I 

115TH CONGRESS 

2D SESSION H. R. 5543 

To amend the Internal Revenue Code of 1986 to allow for a credit against 

tax for certain flood insurance expenses. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 17, 2018 

Ms. VELA ́ZQUEZ introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to allow for 

a credit against tax for certain flood insurance expenses. 

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 Tax 

5 Credit Act of 2018’’. 

6 SEC. 2. CREDIT FOR FLOOD INSURANCE EXPENSES. 

7 (a) IN GENERAL.—Subpart A of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 is amended by inserting after section 25D the fol10 lowing new section: 


SSpencer on DSKBBXCHB2PROD with BILLS
2 

•HR 5543 IH

1 ‘‘SEC. 25E. FLOOD INSURANCE EXPENSES. 

2 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al3 lowed as a credit against the tax imposed by this subtitle 

4 for a taxpayer for a taxable year an amount equal to the 

5 sum of— 

6 ‘‘(1) the lesser of— 

7 ‘‘(A) the Federal flood insurance expenses 

8 of the taxpayer for the taxable year, and 

9 ‘‘(B) $1,500, plus 

10 ‘‘(2) the lesser of— 

11 ‘‘(A) 50 percent of the private flood insur12 ance expenses of the taxpayer for the taxable 

13 year, and 

14 ‘‘(B) $3,000, plus 

15 ‘‘(3) the lesser of— 

16 ‘‘(A) Federal contents coverage flood in17 surance expenses of the taxpayer for the taxable 

18 year, and 

19 ‘‘(B) $600. 

20 ‘‘(b) PHASEOUT.— 

21 ‘‘(1) FEDERAL FLOOD INSURANCE EXPENSE.— 

22 The amount determined under subsection (a)(1) for 

23 a taxpayer for a taxable year shall be reduced (but 

24 not below zero) by— 


SSpencer on DSKBBXCHB2PROD with BILLS
3 

•HR 5543 IH

1 ‘‘(A) in the case of a joint return, 1.5 per2 cent of so much of the taxpayer’s income for 

3 such taxable year as exceeds $100,000, and 

4 ‘‘(B) in any other case, 3 percent of so 

5 much of the taxpayer’s income for such taxable 

6 year as exceeds $50,000. 

7 ‘‘(2) PRIVATE FLOOD INSURANCE EXPENSE.— 

8 The amount determined under subsection (a)(2) for 

9 a taxpayer for a taxable year shall be reduced (but 

10 not below zero) by— 

11 ‘‘(A) in the case of a joint return, 3 per12 cent of so much of the taxpayer’s income for 

13 such taxable year as exceeds $100,000, and 

14 ‘‘(B) in any other case, 6 percent of so 

15 much of the taxpayer’s income for such taxable 

16 year as exceeds $50,000. 

17 ‘‘(3) FEDERAL CONTENTS COVERAGE FLOOD

18 INSURANCE EXPENSE.—The amount determined 

19 under subsection (a)(3) for a taxpayer for a taxable 

20 year shall be reduced (but not below zero) by— 

21 ‘‘(A) in the case of a joint return, 0.6 per22 cent of so much of the taxpayer’s income for 

23 such taxable year as exceeds $100,000, and 


SSpencer on DSKBBXCHB2PROD with BILLS
4 

•HR 5543 IH

1 ‘‘(B) in any other case, 1.2 percent of so 

2 much of the taxpayer’s income for such taxable 

3 year as exceeds $50,000. 

4 ‘‘(c) DEFINITION.—For purposes of this section: 

5 ‘‘(1) FEDERAL FLOOD INSURANCE EXPENSE.— 

6 The term ‘Federal flood insurance expense’ means 

7 the excess of— 

8 ‘‘(A) amounts paid or incurred as pre9 miums for flood insurance coverage made avail10 able under the National Flood Insurance Act of 

11 1968, over 

12 ‘‘(B) Federal contents coverage flood in13 surance expense. 

14 ‘‘(2) PRIVATE FLOOD INSURANCE EXPENSE.— 

15 The term ‘private flood insurance expense’ means 

16 amounts paid or incurred as premiums for flood in17 surance coverage other than flood insurance cov18 erage made available under the National Flood In19 surance Act of 1968, including such coverage for the 

20 contents of a structure. 

21 ‘‘(3) FEDERAL CONTENTS COVERAGE FLOOD

22 INSURANCE EXPENSE.—The term ‘Federal contents 

23 coverage flood insurance expense’ means amounts 

24 paid or incurred as premiums for flood insurance 


SSpencer on DSKBBXCHB2PROD with BILLS
5 

•HR 5543 IH

1 coverage made available under the National Flood 

2 Insurance Act of 1968 for contents of a structure. 

3 ‘‘(d) PRIMARY RESIDENCE.—Federal flood insurance 

4 expenses, private flood insurance expenses, and Federal 

5 contents coverage flood insurance expenses shall only be 

6 taken into account to the extent that such expenses are 

7 paid or incurred for coverage related to the taxpayer’s 

8 principal residence. 

9 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—No credit shall 

10 be allowed under subsection (a) for any amount with re11 spect to which a deduction is allowed due to subsection 

12 (c) or (e) of section 280A. 

13 ‘‘(f) INFLATION ADJUSTMENT.—In the case of any 

14 taxable year beginning in calendar years after 2019, each 

15 of the dollar amounts in subsections (a) and (b) shall be 

16 increased by an amount equal to— 

17 ‘‘(1) such dollar amount, multiplied by 

18 ‘‘(2) the cost-of-living adjustment determined 

19 under section 1(f)(3) for the calendar year in which 

20 the taxable year begins, determined by substituting 

21 ‘2018’ for ‘2019’ in subparagraph (A)(ii) thereof. 

22 If any amount after adjustment under the preceding sen23 tence is not a multiple of $50, such amount shall be 

24 rounded to the next lowest multiple of $50.’’. 


SSpencer on DSKBBXCHB2PROD with BILLS
6 

•HR 5543 IH

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

2 for subpart A of part IV of subchapter A of chapter 1 

3 of the Internal Revenue Code of 1986 is amended by in4 serting after the item relating to section 25D the following 

5 new item: 

‘‘Sec. 25E. Flood insurance expenses.’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2018. 

Æ 


SSpencer on DSKBBXCHB2PROD with BILLS