II
119THCONGRESS
1
STSESSION S. 35
To amend the Internal Revenue Code of 1986 to create an above the line
deduction for certain homeowners insurance premiums.
IN THE SENATE OF THE UNITED STATES
JANUARY8, 2025
Mr. S
COTTof Florida introduced the following bill; which was read twice and
referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to create
an above the line deduction for certain homeowners in-
surance 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 ‘‘Homeowners Premium 4
Tax Reduction Act of 2025’’. 5
SEC. 2. DEDUCTION FOR HOMEOWNERS INSURANCE PRE-6
MIUMS. 7
(a) I
NGENERAL.—Part VII of subchapter B of chap-8
ter 1 of the Internal Revenue Code of 1986 is amended 9
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by redesignating section 224 as section 225 and by insert-1
ing after section 223 the following new section: 2
‘‘SEC. 224. HOMEOWNERS INSURANCE PREMIUMS. 3
‘‘(a) A
LLOWANCE OFDEDUCTION.—In the case of an 4
individual, there shall be allowed as a deduction an 5
amount equal to so much of the qualified insurance pre-6
miums paid or incurred during the taxable year as does 7
not exceed $10,000. 8
‘‘(b) Q
UALIFIEDINSURANCEPREMIUMS.—For pur-9
poses of this section, with respect to an individual, the 10
term ‘qualified insurance premiums’ means annual policy 11
premiums paid or incurred for homeowners insurance with 12
respect to the principal residence of the individual. 13
‘‘(c) P
RINCIPALRESIDENCE.—For purposes of this 14
section, the term ‘principal residence’ has the same mean-15
ing as when used in section 121.’’. 16
(b) D
EDUCTIONALLOWED IN DETERMININGAD-17
JUSTEDGROSSINCOME.—Section 62(a) of the Internal 18
Revenue Code of 1986 is amended by inserting after para-19
graph (21) the following new paragraph: 20
‘‘(22) H
OMEOWNERS INSURANCE PREMIUMS .— 21
The deduction allowed by section 224.’’. 22
(c) C
LERICALAMENDMENT.—The table of sections 23
for part VII of subchapter B of chapter 1 of the Internal 24
Revenue Code of 1986 is amended by striking the item 25
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•S 35 IS
relating to section 224 and by inserting after the item re-1
lating to section 223 the following new items: 2
‘‘Sec. 224. Homeowners insurance premiums.
‘‘Sec. 225. Cross reference.’’.
(d) EFFECTIVEDATE.—The amendments made by 3
this section shall apply to taxable years ending after the 4
date of the enactment of this Act. 5
Æ
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