II 

118TH CONGRESS 

2D SESSION S. 5466 

To amend the Internal Revenue Code of 1986 to provide an advance refundable credit to offset certain flood insurance premiums, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 10, 2024 

Mr. CASSIDY (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 insurance premiums, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Flood Insurance Af5 fordability Tax Credit Act’’. 

6 SEC. 2. REFUNDABLE CREDIT FOR CERTAIN FLOOD INSUR7 ANCE COVERAGE. 

8 (a) IN GENERAL.—Subpart C of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by inserting after section 36B the fol2 lowing new section: 

3 ‘‘SEC. 36C. REFUNDABLE CREDIT FOR CERTAIN FLOOD IN4 SURANCE COVERAGE. 

5 ‘‘(a) IN GENERAL.—There shall be allowed as a cred6 it against the tax imposed by this subtitle for any taxable 

7 year an amount equal to 33 percent of the applicable flood 

8 insurance premiums paid or incurred by the taxpayer dur9 ing the taxable year. 

10 ‘‘(b) LIMITATION BASED ON HOUSEHOLD INCOME.— 

11 ‘‘(1) IN GENERAL.—The amount of the credit 

12 allowed under subsection (a) (determined without re13 gard to this subsection) shall be reduced (but not 

14 below zero) by the amount which bears the same 

15 ratio to such credit as— 

16 ‘‘(A) the excess (if any) of— 

17 ‘‘(i) the taxpayer’s household income 

18 for such taxable year, over 

19 ‘‘(ii) an amount equal to 350 percent 

20 of the poverty line for a family of the size 

21 involved, bears to 

22 ‘‘(B) the phaseout amount. 

23 ‘‘(2) PHASEOUT AMOUNT.—For purposes of 

24 this subsection, the phaseout amount with respect to 

25 any taxpayer for any taxable year is the excess of— 


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1 ‘‘(A) an amount equal to 435 percent of 

2 the poverty line for a family of the size in3 volved, over 

4 ‘‘(B) an amount equal to 350 percent of 

5 the poverty line for a family of the size in6 volved. 

7 ‘‘(3) TERMS RELATED TO INCOME AND FAMI8 LIES.—Rules similar to the rules of section 36B(d) 

9 shall apply for purposes of determining family size, 

10 household income, and the poverty line. 

11 ‘‘(c) APPLICABLE FLOOD INSURANCE PREMIUMS.— 

12 For purposes of this section, the term ‘applicable flood in13 surance premiums’ means premiums paid or incurred to 

14 insure the principal residence (within the meaning of sec15 tion 121) of the taxpayer under the program established 

16 under the National Flood Insurance Act of 1968 (42 

17 U.S.C. 4001 et seq.). 

18 ‘‘(d) OTHER RULES.— 

19 ‘‘(1) NO CREDIT FOR MARRIED INDIVIDUALS

20 FILING SEPARATE RETURNS.—If the taxpayer is a 

21 married individual (within the meaning of section 

22 7703), this section shall apply only if the taxpayer 

23 and the taxpayer’s spouse file a joint return for the 

24 taxable year. 


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1 ‘‘(2) DENIAL OF CREDIT TO DEPENDENTS.—No 

2 credit shall be allowed under this section to any indi3 vidual with respect to whom a deduction under sec4 tion 151 is allowable to another taxpayer for a tax5 able year beginning in the calendar year in which 

6 such individual’s taxable year begins. 

7 ‘‘(e) RECONCILIATION OF CREDIT AND ADVANCE

8 CREDIT.—The amount of the credit allowed under this 

9 section for any taxable year shall be reduced (but not 

10 below zero) by the amount of any advance payment of such 

11 credit under section 7527B. 

12 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

13 such regulations as may be necessary to carry out the pro14 visions of this section, including regulations which provide 

15 for the coordination of the credit allowed under this sec16 tion with the program for advance payment of the credit 

17 under section 7527B.’’. 

18 (b) DISALLOWANCE OF DEDUCTION.—Section 280C 

19 of the Internal Revenue Code of 1986 is amended by add20 ing at the end the following new subsection: 

21 ‘‘(i) CREDIT FOR CERTAIN FLOOD INSURANCE COV22 ERAGE.—No deduction shall be allowed for the portion of 

23 the applicable flood insurance premiums (as defined in 

24 section 36C) which is equal to the amount of the credit 


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1 determined for the taxable year under section 36C(a) with 

2 respect to such premiums.’’. 

3 (c) CONFORMING AMENDMENTS.— 

4 (1) Section 6211(b)(4)(A) of the Internal Rev5 enue Code of 1986 is amended by inserting ‘‘, 36C’’ 

6 after ‘‘36B’’. 

7 (2) Paragraph (2) of section 1324(b) of title 

8 31, United States Code, is amended by inserting ‘‘, 

9 36C’’ after ‘‘36B’’. 

10 (d) CLERICAL AMENDMENT.—The table of sections 

11 for subpart C of part IV of subchapter A of chapter 1 

12 of the Internal Revenue Code of 1986 is amended by in13 serting after the item relating to section 36B the following 

14 new item: 

‘‘Sec. 36C. Refundable credit for certain flood insurance coverage.’’. 

15 (e) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to amounts paid or incurred in tax17 able years beginning after the date of the enactment of 

18 this Act. 

19 SEC. 3. ADVANCE PAYMENTS. 

20 (a) IN GENERAL.—Chapter 77 of the Internal Rev21 enue Code of 1986 is amended by inserting after section 

22 7527A the following new section: 


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1 ‘‘SEC. 7527B. ADVANCE PAYMENT OF CREDIT FOR CERTAIN 

2 FLOOD INSURANCE COVERAGE. 

3 ‘‘(a) IN GENERAL.—The Secretary shall establish a 

4 program for making payments of applicable flood insur5 ance premiums (as defined in section 36C(c)) on behalf 

6 of applicable individuals to the Administrator of the Fed7 eral Emergency Management Agency for such individuals. 

8 ‘‘(b) LIMITATION ON ADVANCE PAYMENTS DURING

9 ANY TAXABLE YEAR.— 

10 ‘‘(1) IN GENERAL.—The Secretary may make 

11 payments under subsection (a) only to the extent 

12 that the total amount of such payments made on be13 half of any applicable individual during the taxable 

14 year does not exceed 33 percent of the applicable 

15 flood insurance premiums (as defined in section 

16 36C) paid or incurred by the applicable individual 

17 during such taxable year (reduced as provided under 

18 section 36C(b) based on applicable information). 

19 ‘‘(2) APPLICABLE INFORMATION.—For pur20 poses of paragraph (1), the term ‘applicable infor21 mation’ means— 

22 ‘‘(A) tax return information for the most 

23 recent taxable year for which the Secretary de24 termines information is available, or 

25 ‘‘(B) such other information as the Sec26 retary determines is reliable to determine the 


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1 amount (if any) of any reduction under section 

2 36C(b). 

3 ‘‘(c) APPLICABLE INDIVIDUAL.—For purposes of this 

4 section, the term ‘applicable individual’ means any indi5 vidual who elects the application of this section (in such 

6 form and manner as provided by the Secretary).’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections 

8 for chapter 77 of such Code is amended by inserting after 

9 the item relating to section 7527A the following new item: 

‘‘Sec. 7527B. Advance payment of credit for certain flood insurance coverage.’’. 

Æ 


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