Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB586 Compare Versions

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Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 586
5	5	To amend the Internal Revenue Code of 1986 to provide an advance refund-
6	6	able credit to offset certain flood insurance premiums, and for other
7	7	purposes.
8	8	IN THE SENATE OF THE UNITED STATES
9	9	FEBRUARY13, 2025
10	10	Mr. C
11	11	ASSIDY(for himself and Mr. BOOKER) introduced the following bill;
12	12	which was read twice and referred to the Committee on Finance
13	13	A BILL
14	14	To amend the Internal Revenue Code of 1986 to provide
15	15	an advance refundable credit to offset certain flood insur-
16	16	ance premiums, and for other purposes.
17	17	Be it enacted by the Senate and House of Representa-1
18	18	tives of the United States of America in Congress assembled, 2
19	19	SECTION 1. SHORT TITLE. 3
20	20	This Act may be cited as the ‘‘Flood Insurance Af-4
21	21	fordability Tax Credit Act’’. 5
22	22	SEC. 2. REFUNDABLE CREDIT FOR CERTAIN FLOOD INSUR-6
23	23	ANCE COVERAGE. 7
24	24	(a) I
25	25	NGENERAL.—Subpart C of part IV of sub-8
26	26	chapter A of chapter 1 of the Internal Revenue Code of 9
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29	29	•S 586 IS
30	30	1986 is amended by inserting after section 36B the fol-1
31	31	lowing new section: 2
32	32	‘‘SEC. 36C. REFUNDABLE CREDIT FOR CERTAIN FLOOD IN-3
33	33	SURANCE COVERAGE. 4
34	34	‘‘(a) I
35	35	NGENERAL.—There shall be allowed as a cred-5
36	36	it against the tax imposed by this subtitle for any taxable 6
37	37	year an amount equal to 33 percent of the applicable flood 7
38	38	insurance premiums paid or incurred by the taxpayer dur-8
39	39	ing the taxable year. 9
40	40	‘‘(b) L
41	41	IMITATIONBASED ONHOUSEHOLDINCOME.— 10
42	42	‘‘(1) I
43	43	N GENERAL.—The amount of the credit 11
44	44	allowed under subsection (a) (determined without re-12
45	45	gard to this subsection) shall be reduced (but not 13
46	46	below zero) by the amount which bears the same 14
47	47	ratio to such credit as— 15
48	48	‘‘(A) the excess (if any) of— 16
49	49	‘‘(i) the taxpayer’s household income 17
50	50	for such taxable year, over 18
51	51	‘‘(ii) an amount equal to 350 percent 19
52	52	of the poverty line for a family of the size 20
53	53	involved, bears to 21
54	54	‘‘(B) the phaseout amount. 22
55	55	‘‘(2) P
56	56	HASEOUT AMOUNT .—For purposes of 23
57	57	this subsection, the phaseout amount with respect to 24
58	58	any taxpayer for any taxable year is the excess of— 25
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61	61	•S 586 IS
62	62	‘‘(A) an amount equal to 435 percent of 1
63	63	the poverty line for a family of the size in-2
64	64	volved, over 3
65	65	‘‘(B) an amount equal to 350 percent of 4
66	66	the poverty line for a family of the size in-5
67	67	volved. 6
68	68	‘‘(3) T
69	69	ERMS RELATED TO INCOME AND FAMI -7
70	70	LIES.—Rules similar to the rules of section 36B(d) 8
71	71	shall apply for purposes of determining family size, 9
72	72	household income, and the poverty line. 10
73	73	‘‘(c) A
74	74	PPLICABLEFLOODINSURANCEPREMIUMS.— 11
75	75	For purposes of this section, the term ‘applicable flood in-12
76	76	surance premiums’ means premiums paid or incurred to 13
77	77	insure the principal residence (within the meaning of sec-14
78	78	tion 121) of the taxpayer under the program established 15
79	79	under the National Flood Insurance Act of 1968 (42 16
80	80	U.S.C. 4001 et seq.). 17
81	81	‘‘(d) O
82	82	THERRULES.— 18
83	83	‘‘(1) N
84	84	O CREDIT FOR MARRIED INDIVIDUALS 19
85	85	FILING SEPARATE RETURNS .—If the taxpayer is a 20
86	86	married individual (within the meaning of section 21
87	87	7703), this section shall apply only if the taxpayer 22
88	88	and the taxpayer’s spouse file a joint return for the 23
89	89	taxable year. 24
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92	92	•S 586 IS
93	93	‘‘(2) DENIAL OF CREDIT TO DEPENDENTS .—No 1
94	94	credit shall be allowed under this section to any indi-2
95	95	vidual with respect to whom a deduction under sec-3
96	96	tion 151 is allowable to another taxpayer for a tax-4
97	97	able year beginning in the calendar year in which 5
98	98	such individual’s taxable year begins. 6
99	99	‘‘(e) R
100	100	ECONCILIATION OF CREDIT ANDADVANCE 7
101	101	C
102	102	REDIT.—The amount of the credit allowed under this 8
103	103	section for any taxable year shall be reduced (but not 9
104	104	below zero) by the amount of any advance payment of such 10
