FLOAT Act of 2024

Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating section 224 as section 225 and inserting after section 223 the following new section:

In the case of an individual, there shall be allowed as a deduction so much of the qualified flood insurance premiums paid or incurred during the taxable year with respect to property owned by the taxpayer which is the principal residence (as such term is used in section 121) of the taxpayer during such taxable year as do not exceed $1,000.

The amount of the credit allowable under subsection (a) shall be reduced (but not below zero) by $50 for each $1,000 (or fraction thereof) by which the taxpayer's modified adjusted gross income exceeds the threshold amount. For purposes of the preceding sentence, the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.

For purposes of paragraph (1), the term threshold amount means—

(A) $400,000 in the case of a joint return, and

(B) $200,000 in the case of any other individual.

For purposes of this section, the term qualified flood insurance premiums means—

(1) any premium paid for a private flood insurance policy,

(2) any chargeable risk premium for flood insurance coverage under the program established under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) or for coverage under private flood insurance, as defined in section 102(b) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)),

(3) any Federal Policy Fee, as defined in Appendix A(1) to part 61 of title 44, Code of Federal Regulations, or any successor regulation,

(4) any surcharge described in the matter after and below paragraph (4)(D) of section 1304(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)), and

(5) any premium surcharge under section 1308A of the National Flood Insurance Act of 1968 (42 U.S.C. 4015a).

The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item:

Section 62(a) of such Code is amended by inserting after paragraph (21) the following new paragraph:

The deduction allowed by section 224.

(1) Section 74(d)(2)(B) of such Code is amended by inserting 224 after 221.

(2) Section 86(b)(2)(A) of such Code is amended by inserting 224, after 221,.

(3) Section 135(c)(4)(A) of such Code is amended by inserting 224, after 221,.

(4) Section 137(b)(3)(A) of such Code is amended by inserting 224 after 221,.

(5) Section 219(g)(3)(A)(ii) of such Code is amended by inserting 224, after 221,.

(6) Section 221(b)(2)(C)(i) of such Code is amended by inserting 224, after 219,.

(7) Section 469(i)(3)(E)(ii) of such Code is amended by inserting 224, after 221,.

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.