United States HR 10004: FLOAT Act of 2024

Bill Text

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118TH CONGRESS
2D SESSION H. R. 10004
To amend the Internal Revenue Code of 1986 to provide an above-the-
line deduction for flood insurance premiums.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 18, 2024
Mr. GOTTHEIMER (for himself and Mr. GARBARINO) 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 provide
an above-the-line deduction for flood insurance premiums.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Flood Loss Offset and 4
Affordability Tax Credit Act of 2024’’ or the ‘‘FLOAT 5
Act of 2024’’. 6
SEC. 2. DEDUCTION FOR FLOOD INSURANCE PREMIUMS. 7
(a) ALLOWANCE OF DEDUCTION.— 8
(1) IN GENERAL.—Part VII of subchapter B of 9
chapter 1 of the Internal Revenue Code of 1986 is 10
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amended by redesignating section 224 as section 1
225 and inserting after section 223 the following 2
new section: 3
‘‘SEC. 224. FLOOD INSURANCE PREMIUMS. 4
‘‘(a) DEDUCTION ALLOWED.—In the case of an indi-5
vidual, there shall be allowed as a deduction so much of 6
the qualified flood insurance premiums paid or incurred 7
during the taxable year with respect to property owned 8
by the taxpayer which is the principal residence (as such 9
term is used in section 121) of the taxpayer during such 10
taxable year as do not exceed $1,000. 11
‘‘(b) PHASEOUT.— 12
‘‘(1) IN GENERAL.—The amount of the credit 13
allowable under subsection (a) shall be reduced (but 14
not below zero) by $50 for each $1,000 (or fraction 15
thereof) by which the taxpayer’s modified adjusted 16
gross income exceeds the threshold amount. For 17
purposes of the preceding sentence, the term ‘modi-18
fied adjusted gross income’ means adjusted gross in-19
come increased by any amount excluded from gross 20
income under section 911, 931, or 933. 21
‘‘(2) THRESHOLD AMOUNT.—For purposes of 22
paragraph (1), the term ‘threshold amount’ means— 23
‘‘(A) $400,000 in the case of a joint re-24
turn, and 25
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‘‘(B) $200,000 in the case of any other in-1
dividual. 2
‘‘(c) QUALIFIED FLOOD INSURANCE PREMIUMS.— 3
For purposes of this section, the term ‘qualified flood in-4
surance premiums’ means— 5
‘‘(1) any premium paid for a private flood in-6
surance policy, 7
‘‘(2) any chargeable risk premium for flood in-8
surance coverage under the program established 9
under the National Flood Insurance Act of 1968 (42 10
U.S.C. 4001 et seq.) or for coverage under private 11
flood insurance, as defined in section 102(b) of the 12
Flood Disaster Protection Act of 1973 (42 U.S.C. 13
4012a(b)), 14
‘‘(3) any Federal Policy Fee, as defined in Ap-15
pendix A(1) to part 61 of title 44, Code of Federal 16
Regulations, or any successor regulation, 17
‘‘(4) any surcharge described in the matter 18
after and below paragraph (4)(D) of section 1304(b) 19
of the National Flood Insurance Act of 1968 (42 20
U.S.C. 4011(b)), and 21
‘‘(5) any premium surcharge under section 22
1308A of the National Flood Insurance Act of 1968 23
(42 U.S.C. 4015a).’’. 24
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(2) CLERICAL AMENDMENT.—The table of sec-1
tions for part VII of subchapter B of chapter 1 of 2
such Code is amended by redesignating the item re-3
lating to section 224 as relating to section 225 and 4
by inserting after the item relating to section 223 5
the following new item: 6
‘‘Sec. 224. Flood insurance premiums.’’.
(b) DEDUCTION ALLOWED IN DETERMINING AD-7
JUSTED GROSS INCOME.—Section 62(a) of such Code is 8
amended by inserting after paragraph (21) the following 9
new paragraph: 10
‘‘(22) FLOOD INSURANCE PREMIUMS.—The de-11
duction allowed by section 224.’’. 12
(c) CONFORMING AMENDMENTS.— 13
(1) Section 74(d)(2)(B) of such Code is amend-14
ed by inserting ‘‘224’’ after ‘‘221’’. 15
(2) Section 86(b)(2)(A) of such Code is amend-16
ed by inserting ‘‘224,’’ after ‘‘221,’’. 17
(3) Section 135(c)(4)(A) of such Code is 18
amended by inserting ‘‘224,’’ after ‘‘221,’’. 19
(4) Section 137(b)(3)(A) of such Code is 20
amended by inserting ‘‘224’’ after ‘‘221,’’. 21
(5) Section 219(g)(3)(A)(ii) of such Code is 22
amended by inserting ‘‘224,’’ after ‘‘221,’’. 23
(6) Section 221(b)(2)(C)(i) of such Code is 24
amended by inserting ‘‘224,’’ after ‘‘219,’’. 25
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(7) Section 469(i)(3)(E)(ii) of such Code