A bill to amend the Internal Revenue Code of 1986 to provide an advance refundable credit to offset certain flood insurance premiums, and for other purposes.
The bill imposes a limitation on the credit based on the taxpayer's household income. To ensure that the assistance is directed towards lower-income households, the credit amount will be reduced for taxpayers whose income exceeds 350% of the federal poverty line. This phased reduction in the available tax credit aims to balance the intent of providing support while managing government expenditure on such credits. The bill also outlines that if taxpayers receive advance payments under this program, the credit will be adjusted accordingly.
SB5466, known as the Flood Insurance Affordability Tax Credit Act, proposes to amend the Internal Revenue Code to introduce a refundable tax credit aimed at offsetting the costs of flood insurance premiums. Specifically, the bill allows taxpayers to claim a credit worth 33% of the applicable flood insurance premiums they pay during the taxable year. This initiative is designed to provide financial relief to homeowners who are particularly vulnerable to flooding and require insurance coverage to protect their properties.
One notable aspect of SB5466 is its requirement that married individuals must file jointly to qualify for the credit, potentially limiting accessibility for some households. Additionally, the bill specifies that no credit will be available for dependents claimed by another taxpayer. These provisions have raised points of contention regarding fairness and accessibility of the proposed credits for all eligible taxpayers, especially those in non-traditional family structures or lower-income households.