Flood Insurance Relief Act

Flood Insurance Relief Act creates a new above-the-line deduction for flood insurance premiums. The deduction would be available to individuals who own property and pay for flood insurance (including NFIP coverage or private flood insurance) and certain related charges (like the Federal Policy Fee and NFIA surcharges). It is designed to lower taxable income by allowing these premium costs to reduce adjusted gross income (AGI) directly, rather than being claimed as an itemized deduction. The bill also renumbers the existing internal revenue code sections to accommodate the new provision and adds conforming amendments across several code sections to integrate the new deduction. A key feature is a hard AGI cap: the deduction is not available to taxpayers with AGI above $200,000 for single filers or $400,000 for joint filers. The AGI threshold is determined using specific rules (after applying certain other deductions and credits, and without considering the new deduction). The measure applies to taxable years beginning after enactment.