To amend the Internal Revenue Code of 1986 to exclude from gross income certain income from providing homeowner's insurance following certain federally declared disasters.
Bill: H.R.9057 | Sponsor: Rep. Higgins, Clay (R-LA)
Policy area: Taxation

Summary:
This bill excludes from the gross income of specified insurance companies (other than life insurance companies) certain income from providing homeowner's insurance after a federally declared disaster.

To amend the Internal Revenue Code of 1986 to exclude from gross income 
 certain income from providing homeowner's insurance following certain 
                     federally declared disasters.

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

SECTION 1. EXCLUSION OF CERTAIN INCOME FROM PROVIDING HOMEOWNER'S 
              INSURANCE FOLLOWING CERTAIN FEDERALLY DECLARED DISASTERS.

    (a) In General.--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:

``SEC. 836. EXCLUSION OF CERTAIN INCOME FROM PROVIDING HOMEOWNER'S 
              INSURANCE FOLLOWING CERTAIN FEDERALLY DECLARED DISASTERS.

    ``(a) In General.--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 continued business percentage of the qualified 
homeowner's insurance income of such company for such taxable year with 
respect to any disaster area.
    ``(b) Specified Insurance Company.--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 homeowner's insurance with respect to 
property located in such disaster area.
    ``(c) Qualified Homeowner's Insurance Income.--For purposes of this 
section, the term `qualified homeowner's 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 
        homeowner's insurance with respect to property located in the 
        disaster area, over
            ``(2) deductions properly allocable to such premiums.
    ``(d) Continued Business Percentage.--For purposes of this section, 
the term `continued business percentage' means, with respect to any 
specified insurance company for any taxable year, the ratio (not 
greater than 1) of--
            ``(1) the amount of gross premiums written, during such 
        taxable year, on homeowner's insurance with respect to property 
        located in the disaster area, divided by
            ``(2) the amount of gross premiums written, during the last 
        taxable year of such insurance company ending before the 
        incident date with respect to such disaster area, on 
        homeowner's insurance with respect to property located in the 
        disaster area.
    ``(e) Recovery Period.--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.
    ``(f) Disaster Area.--For purposes of this section, the term 
`disaster area' has the meaning given such term in section 7508A(d)(3).
    ``(g) Incident Date.--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.''.
    (b) Clerical Amendment.--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:

``Sec. 836. Exclusion of certain income from providing homeowner's 
                            insurance following certain federally 
                            declared disasters.''.
    (c) Effective Date.--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, 2021.
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