A bill to amend the Internal Revenue Code of 1986 to provide a credit against tax for increased homeowners insurance premiums suffered by certain coastal homeowners or resulting from hurricane events.

Summary: Homeowners Insurance Assistance Act of 2007 - Amends the Internal Revenue Code to allow individual taxpayers in certain hurricane disaster areas a tax credit for 50% of their homeowner insurance premiums, up to $250 annually.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeowners Insurance Assistance Act 
of 2007''.

SEC. 2. NONREFUNDABLE PERSONAL CREDIT FOR CERTAIN HOMEOWNERS INSURANCE 
              PREMIUMS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25D the following new section:

``SEC. 25E. CERTAIN HOMEOWNERS INSURANCE PREMIUMS.

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
chapter for the taxable year an amount equal to 50 percent of the 
taxpayer's qualified homeowners insurance premium for such taxable 
year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed under subsection 
        (a) for any taxable year shall not exceed $250.
            ``(2) Limitation based on adjusted gross income.--The 
        amount of the credit allowable under subsection (a) shall be 
        reduced (but not below zero) by 2 percentage points for each 
        percentage point (or fraction thereof) by which the taxpayer's 
        adjusted gross income exceeds the State median income for such 
        a taxpayer for the preceding taxable year in the State in which 
        the principal residence of such taxpayer is located.
            ``(3) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for any taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section and sections 23, 24, 
                and 25B) and section 27 for the taxable year.
    ``(c) Eligible Individual.--For purposes of this section--
            ``(1) In general.--The term `eligible individual' means any 
        taxpayer whose principal residence is_
                    ``(A) substantially the same dwelling unit during 
                the applicable period, and
                    ``(B) located in either--
                            ``(i) an area determined by the President 
                        to warrant individual or individual and public 
                        assistance from the Federal Government under 
                        the Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act by reason of 1 or more 
                        hurricanes during 2004 or 2005, or
                            ``(ii) a county--
                                    ``(I) located in a State which 
                                borders the Atlantic Ocean or the Gulf 
                                of Mexico, and
                                    ``(II) which is determined by the 
                                Secretary, in consultation with the 
                                National Association of Insurance 
                                Commissioners, to have experienced a 
                                higher than average increase in 
                                homeowners insurance premiums during 
                                2004, 2005, or 2006 due to hurricane 
                                risk.
            ``(2) Applicable period.--The term `applicable period' 
        means--
                    ``(A) in the case of an area described in paragraph 
                (1)(B)(i), the period beginning the day before the 
                determination described in such paragraph and ending on 
                the last day of the taxable year, and
                    ``(B) in the case of an area described in paragraph 
                (1)(B)(ii), the period beginning on September 1, 2005, 
                and ending before the last day of the taxable year.
    ``(d) Qualified Homeowners Insurance Premium.--For purposes of this 
section--
            ``(1) In general.--The term `qualified homeowners insurance 
        premium' for any taxable year means an amount equal to the 
        qualifying percentage of the eligible individual's homeowners 
        insurance premium in effect on the first policy anniversary 
        date (or, if greater, the second policy anniversary date) 
        following the beginning of such individual's applicable period.
            ``(2) Qualifying percentage.--The term `qualifying 
        percentage' is equal to the excess (expressed in percentage 
        points) of --
                    ``(A) the eligible individual's percentage increase 
                in homeowners insurance premium between the last policy 
                anniversary before the beginning of such individual's 
                applicable period and the policy anniversary date (as 
                determined under paragraph (1)) following the beginning 
                of such individual's applicable period, over
                    ``(B) the national average percentage increase in 
                homeowners insurance premiums between the same dates as 
                determined by the Secretary, in consultation with the 
                National Association of Insurance Commissioners.
    ``(e) Other Definitions.--For purposes of this section--
            ``(1) Principal residence.--The term `principal residence' 
        has the same meaning as when used in section 121.
            ``(2) Homeowners insurance.--The term `homeowners 
        insurance' means any insurance covering a principal residence.
    ``(f) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2007.''.
    (b) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25D the following new 
item:

``Sec. 25E. Certain homeowners insurance premiums.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.