax code to accommodate the addition of the new deduction for flood insurance premiums.
Relevant Companies
- ALL (Allstate Corporation): As a major provider of flood insurance, Allstate may see changes in demand for its policies driven by the awareness and benefits provided by this tax deduction.
- PRU (Prudential Financial, Inc.): Prudential offers flood insurance—a tax deduction could make their products more appealing to homeowners who are eligible for the tax benefits.
- ACE (Chubb Limited): As another player in the flood insurance sector, Chubb may experience shifts in policy sales due to the financial incentives offered by the new deductibility of premiums.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
1 sponsor
Actions
2 actions
| Date | Action |
|---|---|
| Jul. 17, 2025 | Introduced in House |
| Jul. 17, 2025 | Referred to the House Committee on Ways and Means. |
Corporate Lobbying
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