This measure gives property insurance companies a temporary federal tax break meant to encourage them to keep offering coverage in areas hit by disasters like hurricanes, wildfires, or floods. For five years after a federally declared disaster, an insurer that already covered property in that area can exclude the profit it earns from real property insurance premiums there from its federal taxable income. The tax break covers homeowners' and similar property policies, including personal belongings covered under the same policy. It applies to disasters declared after December 31, 2024, and is aimed at insurers who might otherwise pull out of high-risk markets, which could affect how many companies keep offering coverage to homeowners in disaster-prone regions.
Corporate Benefits
- Property insurer tax exclusion — Premium income from disaster-area coverage excluded from federal taxable income for 5 years after a disaster
Congressional Summary
Restoring Competitive Property Insurance Availability Act This bill allows certain insurance companies to temporarily exclude premiums paid for real property insurance on property located in a federally-declared disaster area from the company's gross income for federal tax purposes. Specifically, under the bill, an insurance company (other than a life insurance company) that provided real property insurance immediately prior to a federally-declared disaster for property located in the disaster area may exclude from gross income (1) the amount of premiums paid for such insurance, minus (2) any tax deductions properly attributed to such premiums. Further, such premiums may be excluded for the first five tax years ending after the date of the disaster.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-02-06
- Date Added
- 2026-07-01
- Source
- Congress.gov →
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