A new bipartisan bill in the U.S. Senate aims to support low- and middle-income homeowners facing rising flood insurance premiums. The Flood Insurance Affordability Tax Credit Act, introduced by Sen. Cory Booker (D-NJ) and Sen, according BestWire.
Bill Cassidy (R-LA), would offer a 33% refundable tax credit to homeowners enrolled in the National Flood Insurance Program (NFIP). The credit would only apply to primary residences and would exclude married taxpayers filing separate returns.
Sen. Cassidy highlighted the need for the bill, calling current NFIP premiums “outlandish” and a barrier for homeowners trying to safeguard their properties.
In addition to the tax credit, the bill requires the Secretary of the Treasury to create a program enabling advance premium payments on behalf of policyholders when payments are due. This initiative aims to reduce the financial burden on homeowners.
While we work to fix the broken system, this tax credit provides relief to current policyholders and provides a path for others to re-enroll in the program
Sen. Booker emphasized the importance of the bill for households in New Jersey, where rising premiums have strained many families.
“This bipartisan legislation will provide much-needed relief for low- and middle-income households, particularly in New Jersey,” Booker said.
He noted that the bill is a step toward expanding access, reducing costs, and enhancing protection against extreme weather and flooding.
The need for reform follows a recent report from Sen. Cassidy’s office, which flagged concerns about the NFIP’s financial health. The Federal Emergency Management Agency (FEMA), which oversees the NFIP, has been phasing out premium discounts and increasing rates to improve the program’s solvency.
These changes have caused many policyholders to exit the program, even though, for some, the NFIP is their only option for flood coverage.
