Flood Insurance Relief Act

The Flood Insurance Relief Act would create a new above-the-line (above-the- line) deduction for flood insurance premiums. The deduction would apply to premiums paid or incurred for flood insurance on property owned by the taxpayer, and would treat certain related costs (like Federal Policy Fees and specific surcharges) as qualified flood insurance premiums. The deduction is limited by an adjusted gross income (AGI) cap: it would be available only if a taxpayer’s AGI is $200,000 or less for single filers, or $400,000 or less for joint filers. The deduction would reduce gross income to arrive at AGI, and the bill would amend various sections of the Internal Revenue Code to incorporate this new deduction and align related tax provisions. The changes would apply to taxable years beginning after enactment.