Restoring Competitive Property Insurance Availability Act

Part II of subchapter L of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

In the case of each taxable year in the recovery period, there shall be excluded from the gross income of each specified insurance company the qualified real property insurance income of such company for such taxable year with respect to any disaster area.

For purposes of this section, the term specified insurance company means, with respect to any disaster area, any insurance company (other than a life insurance company) which, immediately prior to the incident date with respect to such disaster area, provided real property insurance with respect to property located in such disaster area.

For purposes of this section, the term qualified real property insurance income means, with respect to any specified insurance company for any taxable year, the excess of—

(1) the premiums received by such insurance company for real property insurance with respect to property located in the disaster area, over

(2) deductions properly allocable to such premiums.

For purposes of this section, the term real property insurance shall include the coverage of risks associated with personal property if such risks are covered under the same policy that covers risks associated with real property and such personal property is located on such real property.

For purposes of this section, the term recovery period means, with respect to any disaster area, the first 5 taxable years ending after the incident date with respect to such disaster area.

For purposes of this section, the term disaster area has the meaning given such term in section 7508A(d)(3).

For purposes of this section, the term incident date means, with respect to any disaster area, the earliest incident date specified in the declaration with respect to such disaster area.

The table of sections for part II of subchapter L of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

The amendments made by this section shall apply to disaster areas the incident date (as defined in section 836(g) of the Internal Revenue Code of 1986, as added by this section) of which is after December 31, 2024.