Post by bswiv on May 14, 2024 5:40:36 GMT -5
Link and text to the proposed tax bill is below.
www.congress.gov/bill/118th-congress/senate-bill/4143/text
To amend the Internal Revenue Code of 1986 to provide an above-the-line deduction for flood insurance premiums.
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 Relief Act”.
SEC. 2. DEDUCTION FOR FLOOD INSURANCE PREMIUMS.
(a) Allowance Of Deduction.—
(1) IN GENERAL.—Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating section 224 as section 225 and inserting after section 223 the following new section:
“SEC. 224. FLOOD INSURANCE PREMIUMS.
“(a) Deduction Allowed.—In the case of an individual, there shall be allowed as a deduction qualified flood insurance premiums paid or incurred during the taxable year with respect to property owned by the taxpayer.
“(b) Limitation.—
“(1) IN GENERAL.—Subsection (a) shall not apply with respect to any taxpayer whose adjusted gross income for the taxable year exceeds $200,000 ($400,000 in the case of a joint return).
“(2) APPLICATION.—For purposes of paragraph (1), the adjusted gross income of the taxpayer shall be determined—
“(A) after application of sections 86, 135, 137, 219, 221, and 469, and
“(B) without regard to this section.
“(c) Qualified Flood Insurance Premiums.—For purposes of this section, the term ‘qualified flood insurance premiums’ means—
“(1) any chargeable risk premium rate for flood insurance under the program established under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) or the payment of any premium under private flood insurance, as defined in section 102(b) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)),
“(2) any Federal Policy Fee, as defined in Appendix A(1) to part 61 of title 44, Code of Federal Regulations, or any successor regulation,
“(3) any surcharge described in the flush text following subparagraph (D) of section 1304(b)(4) of the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)(4)), and
“(4) any premium surcharge under section 1308A of the National Flood Insurance Act of 1968 (42 U.S.C. 4015a).”.
(2) CLERICAL AMENDMENT.—The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item:
“Sec. 224. Flood insurance premiums.”.
(b) Deduction Allowed In Determining Adjusted Gross Income.—Section 62(a) of the Internal Revenue Code of 1986 is amended by inserting after paragraph (21) the following new paragraph:
“(22) FLOOD INSURANCE PREMIUMS.—The deduction allowed by section 224.”.
(c) Conforming Amendments.—
(1) Section 74(d)(2)(B) of the Internal Revenue Code of 1986 is amended by inserting “224” after “221”.
(2) Section 86(b)(2)(A) of such Code is amended by inserting “224,” after “221,”.
(3) Section 135(c)(4)(A) of such Code is amended by inserting “224,” after “221,”.
(4) Section 137(b)(3)(A) of such Code is amended by inserting “224” after “221,”.
(5) Section 219(g)(3)(A)(ii) of such Code is amended by inserting “224,” after “221,”.
(6) Section 221(b)(2)(C)(i) of such Code is amended by inserting “224,” after “219,”.
(7) Section 469(i)(3)(E)(ii) of such Code is amended by inserting “224,” after “221,”.
(d) Effective Date.—The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
