Flood Insurance Relief Act

Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986, (as amended by Public Law 119–21) is amended by redesignating section 226 as section 227 and inserting after section 225 the following new section:

In the case of an individual, there shall be allowed as a deduction qualified flood insurance premiums paid or incurred during the taxable year with respect to property owned by the taxpayer.

Subsection (a) shall not apply with respect to any taxpayer whose adjusted gross income for the taxable year exceeds $200,000 ($400,000 in the case of a joint return).

For purposes of paragraph (1), the adjusted gross income of the taxpayer shall be determined—

(A) after application of sections 86, 135, 137, 219, 221, and 469, and

(B) without regard to this section.

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

(1) 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)),

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

(3) 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

(4) 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 (as amended by Public Law 119–21) is amended by redesignating the item relating to section 226 as relating to section 227 and by inserting after the item relating to section 225 the following new item:

Section 62(a) of the Internal Revenue Code of 1986 is amended by inserting after paragraph (21) the following new paragraph:

The deduction allowed by section 226.

(1) Section 74(d)(2)(B) of the Internal Revenue Code of 1986 is amended by inserting 226 after 221.

(2) Section 86(b)(2)(A) of such Code is amended by inserting 226, after 221,.

(3) Section 135(c)(4)(A) of such Code is amended by inserting 226, after 221,.

(4) Section 137(b)(3)(A) of such Code is amended by inserting 226 after 221,.

(5) Section 219(g)(3)(A)(ii) of such Code is amended by inserting 226, after 221,.

(6) Section 221(b)(2)(C)(ii) of such Code is amended by inserting 226, after 219,.

(7) Section 469(i)(3)(E)(iii) of such Code is amended by inserting 226, after 221,.

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