Flood Insurance Tax Credit Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 5504 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 5504 To amend the Internal Revenue Code of 1986 to allow for a credit against tax for certain flood insurance expenses. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES September 18, 2025 Ms. Velazquez introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to allow for a credit against tax for certain flood insurance expenses. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Flood Insurance Tax Credit Act of 2025''. SEC. 2. CREDIT FOR FLOOD INSURANCE EXPENSES. (a) In General.--Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25F the following new section: ``SEC. 25G. FLOOD INSURANCE EXPENSES. ``(a) Allowance of Credit.--There shall be allowed as a credit against the tax imposed by this subtitle for a taxpayer for a taxable year an amount equal to the sum of-- ``(1) the lesser of-- ``(A) the Federal flood insurance expenses of the taxpayer for the taxable year, and ``(B) $1,500, plus ``(2) the lesser of-- ``(A) 50 percent of the private flood insurance expenses of the taxpayer for the taxable year, and ``(B) $3,000, plus ``(3) the lesser of-- ``(A) Federal contents coverage flood insurance expenses of the taxpayer for the taxable year, and ``(B) $600. ``(b) Phaseout.-- ``(1) Federal flood insurance expense.--The amount determined under subsection (a)(1) for a taxpayer for a taxable year shall be reduced (but not below zero) by-- ``(A) in the case of a joint return, 1.5 percent of so much of the taxpayer's income for su