Bill Details
S.35 - 119th Congress
Status
Latest action
2025-01-08 - Read twice and referred to the Committee on Finance.
Introduced Date
2025-01-08
Policy Area
Taxation
Committees
View committees (1)
Sponsors
4
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would let individual taxpayers deduct some of the cost of their homeowners insurance from their federal taxes. The deduction would be an “above-the-line” deduction, which means it would lower a person’s adjusted gross income before other tax rules are applied. A homeowner could deduct up to $10,000 a year in eligible premiums for insurance on their main home. The change would start with taxable years that end after the bill becomes law.
- The deduction would apply only to individuals, not businesses.
- It would cover annual homeowners insurance premiums paid for a person’s principal residence.
- The most a taxpayer could deduct each year would be $10,000.
- The bill would amend the Internal Revenue Code to add this deduction and make related tax-code changes.
Official Summaries
Homeowners Premium Tax Reduction Act of 2025
This bill establishes a new deduction of up to $10,000 claimed against gross income (above-the-line tax deduction) for annual policy premiums paid or incurred for homeowners insurance on an individual's principal residence.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 35 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 35
To amend the Internal Revenue Code of 1986 to create an above the line
deduction for certain homeowners insurance premiums.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 8, 2025
Mr. Scott of Florida 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 create an above the line
deduction for certain homeowners insurance premiums.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Homeowners Premium Tax Reduction Act
of 2025''.
SEC. 2. DEDUCTION FOR HOMEOWNERS INSURANCE PREMIUMS.
(a) In General.--Part VII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by redesignating section 224
as section 225 and by inserting after section 223 the following new
section:
``SEC. 224. HOMEOWNERS INSURANCE PREMIUMS.
``(a) Allowance of Deduction.--In the case of an individual, there
shall be allowed as a deduction an amount equal to so much of the
qualified insurance premiums paid or incurred during the taxable year
as does not exceed $10,000.
``(b) Qualified Insurance Premiums.--For purposes of this section,
with respect to an individual, the term `qualified insurance premiums'
means annual policy premiums paid or incurred for homeowners insurance
with respect to the principal residence of the individual.
``(c) Principal Residence.--For purposes of this section, the term
`principal residence' has the same meaning as when used in section
121.''.
(b) Deduction Allowed in Determining Adjusted Gross Income.--
Section 62(a) of the Internal Revenue Code of 1986 is amended by
inserting after paragraph (21) the following new paragraph:
``(22) Homeowners insurance premiums.--The deduction
allowed by section 224.''.
(c) Clerical Amendment.--The table of sections for part VII of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is
amended by striking the item relating to section 224 and by inserting
after the item relating to section 223 the following new items:
``Sec. 224. Homeowners insurance premiums.
``Sec. 225. Cross reference.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
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