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Flood Insurance Affordability Tax Credit Act
3/14/2025, 3:38 AM
Summary of Bill S 586
The proposed legislation would allow eligible individuals to receive a refundable credit in advance to help cover the cost of their flood insurance premiums. This credit would provide much-needed relief to those who are struggling to afford the necessary insurance coverage to protect their homes and property from flood damage.
In addition to providing financial assistance for flood insurance premiums, the bill also includes provisions for other purposes related to flood insurance. These additional measures are aimed at improving the affordability and accessibility of flood insurance for all Americans. Overall, Bill 119 s 586 seeks to address the challenges faced by individuals and families who are at risk of flooding by providing them with the financial support they need to secure adequate insurance coverage. The bill represents a bipartisan effort to help protect homeowners and communities from the devastating effects of flooding, and it is an important step towards ensuring that all Americans have access to affordable and comprehensive flood insurance.
Congressional Summary of S 586
Flood Insurance Affordability Tax Credit Act
This bill establishes a new refundable tax credit for up to 33% of the flood insurance premiums paid (or incurred) under the National Flood Insurance Program to insure a principal residence. The bill also requires the Internal Revenue Service (IRS) to establish a program for paying the tax credit in advance.
Under the bill, the tax credit for flood insurance premiums may be reduced depending on the taxpayer’s household income in relation to the federal poverty line (FPL). The tax credit begins to phase out once a taxpayer’s household income is 350% of the FPL and is completely phased out once a taxpayer’s household income reaches 435% of the FPL. (Other limitations may apply.)
Further, the tax credit for flood premiums may not be claimed by a married taxpayer who files a separate federal income tax return or a taxpayer who may be claimed as a dependent.
Finally, the bill requires the IRS to establish a program that allows a taxpayer to receive the allowable tax credit amount for flood insurance premiums (based on tax return information for the most recent tax year available) in advance.
Read the Full Bill
Current Status of Bill S 586
Bipartisan Support of Bill S 586
Total Number of Sponsors
1Democrat Sponsors
0Republican Sponsors
1Unaffiliated Sponsors
0Total Number of Cosponsors
1Democrat Cosponsors
1Republican Cosponsors
0Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill S 586
Primary Policy Focus
Alternate Title(s) of Bill S 586
Comments
Emilio Spivey
8 months ago
I'm so sad about this new bill. It's gonna help me out a lot with my flood insurance. I'm glad they're trying to make it more affordable for folks like me. It's about time they did something about this issue. Can't wait to see how it all plays out.
Ryan Pate
8 months ago
This bill, S Bill 586, is a disaster waiting to happen. It will only benefit the wealthy and leave the rest of us struggling to afford flood insurance. It's a slap in the face to hardworking Americans who are already struggling to make ends meet. This bill does nothing to address the root causes of flooding or help those who are most vulnerable. It's just another example of politicians looking out for their own interests instead of the people they are supposed to represent. It's time for real change, not more empty promises and handouts to the rich.
