Restoring Competitive Property Insurance Availability Act
H.R. 1070, the Restoring Competitive Property Insurance Availability Act, would add a new provision (Section 836) to the Internal Revenue Code. It would allow certain insurance companies to exclude from gross income the “qualified real property insurance income” they earn from real property insurance in a federally declared disaster area during a defined recovery period. Specifically, non-life insurers that previously provided real property insurance in the disaster area could exclude from taxable income the premiums received for such insurance minus deductions properly allocable to those premiums. The recovery period is five tax years after the incident date, and the disaster area is defined by existing disaster-area rules. The measure applies to disaster areas with an incident date after December 31, 2024. The intent is to bolster competition and availability of property insurance in disaster-affected areas by easing tax burdens on insurers serving those areas.
Key Points
- 1Creates a new Section 836 to exclude certain income from gross income for specified insurers in disaster areas during the recovery period.
- 2A “specified insurance company” is a non-life insurer that, prior to the disaster, provided real property insurance in the affected area.
- 3“Qualified real property insurance income” equals premiums for real property insurance in the disaster area minus deductions allocable to those premiums.
- 4Real property insurance includes coverage of personal property if it is covered under the same policy and located on the insured real property.
- 5Recovery period is the first five taxable years ending after the incident date; disaster area definitions and incident date rules follow existing statute (7508A(d)(3) and the earliest incident date in the declaration); effective for incident dates after December 31, 2024.