Bipartisan legislation recently introduced in Congress would provide an above-the-line deduction for flood insurance premiums to help keep them affordable for Americans.
“To keep families from drowning in premium costs, this bill will provide a $1,000 annual tax credit for flood insurance,” said U.S. Rep. Josh Gottheimer (D-NJ), who sponsored the Flood Loss Offset and Affordability Tax Credit (FLOAT) Act on Oct. 18.
“By making flood insurance more affordable, this act will further assist families who are just trying to keep their heads above deep financial waters in the event of a disaster,” he added.
If enacted, H.R. 10004 would amend the Internal Revenue Code of 1986 to provide the tax credit of up to $1,000, whether through the National Flood Insurance Program or private insurers. The tax credit under H.R. 10004 would be available to households earning under $200,000 annually, with a phaseout for higher incomes, and up to $400,000 for joint filers.
“Long Islanders know firsthand the impact of flooding and the importance of being prepared,” said U.S. Rep. Andrew Garbarino (R-NY), the bill’s lead cosponsor. “This legislation provides a critical incentive for homeowners to protect their properties without breaking the bank.”
The credit also would be limited to primary residences and would be inflation-adjusted to ensure long-term affordability, according to a bill summary provided by the lawmakers.
“With instances of severe weather on the rise,” Garbarino said, “the FLOAT Act ensures that families in my district can afford flood insurance coverage, enabling them to recover quickly and avoid devastating financial losses.”
The bill is under consideration in the U.S. House Ways and Means Committee.