II
119THCONGRESS
1
STSESSION S. 586
To amend the Internal Revenue Code of 1986 to provide an advance refund-
able credit to offset certain flood insurance premiums, and for other
purposes.
IN THE SENATE OF THE UNITED STATES
FEBRUARY13, 2025
Mr. C
ASSIDY(for himself and Mr. BOOKER) 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 provide
an advance refundable credit to offset certain flood insur-
ance premiums, and for other purposes.
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 ‘‘Flood Insurance Af-4
fordability Tax Credit Act’’. 5
SEC. 2. REFUNDABLE CREDIT FOR CERTAIN FLOOD INSUR-6
ANCE COVERAGE. 7
(a) I
NGENERAL.—Subpart C of part IV of sub-8
chapter A of chapter 1 of the Internal Revenue Code of 9
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1986 is amended by inserting after section 36B the fol-1
lowing new section: 2
‘‘SEC. 36C. REFUNDABLE CREDIT FOR CERTAIN FLOOD IN-3
SURANCE COVERAGE. 4
‘‘(a) I
NGENERAL.—There shall be allowed as a cred-5
it against the tax imposed by this subtitle for any taxable 6
year an amount equal to 33 percent of the applicable flood 7
insurance premiums paid or incurred by the taxpayer dur-8
ing the taxable year. 9
‘‘(b) L
IMITATIONBASED ONHOUSEHOLDINCOME.— 10
‘‘(1) I
N GENERAL.—The amount of the credit 11
allowed under subsection (a) (determined without re-12
gard to this subsection) shall be reduced (but not 13
below zero) by the amount which bears the same 14
ratio to such credit as— 15
‘‘(A) the excess (if any) of— 16
‘‘(i) the taxpayer’s household income 17
for such taxable year, over 18
‘‘(ii) an amount equal to 350 percent 19
of the poverty line for a family of the size 20
involved, bears to 21
‘‘(B) the phaseout amount. 22
‘‘(2) P
HASEOUT AMOUNT .—For purposes of 23
this subsection, the phaseout amount with respect to 24
any taxpayer for any taxable year is the excess of— 25
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‘‘(A) an amount equal to 435 percent of 1
the poverty line for a family of the size in-2
volved, over 3
‘‘(B) an amount equal to 350 percent of 4
the poverty line for a family of the size in-5
volved. 6
‘‘(3) T
ERMS RELATED TO INCOME AND FAMI -7
LIES.—Rules similar to the rules of section 36B(d) 8
shall apply for purposes of determining family size, 9
household income, and the poverty line. 10
‘‘(c) A
PPLICABLEFLOODINSURANCEPREMIUMS.— 11
For purposes of this section, the term ‘applicable flood in-12
surance premiums’ means premiums paid or incurred to 13
insure the principal residence (within the meaning of sec-14
tion 121) of the taxpayer under the program established 15
under the National Flood Insurance Act of 1968 (42 16
U.S.C. 4001 et seq.). 17
‘‘(d) O
THERRULES.— 18
‘‘(1) N
O CREDIT FOR MARRIED INDIVIDUALS 19
FILING SEPARATE RETURNS .—If the taxpayer is a 20
married individual (within the meaning of section 21
7703), this section shall apply only if the taxpayer 22
and the taxpayer’s spouse file a joint return for the 23
taxable year. 24
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‘‘(2) DENIAL OF CREDIT TO DEPENDENTS .—No 1
credit shall be allowed under this section to any indi-2
vidual with respect to whom a deduction under sec-3
tion 151 is allowable to another taxpayer for a tax-4
able year beginning in the calendar year in which 5
such individual’s taxable year begins. 6
‘‘(e) R
ECONCILIATION OF CREDIT ANDADVANCE 7
C
REDIT.—The amount of the credit allowed under this 8
section for any taxable year shall be reduced (but not 9
below zero) by the amount of any advance payment of such 10
credit under section 7527B. 11
‘‘(f) R
EGULATIONS.—The Secretary shall prescribe 12