105	105	credit under section 7527B. 11
106	106	‘‘(f) R
107	107	EGULATIONS.—The Secretary shall prescribe 12
108	108	such regulations as may be necessary to carry out the pro-13
109	109	visions of this section, including regulations which provide 14
110	110	for the coordination of the credit allowed under this sec-15
111	111	tion with the program for advance payment of the credit 16
112	112	under section 7527B.’’. 17
113	113	(b) D
114	114	ISALLOWANCE OF DEDUCTION.—Section 280C 18
115	115	of the Internal Revenue Code of 1986 is amended by add-19
116	116	ing at the end the following new subsection: 20
117	117	‘‘(i) C
118	118	REDIT FORCERTAINFLOODINSURANCECOV-21
119	119	ERAGE.—No deduction shall be allowed for the portion of 22
120	120	the applicable flood insurance premiums (as defined in 23
121	121	section 36C) which is equal to the amount of the credit 24
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124	124	•S 586 IS
125	125	determined for the taxable year under section 36C(a) with 1
126	126	respect to such premiums.’’. 2
127	127	(c) C
128	128	ONFORMINGAMENDMENTS.— 3
129	129	(1) Section 6211(b)(4)(A) of the Internal Rev-4
130	130	enue Code of 1986 is amended by inserting ‘‘, 36C’’ 5
131	131	after ‘‘36B’’. 6
132	132	(2) Paragraph (2) of section 1324(b) of title 7
133	133	31, United States Code, is amended by inserting ‘‘, 8
134	134	36C’’ after ‘‘36B’’. 9
135	135	(d) C
136	136	LERICALAMENDMENT.—The table of sections 10
137	137	for subpart C of part IV of subchapter A of chapter 1 11
138	138	of the Internal Revenue Code of 1986 is amended by in-12
139	139	serting after the item relating to section 36B the following 13
140	140	new item: 14
141	141	‘‘Sec. 36C. Refundable credit for certain flood insurance coverage.’’.
142	142	(e) EFFECTIVEDATE.—The amendments made by 15
143	143	this section shall apply to amounts paid or incurred in tax-16
144	144	able years beginning after the date of the enactment of 17
145	145	this Act. 18
146	146	SEC. 3. ADVANCE PAYMENTS. 19
147	147	(a) I
148	148	NGENERAL.—Chapter 77 of the Internal Rev-20
149	149	enue Code of 1986 is amended by inserting after section 21
150	150	7527A the following new section: 22
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154	154	‘‘SEC. 7527B. ADVANCE PAYMENT OF CREDIT FOR CERTAIN 1
155	155	FLOOD INSURANCE COVERAGE. 2
156	156	‘‘(a) I
157	157	NGENERAL.—The Secretary shall establish a 3
158	158	program for making payments of applicable flood insur-4
159	159	ance premiums (as defined in section 36C(c)) on behalf 5
160	160	of applicable individuals to the Administrator of the Fed-6
161	161	eral Emergency Management Agency for such individuals. 7
162	162	‘‘(b) L
163	163	IMITATION ONADVANCEPAYMENTSDURING 8
164	164	A
165	165	NYTAXABLEYEAR.— 9
166	166	‘‘(1) I
167	167	N GENERAL.—The Secretary may make 10
168	168	payments under subsection (a) only to the extent 11
169	169	that the total amount of such payments made on be-12
170	170	half of any applicable individual during the taxable 13
171	171	year does not exceed 33 percent of the applicable 14
172	172	flood insurance premiums (as defined in section 15
173	173	36C) paid or incurred by the applicable individual 16
174	174	during such taxable year (reduced as provided under 17
175	175	section 36C(b) based on applicable information). 18
176	176	‘‘(2) A
177	177	PPLICABLE INFORMATION .—For pur-19
178	178	poses of paragraph (1), the term ‘applicable infor-20
179	179	mation’ means— 21
180	180	‘‘(A) tax return information for the most 22
181	181	recent taxable year for which the Secretary de-23
182	182	termines information is available, or 24
183	183	‘‘(B) such other information as the Sec-25
184	184	retary determines is reliable to determine the 26
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187	187	•S 586 IS
188	188	amount (if any) of any reduction under section 1
189	189	36C(b). 2
190	190	‘‘(c) A
191	191	PPLICABLEINDIVIDUAL.—For purposes of this 3
192	192	section, the term ‘applicable individual’ means any indi-4
193	193	vidual who elects the application of this section (in such 5
194	194	form and manner as provided by the Secretary).’’. 6
195	195	(b) C
196	196	LERICALAMENDMENT.—The table of sections 7
197	197	for chapter 77 of such Code is amended by inserting after 8
198	198	the item relating to section 7527A the following new item: 9
199	199	‘‘Sec. 7527B. Advance payment of credit for certain flood insurance coverage.’’.
200	200	Æ
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