such regulations as may be necessary to carry out the pro-13
visions of this section, including regulations which provide 14
for the coordination of the credit allowed under this sec-15
tion with the program for advance payment of the credit 16
under section 7527B.’’. 17
(b) D
ISALLOWANCE OF DEDUCTION.—Section 280C 18
of the Internal Revenue Code of 1986 is amended by add-19
ing at the end the following new subsection: 20
‘‘(i) C
REDIT FORCERTAINFLOODINSURANCECOV-21
ERAGE.—No deduction shall be allowed for the portion of 22
the applicable flood insurance premiums (as defined in 23
section 36C) which is equal to the amount of the credit 24
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determined for the taxable year under section 36C(a) with 1
respect to such premiums.’’. 2
(c) C
ONFORMINGAMENDMENTS.— 3
(1) Section 6211(b)(4)(A) of the Internal Rev-4
enue Code of 1986 is amended by inserting ‘‘, 36C’’ 5
after ‘‘36B’’. 6
(2) Paragraph (2) of section 1324(b) of title 7
31, United States Code, is amended by inserting ‘‘, 8
36C’’ after ‘‘36B’’. 9
(d) C
LERICALAMENDMENT.—The table of sections 10
for subpart C of part IV of subchapter A of chapter 1 11
of the Internal Revenue Code of 1986 is amended by in-12
serting after the item relating to section 36B the following 13
new item: 14
‘‘Sec. 36C. Refundable credit for certain flood insurance coverage.’’.
(e) EFFECTIVEDATE.—The amendments made by 15
this section shall apply to amounts paid or incurred in tax-16
able years beginning after the date of the enactment of 17
this Act. 18
SEC. 3. ADVANCE PAYMENTS. 19
(a) I
NGENERAL.—Chapter 77 of the Internal Rev-20
enue Code of 1986 is amended by inserting after section 21
7527A the following new section: 22
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‘‘SEC. 7527B. ADVANCE PAYMENT OF CREDIT FOR CERTAIN 1
FLOOD INSURANCE COVERAGE. 2
‘‘(a) I
NGENERAL.—The Secretary shall establish a 3
program for making payments of applicable flood insur-4
ance premiums (as defined in section 36C(c)) on behalf 5
of applicable individuals to the Administrator of the Fed-6
eral Emergency Management Agency for such individuals. 7
‘‘(b) L
IMITATION ONADVANCEPAYMENTSDURING 8
A
NYTAXABLEYEAR.— 9
‘‘(1) I
N GENERAL.—The Secretary may make 10
payments under subsection (a) only to the extent 11
that the total amount of such payments made on be-12
half of any applicable individual during the taxable 13
year does not exceed 33 percent of the applicable 14
flood insurance premiums (as defined in section 15
36C) paid or incurred by the applicable individual 16
during such taxable year (reduced as provided under 17
section 36C(b) based on applicable information). 18
‘‘(2) A
PPLICABLE INFORMATION .—For pur-19
poses of paragraph (1), the term ‘applicable infor-20
mation’ means— 21
‘‘(A) tax return information for the most 22
recent taxable year for which the Secretary de-23
termines information is available, or 24
‘‘(B) such other information as the Sec-25
retary determines is reliable to determine the 26
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amount (if any) of any reduction under section 1
36C(b). 2
‘‘(c) A
PPLICABLEINDIVIDUAL.—For purposes of this 3
section, the term ‘applicable individual’ means any indi-4
vidual who elects the application of this section (in such 5
form and manner as provided by the Secretary).’’. 6
(b) C
LERICALAMENDMENT.—The table of sections 7
for chapter 77 of such Code is amended by inserting after 8
the item relating to section 7527A the following new item: 9
‘‘Sec. 7527B. Advance payment of credit for certain flood insurance coverage.’’.
Æ
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